Bosch Ltd. இன் கணக்கு குறிப்புகள்
Mar 31, 2022
(a) Deductions/adjustments includes million INR 9 (2020-21: million INR 11) of government grant.
(b) Capital work-in-progress mainly comprises plant and machinery and building under construction.
(c) Refer note 38 for disclosure of contractual commitment for the acquisition of property, plant and equipment.
(d) Refer note 33(f) for details with regard to assets given on operating lease.
(e) There has been no revaluation of property, plant and equipment during the FY 2020-21 and FY 2021-22.
(f) There are no CWIP projects as on March 31, 2022 which are either overdue or which have exceeded their budgeted costs.
(g) Figures in brackets relate to previous year.
The above valuations are based on valuations performed by âCBRE South Asia Private Limitedâ, an accredited independent valuer. They specialise in valuing these types of investment properties and is a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied.
Direct Comparison Approach for Underlying Land:
The Direct Comparison Approach involves a comparison of the property being valued to similar properties that have actually been sold in arms length transactions or are offered for sale. This approach demonstrates what buyers have historically been willing to pay (and sellers willing to accept) for similar properties in a competitive market and is particularly useful in estimating the value of the land and properties that are typically traded on a unit basis. To ascertain the comparable transactions quotes, valuer would undertake an on ground market research exercise involving interactions with local market players such as real estate brokers, accumulators, etc. The data would be collated with respect to the general transaction
activity in the subject regions. Post establishing the prevalent values in the subject micro markets, the value of the subject properties would be ascertained through an adjustment of the comparable collated.
Depreciated Replacement Cost Method for Built Up Structures:
The Depreciated Replacement Cost Method involves assessing the current cost of replacing an asset with its modern equivalent asset less deductions for physical deterioration and all relevant forms of obsolescence and optimization. Depreciation refers to adjustments made to the cost of an equivalent asset to reflect any comparative obsolescence (such as physical deterioration, functional or economic obsolescence) that affects the subject asset over the remaining life of the subject asset at the valuation date with its expected total life (economic life of the property). The physical life is how long the asset, ignoring any potential for refurbishment or reconstruction, could be used before the asset would be completely worn out or beyond economic repair. The economic life is how long it is anticipated that the asset could generate returns or provide a financial benefit.
Nature and purpose of reserves
Capital reserve: Capital reserve represents profit on sale of businesses of earlier years.
Share premium reserve: Share premium reserve is used to record the premium on issue of shares.
Capital redemption reserve: Reduction in nominal value of share capital on account of buy-back of shares is recorded as capital redemption reserve.
General reserve: The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in General Reserve will not be reclassified subsequently to the Standalone Statement of Profit and Loss.
Retained earnings: The cumulative gain or loss arising from the operations which is retained by the Company is recognized and accumulated under the heading of retained earnings. At the end of the year, the profit after tax is transferred from the Standalone Statement of Profit and Loss to the Retained earnings.
FVOCI equity investments: The Company has elected to recognize changes in the fair value of investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within other equity and are non-recyclable to the Standalone Statement of Profit and Loss.
(i) Nature of the provision has not been given on the grounds that it can be expected to prejudice the interests of the Company. Due to the very nature of such provisions, it is not possible to estimate the timing/uncertainties relating to their outflows.
(ii) The Company is undergoing major transformation with regard to structural and cyclical changes in automotive market and emerging opportunities in the electro mobility and mobility segment. Owing to this, the Company has carried a provision towards various restructuring and transformational costs. The charge/(credit) to the Statement of Profit and Loss towards such costs is disclosed as an exceptional item.
NOTE 27: EMPLOYEE RETIREMENT BENEFITS
Disclosure on Retirement Benefits as required in Indian Accounting Standard (Ind AS) 19 on âEmployee Benefitsâ are given below:
(a) Post Employment Benefit - Defined Contribution Plans
The Company has recognized an amount of million INR 319 (2020-21: million INR 358) as expense under the defined contribution plans in the Statement of Profit and Loss.
(b) Post Employment Benefit - Defined Benefit Plans
The Company makes annual contributions to the Bosch Employeesâ Gratuity Fund and makes monthly contributions to Bosch Employees (Bangalore) Provident Fund Trust and Bosch Workmenâs (Nashik) Provident Fund Trust, funded defined benefit plans for qualifying employees. The Gratuity Scheme provides for lumpsum payment to vested employees at retirement/ death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs only upon completion of five years of service, except in case of death or permanent disability.
The Provident Fund Scheme provides for lumpsum payment/transfer to the member employees at retirement/ death while in employment or on termination of employment of an amount equivalent to the credit standing in his account maintained by the Trusts. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.
(i) The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated term of obligations.
(ii) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
(n) Risk Exposures
A large portion of assets consists of government and corporate bonds and small portion of assets consists in mutual funds and special deposit account in banks. Through its defined plans, the Company is exposed to a number of risks, the most significant of which are detailed below:
Asset Volatility: The plan liabilities are calculated using a discount rate with reference to bond yields, if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income government securities with high grades and public sector corporate bonds. A small portion of the funds are invested in equity securities.
Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans bond holdings.
(i) Financial instruments by category and hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.
(ii) Valuation Technique used to determine Fair Value
Specific valuation techniques used to value financial instruments include:
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date
- the fair value of remaining financial instruments is determined using the discounted cash flow analysis
(iii) Valuation Process
The finance and accounts department of the Company performs the valuation of financial assets and liabilities required for financial reporting purposes, and report to the Executive Director (ED). Discussions on valuation processes and results are held between the ED and valuation team at least once every three months, in line with the Companyâs quarterly reporting periods.
The main level 3 inputs are derived and evaluated as follows:
a) Discount rate for loans to employees are determined using prevailing bank lending rate.
b) The fair values of financial assets and liabilities are determined using the discounted cash flow analysis.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for market, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. There are no transfers between levels during the year.
With respect to trade receivables, other receivables, inter-corporate deposit, current portion of loans, cash and cash equivalents, other bank balance, trade payables, capital creditors, employee payables, the carrying amount is considered to be the same as their fair value due to their short-term nature.
NOTE 29: FINANCIAL RISK MANAGEMENT
The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are entered into by the Company to hedge certain foreign currency exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.
(A) Credit risk
Credit risk arises from cash and cash equivalents, instruments carried at amortized cost and deposits with banks, as well as credit exposures to customers including outstanding receivables.
(i) Credit Risk Management
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks which have high credit ratings assigned by external agencies. Investments primarily include investment in debt based mutual funds whose portfolios have instruments with high credit rating and government bonds. The Board of Directors periodically review the investment portfolio of the Company. Credit risk on loans given to fellow subsidiaries is guaranteed by the Ultimate Holding Company. Credit risk with respect to trade receivable is managed by the Company through setting up credit limits for customers and also periodically reviewing the credit worthiness of major customers.
