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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of FIEM Industries Ltd.

Mar 31, 2025

a) Terms/rights attached to equity shares

The company has only one class of shares referred to as equity shares having a par value of Rs 10 each. 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 except in case of interim dividend. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amount exist currently. The distribution will be in proportion to the number of the equity shares held by the shareholders.

In the meeting held on January 15, 2024, the Board of Directors had recommended the issue of Bonus Shares in the ratio of 1 (one) Bonus equity share of Rs.10 each fully paid-up for every 1 (one) existing equity share of Rs.10 each fully paid-up (in the ratio of 1:1). As per recommendation of Board, the shareholders of the Company approved the issue of Bonus Shares vide its resolution dated February 16, 2024 passed through Postal Ballot process. Accordingly, the Bonus Shares Committee of the Board allotted 1,31,59,830 Equity shares of Rs.10 each fully paid-up on February 29, 2024. Post allotment of Bonus shares, the equity capital of the Company stands at 2,63,19,660 Equity shares of Rs. 10 each

1) General Reserve - General reserve is created from time to time by way of transfer profits from retained earnings for

appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income._

2) Securities premium account is used to record the premium on issue of equity shares. Utilization of this reserve is governed by the provisions of the Companies Act 2013 and accordingly has been used in last year i.e. FY 2023-24 for issuing bonus shares.

a) From Citibank NA The limit is secured against First Pari Passu Charge on all present and future receivables, stocks/ Inventories with HDFC Bank Cash Credit Loan and including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with HDFC Bank.

b) From HDFC BANK :- . The limit is secured against First Pari Passu Charge on all present and future receivables, stocks/ Inventories with Citibank Cash Credit Loan, and including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank

There is also no amount of outstanding interest in this regard, brought forward from previous years. The above information is on basis of intimations received, from the vendors who have communicated their status with regards to vendors registration under the said Act on requests made by the company,

A fire incident occurred on January 25, 2018 at one block of unit-5, situated at Hosur Tamil Nadu. The claim was short assessed by the insurer amounting to Rs 314.00 lakhs due to application of the under-insurance clause. The Company preferred a writ against the short assessment with the Hon''ble High Court of Delhi. Hon''ble retired Supreme Court Judge was appointed as a sole arbitrator by the court vide order dated November 9,2022. The Arbitration proceeding were concluded vide order dated November 30,2024 wherein the claim of Rs 306.08 Lakhs, was accepted along with interest/ other expenses of Rs 68.87 Lakhs totalling to Rs 374.95 Lakhs.

(Amount Rs in Lakhs)
32 Contingent Liabilities	AS AT 31.03.2025	AS AT 31.03.2024
(A) Claims against the Company/disputed liabilities not acknowledged as debts (See Note-1)
(i) Custom Duty
(a) Import Duty Demand towards imported capital goods which were sold to the customer in relation to nil import duty being paid at the time of import of said capital goods in FY 2007-08 as a 100% EOU unit for which the company has filed an appeal with CESTAT Chennai (Net of deposit)	-	43.40
(b) Import Duty Demand towards short payment of import duty on raw material imported in FY 2020-21 for which the company has filed an appeal with Commissioner of Customs Appeals, Chennai (Net of deposit)	-	3.23
(ii) Sales Tax
(a) Sales Tax Demand for FY 2014-15 on Central Sales Tax Reversal under Section 19(2)(v) of the TNVAT Act, 2006 for which company has filed appeal with High Court, Chennai	150.07	150.07
(b) Sales Tax Demand for FY 2010-11 for which company has filed appeal with High Court of Punjab & Haryana (net of deposit)	-	20.00
(iii) CGST Act
(a) Demand for excess input tax credit availed and other issues for Rai unit for FY 2019-20, for which The Company has filed Appeal with Commissioner Appeal, Panchkula (net of deposit)	119.92	-
(b) Demand for excess input tax credit availed for Kanpur depo for FY 2020-21, for which The Company has filled appeal with Commissioner Appeal Kanpur on dated 3rd May, 2025.	0.78	-
	270.77	216.70

(iv) Income Tax

A demand of Rs. 617.71 Lakhs for A.Y. 2011-12 was raised by Income Tax Department. However, the matter has been decided in favour of the company by the CIT( Appeal). The issue has been challenged in ITAT, New Delhi by the Income

Tax Department and is pending adjudication. Accordingly, no demand is outstanding as on reporting date._

Note:-1- Based on the advice taken by the company, the company believes that it has good case in respect of all the items

(C) The Hon''ble Supreme Court of India, through a ruling in February 2019, provided interpretation on the components of Salary on which the Company and its employees are to contribute towards Provident Fund under the Employee''s Provident Fund Act. There are numerous interpretative issues relating to the Supreme Court (SC) judgement. Based on the current evaluation, the Company believes it is not probable that certain components of Salary paid by the Company will be subject to contribution towards Provident Fund pursuant to the Supreme Court order. The Company will continue to monitor and evaluate its position based on future events and developments.

The Company has identified two reportable business segments viz. Automotive and Others segment comprising LED

Luminaries on the basis of the nature of products, the risk and return profile of individual business and the internal business

reporting systems. The products included in each of the reported business segments are as follows:-_

(i) Automotive comprising of automotive lighting & signalling equipment, rear view mirror, prismatic mirror, plastic moulded _parts, sheet metal components, bank angle sensor and canisters for motorised vehicles and others parts for automotive.

(ii) Others Segment comprising of led luminaries viz. indoor and outdoor lighting, display panel, LED integrated passenger

_information system etc._

(iii) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to a segment on reasonable

_basis have been disclosed as "unallocated"_

(iv) Segment assets and segment liabilities represent assets and liabilities in respective segments. Income tax related assets/ liabilities, borrowings, deferred tax liabilities (net) and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as "Unallocated".

(a) Gratuity

The Company has defined benefit gratuity plan for its employees, which requires contributions to be made to a separately administered fund. It is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement age. The scheme is funded with HDFC Life Insurance Company Limited in the form of qualifying _insurance policy.___

(b) Earned Leave

The Present value obligation of Leave Encashment is determined based on actuarial valuation using projected unit credit _method._

(a) The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for

_the estimated terms of the obligations._

(b) Salary escalation rate: The estimates of future salary increases considered taking into the account the inflation, seniority,

_promotion and other relevant factors._

_return._

(d) Attrition rate is employee turnover rate based on the Company''s past and expected employee turnover.

(e) Disclosure related to indication of effect of the defined benefit plan on the entity''s future cash flows:

The management assessed that the fair values of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction among willing parties, other than in a forced or liquidation sale.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. In addition, the Company internally reviews valuation, including independent price validation for certain instruments.

Fair value of financial assets and liabilities is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

The following methods and assumptions was used to estimate fair value:

Fair value of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short term maturities of these instruments.

45 Financial Instruments and Risk Review Financial Risk Management Framework

The Company''s financial liabilities comprise mainly of trade payables and other payable. The Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Company oversees the management of these financial risks. The Company''s approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company''s management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company''s financial performance.

i) Capital Management

The Company''s capital management objectives are:

The Company is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on the amounts stated in the financial statements.

ii) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, other balances with banks, loans and other receivables.

In assessing, recoverability of receivables, the management has considered the asset type, past due status and other relevant factors considering the age of receivables. The provision for expected credit losses (ECL) are revised at each reporting date by the use of practical expedients viz provision matrix.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs. 24,240.90 Lakhs (net of write-off/provisions) (Previous Year Rs. 19,379.07 Lakhs) respectively, being the total of the carrying amount of balances with trade receivables. An amount of Rs. 31.83 lakhs (previous year Rs. 15.64 lakhs) has been written-off during the year after re-assessing long outstandings and obtaining objective evidences on the impairment of the trade receivables.

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of financial statement whether a financial asset or a group of financial assets is impaired. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

The Company''s primary customers are major automobile manufacturers (OEMs) with good credit ratings. Company''s exposure to customers is diversified and some customers contribute more than 10% of outstanding accounts receivable which forms 65% of total receivables as at 31 March, 2025 (62% as at 31 March, 2024), however there was no default on account of those customers in the past.

The Company performs credit assessment for customers on an annual basis and recognizes credit risk, on the basis lifetime expected losses and where receivables are due for more than six months.

iii) Liquidity Risk a) Liquidity risk management

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company has no outstanding borrowings as at 31/03/2025. The Company believes that the working capital is sufficient to meet its current requirements. As at March 31, 2025, the Company had a working capital of Rs. 48,902.65 Lakhs including cash and cash equivalents of Rs.29,578.61 Lakhs. As at March 31, 2024, the Company had a working capital of Rs. 41,094.96 lakhs including cash and cash equivalents of Rs. 20,381.03 Lakhs.

Maturities of financial liabilities

The following tables detail the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal

iv) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk. a) Foreign Currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollar, Euro, and Japanese Yen against the respective functional currencies of the Company.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. The information on foreign currency exposures that are not hedged by derivative instruments is as follows.

Foreign Currency Sensitivity

The following table demonstrates the sensitivity to a reasonable possible change in USD, EURO and JPY exchange rates, with all other variables held constant, the impact on the Company''s profit before tax due to changes in the fair value of monetary assets and liabilities. The Company''s exposure to foreign currency changes for all other currencies is not material. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 10% represents company''s assessment of reasonably possible change in foreign exchange rate.

b) Interest rate risk_

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s cash credit/working capital loans. The Company has no long term/short term outstanding borrowings as at 31 March, 2025. The Company investments are primarily in interest rate bearing investments like short term deposits with banks. Hence, the Company is significantly exposed to interest rate risk.

47 Corporate Social Responsibility (CSR) Expenditure

As required by section 135 of the Companies Act, 2013, CSR committee has been formed by the company. The company has formed Fiem Foundation Trust as on dated 2nd March, 2015 with an object to undertake CSR projects, programs and activities in India as listed under Schedule VII of the Act. The company has no outstanding commitment as at March 31, 2025 towards corporate social responsibility projects. The break-up of expenditure/contribution towards under corporate social responsibility as under-

49 Disclosure required by Ind AS 115

(i) Revenue from contracts with customers is disaggregated by major products and service lines and is disclosed in Note no. 21 to the standalone financial statements. Further, the revenue is disclosed in the said note is net of Rs. 1282.04 lakhs (previous year Rs. 1001.99 lakhs) representing discount to customers. The following table provides further information as required by Ind AS 115.

50 Additional Regulatory Disclosures As Per Schedule iii Of Companies Act, 2013

(i) Title Deed of the Immovable Properties

The title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company, except a piece of land (area approx. 1913 sqm) adjacent to unit-9 at Karsanpura, Gujarat, purchased for Rs. 18.23 Lakhs from other company. The seller company require permission from the state government for registration of sale deed, which is already applied by seller company. However, the permission could not be obtained during the year under reporting. The Company is regularly following-up with the seller company for getting the registration.

(ii) Investment Property

The Company does not have any investment property.

(iii) Revaluation of Property Plant and Equipment & Intangible Assets

As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(iv) Disclosure on Loan Given to Specified Persons (Promotors, Directors, KMPs and their Related Parties)

The Company has not given loan to Specified Persons (Promotors, Directors, KMPs and their Related Parties) during the year.

(v) Detail of Benami Property held.

No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami _Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder._

(vi) Borrowings obtained on the basis of Current Assets

There are no drawn borrowings from banks. However, the Company has sanctioned facilities from banks on the basis of security of current assets (trade receivables and inventory). The periodic returns filed by the Company with such banks are _in agreement with the books of accounts of the Company._

(vii) Disclosure Related to Wilful Defaulter against Borrowings

The Company has adhered to debt repayment and interest service obligations on time. Wilful defaulter related disclosures _required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable._

(viii) Disclosure of Transactions with Struck Off Companies

There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 _or Section 560 of the Companies Act, 1956 during the year ended March 31, 2025._

(ix) Disclosure of Registration of Charges or Satisfaction with ROC

All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have _been filed. No registration or satisfaction is pending at the year ended March 31, 2025._

(x) Compliance with Number of Layers of Companies

The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, _2013 read with Companies (Restriction on number of Layers) Rules, 2017._

(xi) Compliance with Approved Scheme''s of Arrangement

No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the _Companies Act, 2013._

(xii) Utilisation of Borrowed Fund and Share Premium

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) (b) provide any _guarantee, security or the like to or on behalf of the ultimate beneficiary_

(xiii) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate

_Beneficiaries) (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries_

(xiv) Details of Crypto Currency or Virtual Currency

The Company has not operated in any crypto currency or Virtual Currency transactions.

(xv) Disclosure in relation to Undisclosed Income

During the year, the Company has not disclosed or surrendered, any income other than the income recognised in the books of accounts in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Accordingly there are no transaction which are not recorded in the books of _accounts._

51 Dues to Micro, Small and Medium Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2025 and as at March 31, 2024 has been made in the financial statements based on information received and available with the Company. The Company has not received any claim for interest from any supplier as at the balance sheet date.

(b) Proposed Dividend

The Board of Directors in their meeting held on May 30,2025, have recommended a Final dividend of Rs 30 per share i.e. @ 300% of Nominal Value of Rs 10 each on 2,63,19,660 equity share of the company for F.Y. 2024-25 amounting to Rs 7895.90 lakhs (Previous year Rs 20 per share on 2,63,19,660 equity shares amounting to Rs 5263.93 Lakhs). The final dividend is subject to the approval of shareholders in the ensuing Annual General Meeting (AGM) of the Company and hence is not recognised as a liability.