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of internal financing by way of daily cash flow projection to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability of funds.
Management monitors daily and monthly rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with standard guidelines. The Company has liquidity reserves in the form of highly liquid assets like cash and cash equivalents, debt based mutual funds, deposit accounts, etc.
(i) Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to USD and EUR. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Companyâs functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transaction.
The Company imports and exports goods and services which are predominantly denominated in USD and EUR. This exposes the Company to foreign currency risk. To minimise this risk, the Company hedges using forward contracts and foreign currency option contracts on a net exposure basis.
The Company derives revenues primarily from sale of goods and sale of services.
The Company recognizes revenue under the core principle to depict the transfer of control to the Companyâs customers in an amount reflecting the consideration the Company expects to be entitled.
Product revenues consist of sales to original equipment manufacturers (OEMs). The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. In situations where sales are to a distributor, the Company has concluded that its contract is with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration of the contract, the Company evaluates certain factors including the customerâs ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations.
Revenue from sales to distributors is recognized upon the transfer of control to the distributor. Discounts, sales incentives that are payable to distributors are netted-off with revenue.
In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Companyâs performance obligation is satisfied). Further, in determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer.
(a) Description of segments and principal activities
The Company has itâs presence across automotive technology, industrial technology, consumer goods and energy and building technology. The Company has bifurcated itâs operations into âAutomotive Productsâ, âConsumer Goodsâ and âOthersâ segment. The Companyâs operations in the automotive business consists of diesel systems, gasoline systems and automotive aftermarket products and services and are aggregated into one reportable segment as âAutomotive Productsâ in accordance with the aggregation criteria. Aggregation is done due to the similarities of the products and services provided to the customers, similar production processes and similarities in the regulatory environment. The Companyâs Consumer Goods segment predominantly consists of trading activities in power tools and consumables. The Company also operates in other businesses consisting of Industrial technology, building technology products and services which do not meet the threshold criteria for reporting as separate segments. Therefore, the reportable segment consists of âAutomotive Productsâ, âConsumer Goodsâ and âOthersâ.
Revenue by geographical areas is stated on the basis of origin and there are no non-current assets located outside India. Annual Report 2021-22
NOTE 36: CONTINGENT LIABILITIES
Contingent liability as at March 31, 2022 is million INR Nil (March 31, 2021 - million INR Nil).
The Company has a process whereby periodically all long-term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/ accounting standards for material foreseeable losses on such long-term contracts (including derivative contracts) has been made in the books of accounts.
NOTE 38: CAPITAL COMMITMENTS
Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances):
|
('' in million) |
||
|
March 31, 2022 |
March 31, 2021 |
|
|
Property, plant and equipment |
2,982 |
1,505 |
|
Investment properties |
12 |
53 |
Loans include dues from directors and officers of the Company.
NOTE 40: OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIES
The Company provides the incentives to selected customers under the terms of the agreements. The amounts payable by the Company are offset against receivables from the customers and only the net amounts are settled. The amounts offset as at March 31, 2022 is million INR 1,230 (March 31, 2021: million INR 1,279) which is disclosed under note 7(b).
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these standalone financial statements including the recoverability of carrying amounts of property, plant and equipment, receivables, inventories, investments and other assets and it does not anticipate any major challenge in meeting its financial obligations, on a long-term basis. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these standalone financial statements, used internal and external sources of information and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 on the Companyâs financial statements may differ from that estimated as at the date of approval of these standalone financial statements.
NOTE 42: INVESTMENT IN NEW ASSOCIATE
The Company has invested an amount of '' 132 million in 12,971 compulsorily convertible preference shares of '' 10/- each and '' 1 million in 100 equity shares of '' 10/- each of AutoZilla Solutions Private Limited during the financial year acquiring 26% stake leading to a significant influence over the entity. The same has been treated as an associate as per Ind AS 28 w.e.f. January 28, 2022 (Refer note 6).
NOTE 43: CODE ON SOCIAL SECURITY, 2020
The Code on Social Security, 2020 (âthe Codeâ) which would impact the contributions by the Company towards Provident Fund and Gratuity has received Presidential assent in September 2020. However, the date from which the Code will come into effect has not been notified. The Ministry of Labour and Employment (Ministry) has released draft rules for the Code on November 13, 2020 and has invited suggestions from stake holders which are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in its standalone financial results in the period in which the Code becomes effective and the related rules are published.
NOTE 45: OTHER STATUTORY INFORMATION
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) 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) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company has 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 Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
The Company evaluated all events or transactions that occurred after March 31, 2022 up through May 19, 2022, the date the standalone financial statements were authorized for issue by the Board of Directors. Based on this evaluation, the Company is not aware of any events or transactions that would require recognition or disclosure in the standalone financial statements.
NOTE 47: PREVIOUS PERIOD FIGURES
Previous periodâs figures have been regrouped/reclassified, wherever necessary, to conform to current year classification. NOTE 48: ROUNDING OFF
The standalone financial statements are presented in million INR. Those items which are required to be disclosed and which are not presented in the standalone financial statements due to rounding off to the nearest million INR are as follows:
Mar 31, 2021
(a) Impairment loss has been recognised on certain machines impacted by introduction of the new BS-VI norms in the year ended March 31, 2020 [Refer Note 42].
(b) Buildings include Mio INR 0 (2019-20: Mio INR 0) being the value of shares in co-operative housing societies.
(c) Deductions/adjustments for the previous year includes assets whose cost is Mio 418 INR and opening accumulated depreciation is Mio INR 303 as part of sale of packaging division [Refer Note 33].
(d) Depreciation for the previous year includes depreciation towards discontinued operation amounting to Mio INR 35.
(e) Deductions/adjustments includes Mio INR 11 (2019-20: Mio INR 161) of government grant.
(f) Capital work-in-progress mainly comprises plant and machinery and building under construction.
(g) Refer note 39 for disclosure of contractual commitment for the acquisition of property, plant and equipment.
(h) Figures in brackets relate to previous year.
(a) Post Employment Benefit - Defined Contribution Plans
The Company has recognised an amount of Mio INR 358* (2019-20: Mio INR 364*) as expense under the defined contribution plans in the Statement of Profit and Loss.
(b) Post Employment Benefit - Defined Benefit Plans
The Company makes annual contributions to the Bosch Employeesâ Gratuity Fund and makes monthly contributions to Bosch Employees (Bangalore) Provident Fund Trust and Bosch Workmenâs (Nashik) Provident Fund Trust, funded defined benefit plans for qualifying employees. The Gratuity Scheme provides for lumpsum payment to vested employees at retirement/death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs only upon completion of five years of service, except in case of death or permanent disability.
The Provident Fund Scheme provides for lumpsum payment/transfer to the member employees at retirement/ death while in employment or on termination of employment of an amount equivalent to the credit standing in his account maintained by the Trusts. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.
Notes:
(i) The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated term of obligations.
(ii) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
(n) Risk exposures:
A large portion of assets consists of government and corporate bonds and small portion of assets consists in mutual funds and special deposit account in banks. Through its defined plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Asset Volatility: The plan liabilities are calculated using a discount rate with reference to bond yields, if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income government securities with high grades and public sector corporate bonds. A small portion of the funds are invested in equity securities.
Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plansâ bond holdings.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges in valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for market, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. There are no transfers between levels during the year.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date
- the fair value of remaining financial instruments is determined using the discounted cash flow analysis
(iii) Valuation process
The finance and accounts department of the company performs the valuation of financial assets and liabilities required for financial reporting purposes, and report to the Executive Director (ED). Discussions on valuation processes and results are held between the ED and valuation team at least once every three months, inlinewiththeCompanyâsquarterlyreporting
periods.
The main level 3 inputs are derived and evaluated as follows:
a) Discount rate for loans to employees are determined using prevailing bank lending rate.
b) The fair values of financial assets and liabilities are determined using the discounted cash flow analysis.
With respect to trade receivables, other receivables, inter-corporate deposit, current portion of loans, cash and cash equivalents, other bank balance, trade payables, capital creditors, employee payables, the carrying amount is considered to be the same as their fair value due to their short-term nature.
Note 29: Financial risk management
The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are entered into by the Company to hedge certain foreign currency exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.
Credit risk arises from cash and cash equivalents, instruments carried at amortised cost and deposits with banks, as well as credit exposures to customers including outstanding receivables.
(i) Credit risk management
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks which have high credit ratings assigned by external agencies. Investments primarily include investment in debt based mutual funds whose portfolios have instruments with high credit rating and government bonds. The Board of Directors periodically review the investment portfolio of the Company. Credit risk on loans given to fellow subsidiaries is guaranteed by the Ultimate holding company. Credit risk with respect to trade receivable is managed by the Company through setting up credit limits for customers and also periodically reviewing the credit worthiness of major customers.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of internal financing by way of daily cash flow projection to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability of funds.
Management monitors daily and monthly rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with standard guidelines. The company has liquidity reserves in the form of highly liquid assets like cash and cash equivalents, debt based mutual funds, deposit accounts, etc.
(i) Financing arrangements: The company had access to the following undrawn borrowing facilities at the end of the reporting period
The Company derives revenues primarily from sale of goods and sale of services.
The Company recognizes revenue under the core principle to depict the transfer of control to the Companyâs customers in an amount reflecting the consideration the Company expects to be entitled.
Product revenues consist of sales to original equipment manufacturers (OEMs). The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. In situations where sales are to a distributor, the Company has concluded that its contract is with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration of the contract, the Company evaluates certain factors including the customerâs ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations.
Revenue from sales to distributors is recognized upon the transfer of control to the distributor. Discounts, sales incentives that are payable to distributors are netted-off with revenue.
In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. Revenue is recognized when control of the product is transferred to the customer (i.e., when the Companyâs performance obligation is satisfied). Further, in determining whether control has transferred, the Company considers if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer.
(a) Description of segments and principal activities
The Companyâs operations predominantly relate to operating segments in the automotive business which consists of diesel systems, gasoline systems and automotive aftermarket products and services and are aggregated into one reportable segment âAutomotive Productsâ in accordance with the aggregation criteria. Aggregation is done due to the similarities of the products and services provided to the customers, similar production processes and similarities in the regulatory environment. The Company also operates in other businesses consisting of Industrial technology, consumer goods, energy and building technology products and services which are non-automotive and do not meet the threshold criteria for reporting as separate segments. Therefore, the reportable segment consists of âAutomotive Productsâ and âOthersâ.
Revenue by geographical areas is stated on the basis of origin and there are no non-current assets located outside India.
The accounting principles and policies adopted in the preparation of the standalone financial statements are also consistently applied to record income/ expenditure and assets/ liabilities in individual segments.
The inter-segment revenue have been accounted for based on the transaction price agreed to between segments which is primarily market based.
In accordance with the approvals received from the Board of Directors on May 21, 2019 and from the shareholders on August 23, 2019, the Company has executed the Business Transfer Agreement on October 1, 2019 and transferred the business of Packaging under the non-automotive products segment of the Company on a going concern basis by way of slump sale to Robert Bosch Packaging Technology India Private Limited. Consequently, profit before tax and profit after tax for the Packaging business have been disclosed separately as discontinued operation under the statement of profit and loss.
During the year, the Company has reassessed the possibility of outflow in settlement of its ongoing direct tax and indirect tax litigations of Mio INR 1,050 and Mio INR 263 (net of tax) respectively as remote and consequently contingent liability as at March 31, 2021 is Mio INR Nil.
The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/ accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.
Note 40: Dues from Directorâs
Advances include dues from directors and officers of the Company Note 41: Offsetting financial assets and financial liabilities
The Company provides the incentives to selected customers under the terms of the agreements, the amounts payable by the Company are offset against receivables from the customers and only the net amounts are settled. The amounts offset as at March 31, 2021 is Mio INR 1,279 (March 31, 2020: Mio INR 728) which is disclosed under note 7(b).
The Company is undergoing major transformation with regard to structural and cyclical changes in automotive market and emerging opportunities in the electro mobility and mobility segment. An amount of Mio INR 7,439 (Previous year Mio INR 7,167) has been expensed in the Statement of Profit and Loss towards various restructuring and transformational costs and disclosed as an exceptional item. Provision of Mio INR 2,458 towards such costs as at March 31, 2021 is included in Note 14 - Provisions (As at March 31, 2020 Mio INR 5,913).
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these standalone financial statements including the recoverability of carrying amounts of property, plant and equipment, receivables, inventories, investments and other assets and it does not anticipate any major challenge in meeting its financial obligations, on a long term basis. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company has, at the date of approval of these standalone financial statements, used internal and external sources of information and expects that the carrying amount of these assets will be recovered. The impact of COVID-19 on the Companyâs financial statements may differ from that estimated as at the date of approval of these standalone financial statements.
Robert Bosch India Manufacturing and Technology Private Limited, a wholly owned subsidiary of Bosch Limited, has been incorporated on May 31, 2020 for the purpose of carrying on the business of manufacturing, assembly and services in automotive, industrial, consumer goods, energy and building sectors.
Note 45: Code on Social Security, 2020
The Code on Social Security, 2020 (âthe Code) which would impact the contributions by the Company towards Provident Fund and Gratuity has received Presidential assent in September 2020. The Code have been published in the Gazette of India. However, the date from which the Code will come into effect has not been notified. The Ministry of Labour and Employment (Ministry) has released draft rules for the Code on November 13, 2020 and has invited suggestions from stake holders which are under active consideration by the Ministry. The Company will complete its evaluation and will give appropriate impact in its standalone financial statements in the period in which the Code becomes effective and the related rules are published.