54 Fire Incident

Part of one building of Unit-7 situated at Plot No. 1915, Phase -V, Rai Industrial Estate, Sonipat-131029 (Haryana) caught fire in June, 2023. The carrying value of inventories of Rs 2583.74 Lakhs (including GST reversals) and carrying value of property plant and equipment of Rs 2552.72 Lakhs (including GST reversal) was written off in the statement of profit and loss. The company has a valid insurance policy which adequately covers the losses for the inventories and reinstatement value of property plant and equipment. The recoverable amount pertaining to the loss of the inventory as stated above and loss to the extent of carrying amount of the property plant and equipment have been shown as receivable. The loss is under evaluation by the Insurance company and the outcome of the claim is subject to final assessment in due course of time. During the year, the Company has received interim /ad-hoc payments of Rs 5000 Lakhs from the insurer as detailed below :-

1) Rs.2000 Lakhs received on February 21, 2025.

2) Rs 3000 Lakhs received on September 10, 2024

The final entries would be recorded in the books of accounts on the finalization of the claim by the insurer.

55 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September, 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come in to the effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

56 Audit Trail

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled at the database level insofar as it relates to accounting software and the audit trail feature is also not enabled for certain changes made using privileged/ administrative access rights to the applications.

57 Previous year''s figures have been regrouped/reclassified wherever necessary. The figures are rounded off to nearest rupees in lakhs unless otherwise stated.

Mar 31, 2024

(O) Provisions and Contingent Liabilities Provision

A provision is recognized when the Company has a present obligation as a result of past event, and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate the reflects current market assessment of the time value of money and the risk specific to the liability. The increase in the provision due to the passage of time is recognised as interest expenses.

Product Warranties

A provision for warranties is recognised when the underlying products or services are sold. The provision is based on historical warranty data and weighting of all possible outcomes by their associated probabilities. Provisions for warranties are adjusted regularly to take account of new circumstances and the impact of any changes recognised in the statement of profit and loss.

Contingent Liabilities

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability. Show cause notices are not considered as Contingent Liabilities unless converted into demand.

(P) Taxation

Income Tax expense represent the sum of the tax currently payable and deferred tax Current Income Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the statement of profit and loss because of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying unit intends to settle the asset and liability on a net basis.

Deferred Income Tax

Deferred income tax is recognised using the balance sheet approach. Deferred Tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax liabilities and assets are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends and has ability to settle its current tax assets and liabilities on a net basis.

Current and Deferred Tax For The Year

Current and deferred tax are recognised in profit or loss, except when they relate to item that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

(Q) Borrowing Cost

Borrowing costs are interest and other costs that incurs in connection with the borrowing of funds and include interest expense calculated using the effective interest method as described in Ind AS 39 Financial Instruments: Recognition and Measurement, exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss.

(R) Impairment

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of cash inflows from other assets or groups of assets (cash generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

(S) Cash Flow Statement

The Cash Flow Statement is prepared by the indirect method set out in Ind AS-7 on Cash Flow Statements and presents cash flows by operating, investing and financing activities of the Company.

(T) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Core Management Committee which includes the Managing Director who is the Chief Operating Decision Maker. The Core Management Committee examines performance both from product and a geographical perspective. The Company has identified two reportable business segments viz. Automotive and Other Segment comprising LED Luminaries on the basis of the nature of products, the risk and return profile of individual business and the internal business reporting systems.

(U) Lease

The Company has applied Ind AS 116 using modified retrospective approach.

The Company''s lease asset classes primarily consist of leases for land and building. The Company assesses whether a contract is or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

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

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

At the date of commencement of the lease, the Company recognise a right-of-use asset (âROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and leases of low value assets. For these short term and leases of low value assets, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The remeasurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

(V) Dividend on Equity Share

Dividends on equity shares are recorded on the date of approval by the shareholders of the Company.

(W) Corporate Social Responsibility (CSR) Expenditure

CSR Expenditure incurred by the Company is charged to the standalone statement of the profit and loss

(X) Earnings Per Share

The Basic and Diluted Earnings Per Share (âEPS") is computed by dividing the profit after tax (loss) for the year by weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share, the net profit (loss) for the year attributable to equity shareholder and the weighted average number of share outstanding during the year are adjusted for the effect of all dilutive potential equity shares. The weighted average number of shares outstanding during the year are adjusted for events of bonus issue and share split, if any.

44 Financial Instruments and Risk Review Financial Risk Management Framework

i) Capital Management

The Company''s capital management objectives are:

The Company is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity.

ii) Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs. 19,379.07 Lakhs (net of write-off/provisions) (Previous Year Rs. 14,080.24 Lakhs) respectively, being the total of the carrying amount of balances with trade receivables. An amount of Rs. 15.64 lakhs (previous year Rs. 37.09 lakhs) has been written-off during the year after re-assessing long outstandings and obtaining objective evidences on the impairment of the trade receivables.

The Company''s primary customers are major automobile manufacturers (OEMs) with good credit ratings. Company''s exposure to customers is diversified and some customers contribute more than 10% of outstanding accounts receivable which forms 62% of total receivables as at 31 March, 2024 (50% as at 31 March, 2023), however there was no default on account of those customers in the past.

The Company performs credit assessment for customers on an annual basis and recognizes credit risk, on the basis lifetime expected losses and where receivables are due for more than six months.

iii) Liquidity Risk (Amount Rs in Lakhs)

a) Liquidity risk management

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company has no outstanding borrowings as at 31/03/2024. The Company believes that the working capital is sufficient to meet its current requirements. As at March 31, 2024, the Company had a working capital of Rs. 41,094.96 Lakhs including cash and cash equivalents of Rs.20,381.03 Lakhs. As at March 31, 2023, the Company had a working capital of Rs. 29,504.04 lakhs including cash and cash equivalents of Rs. 17,993.47 Lakhs.

iv) Market Risk

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments. The information on foreign currency exposures that are not hedged by derivative instruments is as follows.

49 ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF COMPANIES ACT, 2013

(i) Title Deed of the Immovable Properties

The title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company, except a piece of land (area approx.. 1913 sqm) adjacent to unit-9 at Karsanpura, Gujarat, purchased for Rs. 18.23 Lakhs from other company. The seller company require permission from the state government for registration of sale deed, which is already applied by seller company. However, the permission could not be obtained during the year under reporting. The Company is regularly following-up with the seller company for getting the registration.

(ii) Investment Property

The Company does not have any investment property.

(iii) Revaluation of Property Plant and Equipment & Intangible Assets

(iv) Disclosure on Loan Given to Specified Persons (Promotors, Directors, KMPs and their Related Parties)

The Company had given home loan of Rs. 50.00 Lakhs at interest rate of 8.00% p.a (fixed) to joint managing director (Mr. Rajesh Sharma), which was repayable in 60 equal monthly instalment of Rs.1.05 lakhs each. Rajesh Sharma has re-paid entire home loan outstanding during the year. The amount outstanding and percentage of total loan is as below.

53 Fire Incident

Part of one building of Unit-7 situated at Plot No. 1915, Phase -V, Rai Industrial Estate, Sonipat-131029 (Haryana) caught fire on June 13, 2023 around noon. There were no human casualties reported. The carrying value of inventories of Rs 2583.74 Lakhs (including GST reversals) and carrying value of property plant and equipment of Rs 2456.79 Lakhs are written off in the statement of profit and loss. The company has a valid insurance policy which adequately covers the losses for the inventories and reinstatement value of property plant and equipment. The recoverable amount pertaining to the loss of the inventory as stated above and loss to the extent of carrying amount of the property plant and equipment have been shown as receivable. An estimated claim of Rs.11270.00 Lakhs on the Reinstatement Value basis ( including contingencies value upto 5% ) had been submitted to insurer on October 13, 2023. The loss is under evaluation by the surveyor and the outcome of the claim is subject to final assessment by the insurer in due course of time. The final entries would be recorded in the books of accounts on the finalization of the claim by the insurer.

54 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September, 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come in to the effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

55 Audit Trail

In the SAP, audit trail at transaction level on application layer has an embedded audit trail in sub-ledger accounting tables which creates unique events for every transaction along with dates of creating and updating transactions with the identity of users. General ledger journals are not allowed to be modified after posting and the date and creator of journals are tracked. This feature cannot be disabled.

56 Previous year''s figures have been regrouped/reclassified wherever necessary .The figures are rounded off to nearest rupees in lakhs unless otherwise stated.

For and on behalf of the Board of Directors As per our report of even date

for Anil S. Gupta & Associates Chartered Accountants

Firm Registration Number -004061N

Sd/- Sd/- Sd/- Sd/- Sd/-

( J. K. Jain ) (Vineet Sahni) ( O.P. Gupta ) ( Arvind K. Chauhan ) (Anil Kumar Gupta)

Chairman & Managing Director CEO & Director Chief Financial Officer Company Secretary Partner

Membership No.:-083159

Place: Rai, Sonepat (HR.)

Dated: 21/05/2024

Mar 31, 2023

Terms/rights attached to equity shares

FOREIGN CURRENCY TERM LOAN FROM BANKS INCLUDE

a) From Standard Chartered Bank ECB -3 for 55 lakh USD Loan outstanding as on 31.03.23- NIL (as on 31.03.22- Rs 435.89 lakhs). The loan was for 6 years with 16 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest was quarterly payable. The loan carried fully hedged interest cost of 8.90% p.a. The Loan was secured on first pari passu charge basis with HSBC INDIA, HSBC Mauritius and CITIBANK FCNR TERM LOAN-3 on all assets of Tapukara plant ( Present and future) and secured against exclusive charge on movable fixed assets situated at Mysore unit-4, and Hosur Unit-3 Kelamangalam Road. the loan was fully repaid during the year.

b) From Citibank FCNR Term Loan -4:- Outstanding as on 31.03.23 is NIL (as on 31.03.22- Rs 484.70 lakhs ) The Loan is for 5 year and has 17 quarterly equal repayment starting from the end of 12 months of drawdown. Interest is monthly payable. The loan carried fully hedged interest cost of 9.00% p.a.. The Loan is Secured against exclusive charge on fixed assets financed out of the term loan and first exclusive charge of the movable assets of Unit-V situated at Hosur, Tamilnadu and exclusive charge on Plant and Machinery and Land and Building of unit-VI Located at Village Bhatian, tehsil Nalagarh, Distt. Solan -174101. The loan was fully prepaid during the year.

c) From Citibank FCNR Term Loan -5 :- Outstanding as on 31.03.23 is NIL (31.03.22- 1295.54 lakhs) the Loan is for 5 year and has 17 quarterly equal repayment starting from the end of 12 months of drawdown .The Loan carried fully hedged interest cost of 8.80% p.a..The Loan is Secured against exclusive charge on fixed assets financed out of the term loan and first charge of the movable assets of Unit-V situated at Hosur, Tamilnadu The loan was fully prepaid during the year.

VEHICLE LOANS FROM BANKS

Vehicle loan from banks:- outstanding as on 31.03.23- NIL (31.03.22- Rs 40.73 Lakhs), secured against hypothecation of the respective vehicles acquired out of proceeds thereof. The Loans carried interest rate between 8.50% p.a.to 9.50% p.a...The loans were fully repaid during the year.

Indian Rupee Loan includes

a) From Citibank NA Loan outstanding as at 31.03.23 - NIL, (as on 31.03.22- Nil). Interest is payable with monthly rest on the last date of each month in each year or at such other rest as determined by the bank. The rate of interest is based on relevant circumstances, including market conditions. The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Standard Chartered Bank Cash Credit Loan, HDFC Bank Cash Credit Loan , Indusind Bank Bank Guarantee Limit and secured against First Pari Passu charge on all the fixed assets of the company (excluding assets specifically purchased out of the term loans from Citibank and other term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Standard Chartered Bank, HDFC Bank,

b) From Standard Chartered Bank :- Loan outstanding as at 31.03.23- NIL (as on 31.03.22- NIL ), Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time . The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, HDFC Bank Cash Credit Loan , Indusind bank Bank Guarantee Limit and secured against First Pari Passu Charge on present and future moveable fixed assets of the company with Citibank , HDFC Bank, Indusind Bank (excluding assets specifically purchased out of term loan from term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank , HDFC Bank

c) From HDFC BANK :- Loan outstanding as at 31.03.23- NIL ( as on 31.03.22- NIL ), Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time. The loan is secured against First Pari Passu charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, Standard Chartered Bank Cash Credit Loan, Indusind bank Bank Guarantee Limit and secured against First Pari Passu Charge on all fixed assets of the company (excluding assets specifically purchased out of term loan from term loan lenders ) with Citibank, Standard Chartered Bank, Indusind Bank including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, Standard Chartered Bank,

(Amount Rs in Lakhs)
33 Contingent Liabilities	AS AT 31.03.2023	AS AT 31.03.2022
(A) Claims against the Company/disputed liabilities not acknowledged as debts (See Note-1)
(i) Income Tax
Case decided in the Company''s favour by First Appellate Authorities for AY 2011-12 and for which the department has filed further appeals, No demand is outstanding as on the reporting date as the matter has been decided in favour of the company by the CIT( Appeal).However the issue has been challenged in ITAT, New Delhi by the income tax department.	617.71	617.71
(ii) Custom Duty
(a) Import Duty Demand towards imported capital goods which were sold to the customer in relation to nil import duty being paid at the time of import of said capital goods in FY 2007-08 as a 100% EOU unit for which the company has filed an appeal with CESTAT Chennai (Net of deposit)	43.40	43.40
(b) Import Duty Demand towards short payment of import duty on raw material imported in FY 2020-21 for which the company has filed an appeal with Commissioner of Customs Appeals, Chennai (Net of deposit)	3.23
(iii) Sales Tax
(a) Sales Tax Demand for FY 2014-15 on Central Sales Tax Reversal under Section 19(2)(v) of the TNVAT Act, 2006 for which company has filed appeal with High Court, Chennai	150.07	150.07
(b) Sales Tax Demand for FY 2010-11 for which company has filed appeal with High Court of Punjab & Haryana (net of deposit)	20.00	20.00
Note:-1- Based on the advice taken by the company, the company believes that it has good case in respect of all the items under (i) to (iii) above and hence no provision is considered necessary against the same.
(B) Other Money for which the Company is contingently liable	AS AT 31.03.2023	AS AT 31.03.2022
Liability in respect of bill of exchange discounted from bank	5,097.99	5,509.27
	5,097.99	5,509.27

45 Other Segment Reporting_

(a) Identification of Segments:

Primary-Business Segments_

The Company has identified two reportable business segments viz. Automotive and Other segment comprising LED Luminaries on the basis of the nature of products, the risk and return profile of individual business and the internal business reporting systems. The products included in each of the reported business segments are as follows:-_

(ii) Other Segment comprising of led luminaries viz. indoor and outdoor lighting, display panel, LED integrated passenger

_information system etc._

_basis have been disclosed as "unallocated"_

(a) Gratuity

(b) Earned Leave

The Present value obligation of Leave Encashment is determined based on actuarial valuation using projected unit credit

_method._

Disclosure requirement as per Indian Accounting Standard on Employee Benefits-Ind AS (19)-As per actuarial valuation as _on 31/03/2023 are as follows:_

The following methods and assumptions were used to estimate fair value:

(a) Fair value of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short term maturities of these instruments.

(b) Fair value of quoted mutual funds is based on the net assets value at the reporting date.

49 Financial Instruments and Risk Review Financial Risk Management Framework

The Company''s financial liabilities comprise mainly of borrowings, trade payables and other payable. The Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Company oversee the management of these financial risks. The Company''s approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company''s management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company''s financial performance.

i) Capital Management

The Company''s capital management objectives are:

The Company is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

ii) Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was Rs. 14,080.24 Lakhs (net of write-off/provisions) (Previous Year Rs. 17,652.74 Lakhs) respectively, being the total of the carrying amount of balances with trade receivables. An amount of Rs. 37.09 lakhs (previous year Rs. 70.42 lakhs) has been written-off during the year after re-assessing long outstandings and obtaining objective evidences on the impairment of the trade receivables.

The Company''s primary customers are major automobile manufacturers (OEMs) with good credit ratings. Company''s exposure to customers is diversified and some customers contribute more than 10% of outstanding accounts receivable which forms 50% of total receivables as at 31 March, 2023 (46% as at 31 March, 2022), however there was no default on account of those customers in the past.

The Company performs credit assessment for customers on an annual basis and recognizes credit risk, on the basis lifetime expected losses and where receivables are due for more than six months.

iii) Liquidity Risk

a) Liquidity risk management

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company''s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company has no outstanding borrowings as at 31/03/2023. The Company believes that the working capital is sufficient to meet its current requirements. As at March 31, 2023, the Company had a working capital of Rs. 29,504.04 Lakhs including cash and cash equivalents of Rs.17,993.47 Lakhs and current investments of Rs. Nil Lakhs. As at March 31, 2022, the Company had a working capital of Rs. 18,699.05 lakhs including cash and cash equivalents of Rs. 6678.85 Lakhs and current investments of Rs. 8,289.40 Lakhs.

b) Maturities of financial liabilities I I I

iv) Market Risk

a) Foreign Currency exchange rate risk (Amount Rs in Lakhs)

Foreign Currency Sensitivity

53 Disclosure required by Ind AS 115

(i) Revenue from contracts with customers is disaggregated by major products and service lines and is disclosed in Note no. 23 to the standalone financial statements. Further, the revenue is disclosed in the said note is net of Rs. 726.52 lakhs (previous year Rs. 703.20 lakhs) representing discount to customers. The following table provides further information as required by Ind AS 115.

54 ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF COMPANIES ACT, 2013

(i) Title Deed of the Immovable Properties

The title deeds of the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company, except a piece of land (area approx.. 1913 sqm) adjacent to unit-9 at Karsanpura, Gujarat, purchased for Rs. 18.23 Lakhs from other company. The seller company require permission from the state government for registration of sale deed, which is already applied by seller company. However, the permission could not be obtained during the year under reporting. The Company is regularly following-up with the seller company for getting the registration.

(ii) Investment Property

The Company does not have any investment property.

(iii) Revaluation of Property Plant and Equipment & Intangible Assets

(iv) Disclosure on Loan Given to Specified Persons (Promotors, Directors, KMPs and their Related Parties)

During the year on dated 09 June, 2022, the Company has given home loan of Rs. 50.00 Lakhs at interest rate of 8.00% p.a (fixed) to whole-time director (Mr. Rajesh Sharma), which are repayable in 60 equal monthly installment of Rs.1.05 lakhs each. The amount outstanding and percentage of total loan is as below.

(v) Detail of Benami Property held.

No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami _Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder._

(vi) Borrowings obtained on the basis of Current Assets

The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic returns filed by _the Company with such banks are in agreement with the books of accounts of the Company._

(vii) Disclosure Related to Wilful Defaulter against Borrowings

(viii) Disclosure of Transactions with Struck Off Companies (Amount Rs in Lakhs)

There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 _or Section 560 of the Companies Act, 1956 during the year ended March 31, 2023._

(ix) Disclosure of Registration of Charges or Satisfaction with ROC

AH applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have _been filed. No registration or satisfaction is pending at the year ended March 31, 2023._

(x) Compliance with Number of Layers of Companies

The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, _2013 read with Companies (Restriction on number of Layers) Rules. 2017._

(xi) Compliance with Approved Scheme''s of Arrangement

No scheme of arrangement has been approved by the competent authority in terms of Section 230 to 237 of the _Companies Act, 2013._

(xii) Utilisation of Borrowed Fund and Share Premium

_guarantee, security or the like to or on behalf of the ultimate beneficiary_

The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)

( _iii) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate _Beneficiaries) (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries_

(xiv) Details of Crypto Currency or Virtual Currency

The Company has not operated in any crypto currency or Virtual Currency transactions.

(xv) Disclosure in relation to Undisclosed Income

During the year, the Company has not disclosed or surrendered, any income other than the income recoginsed in the books of accounts in the tax assessments under Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). Accordingly there are no transaction which are not recorded in the books of _accounts._

55 Dues to Micro, Small and Medium Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2023 and as at March 31, 2022 has been made in the financial statements based on information received and available with the Company. The Company has not received any claim for interest from any supplier as at the balance sheet date.

(b) Proposed Dividend

The Board has recommended the final dividend of Rs. 30 per equity share (300% of nominal value of Rs. 10 per share) for the financial year ended 31 March, 2023 for amounting to Rs. 3947.95 Lakhs/- on equity share capital of the company. The final dividend is subject to the approval of shareholders in the ensuing Annual General Meeting (AGM) of the Company and hence is not recognised as a liability.

58 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September, 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come in to the effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

59 Previous year''s figures have been regrouped/reclassified wherever necessary. The Figures are rounded off to nearest rupees in lakhs unless otherwise stated.

Mar 31, 2018

1. General Information

Fiem Industries Limited (âThe Companyâ) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The address of its registered office is D-34, DSIDC Packaging Complex, Kirti Nagar, New Delhi-110015. Its shares are listed on National Stock Exchange and Bombay Stock Exchange in India. The Company is in the business of manufacturing and supply of auto components comprising of automotive lighting & signalling equipments, rear-view mirror, prismatic mirror, plastic moulded parts and sheet metal components for motorised vehicles, and LED luminaries comprising of indoor and outdoor lighting, display panels and integrated passengers information system.

INDIAN RUPEE TERM LOANS FROM BANKS INCLUDE

a) From Citibank :- Loan outstanding as at 31.03.18 - NIL ( 31.03.17- Nil, 01.04.16 - RS.9733 Lacs ) had tenor of 5 years witRs.16 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest was payable on monthly basis . The loan carried fixed interest rate of 12% p.a. and was secured against exclusive charge on all movable assets procured out of the term loan. This loan has been fully repaid during the year fy 16-17

b) From State bank of Patiala :- Loan outstanding as on 31.03.18 - NIL ( 31.03.17- H NIL , 01.04.16- RS.400 lacs-). The loan was for 7 years witRs.24 quarterly repayment beginning from the end of 15 months from the drawdown. Interest was monthly payable. The interest rate was 10.30%.p.a. The Loan was Secured against First Pari Passu charge alongwith Axis Bank and HSBC over movable and Immovable fixed assets of Rai Unit ( Present and future) including equitable mortgage of Factory Land and Building at Rai, Sonepat and First charge on movable fixed assets of Hosur unit- III (tamilnadu) and First Charge on movable fixed assets of Mysore unit -IV Karnataka and First charge on entire fixed assets of Unit- VI Nalagarh Unit. This loan has been fully repaid during the year 16-17

c) From Axis Bank :- Loan outstanding as on 31.03.18- NIL, (31.03.17 RS.508 Lacs - 0,1.04.16- RS.1016 lacs) :- The loan was for 7 years and had quarterly repayment beginning after moratorium period of 12 months from the drawdown. Interest is monthly payable. The interest rate was 10.10% p.a.. The Loan was secured against First Pari Passu charge with State Bank of Patiala and HSBC bank on the movable and immovable fixed assets of Rai Unit including equitable mortgage of Factory Land and Building of Rai Unit and secured against First Pari Passu Charge on movable fixed assets of kundli unit and Unit -2 at Hosur with Citibank FCNR-II term loan. The loan has been fully repaid during the FY 17-18

d) HSBC Bank:- Loan -1 Outstanding as on 31.03.18- NIL ( 31.03.17 RS.312.50 lacs , 01.04.16 - RS.562.50 lacs ) The Loan was for 5 year and had quarterly equal repayment beginning after moratorium period of 1 year. Interest was monthly payable. The loan carried fixed interest rate of 10% p.a.. The Loan was Secured against First Pari Passu charge with Axis Bank on the movable and immovable fixed assets of Rai Unit including equitable mortgage of Factory Land and Building of Rai Unit. The loan has been fully repaid during FY 17-18

e) HSBC Bank:- Loan -2 Outstanding as on 31.03.18 is RS.1400 lacs, (31.03.17 RS.1800 lacs , 01.04.16- RS.2000 lacs ) The Loan is for 6 year and has 20 quarterly equal repayment beginning after moratorium period of 15 months . Interest is monthly payable. The loan carries fixed interest rate of 9.50% p.a.. The Loan is Secured against First Pari-Passu charge with HSBC -Mauritius and with CITIBANK FCNR TERM LOAN -3 by way of equitable mortgage on land and building and hypothecation of Plant and machinery at project in Gujarat( Survey no 151-153, village karsanpur, Taluka mandal, Distt Ahmedabad) and secured against first pari passu charge by way of equitable mortgage on Land and Building and hypothecation of Plant and Machinery at Tapukara Rajasthan along with ,HSBC Mauritius, CITIBANK FCNR TERM LOAN -3 and STANDARD CHARTERD BANK ECB-3 LOAN

FOREIGN CURRENCY TERM LOAN FROM BANKS INCLUDE

a) From Citibank :- FCNR Term Loan -1 outstanding as on 31.03.18 -H NIL ( 31.03.17 RS.304.69 lacs, 01.04.16 RS.500 lacs) had tenor of 5 years witRs.16 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest was payable on monthly basis. The loan carried fully hedged interest cost of 10.60% p.a. The Loan was secured against exclusive charge on fixed assets financed out of the term loan and first charge of the movable fixed assets of Unit-V situated at Hosur, tamilnadu. The loan has been fully repaid during the FY 17-18

b) From Citibank :- FCNR Term Loan -2 outstanding as on 31.03.18 - RS.920.93 Lacs, as on 31.03.17- RS.1442.61 lacs ( as on 1.04.16 RS.1875 lacs ) has tenor of 5 years witRs.16 equal quarterly repayments beginning from the end of 12 months from drawdown. Interest is payable on monthly basis. The loan carries fully hedged interest cost of 10.25% p.a. The Loan is secured against exclusive charge on fixed assets financed out of the term loan and is secured against First pari-passu charge on the fixed assets of Kundli Unit-1 and Hosur Unit-2 with working capital Lenders viz. Citibank, Standard Chartered Bank, HDFC bank and Indusind Bank Guarantee limit and term lender Axis Bank. The Loan is also secured against exclusive charge on fixed assets financed out of the term loan and first charge of the movable fixed assets of Unit-V situated at Hosur, tamilnadu.

c) From Citibank :- FCNR Term Loan -3 outstanding as on 31.03.18- RS.2709.74 lacs , as on 31.03.17- RS.3376.47 lacs ( as on 1.04.16 - H NIL) has tenor of 6 years witRs.20 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest is payable on monthly basis. The loan carries fully hedged interest cost of 9% p.a. The Loan is secured against First pari-passu charge on the fixed assets of the company including land and building and plant and machinery at Rajasthan unit with other lender viz. HSBC India, HSBC Mauritius and SCB 5.50 Million USD ECB LOAN and is secured against first pari-passu charge on all the fixed assets including land and building and plant and machinery of Gujarat unit shared with other lenders viz. HSBC India, HSBC Mauritius .