Previous periodâs figures have been regrouped/ reclassified, wherever necessary, to conform to current year classification. Note 47: Rounding off
The Standalone financial statements are presented in Mio INR. Those items which are required to be disclosed and which are not presented in the standalone financial statements due to rounding off to the nearest Mio INR are given as follows:
Mar 31, 2018
Note 1: Critical estimates and judgments
The preparation of financial statements in accordance with Ind AS requires that assumptions and estimates be made for some line items. This note provides the areas that involve a higher degree of judgment or complexity.
(a) Estimation of current tax expense and payable - Note 28
Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of Income tax Act, 1961. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. The recognition of deferred tax assets is premised on their future recoverability being probable.
(b) Estimation of defined benefit obligation - Note 29
Employee benefit obligations are measured using actuarial methods. This requires various assumptions, including with respect to salary trends, attrition rate, discounting factor, etc.
(c) Estimation of provision for warranty claims - Note 14
Warranty estimates are established using historical information on the nature, frequency and average cost of warranty claims and also management estimates regarding possible future outflow on servicing the customers for any corrective action in respect of product failure which is generally expected to be settled within a period of 1 to 3 years.
* Relating to certain DSIR approved R&D facilities, considered eligible for Income tax benefit.
(a) Buildings include Mio INR 0 (2016-17: Mio INR 0) being the value of shares in co-operative housing societies.
(b) Deductions/ adjustments includes transfer of Mio INR Nil (2016-17: Mio INR 311) as part of sale of starter motors and generators business (refer note 34) and transfer of Mio INR Nil (2016-17: Mio INR 46) to investment properties (refer note 5).
(c) Depreciation for the year includes depreciation for discontinued operation amounting to Mio INR NIL (2016-17: Mio INR 42).
(d) Plant and machinery includes capital spares and government grant capitalized on transition to Ind AS.
(e) Capital work-in-progress mainly comprises plant and machinery and building under construction.
(f) Refer note 41 for disclosure of contractual commitment for the acquisition of property, plant and equipment.
(g) Figures in brackets relate to previous year.
Disclosure on Retirement Benefits as required in Indian Accounting Standard (Ind AS) 19 on âEmployee Benefitsâ are given below:
(a) Post Employment Benefit - Defined Contribution Plans
The Company has recognized an amount of Mio INR 321* (2016-17: Mio INR 277*) as expense under the defined contribution plans in the Statement of Profit and Loss.
(b) Post Employment Benefit - Defined Benefit Plans
The Company makes annual contributions to the Bosch Employeesâ Gratuity Fund and makes monthly contributions to Bosch Employees (Bangalore) Provident Fund Trust and Bosch Workmenâs (Nashik) Provident Fund Trust, funded defined benefit plans for qualifying employees. The Gratuity Scheme provides for lumpsum payment to vested employees at retirement/death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs only upon completion of five years of service, except in case of death or permanent disability.
The Provident Fund Scheme provides for lumpsum payment/transfer to the member employees at retirement/ death while in employment or on termination of employment of an amount equivalent to the credit standing in his account maintained by the Trusts. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.
Notes:
(i) The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated term of obligations.
(ii) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
(n) Risk exposures:
A large portion of assets consists of government and corporate bonds and small portion of assets consists in mutual funds and special deposit account in banks. Through its defined plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Asset Volatility: The plan liabilities are calculated using a discount rate with reference to bond yields, if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income government securities with high grades and public sector corporate bonds. A small portion of the funds are invested in equity securities.
Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plansâ bond holdings.
The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur. This sensitivity analysis shows how the defined benefit obligation would have been affected by changes in the relevant actuarial assumption that were reasonably possible at that date.
(i) Financial instruments by category and hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued usii the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for market, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely . little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, th instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Leve There are no transfers between levels during the year.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet dat
- the fair value of remaining financial instruments is determined using the discounted cash flow analysis
(iii) Valuation process
The finance and accounts department of the company performs the valuation of financial assets and liabilities required for financial reporting purposes, and report to the Executive Director (ED). Discussions on valuation processes and results are held between the ED and valuation team at least once every three months, in line with the Companyâs quarterly reporting periods.
The main level 3 inputs are derived and evaluated as follows:
a) Discount rate for loans to employees are determined using prevailing bank lending rate.
b) The fair values of financial assets and liabilities are determined using the discounted cash flow analysis.
With respect to trade receivables, other receivables, inter-corporate deposit, current portion of loans, cash and cash equivalents, other bank balance, trade payables, capital creditors, employee payables, the carrying amount is considered to be the same as their fair value due to their short-term nature.
Note 2: Financial risk management
The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are entered into by the Company to hedge certain foreign currency exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.
(A) Credit Risk
Credit risk arises from cash and cash equivalents, instruments carried at amortized cost and deposits with banks, as well as credit exposures to customers including outstanding receivables.
(i) Credit risk management
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks which have high credit ratings assigned by external agencies. Investments primarily include investment in debt based mutual funds whose portfolios have instruments with high credit rating and government bonds. The Board of Directors periodically review the investment portfolio of the Company. Credit risk on loans given to fellow subsidiaries is guaranteed by the holding company. Credit risk with respect to trade receivable is managed by the Company through setting up credit limits for customers and also periodically reviewing the credit worthiness of major customers.
The gross carrying amount of trade receivables is Mio INR 17,346 (March 31, 2017 - Mio INR 12,560). During the period, the Company made no significant write-offs of trade receivables and it does not expect to receive future cash flows or recoveries from trade receivables previously written off.
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of internal financing by way of daily cash flow projection to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability of funds.
Management monitors daily and monthly rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows This is generally carried in accordance with standard guidelines. The company has liquidity reserves in the form of highly liquid assets like cash and cash equivalents, debt based mutual funds, deposit accounts, etc.
(ii) Maturity of Financial liabilities
The table below summarizes the companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for:
a) all non-derivative financial liabilities
b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows
The amounts disclosed in the table are the contractual undiscounted cash flows. Balance due within 12 months equal their carrying balances as the impact of discounting is not significant.
(C) Market risk
(i) Foreign currency risk
The company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to USD and EUR. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the companyâs functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimize the volatility of the INR cash flows of highly probable forecast transaction.
The Company imports and exports goods and services which are predominantly denominated in USD and EUR. This exposes the Company to foreign currency risk. To minimize this risk, the Company hedges using forward contracts and foreign currency option contracts on a net exposure basis.
(ii) Cash flow and fair value interest rate risk
(a) Interest rate risk exposure: The company does not have interest bearing borrowings and interest rate risk is towards opportunity cost on investment in tax free bonds. Company analyses it based on the sensitivity analysis and manages it by portfolio diversification.