d) From Standard Chartered Bank ECB -2 :- Loan outstanding as on 31.03.18- NIL, 31.03.17 - NIL ( 01.04.16 - RS.276.19 lacs ). The loan was for 5 years witRs.16 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest was quarterly payable. The loan carried fully hedged interest cost of 8.50% p.a. The Loan was secured against Equitable mortgage on land and building and Pant and machinery at Tapukara, Rajasthan Unit with HSBC India and HSBC Mauritius. This loan has been fully repaid during the year

e) From Standard Chartered Bank ECB -3 for 5.50 Million USD :- Loan outstanding as on 31.03.18- RS.3235.94 lacs, as on 31.03.17 - RS.3566.12 lacs ( as on 1.04.16 HNIL ). The loan is for 6 years witRs.16 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest is quarterly payable. The loan carries fully hedged interest cost of 8.90% p.a. The Loan is secured on first pari passu charge basis with HSBC INDIA, HSBC Mauritius and CITIBNK FCNR TERM LOAN-3 on all assets of Tapukara plant ( Present and future)

f) From HSBC Mauritius ECB :- Loan outstanding as on 31.03.18- RS.3496.13 lacs, as on 31.03.17- RS.4457.65 lacs , as on 1.04.16 RS.4927.50 lacs . The loan is for 6 years witRs.20 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest is quarterly payable. The loan carries fully hedged interest cost of 8.99% p.a. The Loan is secured against Equitable Mortgage with CITIBANK FCNR TERM LOAN-3 (1st Pari Passu with HSBC, India) on Land and Building and Hypothecation of Plant and Machinery ( 1st pari- Passu with HSBC, India) located at Ahmedabad, Gujarat and secured against equitable mortgage on Land and Building with ( 1st pari- Passu with HSBC, India) and hypothecation of Plant and Machinery ( 1st pari- Passu with HSBC, India) along with CITIBANK FCNR TERM LOAN -3 AND STANDARD CHARTERED BANK ECB-3 at Tapukara Rajasthan

VEHICLE LOANS FROM BANKS AND OTHERS

Vehicle loan from banks and others outstanding as on 31.03.18- 396.97 lacs, as on 31.03.17 RS.340.03 lacs (as on 01.04.16- RS.518.56 lacs) secured against hypothecation of the respective vehicles acquired out of proceeds thereof. The Loans carries interest rate between 8.50% p.a.to 11.00% p.a.

Indian Rupee Loan includes

a) From Citibank NA :- Loan outstanding as at 31.03.18- RS.1885.68 lacs, as on 31.03.17 RS.2220.20 lacs (1.04.16 - RS.104.43 lacs) Interest is payable with monthly rest on the last date of each month in each year or at such other rest as determined by the bank. The rate of interest is based on relevant circumstances, including market conditions which currently is 9.5% p.a.. The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Standard Chartered Bank Cash Credit Loan, HDFC Bank Cash Credit Loan , Indusind Bank Bank Guarantee Limit and secured against First Pari Passu charge on all the fixed assets of the company (excluding assets specifically purchased out of the term loans from Citibank and other term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Standard Chartered Bank, HDFC Bank, Indusind Bank and Citibank FCNR-2 Loan.

b) From Standard Chartered Bank :- Loan outstanding as at 31.03.18- RS.1275.75 lacs, as on 31.03.17 is RS.2717.80 lacs (01.04.16 RS.728.01 lacs) Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time which currently is 9.50% p.a.. The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, HDFC Bank Cash Credit Loan , Indusind bank Bank Guarantee Limit and secured against First Pari Passu Charge on present and future moveable fixed assets of the company with Citibank , HDFC Bank, Indusind Bank (excluding assets specifically purchased out of term loan from term loan lenders) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, HDFC Bank, Indusind bank and Citibank FCNR-2 Loan.

c) From HDFC BANK :- Loan outstanding as at 31.03.18- RS.545.39 lacs , as on 31.03.17 RS.1477.16 lacs ( as on 01.04.16 - RS.997.38 lacs ) Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time which currently is 9.00% p.a.. The loan is secured against First Pari Passu charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, Standard Chartered Bank Cash Credit Loan, Indusind bank Bank Guarantee Limit and secured against First Pari Passu Charge on all fixed assets of the company (excluding assets specifically purchased out of term loan from term loan lenders ) with Citibank, Standard Chartered Bank, Indusind Bank including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, Standard Chartered Bank, Indusind Bank and Citibank FCNR-2 Loan.

d) Indusind Bank Bank Guarantee Limit:- The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, Standard Chartered Bank Cash Credit Loan, HDFC bank Cash Credit Loan Limit and secured against First Pari Passu Charge on present and future moveable fixed assets of the company with Citibank, Standard Chartered Bank, HDFC bank (excluding assets specifically purchased out of term loan from term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, Standard Chartered Bank, HDFC bank and Citibank FCNR-2 Loan. Bank Guarantee charges is 0.60% p.a. plus applicable tax.

Note :- A fire incident happened on 25.01.2018 around noon in one block of Unit-5, situated at Kelamanglam Road, Achettipalli Post, Hosur 635110,Tamilnadu. The incident resulted in substantial damage to plant and machinery and Inventory etc. in the said block. These assets were adequately insured with reinstatement clause and a claim has been made with the insurance company. Special/urgent actions to restart supplies to the customer post fire incident has temporarily resulted into additional costs during the year have been included in âExceptional Itemsâ above. The company has estimated net gain of RS.53724 lac in form of reversal of depreciation charged in earlier years recoverable from the insurance company.

2. SEGMENT REPORTING

(a) Identification of Segments:

Primary-Business Segments

(i) Automotive comprising of automotive lighting & signalling equipment, rear view mirror, prismatic mirror, plastic moulded parts, and sheet metal components for motorised vehicles and others parts for automotive.

(ii) LED Luminaries Segment comprising of led luminaries viz. indoor and outdoor lighting, display panel, LED integrated passenger information system etc.

b) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to a segment on reasonable basis have been disclosed as âunallocatedâ

(c) Segment assets and segment liabilities represent assets and liabilities in respective segments. Income tax related assets/liabilities, borrowings, investment in mutual funds, deferred tax liabilities (Net) and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as âUnallocatedâ.

(ii) Secondary-Geographical Segments:-

The analysis of geographical segments is based on geographical location of the customers

The following is the distribution of Companyâs revenue by geographical market, regardless of where the goods were produced

1. Sales Revenue by geographical market outside India has been re-stated by excluding indirect exports.

2. The segment trade receivables have been re-stated by excluding trade receivables on account of indirect exports.

3. The Company has common assets for producing goods for domestic market and overseas market. Hence, separate figures for fixed assets have not be furnished. 46 RELATED PARTY DISCLOSURES UNDER IND AS 24

Name of Related Parties, Transactions and Balances at Reporting date are as follows

Name of Related Party

(i) Key Management Personnel

Jagjeevan Kumar Jain Chairman and Managing Director

Seema Jain Whole Time Director

Aanchal Jain Whole Time Director

Rahul Jain Whole Time Director

JSS Rao Whole Time Director

Kashi Ram Yadav Whole Time Director

Ashok Kumar Sharma Independent Director (we.f. September 10, 2016)

Iqbal Singh Independent Director

Jawahar Thakur Independent Director (we.f. November 12, 2016)

Mohan Bir Sahni Independent Director

Subodh Kumar Jain Independent Director

Vinod Kumar Malhotra Independent Director

Abhishek Jain Independent Director (upto September 8, 2016)

Charoen Sachamuneewongse Independent Director (upto October 20, 2016)

OP Gupta Chief Financial Officer

Arvind Kumar Chauhan Company Secretary

(ii) Related Parties Controlled by Key Management personnel

Fiem Auto Private Limited Entity Controlled by Key Management Personnel

Jagjeevan Kumar Jain (HUF) Entity Controlled by Key Management Personnel

Fiem Auto & Electrical Industries Entity Controlled by Key Management Personnel

Fiem Foundation Entity Controlled by Key Management Personnel

(iii) Subsidiary Company

Fiem Industries Japan Co., Ltd 100% Subsidiary Company incorporated in Japan

Fiem (Thai) Design & Technology Co., Ltd 100% Subsidiary Company incorporated in Thailand

(iv) Joint Venture

Centro Ricerche Fiem Horustech SRL JV incorporated in Italy, 50% ownership interest held by the company

Fiem Kyowa (HK) Mould Company Ltd JV incorporated in Hong Kong, 50% ownership interest held by the company

Defined Benefit Plans (a) Gratuity

The Company has defined benefit gratuity plan for its employees, which requires contributions to be made to a separately administered fund. It is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the memberâs length of service and salary at retirement age. The scheme is funded with Exide Life Insurance Company Limited in the form of qualifying insurance policy.

(b) Leave Encashment

The Present value obligation of Leave Encashment is determined based on actuarial valuation using projected unit credit method.

Disclosure requirement as per Indian Accounting Standard on Employee Benefits-Ind AS (19)-As per actuarial valuation as on 31.03.2018 are as follows:

(a) The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated terms of the obligations.

(b) Salary escalation rate: The estimates of future salary increases considered taking into the account the inflation, seniority, promotion and other relevant factors.

(c) Expected return on assets is expected return on plan assets over the accounting period, based on an assumed rete of return.

(d) Attrition rate is employee turnover rate based on the Companyâs past and expected employee turnover.

(e) Disclosure related to indication of effect of the defined benefit plan on the entityâs future cash flows:

(f) Weighted Average duration of defined benefit obligation for gratuity and earned leave: 19.59 years

(g) Sensitivity analysis:

Sensitivity analysis indicates the influence of a reasonable change in principal assumptions, while keeping other things constant, on the outcome of the present value of Defined Benefit Obligation. In reality, the plan is subject to multiple external experience items which may move the Defined Benefit Obligation in similar or opposite directions, while the Planâs sensitivity to such changes can vary over time.

The following methods and assumptions were used to estimate fair value:

(a) Fair value of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short term maturities of these instruments.

(b) Fair value of quoted mutual funds is based on the net assets value at the reporting date.

3. FINANCIAL INSTRUMENTS AND RISK REVIEW

Financial Risk Management Framework

The Companyâs financial liabilities comprise mainly of borrowings, trade payables and other payables. The Companyâs financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors (âBoardâ) oversee the management of these financial risks through its Risk Management Committee. The Risk Management Policy of the Company formulated by the Risk Management Committee and approved by the Board, states the Companyâs approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Companyâs management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Companyâs financial performance.

i) Capital Management

The Companyâs capital management objectives are:

The Board policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors monitors the return on capital employed.

The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

*Net debt includes Non Current borrowing, Current borrowing, Current maturities of non current borrowing and interest accrued on borrowings net-off derivative liability on non-current borrowings.

ii) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, other balances with banks, loans and other receivables.

The Companyâs exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was RS.14519.95 lakhs, RS.12938.15 lakhs and RS.12728.75 lakhs as of 31st March, 2018, 31st March, 2017 and 1st April, 2016 respectively, being the total of the carrying amount of balances with trade receivables Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of financial statement whether a financial asset or a group of financial assets is impaired. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

Companyâs exposure to customers is diversified and some customers contribute more than 10% of outstanding accounts receivable which forms 57% of total receivables as of 31st March, 2018 (49% as at 31st March, 2017 and 69% as at of 1st April, 2016), however there was no default on account of those customers in the past.

The Company performs credit assessment for customers on an annual basis and recognizes credit risk, on the basis lifetime expected losses and where receivables are due for more than six months.

iii) Liquidity Risk

a) Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

b) Maturities of financial liabilities

The following tables detail the Companyâs remaining contractual maturity for its financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

c) Maturities of financial assets

The following table details the Companyâs expected maturity for financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on such assets.

iv) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Companyâs exposure to market risk is primarily on account of foreign currency exchange rate risk.

a) Foreign Currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollar, Euro, Great Britain Pound and Japanese Yen against the respective functional currencies of the Company. The Company The Company, as per its risk management policy, uses derivative instruments primarily to hedge foreign exchange.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in line with its risk management policies. The information on derivative instruments is as follows.

Foreign Currency Sensitivity

The following table demonstrates the sensitivity to a reasonable possible change in USD, EURO and JPY exchange rates, with all other variables held constant, the impact on the Companyâs profit before tax due to changes in the fair value of monetary assets and liabilities. The Companyâs exposure to foreign currency changes for all other currencies is not material. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 10% represents management assessment of reasonably possible change in foreign exchange rate.

In managementâs opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long term debt obligations with floating interest rates.

Interest rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rate. For floating rate liabilities, analysis is prepared assuming the amount of liability outstanding at the end of the reporting period was outstanding for the whole year. With all other variables held constant, the Companyâs profit before tax is affected through the impact on floating rate borrowings, as follows:

4. CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

As required by section 135 of the Companies Act, 2013, CSR committee has been formed by the company. The company has formed Fiem Foundation Trust as on dated 2nd March, 2015 with an object to undertake CSR projects, programs and activities in India as listed under Schedule VII of the Act. The company has no outstanding commitment as on 31st March, 2018 towards corporate social responsibility projects. The break-up of expenditure/contribution towards under corporate social responsibility as under-

5. JOINT VENTURE COMPANY

1. Centro Ricerche Fiem Horustech SRL

Description of Interest Jointly Controlled Entity

Country of Incorporation Italy

Proportion of Ownership Interest as at MarcRs.31, 2018 50%

2. Fiem Kyowa (HK) Mould Company Ltd

Description of Interest Jointly Controlled Entity

Country of Incorporation Hong Kong

Proportion of Ownership Interest as at MarcRs.31, 2018 50%

In respect of Jointly control entity, the Companyâs share of Assets, Liabilities, Income & Expenses are as follows:

6. UTILIZATION OF QIP PROCEEDS

During the financial year 2016-17, on dated 20th September, 2016, the Company had issued and allotted 11,97,604 equity shares of RS.10 each at a premium of RS.992 per equity share by way of Qualified Institution Placement (QIP).

7. PROPOSED DIVIDEND

The Company has recommended the final dividend of RS.9 per equity share (90% of nominal value of RS.10 per share) for the financial year ended 31st March, 2018 for amounting to RS.1,184,38 lacs on equity share capital of the company. The proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting (AGM)

8. FIRE AT HOSUR-UNIT-V PLANT

There was a major fire on 25th January, 2018 at unit-5 in Hosur plant (Tamilnadu). The loss incurred by the Company is adequately covered under insurance claim. The written down value of property, plant and equipment and costs of inventories destroyed/damaged have been appropriately adjusted in the books of accounts. The break-up of assets damaged (i.e WDV ) and other expenses dut to fire as follows.

The Company has filed a claim with with its insurers and the claim is expected to settle at a total amount of RS.260718 Lakhs (based on reinstatement costs of the assets). The same has been disclosed as an âinsurance claim receivablesâ in the balance sheet.

9. Previous yearâs figures have been regrouped/reclassified wherever necessary to correspond with the current yearâs classification/disclosure.

Mar 31, 2017

1. Terms/rights attached to equity shares

The company has only one class of shares referred to as equity shares having a par value of H10 each. 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 except in case of interim dividend. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amount exist currently. The distribution will be in proportion to the number of the equity shares held by the shareholders.

INDIAN RUPEE TERM LOANS FROM BANKS INCLUDE

2. From Citibank :- Loan outstanding as at 31.03.17 HNIL (Previous year H97,32,715) had tenor of 5 years with 16 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest was payable on monthly basis . The loan carried fixed interest rate of 12% p.a. and was secured against exclusive charge on all movable assets procured out of the term loan. This loan has been fully repaid during the year

3. From State bank of Patiala :- Loan outstanding as on 31.03.17 NIL (Previous Year Rs.4,00,00,000/-). The loan was for 7 years with 24 quarterly repayment beginning from the end of 15 months from the drawdown. Interest was monthly payable. The interest rate was 10.30% p.a. The Loan was Secured against First Pari Passu charge along with Axis Bank and HSBC over movable and Immovable fixed assets of Rai Unit ( Present and future) including equitable mortgage of Factory Land and Building at Rai, Sonepat and First charge on movable fixed assets of Hosur unit- III (tamilnadu) and First Charge on movable fixed assets of Mysore unit -IV Karnataka and First charge on entire fixed assets of Unit- VI Nalagarh Unit. This loan has been fully repaid during the year

4. From Axis Bank :- Loan outstanding as on 31.03.17 Rs.5,08,00,000/- (Previous year Rs.10,16,00,000) :- The loan is for 7 years and has quarterly repayment beginning after moratorium period of 12 months from the drawdown. Interest is monthly payable. The current interest rate is 10.10% p.a. The Loan is secured against First Pari Passu charge with State Bank of Patiala and HSBC bank on the movable and immovable fixed assets of Rai Unit including equitable mortgage of Factory Land and Building of Rai Unit and secured against First Pari Passu Charge on movable fixed assets of kundli unit and Unit -2 at Hosur with Citibank FCNR-II term loan.

5. HSBC Bank:- Loan -1 Outstanding as on 31.03.17 Rs.3,12,50,000/- ( Previous Year Rs.5,62,50,000 ) The Loan is for 5 year and has quarterly equal repayment beginning after moratorium period of 1 year. Interest is monthly payable. The loan carries fixed interest rate of 10% p.a. The Loan is Secured against First Pari Passu charge with Axis Bank on the movable and immovable fixed assets of Rai Unit including equitable mortgage of Factory Land and Building of Rai Unit.

6. HSBC Bank:- Loan -2 Outstanding as on 31.03.17 Rs.18,00,00,000/- ( Previous Year Rs.20,00,00,000 ) The Loan is for 6 year and has 20 quarterly equal repayment beginning after moratorium period of 15 months . Interest is monthly payable. The loan carries fixed interest rate of 9.50% p.a. The Loan is Secured against First Pari-Passu charge with HSBC -Mauritius and with CITIBANK FCNR TERM LOAN -3 by way of equitable mortgage on land and building and hypothecation of Plant and machinery at project in Gujarat( Survey no 151-153, village karsanpur, Taluka mandal, Distt Ahmedabad) and secured against first pari passu charge by way of equitable mortgage on Land and Building and hypothecation of Plant and Machinery at Tapukara Rajasthan along with ,HSBC Mauritius, CITIBANK FCNR TERM LOAN -3 and STANDARD CHARTERD BANK ECB-3 LOAN.

FOREIGN CURRENCY TERM LOAN FROM BANKS INCLUDE

7. From Citibank :- FCNR Term Loan -1 outstanding as on 31.03.17 âRs.3,04,69,267 ( Previous Year Rs.5,00,00,000) has tenor of 5 years with 16 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest is payable on monthly basis. The loan carries fully hedged interest cost of 10.60% p.a. The Loan is secured against exclusive charge on fixed assets financed out of the term loan and first charge of the movable fixed assets of Unit-V situated at Hosur, tamilnadu.

8. From Citibank :- FCNR Term Loan -2 outstanding as on 31.03.17- Rs.14,42,60,639 ( Previous Year Rs.18,75,00,000 ) has tenor of 5 years with 16 equal quarterly repayments beginning from the end of 12 months from drawdown. Interest is payable on monthly basis. The loan carries fully hedged interest cost of 10.25% p.a. The Loan is secured against exclusive charge on fixed assets financed out of the term loan and is secured against First pari-passu charge on the fixed assets of Kundli Unit-1 and Hosur Unit-2 with working capital Lenders viz. Citibank, Standard Chartered Bank, HDFC bank and Indusind Bank Guarantee limit and term lender Axis Bank. The Loan is also secured against exclusive charge on fixed assets financed out of the term loan and first charge of the movable fixed assets of Unit-V situated at Hosur, tamilnadu.

9. From Citibank :- FCNR Term Loan -3 outstanding as on 31.03.17- Rs.33,76,46,713 ( Previous Year- Rs. NIL) has tenor of 6 years with 20 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest is payable on monthly basis. The loan carries fully hedged interest cost of 9% p.a. The Loan is secured against First pari-passu charge on the fixed assets of the company including land and building and plant and machinery at Rajasthan unit with other lender viz. HSBC India, HSBC Mauritius and SCB 5.50 Million USD ECB LOAN and is secured against first pari-passu charge on all the fixed assets including land and building and plant and machinery of Gujarat unit shared with other lenders viz. HSBC India, HSBC Mauritius .

10. From Standard Chartered Bank ECB -2 :- Loan outstanding as on 31.03.17 - NIL ( Previous year Rs.2,76,18,750 ). The loan was for 5 years with 16 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest was quarterly payable. The loan carried fully hedged interest cost of 8.50% p.a. The Loan was secured against Equitable mortgage on land and building and Pant and machinery at Tapukara, Rajasthan Unit with HSBC India and HSBC Mauritius. This loan has been fully repaid during the year

11. From Standard Chartered Bank ECB -3 for 5.50 Million USD :- Loan outstanding as on 31.03.17 â Rs. 35,66,12,300 ( Previous year Rs. NIL ). The loan is for 6 years with 16 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest is quarterly payable. The loan carries fully hedged interest cost of 8.90% p.a. The Loan is secured on first pari passu charge basis with HSBC INDIA, HSBC Mauritius and CITIBNK FCNR TERM LOAN-3 on all assets of Tapukara plant ( Present and future)

12. From HSBC Mauritius ECB :- Loan outstanding as on 31.03.17- Rs.44,57,65,375 ( Previous year Rs.49,27,50,000 ). The loan is for 6 years with 20 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest is quarterly payable. The loan carries fully hedged interest cost of 8.99% p.a. The Loan is secured against Equitable Mortgage with CITIBANK FCNR TERM LOAN-3 (1st Pari Passu with HSBC, India) on Land and Building and Hypothecation of Plant and Machinery ( 1st pari- Passu with HSBC, India) located at Ahmedabad, Gujarat and secured against equitable mortgage on Land and Building with ( 1st pari- Passu with HSBC, India) and hypothecation of Plant and Machinery ( 1st pari- Passu with HSBC, India) along with CITIBANK FCNR TERM LOAN -3 AND STANDARD CHARTERED BANK ECB-3 at Tapukara Rajasthan.

Indian Rupee Loan includes

13. From Citibank NA :- Loan outstanding as at 31st March 2017 Rs.22,20,20,679 ( Previous Year Rs.1,04,42,870 ) Interest is payable with monthly rest on the last date of each month in each year or at such other rest as determined by the bank. The rate of interest is based on relevant circumstances, including market conditions which currently is 9.5% p.a. The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Standard Chartered Bank Cash Credit Loan, HDFC Bank Cash Credit Loan , Indusind Bank Bank Guarantee Limit and secured against First Pari Passu charge on all the fixed assets of the company (excluding assets specifically purchased out of the term loans from Citibank and other term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Standard Chartered Bank, HDFC Bank, Indusind Bank and Citibank FCNR-2 Loan.

14. From Standard Chartered Bank :- Loan outstanding as at 31st March 2017 is Rs.27,17,79,954 ( Previous year Rs.7,28,01,367/- ) Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time which currently is 9.50% p.a. The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, HDFC Bank Cash Credit Loan , Indusind bank Bank Guarantee Limit and secured against First Pari Passu Charge on present and future moveable fixed assets of the company with Citibank , HDFC Bank, Indusind Bank (excluding assets specifically purchased out of term loan from term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank , HDFC Bank, Indusind bank and Citibank FCNR-2 Loan.

15. From HDFC BANK :- Loan outstanding as at 31st March 2017 is Rs.14,77,15,789 ( Previous year Rs.9,97,37,950/- ) Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time which currently is 9.00% p.a. The loan is secured against First Pari Passu charge on all present and future receivables, stocks/Inventories with

| SHORT TERM BORROWINGS ~

Citibank Cash Credit Loan, Standard Chartered Bank Cash Credit Loan, Indusind bank Bank Guarantee Limit and secured against First Pari Passu Charge on all fixed assets of the company (excluding assets specifically purchased out of term loan from term loan lenders ) with Citibank, Standard Chartered Bank, Indusind Bank including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, Standard Chartered Bank, Indusind Bank and Citibank FCNR-2 Loan.

16. Indusind Bank Bank Guarantee Limit:- The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, Standard Chartered Bank Cash Credit Loan, HDFC bank Cash Credit Loan Limit and secured against First Pari Passu Charge on present and future moveable fixed assets of the company with Citibank, Standard Chartered Bank, HDFC bank (excluding assets specifically purchased out of term loan from term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, Standard Chartered Bank, HDFC bank and Citibank FCNR-2 Loan. Bank Guarantee charges is 0.60% p.a. plus applicable service tax.

Considering the company has been extended credit period up to 45 days by its vendors and payments being released on a timely basis, there is no liability towards interest on delayed payments under "The Micro, Small and Medium Enterprises Development Act 2006" during the year. There is also no amount of outstanding interest in this regard, brought forward from previous years. The above information is on basis of intimations received, from the vendors who have communicated their status with regards to vendors registration under the said Act on requests made by the company,

Segments Reporting Policies

17. Identification of Segments:

Primary-Business Segments

18. Automotive comprising of automotive lighting & signaling equipment, rear view mirror, prismatic mirror, plastic moulded parts, and sheet metal components for motorized vehicles and others parts for automotive.

19. LED Luminaries Segment comprising of led luminaries viz. indoor and outdoor lighting, display panel, LED integrated passenger information system etc.

20. Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to a segment on reasonable basis have been disclosed as "unallocated"

21. Segment assets and segment liabilities represent assets and liabilities in respective segments. Income tax related assets/ liabilities, borrowings, investment in mutual funds, deferred tax liabilities (Net) and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocated".

22. Secondary-Geographical Segments:-

The analysis of geographical segments is based on geographical location of the customers

The following is the distribution of Company''s revenue by geographical market, regardless of where the goods were produced

Defined Benefit Plans

23. Gratuity

The Company operates a defined benefit plan of Gratuity for its employees under the Gratuity plan, every employee who has completed five years of services gets a gratuity on departure @ 15 days of last drawn basic salary including dearness allowance if any, of each completed year of service subject to maximum amount of Rs.10,00,000/-. Gratuity is payable in accordance with payment of Gratuity Act, 1972. The scheme is funded with Exide Life Insurance Company Limited in the form of qualifying insurance policy.

24. Leave Encashment

The Present value obligation of Leave Encashment is determined based on actuarial valuation using projected unit credit method.

Disclosure requirement as per Accounting Standard on Employee Benefit-AS (15)-As per actuarial valuation as on 31.03.17 are as follows:

Mar 31, 2016

1. Lease Transactions

The company has taken commercial premises under non-cancellable operating lease. Minimum lease payments in respect of assets taken on non-cancellable operating lease are as follows:-

2. Segment Reporting

The segment reporting of the Company has been prepared in accordance with Accounting Standard-17 "Segment Reporting" (specified under section 133 of Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules 2014).