(b) Sensitivity: Profit or loss is sensitive to changes in interest rate for tax free bonds. A change in the market interest level by 100 basis points would have the following effect on the profit after tax:
* Holding all other variable constant
(iii) Price risk
(a) Exposure: The Company has invested in equity securities and the exposure is equity securities price risk from investments held by the Company and classified in the balance sheet as fair value through OCI.
(b) Sensitivity: The table below summarizes the impact of increase/decrease of the index in the companyâs equity and impact on OCI for the period. The analysis is based on the assumption that the equity index had increased/ decreased by 10% with all other variables held constant, and that all the companyâs equity instruments moved in line with the index.
Other components of equity would increase/decrease as a result of gains/ (losses) on equity securities classified as fair value though Other Comprehensive Income.
Note 3: Capital management (a) Risk management
The Company has equity capital and other reserves attributable to the equity shareholders, as the only source of capital and the company does not have any interest bearing borrowings/ debts.
(a) Description of segments and principal activities
The Companyâs operations predominantly relate to operating segments in the automotive business which consists of diesel systems, gasoline systems and automotive aftermarket products and services and are aggregated into one reportable segment âAutomotive Productsâ in accordance with the aggregation criteria. Aggregation is done due to the similarities of the products and services provided to the customers, similar production processes and similarities in the regulatory environment. The Company also operates in other businesses consisting of Industrial technology, consumer goods, energy and building technology products and services which are nonautomotive and do not meet the threshold criteria for reporting as separate segments. Therefore, the reportable segment consists of âAutomotive Productsâ and âOthersâ.
Revenue by geographical areas is stated on the basis of origin and there are no non-current assets located outside India.
The Accounting principles and policies adopted in the preparation of the financial statements are also consistently applied to record income/ expenditure and assets/ liabilities in individual segments. The inter-segment revenue have been accounted for based on the transaction price agreed to between segments which is primarily market based.
Consequent to the approvals received from the Board of Directors on February 5, 2016 and from the shareholders on April 4, 2016, the Company has executed a Business Transfer Agreement on August 1, 2016 and has sold/ transferred the business of Starter Motors and Generators under the automotive products segment of the Company on a going concern basis by way of Slump sale to Robert Bosch Starter Motors Generators India Private Limited, a fellow subsidiary. Gain on sale of business amounting to Mio INR 3,971 has been recognized during the previous year and disclosed under discontinued operation in the Statement of Profit and Loss.
(a) Financial performance and cash flow information:
The financial performance and cash flow information presented are for the period ended August 1, 2016
(d) There are no assets and liabilities of disposal group to be classified as assets held for sale on either of the reporting dates.
Note 4: Related Party Disclosure :
Holding Company : Robert Bosch GmbH, Federal Republic of Germany
Subsidiary Company : MICO Trading Private Limited, India
Associate (also a fellow subsidiary) : Newtech Filter India Private Limited, India
Whole time directors : Dr. Steffen Berns (till December 31, 2016), Mr. Soumitra Bhattacharya, Dr. Andreas Wolf and Mr. Jan Oliver Rohrl (from February 11, 2017)
Non-whole time directors : Mr. V.K. Viswanathan, Mr. Peter Tyroller, Mr. Bernhard Steinruecke, Mr. Prasad Chandran (till September 1, 2017), Ms. Renu S. Karnad, Mr. Bhaskar Bhat & Mrs. Hema Ravichandar (From September 2, 2017)
Other related entities: Bosch India Foundation
Note 5: Leases
Information on leases as per Indian Accounting Standard(Ind AS) 17 on âLeasesâ:
(a) Operating Lease Expense :
The Company has various operating leases ranging from 2 years to 10 years for office facilities, warehouses, guest houses and residential premises for employees that are renewable on a periodic basis. Non-cancellable periods range from 8 months to 108 months. The leases are renewable by mutual consent and contain escalation clause. Rental expenses for operating leases recognized in the Statement of Profit and Loss for the year is Mio INR 804 (2016-17: Mio INR 549).
(b) Operating Lease Income :
The Company has leased out certain office spaces that are renewable on a periodic basis. All leases are cancellable with 3 months notice. Rental income received during the year in respect of operating lease is Mio INR 994 (2016-17: Mio INR 875). Details of assets given on operating lease as at year end are as below.
Total gross Research and Development expenditure recognized in the Statement of Profit and Loss (including amounts shown under Note 4 and Note 27 to the Financial Statements) amounts to Mio INR 2,599 (2016-17: Mio INR 2,961)
(i) Relates to adjustments made by the Income Tax Department for the financial year 2011-12 and 2012-13 which are disputed by the Company and the matters are lying under appeal with CIT (Appeals).
Note 6: The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/ accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.
Note 7: Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances)
Note 8: Offsetting financial assets and financial liabilities
The Company provides the incentives to selected customers under the terms of the agreements, the amounts payable by the Company are offset against receivables from the customers and only the net amounts are settled. The amounts offset as at March 31, 2018 is Mio INR 1,036 (March 31, 2017: Mio INR 960) which is disclosed under note 7(b).
Note 9: Excise duty on sale of products
Note 10 Exceptional item
The Government of India, vide notification No.S-42012/02/2016-SS-II dated March 29, 2018, has increased the maximum amount of gratuity payable to an employee under the Payment of Gratuity (Amendment) Act, 1972 from rupees ten lakhs to rupees twenty lakhs. The impact of this on past service cost has been disclosed as exceptional item for the year ended March 31, 2018 in the Statement of Profit and Loss.
Note 11: Rounding off
Amounts mentioned as â0â in the financial statements denote amounts rounded off being less than Rupees one million.
Mar 31, 2017
Note 1: General Information
Bosch Limited (the âCompanyâ) is the flagship company of Robert Bosch Company in India. Headquartered out of Bengaluru, the Company has its key manufacturing facilities in Bengaluru, Nashik, Naganathapura, Jaipur, Goa, Gangaikondan, Chennai and Bidadi. The Company has presence across automotive technology, industrial technology, consumer goods and energy and building technology. It manufactures and trades in products such as diesel and gasoline fuel injection systems, automotive aftermarket products, starters and generators, industrial equipments, packaging machines, electrical power tools, security systems and industrial and consumer energy products and solutions. The Companyâs shares are listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). During the year, the Company has discontinued the business relating to starters and generators products.
The financial statements are approved for issue by the Companyâs Board of Directors on May 25, 2017.
Note 2: Critical estimates and judgements
The preparation of financial statements in accordance with Ind AS requires that assumptions and estimates be made for some line items. This note provides the areas that involve a higher degree of judgement or complexity.
(a) Estimation of current tax expense and payable - Note 29
Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of Income Tax Act, 1961. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. The recognition of deferred tax assets is premised on their future recoverability being probable.
(b) Estimation of defined benefit obligation - Note 30
Employee benefit obligations are measured using actuarial methods. This requires various assumptions, including with respect to salary trends, attrition rate, discounting factor, etc.
(c) Estimation of provision for warranty claims - Note 15
Warranty estimates are established using historical information on the nature, frequency and average cost of warranty claims and also management estimates regarding possible future outflow on servicing the customers for any corrective action in respect of product failure which is generally expected to be settled within a period of 1 to 3 years.
* Relating to certain DSIR approved R&D facilities, considered eligible for Income tax benefit.
(a) Buildings include Mio INR 0 (2015-16: Mio INR 0) being the value of shares in co-operative housing societies.
(b) Deductions/ adjustments includes transfer of Mio INR 311 (net block) as part of sale of starter motors and generators business (refer note 35) and transfer of Mio INR 46 (net block) to investment properties (refer note 5).
(c) Depreciation for the year includes depreciation for discontinued operation amounting to Mio INR 42 (2015-16: Mio INR 229).
(d) Plant and machinery includes capital spares and government grant capitalised on transition to Ind AS as at April 1, 2015 and subsequent periods (refer note 44).
(e) Capital work-in-progress mainly comprises plant and machinery and building under construction.
(f) Refer note 42 for disclosure of contractual commitment for the acquisition of property, plant and equipment.
(g) Figures in brackets relate to previous year. Gross carrying amount as at April 1, 2015 represents deemed cost of property, plant and equipment.
Rights, preferences and restrictions attached to shares:
The Equity shares of the Company, having face value of Rs. 10/- per share, rank pari passu in all respects including voting rights, entitlement to dividend and share in the proceeds of winding up of the Company in proportion to the number of and amounts paid on the shares held.
Note 3: Employee Retirement Benefits:
Disclosure on Retirement Benefits as required in Indian Accounting Standard (Ind AS) 19 on âEmployee Benefitsâ are given below:
(a) Post Employment Benefit - Defined Contribution Plans
The Company has recognised an amount of Mio INR 287 (2015-16: Mio INR 315) as expense under the defined contribution plans in the Statement of Profit and Loss.
(b) Post Employment Benefit - Defined Benefit Plans
The Company makes annual contributions to the Bosch Employeesâ Gratuity Fund and makes monthly contributions to Bosch Employees (Bangalore) Provident Fund Trust and Bosch Workmenâs (Nashik) Provident Fund Trust, funded defined benefit plans for qualifying employees.
The Gratuity Scheme provides for lumpsum payment to vested employees at retirement/death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs only upon completion of five years of service, except in case of death or permanent disability.
The Provident Fund Scheme provides for lumpsum payment/transfer to the member employees at retirement/ death while in employment or on termination of employment of an amount equivalent to the credit standing in his account maintained by the Trusts. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.
(c) Total expense recognised in the statement of profit and loss
(d) Remeasurement effects recognised in other comprehensive income (OCI)
(f) Change in defined benefit obligation
(g) Change in fair value of plan assets
(i) Expected company contributions for the next year
(j) Reconciliation of amounts in balance sheet
(k) Reconciliation of Statement of Other Comprehensive Income
(l) Current/ non current liability
(m) Assumptions :
Notes:
(i) The discount rate is based on the prevailing market yield on Government Bonds as at the balance sheet date for the estimated term of obligations.
(ii) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
(n) Risk exposures:
A large portion of assets consists of government and corporate bonds and small portion of assets consists in mutual funds and special deposit account in banks. Through its defined plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Asset Volatility: The plan liabilities are calculated using a discount rate with reference to bond yields, if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income government securities with high grades and public sector corporate bonds. A small portion of the funds are invested in equity securities.
Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plansâ bond holdings.
(o) Sensitivity analysis on defined benefit obligation
The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur.
This sensitivity analysis shows how the defined benefit obligation would have been affected by changes in the relevant actuarial assumption that were reasonably possible at that date.
(p) Plan assets
(q) Expected future cash flows
The weighted average duration of the defined benefit obligation is 14.45 years (2015-16 -11.25 years). The expected maturity analysis is as follows:
Note 4: Fair value measurements:
(i) Financial instruments by category and hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.
Note (a) : The amount includes current portion of sales tax deferral.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, tax free bonds and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges in valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for market, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. There are no transfers between levels during the year.
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date
- the fair value of remaining financial instruments is determined using the discounted cash flow analysis
(iii) Valuation process
The finance and accounts department of the company performs the valuation of financial assets and liabilities required for financial reporting purposes, and report to the Executive Director (ED). Discussions on valuation processes and results are held between the ED and valuation team at least once every three months, in line with the Companyâs quarterly reporting periods.
The main level 3 inputs are derived and evaluated as follows:
a) Discount rate for sales tax deferral loan are determined using risk free rate.
b) Discount rate for loans to employees are determined using prevailing bank lending rate.
c) The fair values of financial assets and liabilities are determined using the discounted cash flow analysis.
(iv) Fair value of financial assets and liabilities measured at amortised cost
With respect to trade receivables, other receivables, inter-corporate deposit, current portion of loans, cash and cash equivalents, other bank balance, trade payables, capital creditors, employee payables and current maturities of long-term debt, the carrying amount is considered to be the same as their fair value due to their short-term nature.
Note 5: Financial risk management
The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are entered into by the Company to hedge certain foreign currency exposure. Derivatives are used exclusively for hedging and not as trading or speculative instruments.
(A) Credit Risk
Credit risk arises from cash and cash equivalents, instruments carried at amortised cost and deposits with banks, as well as credit exposures to customers including outstanding receivables.
(i) Credit risk management
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks which have high credit ratings assigned by external agencies. Investments primarily include investment in debt based mutual funds whose portfolios have instruments with high credit rating and government bonds. The board of directors periodically review the investment portfolio of the Company. Credit risk on loans given to fellow subsidiaries is guaranteed by the holding company. Credit risk with respect to trade receivable is managed by the Company through setting up credit limits for customers and also periodically reviewing the credit worthiness of major customers.
The gross carrying amount of trade receivables is Mio INR 12,560 (March 31, 2016 - Mio INR 13,783, April 1, 2015 - Mio INR 12,388). During the period, the Company made no significant write-offs of trade receivables and it does not expect to receive future cash flows or recoveries from trade receivables previously written off.
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of internal financing by way of daily cash flow projection to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability of funds.
Management monitors daily and monthly rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried in accordance with standard guidelines. The company has liquidity reserves in the form of highly liquid assets like cash and cash equivalents, debt based mutual funds, deposit accounts, etc.
(i) Financing arrangements: The company had access to the following undrawn borrowing facilities at the end of the reporting period
(ii) Maturity of Financial liabilities
The table below summarises the companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for:
a) All non-derivative financial liabilities
b) Net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows
The amounts disclosed in the table are the contractual undiscounted cash flows. Balance due within 12 months equal their carrying balances as the impact of discounting is not significant.