Segments Reporting Policies

(a) Identification of Segments:

Primary-Business Segments

The Company has identified two reportable business segments viz. Automotive and LED Luminaries Segment on the basis of the nature of products, the risk and return profile of individual business and the internal business reporting systems with effect from the current financial year. During the previous year, the company had only one business segment. Hence comparative figures for the previous period are not reported. The products included in each of the reported business segments are as follows:-

(i) Automotive comprising of automotive lighting & signaling equipment, rear view mirror, prismatic mirror, plastic molded parts, and sheet metal components for motorised vehicles and others parts for automotive.

(ii) LED Luminaries Segment comprising of led luminaries viz. indoor and outdoor lighting, display panel, LED integrated passenger information system etc.

(b) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to a segment on reasonable basis have been disclosed as "unallocated".

(c) Segment assets and segment liabilities represent assets and liabilities in respective segments. income tax related assets/liabilities, borrowings, and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocated".

3. Related Party Disclosures

Name of Related Parties, Transactions and Balances at Reporting date are as follows

Name of Related Party

(i) Key Management Personnel

Jagjeevan Kumar Jain Chairman and Managing Director

Seema Jain Whole Time Director

Aanchal Jain Whole Time Director

Rahul Jain Whole Time Director

JSS Rao Whole Time Director

Kashi Ram Yadav Whole Time Director

OP Gupta Chief Financial Officer

Arvind Kumar Chauhan Company Secretary

(ii) Related Parties Controlled by Key Management personnel

Fiem Auto Private Limited Entity Controlled by Key Management Personnel

Jagjeevan Kumar Jain (HUF) Entity Controlled by Key Management Personnel

Fiem Auto & Electrical Industries Entity Controlled by Key Management Personnel

Fiem Foundation Entity Controlled by Key Management Personnel

(iii) Subsidiary Company

Fiem Industries Japan Co., Ltd 100% Subsidiary Company incorporated in Japan

(iv) Joint Venture

Centro Ricerche Fiem Horustech SRL JV incorporated in Italy, 50% ownership interest held by the company

Defined Benefit Plans

(a) Gratuity

The Company operates a defined benefit plan of Gratuity for its employees under the Gratuity plan, every employee who has completed five years of services gets a gratuity on departure @ 15 days of last drawn basic salary including dearness allowance if any, of each completed year of service subject to maximum amount of Rs. 10,00,000/- . Gratuity is payable in accordance with payment of Gratuity Act, 1972. The scheme is funded with Exide Life Insurance Company Limited in the form of qualifying insurance policy.

(b) Leave Encashment

The Present value obligation of Leave Encashment is determined based on actuarial valuation using projected unit credit method.

Disclosure requirement as per Accounting Standard on Employee Benefit-AS (15)-As per actuarial valuation as on 31.03.16 are as follows:

4. Corporate Social Responsibility Activities

As required by section 135 of the Companies Act, 2013, CSR committee has been formed by the company. The company has formed Fiem Foundation Trust as on dated 2nd March, 2015 with an object to undertake CSR projects, programs and activities in India as listed under Schedule VII of the Act. The company has no outstanding commitment as on 31st March, 2016 towards corporate social responsibility projects. The break-up of expenditure/contribution towards under corporate social responsibility as under:-

5. Joint Venture Company

The Company has entered into a joint venture agreement with ''Horustech Lighting SRL Italy'' on 2nd December 2013 for forming a joint venture company to set-up a design centre at Italy. Accordingly, a company ''Centro Ricerche Fiem Horustech SRL.'' a jointly controlled Entity has been formed on 12th December 2013. The company has invested a sum of Rs. 33,15,600/- (Euro 40,000) towards capital contribution in said Joint Venture Company as on the date of balance sheet.

The company''s interest in joint venture is reported as Non Current Investment (Refer Note 12) and is stated at cost.

(a) Pursuant to Accounting Standard-27, "Financial Reporting of Interests in Joint Ventures" notified under the Companies (Accounting Standards) Rules, 2006 (as amended) disclosure in respect of the said Joint Venture are given below:

Name of joint Venture Centro Ricerche Fiem Horustech SRL

Description of Interest Jointly Controlled Entity

Country of Incorporation Italy

Proportion of Ownership Interest as at March 31, 2016 50%

6. During the financial year 2015-16, the Company declared and paid an interim dividend of Rs. 5/- per equity share (previous year Nil) of the face value of Rs. 10/- each in the month of March, 2016. In addition, the board of directors recommends payment of Rs. 3/- per equity share of the face value of Rs. 10/- each as final dividend for the financial year 2015-16, for the approval of the shareholders at the ensuing AGM. If approved, the total dividend (interim and final dividend) for the financial year 2015-16 will be Rs. 8/- (previous year Rs. 7/-) per equity share of the face value of Rs. 10/- each.

7. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

Mar 31, 2015

1. (Amount in Rs)

Particulars 31.03.2015 31.03.2014

2. Contingent Liabilities

(A) Claims against the Company/disputed liabilities not acknowledged as debts (See NoteÂ1)

(i) Income Tax

(a) Case decided in the Company's favour by CIT (Appeal) in respect of

A.Y. 2011Â12 for which the department has filed further appeal (See NoteÂ2) 61,745,248 62,866,893

(ii) Custom Duty

(a) Import Duty Demand towards imported capital goods which were sold to the customer in relation to nil import duty being paid at the time of import of said capital goods as a 100% EOU unit for which the company has filed

an appeal with Commissioner of Central Excise, Chennai (Net of deposit) 4,340,527 4,340,527

(b) Liability of Import Duty towards Export obligation undertaken by the Company under EPCG Licenses 5,613,810 644,567

(iii) Excise Duty & Service Tax

(a) Excise Duty Demand on Modvat Credit taken on raw material for which the Company has filed an appeal with CESTAT, New Delhi (Net of deposit) 2,457,076 2,457,076

(b) Excise Duty Demand on Cenvat Credit taken on input and Capital goods for which the Company has filed an appeal with CESTAT, Chennai (Net of deposit) 1,952,730 -

(c) Service Tax Demand on Cenvat Credit taken on input services for which the Company has filed an appeal with CESTAT, Chennai (net of deposit) 201,052 -

(iv) Sales Tax

(a) Entry Tax for certain interÂstate purchase in Rajasthan for which matter is subÂjudice in superior Courts. 797,786 689,236

(b) Sales Tax Demand for A.Y. 2010Â11 for which company has filed appeal with First Appellate Authority (net of deposit) 2,000,000 Â

(B) Other Money for which the Company is contingently liable

(a) Liability in respect of bill of exchange discounted from bank 275,863,699 218,798,894

Note:Â1 Based on the advice taken by the company, the company believes that it has good case in respect of all the items under (i) to (iv) above and hence no provision is considered necessary against the same.

Note:Â2 The appeal has been preferred by the department against the order of the CIT (Appeal) in relation to disallowances of loss on account of foreign exchange derivative contracts entered for hedging of underlying exports.

Particulars 31.03.2015 31.03.2014

3. Capital & Other Commitments

(i) Estimated amount of contracts remaining to be executed on capital account

and not provided, (net of advances) 189,484,358 62,327,836

(ii) Estimated amount of contracts remaining to be executed on traded moulds &

others not provided,(net of advances) 63,284,955 99,208,872

(iii) Uncalled Liability for investment in 50:50 Joint Venture - 2,477,295

(iv) Lease Commitments (nonÂcancellable in nature) (See NoteÂ37) 19,562,400 3,680,000

4. Segment Reporting

Business Segments:Â

The Company is primarily engaged in the business of manufacture of various type of auto components and LED luminaries. The segment of the LED luminaries is not reportable segment as it does not exceeds the quantitative thresholds as laid down in ASÂ17 " Segment reporting". Since the Company's business activity falls within a single business segment, there are no additional disclosures to be provided under Accounting StandardÂ17 'Segment Reporting'.

Geographical Segments:Â

The geographical segment comprises of domestic and overseas market. The following tables shows the distribution of the Company's Consolidated sales by geographical market, regardless of where the goods were produced.

5. Pursuant to the Companies Act 2013 ("The Act"), the Company has revised depreciation rates on certain fixed assets as per the revised useful life specified in Schedule II of the Act. Due to this based on transitional provision as per note 7(b) of the Schedule II, an amount of Rs. 1,93,57,338 (net of deferred tax of Rs. 99,67,518) have been adjusted with the retained earnings. Further, depreciation charge for the year ended 31st March, 2015 is higher by Rs. 7,85,69,460.

6. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

Mar 31, 2014

Corporate Information

Fiem Industries Limited (''The Company'') is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company''s registered office is in New Delhi and it has several manufacturing plants and depots across the country. Its shares are listed on National Stock Exchange and Bombay Stock Exchange in India. It has one wholly owned foreign subsidiary-Fiem Industries Japan Co., Limited located in Japan. The Company has also entered into a 50:50 Joint Venture with Horustech Lighting SRL Italy and incorporated a Joint Venture Company, namely ''Centro Ricerche Fiem Horustech SRL'' for setting up a design centre during the year. The Company has research and development facilities located at Rai, Sonepat, Haryana which has been approved by Department of Science & Industrial Research, Ministry of Science & Technology. The Company is in the business of manufacturing and supply of auto components comprising of automotive lighting & signalling equipments, rear-view mirror, prismatic mirror, plastic moulded parts and sheet metal components for motorised vehicles, and LED luminaries comprising of indoor and outdoor lighting, display panels etc.

(Amount in Rs) Particulars 31.03.2014 31.03.2013

2 Contingent Liabilities

I.Bill of Exchange Discounted from Bank 218,798,894 216,843,142

II.Income Tax Demand in respect ofAssessment Year 2011Â12 for which company has filed an appeal with CIT (Appeal) 62,866,893 Â

III.Import Duty Demand towards imported capital goods which were sold to the customer in relation to nil import duty being paid at the time of import of said capital goods as a 100% EOU unit for which the company has filed an appeal with Commissioner of Central Excise, Chennai (Net of deposit) 4,340,527 Â

IV.Excise Duty Demand on Modvat Credit taken on raw material for which the Company has filed an appeal with CESTAT, New Delhi (Net of deposit) 2,457,076 2,457,076

V.Entry Ta x for certain interÂstate purchase in Rajasthan for which matter is subÂjudice in superior Courts. 689,236 639,693

VI.Liability of Import Duty (For which Bonds executed in favour of Custom Authorities of Rs. 10,00,000) towards Import of Capital Goods without payment of duty for use in the manufacture of specific excisable goods. 414,414 414,414

VII.Liability of Import Duty towards Export obligation undertaken by the Company under EPCG Licenses 644,567 10,162,659

Note:Â The appeal has been preferred against the order of the Assessing Officer in relation to disallowances of loss on account of foreign exchange derivative contracts entered for hedging of underlying exports.

Based on the advice taken by the company, the company believes that it has good case in respect of all the items under (ii) to (iv) above and hence no provision is considered necessary against the same.

3 Deferred Tax Liabilities (Net)

The components of deferred tax liability (net) recognized in the financial statements and deferred tax recognized in the statement of profit & loss are as under-

4 Lease Transaction

The company has taken commercial premises under nonÂcancellable operating lease. Minimum lease payments in respect of assets taken on nonÂcancellable operating lease are as follows:Â

5 Segment Reporting

Business Segments:Â

The Company is engaged in the business of manufacture of various type of auto components and LED luminaries. The segment of the LED luminaries is not reportable segment as it does not exceeds the quantitative thresholds as laid down in ASÂ17 " Segment reporting". Since the Company''s business activity falls within a single business segment, there are no additional disclosures to be provided under Accounting StandardÂ17 ''Segment Reporting''.

Geographical Segments:Â

The geographical segment comprises of domestic and overseas market. The following tables shows the distribution of the Company''s Consolidated sales by geographical market, regardless of where the goods were produced.

Note:Â1.The Company has common assets for producing goods for Domestic market and overseas market. Hence, separate figures for fixed assets can not be furnished.

Note:Â2. Sales Revenue by geographical market Outside India includes indirect export.

6 Mat Credit Entitlement

The Assets of Rs. 3,14,57,986 (Previous Year Rs. 4,22,54,023 shown under ''Long Term Loans & Advances'' See noteÂ13) Recognized by the Company as ''MAT Credit Entitlement'' under ''Short Term Loans and Advances'' (See NoteÂ18) represents that portion of MAT liability, which can be recovered and setÂoff in subsequent year based on provisions of Section 115JAA of the Income Ta x Act , 1961. The management, based on present trend of profitability and also the future profitability projections, is of the view that there would be sufficient taxable income in subsequent year, which will enable the Company to utilize MAT Credit assets.

7 Related Party Disclosures

Name of Related Parties, Transactions and Balances at Reporting date are as follows

Name of Related Party

(i) Key Management Personnel

Jagjeevan Kumar Jain Chairman and Managing Director

Seema Jain Whole Time Director

Aanchal Jain Whole Time Director

Rahul Jain Whole Time Director

JSS Rao Whole Time Director

Kashi Ram Yadav Whole Time Director

(ii) Related Parties Controlled by Key Management personnel

Fiem Auto Private Limited Entity Controlled by Key Management Personnel

Jagjeevan Kumar Jain (HUF) Entity Controlled by Key Management Personnel

Fiem Auto & Electrical Entity Controlled by Key Management Industries Personnel

(iii) Subsidiary Company Fiem Industries Japan 100% Subsidiary Company incorporated Co.Ltd in Japan

(iv) Joint Venture Centro Ricerche Fiem 50% ownership interest held by Horustech SRL company incorporated in Italy

Defined Benefit Plans

Disclosure requirement as per Accounting Standard on Employee Benefit-AS (15)-As per actuarial valuation as on 31.03.14 are as follows:

1. 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.