(C) Market risk
(i) Foreign currency risk
The company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to USD and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Companyâs functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective of the hedges is to minimise the volatility of the INR cash flows of highly probable forecast transaction.
The Company imports and exports goods and services which are predominantly denominated in USD and EUR. This exposes the Company to foreign currency risk. To minimise this risk, the Company hedges using forward contracts and foreign currency option contracts on a net exposure basis.
(a) Foreign currency risk exposure: The Company exposure to foreign currency risk at the end of the reporting period expressed in Mio INR are as follows:
(b) Sensitivity: The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated financial instruments:
(ii) Cash flow and fair value interest rate risk
(a) Interest rate risk exposure: The company does not have interest bearing borrowings and interest rate risk is towards opportunity cost on investment in tax free bonds. Company analyses it based on the sensitivity analysis and manages it by portfolio diversification.
(b) Sensitivity: Profit or loss is sensitive to changes in interest rate for tax free bonds. A change in the market interest level by 100 basis points would have the following effect on the profit after tax:
(iii) Price risk
(a) Exposure: The Company has invested in equity securities and the exposure is equity securities price risk from investments held by the Company and classified in the balance sheet as fair value through OCI.
(b) Sensitivity: The table below summarises the impact of increase/decrease of the index in the companyâs equity and impact on OCI for the period. The analysis is based on the assumption that the equity index had increased/ decreased by 10% with all other variables held constant, and that all the Companyâs equity instruments moved in line with the index.
Other components of equity would increase/decrease as a result of gains/ (losses) on equity securities classified as fair value through other comprehensive income.
Note 6: Capital management
(a) Risk management
The Company has equity capital and other reserves attributable to the equity shareholders, as the only source of capital and the company does not have any interest bearing borrowings/ debts.
(b) Dividends
Note 7: Segment Information
(a) Description of segments and principal activities
The Companyâs operations predominantly relate to operating segments in the automotive business which consists of diesel systems, gasoline systems and automotive aftermarket products and services and are aggregated into one reportable segment âAutomotive Productsâ in accordance with the aggregation criteria. Aggregation is done due to the similarities of the products and services provided to the customers, similar production processes and similarities in the regulatory environment. The Company also operates in other businesses consisting of Industrial technology, consumer goods and energy and building technology products and services which are non-automotive and do not meet the threshold criteria for reporting as separate segments. Therefore, the reportable segment consists of âAutomotive Productsâ and âOthersâ.
Revenue by geographical areas is stated on the basis of origin and there are no non-current assets located outside India.
The Accounting principles and policies adopted in the preparation of the financial statements are also consistently applied to record income/ expenditure and assets/ liabilities in individual segments. The inter-segment revenue have been accounted for based on the transaction price agreed to between segments which is primarily market based.
Note 8: Discontinued operation :
Consequent to the approvals received from the Board of Directors on February 5, 2016 and from the shareholders on April 4, 2016, the Company has executed a Business Transfer Agreement on August 1, 2016 and has sold/ transferred the business of Starter Motors and Generators under the automotive products segment of the Company on a going concern basis by way of Slump sale to Robert Bosch Starter Motors Generators India Private Limited, a fellow subsidiary. Gain on sale of business amounting to Mio INR 3,971 has been recognised during the current year and disclosed under discontinued operation in the statement of profit and loss.
(a) Financial performance and cash flow information:
The financial performance and cash flow information presented are for the period ended August 1, 2016 (March 31, 2017 column) and the year ended March 31, 2016:
(c) The carrying amount of assets and liabilities as at the date of transfer (August 1, 2016) are as follows:
(d) There are no assets and liablities of disposal group to be classified as assets held for sale on either of the reporting dates.
Note 9: Related Party Disclosure :
Holding Company : Robert Bosch GmbH, Federal Republic of Germany
Subsidiary Company : MICO Trading Private Limited, India
Associate (also a fellow subsidiary) : Newtech Filter India Private Limited, India
Whole time directors : Dr. Steffen Berns (till December 31, 2016), Mr. Soumitra Bhattacharya, Dr. Andreas Wolf and Mr. Jan Oliver Rohrl (from February 11, 2017)
Non-whole time directors : Mr. V.K. Viswanathan, Mr. Peter Tyroller, Mr. Bernhard Steinruecke, Mr. Prasad Chandran,
Ms. Renu S. Karnad and Mr. Bhaskar Bhat
Other related entities: Bosch India Foundation
(a) Key management personnel compensation:
(b) Related Party transactions/ balances - summary:
Note 10: Leases
Information on leases as per Indian Accounting Standard(Ind AS) 17 on âLeasesâ:
(a) Operating Lease Expense :
The Company has various operating leases for office facilities, warehouses, guest houses and residential premises for employees that are renewable on a periodic basis. Rental expenses for operating leases recognised in the Statement of Profit and Loss for the year is Mio INR 549 (2015-16: Mio INR 541).
(b) Operating Lease Income :
The Company has leased out certain office spaces that are renewable on a periodic basis. All leases are cancellable with 3 months notice. Rental income received during the year in respect of operating lease is Mio INR 875 (2015-16: Mio INR 493). Details of assets given on operating lease as at year end are as below.
Note 11: Research and Development expenses
Total gross Research and Development expenditure recognised in the Statement of Profit and Loss (including amounts shown under Note 4 and Note 28 to the Financial Statements) amounts to Mio INR 2,961 (2015-16: Mio INR 1,741)
Note 12: Earnings Per Share
(a) Basic and diluted earnings per share
(b) Reconciliation of earnings used in calculating earnings per share
(c) Weighted average number of shares used as the denominator
Note 13: The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law/ accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.
Note 14: Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances)
Note 15: Advances include dues from directors and officers of the Company
Note 16: First-time adoption of Ind AS
The Company has prepared the financial statements in accordance with Ind AS.
The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet as at April 1, 2015 (the Companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes.
A. Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS
A.1 Ind AS optional exemptions
A.1.1 Deemed cost
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment properties covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all its property, plant and equipment, intangible assets and investment properties at their previous GAAP carrying value.
A.1.2 Designation of previously recognised financial instruments
Under Ind AS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.
A.1.3 Business combinations
Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. Accordingly, the Company has elected to apply Ind AS 103 prospectively to business combinations occuring after its transition date.
A.2 Ind AS mandatory exceptions A.2.1 Estimates
The Companyâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:
- Investment in equity instruments carried at FVOCI;
- Investment in debt instruments carried at FVPL; and
- Impairment of financial assets based on expected credit loss method.