2. The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

8 Foreign Exchange Currency Exposure Outstanding as on Reporting Date (Not Hedged)

The year end foreign currency exposures that have not been hedged by derivatives instruments or otherwise are as follows:

9 Details of Research and Development Expenses

The Company has incurred following expenses on its Research and Development Unit situated at Rai, Sonepat, Haryana (India).

10 Joint Venture Company

The Company has entered into a joint venture agreement with ''Horustech Lighting SRL Italy'' on 2nd December 2013 for forming a joint venture company to setÂup a design centre at Italy. Accordingly, a company ''Centro Ricerche Fiem Horustech SRL.'' a jointly controlled Entity has been formed on 12th December 2013. The company has invested a sum of Rs. 8,41,200/Â(Euro 10,000) towards capital contribution in said Joint Venture Company as on the date of balance sheet.

The company''s interest in joint venture is reported as Non Current Investment (Refer Note 12) and is stated at cost.

(a) Pursuant to Accounting StandardÂ27, "Financial Reporting of Interests in Joint Ventures" notified under the Companies (Accounting Standards) Rules, 2006 (as amended) disclosure in respect of the said Joint Venture are given below:

Name of joint Venture Centro Ricerche Fiem Horustech SRL

Description of Interest Jointly Controlled Entity

Country of Incorporation Italy

Proportion of Ownership 50% Interest as at March 31,2014

(b) In respect of jointly control entity, the company''s share of assets, liabilities, incomes and expenses are as followsÂ

11 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

Mar 31, 2013

Corporate Information

The Company is in the business of manufacturing and supply of auto components comprising of automotive lighting & signalling equipments, rear-view mirror, prismatic mirror, plastic moulded parts and sheet metal components for motorised vehicles.

During the year, the company has made diversification into LED Luminaries. It has started the production of LED luminaries comprising of indoor and outdoor lighting, display panels etc. The company''s registered office is in New Delhi and it has several manufacturing plants and depots across the country. The research and development unit is situated at Rai, Sonepat, Haryana. It has one wholly owned foreign subsidiary in Japan. Its shares are listed on National Stock Exchange and Bombay Stock Exchange in India.

1 Lease Transaction

Certain factory/depot premises, guesthouse premises and plant & machinery are obtained on operating leases. There are no contingent rents in the lease agreements. The lease terms are for 1-3 years and are renewable at the mutual agreement of the both the parties. There are no restrictions imposed by lease arrangements. There are no subleases and all the leases are cancelable in nature.

2 Segment Reporting

Business Segments:-

The Company''s operations are manufacture of various types of automotive lighting and accessories. Since the Company''s business activity falls within a single business segment, there are no additional disclosures to be provided under Accounting Standard-17 ''Segment Reporting''.

Geographical Segments:-

The geographical segment comprises of domestic and overseas market. The following tables shows the distribution of the Company''s Consolidated sales by geographical market, regardless of where the goods were produced.

3 Ministry of Corporate Affairs, Government of India through Circular No. 25/2012 dated 9th August 2012 has clarified that para 6 of Accounting Standard AS-11 and para 4 (e) of AS-16 shall not apply to a Company which is applying para 46-A of AS-11. Consequently, exchange differences, arising on settlement/ translation of foreign currency loan to the extent regarded as an adjustment to interest cost as per para 4(e) of AS-16 and charged to statement of Profit and Loss, have now been adjusted by the company in the cost of related fixed assets. As a result exchange loss amounting to Rs. 28,684,487 representing interest differential up to 31.03.2012 previously expensed has been reversed and corresponding adjustment has been made to the cost of Fixed Assets.

4 The Assets of Rs. 42,254,023 (Previous Year Rs. 32,864,655) Recognized by the Company as ''MAT Credit Entitlement'' under ''Long Term Loans and Advances'' (See Note-13) represents that portion of MAT liability, which can be recovered and set-off in subsequent years based on provisions of Section 115JAA of the Income Tax Act, 1961. The management, based on present trend of profitability and also the future profitability projections, is of the view that there would be sufficient taxable income in foreseeable future, which will enable the Company to utilize MAT Credit assets.

5 Related Party Disclosures

Name of Related Parties, Transactions and Balances at Reporting date are as follows

Name of Related Party

(i) Key Management Personnel

Jagjeevan Kumar Jain Chairman and Managing Director

Seema Jain Whole Time Director

Aanchal Jain Whole Time Director

Rahul Jain Whole Time Director (W.e.f. 01.10.2012)

JSS Rao Whole Time Director

Kashi Ram Yadav Whole Time Director

(ii) Related Parties Controlled by Key Management personnel

Fiem Auto Private Limited Entity Controlled by Key Management Personnel

Jagjeevan Kumar Jain (HUF) Entity Controlled by Key Management Personnel

Fiem Auto & Electrical Industries Entity Controlled by Key Management Personnel

(iii) Subsidiary Company

Fiem Industries Japan Co. Limited 100% Subsidiary Company Incorporated in Japan

6 Foreign Exchange Derivatives and Exposure outstanding at end of the year

Cross Currency Swap & Forward Currency Option

The Company uses Cross-currency swaps (principal only swaps and interest rate swaps) and forward currency option contracts to hedge its exposure in foreign currency and interest rates. The counter party is bank. These contracts are for a period between four to five years. All the contracts have been settled during the year and there is no pending contract as on 31.03.2013. The instruments wise information on derivative instruments as on 31.03.2013 is as follows.

7 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

Mar 31, 2012

A) Terms/rights attached to equity shares

The company has only one class of shares referred to as equity shares having a par value of Rs 10 each. 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 except in case of interim dividend. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amount exist currently. The distribution will be in proportion to the number of the equity shares held by the shareholders.

b) Aggregate number of bonus shares issued, share issued for consideration other than cash during the period of five years immediately preceding the reporting date.

1,04,065 fully paid up equity shares of Rs l0/- each allotted during 2007-08 to the shareholders of M/s Fiem Sung san (India) Limited Pursuant to its Amalgamation without payment being received in cash.

Indian Rupee Loan from Bank includes

a) From Citibank N.A. has tenor of 5 years with 16 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest is payable on monthly basis . The loan carries fixed interest rate of 12% and is secured against exclusive charge on all movable assets procured out of the term loan and secured against First Pari Passu Charge on movable fixed assets of kundli unit and Unit -2 at Hosur with Axis Bank.

b) From Standard Chartered Bank :- The Loan is for 5/4.5 years with 16 /I7/I4 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest is monthly payable. The loan carries fixed interest rate of 9.65% to 10% The Loan is secured against Exclusive charge on land and building at Hosur Unit-3 situated at Kelamangalam Road, Hosur, Tamilnadu and Exclusive charge on land and Building of corporate office in Mansarover Garden, New Delhi and Parri passu charge on moveable Fixed assets both present and future including plant and machinery at Hosur unit-3, kelamangalam road.

c) From State bank of Patiala :- The loan is for 6 years with 24 quarterly repayment beginning from the end of 15 months from the drawdown. Interest is monthly payable. The loan carries floating interest rate of 11.75% and 12.75% . The Loan is Secured against First Pari Passu charge with Axis Bank over movable and Immovable fixed assets of Rai Unit ( Present and future) including equitable mortgage of Factory Land and Building at Rai, Sonepat and Parri passu charge on movable fixed assets of Hosur unit- III (tamilnadu) with Standard Chartered Bank and First Charge on movable fixed assets of Mysore unit -IV Karnataka and Second charge over the entire fixed assets of unit VI nalagarh Unit (first charge with Citibank).

d) From Axis Bank :- The loan is for 4 years and 7 years and has Half yearly and quarterly repayment beginning after moratorium period of 6 and I2 months from the drawdown. Interest is monthly payable. The loan carries floating interest rate of 11.75% and 12.25%. The Loan is Secured against First Pari Passu charge on the movable and immovable fixed assets of Rai Unit including equitable mortgage of Factory Land and Building of Rai Unit with State Bank of Patiala and secured against First Pari Passu Charge on movable fixed assets of kundli unit and Unit -2 at Hosur with Citibank and Term loan of Rs 1.58 crore is secured on exclusive charge on assets financed out of the term loan.

e) Vehicle loan from banks and others are secured against hypothecation of the respective vehicles acquired out of proceeds thereof. The Loans carries interest rate between 10% to 12%.

Foreign currency Loan from Bank includes

a) From Standard Chartered Bank - ECB -I:- The loan is for 5 years with I6 equal quarterly repayment beginning from the end of I5 months from the drawdown. Interest rate 3 month LIBOR PLUS 225 BSP p.a. payable quarterly. The loan is secured against Equitable mortgage on land and building at Tapukara, Rajasthan Unit on Exclusive basis and Specific charge on Plant and machinery at Tapukara, Rajasthan Unit

b) From Standard Chartered Bank ECB -2:- The loan is for 5 years with I6 equal quarterly repayment beginning from the end of I5 months from the drawdown. Interest is quarterly payable. The loan carries fully hedged interest cost of 8.50% p.a. The Loan is secured against Equitable mortgage on land and building at Tapukara, Rajasthan Unit on Exclusive basis and Specific charge on Plant and machinery at Tapukara, Rajasthan Unit

Indian Rupee Loan includes

a) From Citibank NA :- Loan outstanding as at 31st March 2012 Rs 23,78,14,029 (Previous Year Rs 25,15,03,586 ) Interest is payable with monthly rest on the last date of each month in each year or at such other rest as determined by the bank. The rate of interest is based on relevant circumstances, including market conditions which currently is 13%. The loan is secured against First Pari Passu Charge with Standard Chartered Bank on all present and future receivables, stocks/Inventories and on all fixed assets of the company(excluding assets specifically purchased out of term loans from Citibank and other term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at Kundli, Haryana & Thally Road Hosur, Tamilnadu with Standard Chartered Bank.

b) From Standard Chartered Bank :- Loan outstanding as at 31st March 2012 Rs 10,38,37,440 (Previous Year Rs 6,96,15,026 ) Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time which currently is 13.45%. The loan is secured against First Pari Passu charge with Citibank on Stocks & Book Debts, and Equitable mortgage charge on First Pari Passu basis on land and building situated at Kundli unit Haryana & Thally Road Hosur, Tamilnadu and first pari passu charge over all present and future movable fixed assets of the company with Citibank (excluding assets specifically financed by other term lenders)

Foreign currency Loan includes

a) From Citibank NA :- Loan outstanding as at 31st March 2012 Rs 10,00,00,000 (Previous Year Rs 6,00,00,000 ) at Fully hedged cost (interest principal) is fixed at 11.60% p.a. (p.y. 10.75% p.a.) The loan is fully repayable within 360 days from drawdown. The loan is secured against First Pari Passu Charge with Citibank on all present and future receivables, stocks/Inventories and on all fixed assets of the company(excluding assets specifically purchased out of term loans from Citibank and other term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at Kundli, Haryana & Thally Road Hosur, Tamilnadu with Citibank.

Considering the company has been extended credit period upto 45 days by its vendors and payments being released on a timely basis, there is no liability towards interest on delayed payments under "The Micro, Small and Medium Enterprises Development Act 2006" during the year.

There is also no amount of outstanding interest in this regard, brought forward from previous years. The above information is on basis of intimation received, on requests made by the company, with regards to vendors registration under the said Act.

Proposed Dividend

During the year ended 31.03.12, the amount of Rs 3.00 per share as dividend recognized for distributions to equity shareholders (Previous Year Rs 2.50 per share)

Provision for warranties

The company gives warranties on certain products and services, undertaking to repair and replace the items that fails to perform satisfactorily during the warranty period. Provision made as at 31.03.12 represents the amount of the expected cost of meeting such obligation of rectification or replacement. The timing of the outflow is expected to be within warranty period. (Amount in Rs)

Particulars 31.03.2012 31.03.2011

1. Contingent Liabilities

i. Bill of Exchange Discounted from Bank 255,953,416 258,381,802

ii. Service Tax demand on credit taken on Outdoor catering for which the Company has filed an appeal with CESTAT, Chennai 1,313,248 -

iii. Excise Duty Demand on Modvat Credit taken on raw material for which the Company has filed an appeal with CESTAT, New Delhi 2,507,076 2,507,076

iv. Entry Tax for certain inter-state purchase in Rajasthan for which matter is sub-judice in superior Courts. 535,777 -

v. Claim against the Company not acknowledged as debts, being disputed by the Company 500,000 500,000

2 Lease Transaction

Certain factory/depot premises, guesthouse premises and plant & machinery are obtained on operating leases. There are no contin- gent rents in the lease agreements. The lease terms are for 1-3 years and are renewable at the mutual agreement of the both the parties. There are no restrictions imposed by lease arrangements. There are no subleases and all the leases are cancelable in nature.

3 Segment Reporting Business Segments:-

The Company's operations are manufacture of various types of automotive lighting and accessories. Since the Company's business activity falls within a single business segment, there are no additional disclosures to be provided under Accounting Standard-17 'Segment Repoting'.

Geographical Segments:-

The geographical segment comprises of domestic and overseas market. The following tables shows the distribution of the Company's Consolidated sales by geographical market, regardless of where the goods were produced.

1. 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.

2. The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

3. Information relating to experience adjustment on Plan Assets and Plan Liability in the actuarial valuation of gratuity as required by Para 120 (n)(ii) of the Accounting standard 15 (Revised) on Employee benefits is not available with the company.

4. The company's expected contribution to the fund in the next year is not presently ascertainable and hence, the contribution expected to be paid to the plan during the annual period beginning after the balance sheet date as required by Para 120 (o) of the Accounting standard 15 (Revised) on Employee benefits is not disclosed.

5 Foreign Exchange Derivatives and Exposure outstanding at end of the year Cross Currency Swap & Forward Currency Option

The Company uses Cross-currency swaps (principal only swaps and interest rate swaps) and forward currency option contracts to hedge its exposure in foreign currency and interest rates. The counter party is bank. These contracts are for a period between four to five years. The instruments wise information on derivative instruments as on 31.03.2012 is as follows.

6 Details of Research and Development Expenses

The Company has incurred following expenses on its Research and Development Unit situated at Rai, Sonepat, Haryana (India). The Unit is Recognised by Department of Science and Industrial Research, Ministry of Science and Technology w.e.f 23/12/2011. The approval for said Recongnised R&D Unit is awaited.

7 The figures appearing in brackets pertains to previous year.

8 The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956 the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been re-classified to conform to this' classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

Mar 31, 2011

1. Nature of Operation

The company is in the business of manufacturing and suppliers of auto components, mainly, automotive lighting & signally equipments, Rear- view mirror, prismatic mirror, sheet metal parts and moulds, block & dies etc for two-wheeler and four wheeler applications. It has entered into a technical assistance agreement with Ichikoh Industries Limited, Japan.

2. Reclassified/Reworking of Previous year Figures

The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amount and other disclosures for the preceding year are included as an integral part of the current financial statement and are to be read in relation to the amounts and other disclosure relating to the current year.

3. Contingent Liabilities:

(Amount in Rs.)

Sr. No. Particulars 31.03.2011 31.03.2010

a. Performance and Financial Guarantees given by Banks on behalf of the Company Guarantee given to Custom & Excise Authorities 18,30,570 18,30,570

Guarantee given to Commercial Tax Officers 3,85,000 3,25,000

Guarantee given to Himachal Pradesh Electricity Board H.P. 18,30,000 12,00,000

Guarantee given to Original Equipment Buyer (OEM) 2,50,04,900 89,81,025

against supply of moulds & dies within the stipulated time Guarantee given to Haryana State Pollution Control Department 20,16,135 20,16,135

Guarantee given to Dept of Indigenization /DGEME Ministry of Defence New Delhi against supply of Automotive lights within the stipulated time. 45,077 45,077

Guarantee given to APSRTC Hydrabad against supply of Automotive lights within the stipulated time. 1,00,000 -

b. Disputed Liabilities in appeal

Excise duty demand on account of availing excess CENVAT credit on input procured from a 100% Export oriented undertaking and penalty equal to excise duty taken 25,07,076 25,07,076

Income Tax matters under dispute in respect of Assessment Year 2006-07 for which Company has filed appeal with CIT (Appeals), New Delhi - 4,77,395

c. Sales Bill Discounted from Banks

Sales Bill Discounted from Bank Not Matured up to reporting date 25,83,81,802 19,09,19,068

4. Related Party Disclosures

Name of Related Parties, Transactions and Balances at Reporting date are as follows: Name of Related Party

Key Management Personnel

Jagjeevan Kumar Jain Chairman and Managing Director

Seema Jain Whole Time Director

Aanchal Jain Whole Time Director

JSS Rao Whole Time Director

Kashi Ram Yadav Whole Time Director

Relative of Key Management Personnel

Rahul Jain Son of Jagjeevan Kumar Jain-Chairman and Managing Director and Seema Jain-Whole

time Director, Brother of Aanchal Jain-Whole Time Director

Related Parties Controlled by Key Management personnel

Fiem Auto Private Limited Entity Controlled by Key Management Personnel

Jagjeevan Kumar Jain (HUF) Entity Controlled by Key Management Personnel

Fiem Auto & Electrical Industries Entity Controlled by Key Management Personnel

Subsidiary Company

Fiem Industries Japan Co. Ltd. 100% Subsidiary Company Incorporated in Japan

5. Earning Per Share

As required by Accounting Standard (AS-20) "Earning Per Share" the numerators and denominators used to calculate Basic Earning Per Share are follows. For the purpose of weighted average number of equity shares, the share issued within the month has been taken full month.

6. Segment Reporting

Business Segments:

The Company's operations are manufacture of various types of automotive lighting system and accessories. Since the Company's business activity falls within a single business segment, there are no additional disclosures to be provided under Accounting Standard-17 'Segment Reporting '.

7. Lease Transaction

Certain factory/depot premises, guesthouse premises and plant & machinery are obtained on operating leases. There are no contingent rents in the lease agreements. The lease terms are for 1-3 years and are renewable at the mutual agreement of the both the parties. There are no restrictions imposed by lease arrangements. There are no subleases and all the leases are cancelable in nature.

8. Disclosures required by Accounting Standard (AS)-29

I. Nature of Provisions: The Company gives warranties on certain products and services, undertaking to repair or replace the items that fails to perform satisfactory during the warranty period. Provision made as at 31st March 2011 represents the amount of the expected cost of meeting such obligations of rectification/replacement. The timing of the outflows is expected to be within warranty period.

9. Foreign Exchange Derivatives and Exposure outstanding at end of the year

A. Cross Currency Swap & Forward Currency Option:

The Company uses Cross-currency swaps (principal only swaps and interest rate swaps) and forward currency option contracts to hedge its exposure in foreign currency and interest rates. The counter party is bank. These contracts are for a period between four to five years. The instruments wise information on derivative instruments as on 31.03.2011 is as follows.

B. Target Redemption Forward Contracts

The company uses Target Redemption Forward Contract to hedge its exposure in foreign currency receivables. The counter party is bank. These contracts are for a period of three years.

1. One of the Target Redemption Contracts consists of a total 36 foreign exchange ("FX") transactions and the final settlement date was 12th October 2010. At each expiry date, the reference exchange rate is compared to the strike rate. If the reference exchange rate is more than or equal to strike rate, then the notional amount of USD 1,25,000 is applicable. On the other hand, if the reference exchange rate is less than the strike rate, then the notional amount is USD 2,50,000 is applicable. The entire Target Redemption Contract is subject to knock out conditions. This contract has been finally settled during the year and has resulted in a loss of Rs. 10,71,23,712 (Previous Year: This contract was fair valued as on 31.03.2010 and resulted in a notional loss of Rs. 4,48,37,275).

2. The other Target Redemption Contracts consists of a total 36 foreign exchange ("FX") transactions and the final settlement date was 22nd February 2011. At each expiry date, the reference exchange rate is compared to the strike rate. If the reference exchange rate is more than or equal to strike rate, then the notional amount of USD 1,25,000 is applicable. On the other hand, if the reference exchange rate is less than the strike rate, then the notional amount is USD 2,50,000 is applicable. The entire Target Redemption Contract is subject to knock out conditions. This contract has been finally settled during the year and has resulted in a loss of Rs. 6,99,27,961 (Previous Year: This contract was fair valued as on 31.03.2010 and resulted in a notional loss of Rs. 1,70,24,238).

C. Movement in Hedging Reserve Account

The movement in Hedging Reserve Account during the year ended March 31, 2011, for derivative transactions.

D. Foreign Exchange Currency Exposure Fully Hedged

During the year, the Company has taken FCNR Based loan for 360 days against cash existing credit facility with CITIBANK N.A., which are fully protected against the currency and interest movements in the market. The basic details are as follows.

Purpose To Finance working capital requirement of the Company

Amount USD 13,15,789.47 equivalent to INR 6,00,00,000

Booking Date February 2, 2011

Maturity Date January 27, 2012

Interest Rate USD LIBOR 1.25% p.a. payable monthly

Additional Interest Cost for Hedged INR 51,61,316/- (Fully Hedged @10.75% p.a.)

(Payable at the time of Maturity Date)

10. Transfer to General Reserve

The Company has transferred Rs. 1,25,00,000 (Previous Year Rs. 1,10,00,000) to General Reserve from Profit and Loss Account as per Companies (Transfer of Profits to Reserves) Rules, 1975.

11. The figures appearing in brackets pertains to previous year

12. Figures have been rounded off to the nearest rupee.

Mar 31, 2010

1. Nature of Operation

The company is in the business of manufacturing and suppliers of auto components, mainly, automotive lighting & signally equipments, Rear- view mirror, prismatic mirror, sheet metal parts and moulds, block & dies etc for two-wheeler and four wheeler applications. It has entered in to a license and technical assistance agreement with Ichikoh Industries Limited, Japan and Batz S. Coop, Spain.

2. Reclassified/Reworking of Previous year Figures

The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amount and other disclosures for the preceding year are included as an integral part of the current financial statement and are to be read in relation to the amounts and other disclosure relating to the current year.

3. Related Party Disclosures

Name of Related Parties with whom Transactions were carried out during the year

a. Key Management Personnel (KMP)

-* Mr. Jagjeevan Kumar Jain-Managing director

- Mrs. Seema Jain-Whole time director

- Ms. Aanchal Jain-Whole time director

- Mr. JSS Rao-Whole time director

- Mr. Kashi Ram Yadav-Whole time director

b. Relative of Key Management Personnel (KMP)

- Mr. Rahul Jain

c. Related Parties Controlled by KMP

- Fiem Auto Private Limited

- Jagjeevan Kumar Jain (HUF)

- Fiem Auto & Electrical Industries (KMP is the Sole Proprietor)

d. Subsidiary Company

- Fiem Industries Japan Co., Ltd.

4. Contingent Liabilities (Amount in Rs.)

Particulars 31.03.2010 31.03.2009

Guarantee/security given to Custom & Excise Authorities (Margin for guarantee provided Rs. 170,000-PY Rs. 1,70,000) 17,00,000 17,00,000

Guarantee/security given to Himachal Pradesh State Electricity Board (Margin for guarantee provided Rs. 1,20,000- Previous year Rs. 1,20,000) 12,00,000 12,00,000 Excise duty demand matters under dispute (in respect of which appeal has been filed and for which security of Rs. 50,000 has been deposited with the department.) 25,07,076 25,07,076 Guarantee/security given to OEM against supply of moulds & dies (Margin for guarantee provided Rs. 8,98,103 Previous year Rs. Nil) 89,81,025 - Guarantee/security given to Haryana State Pollution Control (Margin for guarantee provided Rs. 2,01,613 Previous year Rs. Nil) 20,16,135 - Guarantee/security given to DTE of Indigenisation/DGEME Ministry of Defence New Delhi (Margin for guarantee provided Rs. 4,508 Previous year Rs. Nil) 45,077 - Income Tax matters under dispute in respect of Assessment Year 2006-07 for which Company has filed appeal with CIT (Appeals), New Delhi 4,77,395 4,77,395

Bill Discounted from Bank (Not Matured) 19,09,19,068 -

5. Segment Reporting

The companys operations predominantly are manufacture of automotive parts and accessories. The company is managed organizationally as a unified entity and all its assets other than export debtors are located in India.

6. Lease Transaction

Lease payment under Operating Lease have been accounted for in accordance with AS-19 of the ICAI "Accounting for Leases" and accordingly lease payment under operating lease have been recognized as an expenses in the profit and loss account over the lease term.

Certain office/factory premises, guesthouse premises and plant & machinery (DG Set) are obtained on operating leases. There are no contingent rents in the lease agreements. The lease terms is for 1-3 years and are renewable at the mutual agreement of the both the parties. There are no restrictions imposed by lease arrangements. There are no subleases and all the leases are cancelable in nature

7. Disclosures required by Accounting Standard (AS)-29

I. Nature of Provisions: The Company gives warranties on certain products and services, undertaking to repair or replace the items that fails to perform satisfactory during the warranty period. Provision made as at 31st March 2010 represents the amount of the expected cost of meeting such obligations of rectification/replacement. The timing of the outflows is expected to be within warranty period.

B. Target Redemption Forward Contracts

The Company uses Target Redemption Forward Contract to hedge its exposure in foreign currency receivables. The counter party is bank. These contracts are for a period of three years.

One of the Target Redemption Contracts consists of a total 36 foreign exchange ("FX") transactions with 7 transactions outstanding as on 31st March 2010 and final settlement date is 12th October 2010. At each expiry date, the reference exchange rate is compared to the strike rate. If the reference exchange rate is more than or equal to strike rate, then the notional amount of USD 1,25,000 is applicable. On the other hand, if the reference exchange rate is less than the strike rate, then the notional amount is USD 2,50,000 is applicable. The entire Target Redemption Contract is subject to knock out conditions.

The other Target Redemption Contracts consists of a total 36 foreign exchange ("FX") transactions with 11 transactions outstanding as on 31st March 2010 and final settlement date is 22nd February 2011. At each expiry date, the reference exchange rate is compared to the strike rate. If the reference exchange rate is more than or equal to strike rate, then the notional amount of USD 1,25,000 is applicable. On the other hand, if the reference exchange rate is less than the strike rate, then the notional amount is USD 2,50,000 is applicable. The entire Target Redemption Contract is subject to knock out conditions.

The change in fair value of the Target Redemption Contracts resulted in to notional loss of Rs. 6,18,61,513. This fair value is based on marked to market valuation at balance sheet date.

8. Transfer to General Reserve

The Company has transferred Rs. 1,10,00,000 (Previous Year Rs. 50,00,000) to General Reserve from Profit and Loss Account as per Companies (Transfer of Profits to Reserves) Rules, 1975.

9. The figures appearing in brackets pertains to previous year

10. Figures have been rounded off to the nearest rupee.

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