A.2.2 Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
A.2.3 Government loan at below market rate of interest - Government grant
Ind AS 101 requires a first-time adopter to apply the requirements of Ind AS 109, Financial instruments and Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance, prospectively to government loans at below market rate of interest obtained after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the requirements of Ind AS retrospectively to any government loan originated before the date of transition to Ind AS provided that the information needed to do so had been obtained at the time of initially accounting for that loan. Consequently, if the company did not under its previous GAAP recognise and measure the government loan at below market rate of interest on a basis consistent with Ind AS requirements, it shall use its previous GAAP carrying amount of the loan at the date of transition to Ind AS as the carrying amount of the loan in the opening Ind AS balance sheet. Accordingly the company has applied the above requirement prospectively.
B. Reconciliation between previous GAAP and Ind AS
Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliation from previous GAAP to Ind AS.
1) Fair Valuation of Investments
Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period. Long-term investments were carried at cost less provision for other than temporary decline in the value of such instruments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated at FVOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2016. This increased the retained earnings by Mio INR 4,432 as at March 31, 2016 (April 1, 2015 : Mio INR 2,099).
Fair value changes with respect to investments in equity instruments designated at FVOCI have been recognised in FVOCI
- Equity investments reserve as at the date of transition and subsequently in the other comprehensive income for the year ended March 31, 2016. This increased other reserves by Mio INR 4,452 as at March 31, 2016 (April 1, 2015 : Mio INR 5,316).
Consequent to the above, the total equity as at March 31, 2016 increased by Mio INR 8,884 ( April 1, 2015 : Mio INR 7,415) and profit for the year increased by Mio INR 2,333 and other comprehensive income for the year ended March 31, 2016 decreased by Mio INR 864.
2) Loans to employees
Under the previous GAAP, interest free and concessional loans to employees are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the company has fair valued the loans to employees under Ind AS. Difference between the fair value and transaction value of the loans to employees has been recognised as deferred expenses. Consequent to this change, the amount of loans to employees decreased by Mio INR 96 as at March 31, 2016 (April 1, 2015 - Mio INR 132). The deferred expense increased by Mio INR 102 (April 1, 2015 - Mio INR 132). The profit for the year and total equity as at March 31, 2016 decreased by Mio INR 30 which is off-set by the notional income of Mio INR 36 recognised on loans to employees.
3) Proposed dividend and dividend distribution tax
Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of Mio INR 3,212 as at March 31, 2016 ( April 1, 2015 - Mio INR 3,212) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.
4) Deferred tax
Deferred tax have been recognised on account of long term capital loss on transition to Ind AS which increased the deferred tax assets by Mio INR 430 as on March 31, 2016 and deferred tax credit for the year ended March 31, 2016 by Mio INR 430.
5) Borrowings
Ind AS 109 requires borrowings to be accounted as financial liabilities at amortised cost. Accordingly, borrowings as at March 31, 2016 have been reduced by Mio INR 42 and deferred income has increased by Mio INR 79 with a corresponding adjustment to retained earnings of Mio INR 37. As a result of the interest expense on reinstatement of borrowing, the profit for the year ended March 31, 2016 has decreased by Mio INR 57 which is off-set by the notional income of Mio INR 18 due to amortisation of deferred income.
6) Government Grant
a) The Company had received government grants in earlier years and property, plant and equipments related to grants were fully depreciated before transition date. Such grants amounting to INR 1,820 Mio INR were disclosed under capital reserve as per requirement of erstwhile Accounting Standard 12 on Government Grants. This amount has been reclassified and disclosed under retained earning in the current year as per requirement of Ind AS 20. During the year ended March 31, 2016 the Company had received grants amounting to Mio INR 261 which has been disclosed as other income and tax expense of Mio INR 90 pertaining to this grant is disclosed under income tax expense.
b) As per Ind AS 20, Government grant related to assets shall be presented in the balance sheet by setting up the grant as deferred income. The grant set up as deferred income is recognised in statement of profit or loss on a systematic basis over the useful life of the asset. Under the previous GAAP, the grant was shown as a deduction from the asset concerned in arriving at its carrying value. Accordingly, the company has recognised the asset related government grant outstanding as on the transition date as deferred income with corresponding adjustment to property, plant and equipment. Consequent to this the deferred income and property, plant and equipment increased by Mio INR 83 as at March 31, 2016 (April 1, 2015: Mio INR 112) and depreciation and other income has increased by Mio INR 60 for the year ended March 31, 2016. There is no impact on the total equity and profit.
7) Capital Spares
As per Ind AS 16, spare parts are to be recognised as Property, Plant and Equipment if they are held for use in production or supply of goods or services and are expected to be used during more than one period. Otherwise such items are to be recognised as Inventory. Under the previous GAAP, only those spares that can be used in connection with Fixed Assets and their use is expected to be irregular are recognised as Property, Plant and Equipment and depreciated over the remaining useful life of the asset. Accordingly, the Company has identified spare parts qualifying for recognition as Property, Plant and Equipment. This change has resulted in increase in the net carrying value of Property Plant and Equipment by Mio INR 42 as at March 31, 2016 (April 1,2015: Mio INR 13) and reduction in value of Inventories by Mio INR 76 as at March 31, 2016 (April 1, 2015 Mio INR 38). Total equity decreased by Mio INR 25 as at April 1,2015. The profit for the year and total equity as at March 31, 2016 decreased by Mio INR 7 due to depreciation charge of Mio INR 83 for the year on the spare parts recognised as Property, Plant and Equipment and reversal of consumption of machinery spares capitalised amounting to Mio INR 76.
8) Excise Duty
Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2016 by Mio INR 7,405. There is no impact on the total equity and profit.
9) Discounts and sales incentives
Under the previous GAAP, certain discounts and sales incentives were disclosed as part of other expenses. Under Ind AS, amounts disclosed as revenue are net of discounts and sales incentives. This change has resulted in an decrease in total revenue and other expenses for the year ended March 31, 2016 by Mio INR 460.
10) Remeasurement of post-employment benefit obligations
Under Ind AS, remeasurements i.e., actuarial gains and loses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these measurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2016 decreased by Mio INR 39 (net of tax of Mio INR 20). There is no impact on the total equity as at March 31, 2016.
11) Other Comprehensive income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as âother comprehensive incomeâ includes remeasurements of defined benefit plans and fair value gains or (losses) on FVOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.
12) Retained Earnings
Retained Earnings has been adjusted consequent to the above Ind AS transition adjustments.
Note 17: Offsetting financial assets and financial liabilities
The Company provides the incentives to selected customers under the terms of the agreements, the amounts payable by the Company are offset against receivables from the customers and only the net amounts are settled. The amounts offset as at March 31, 2017 is Mio INR 960 (March 31, 2016: Mio INR 653; April 1, 2015: Mio INR 716) which is disclosed under note 8(b).
Note 18: Disclosure on specified bank notes (SBNs)
During the year, the Company has specified bank notes or other denomination notes as defined in the MCA notification G.S.R.308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination wise SBNs and other notes as per the notification is given below:
* The term âSpecified Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E ) dated the 8th November, 2016.
Note 19: Rounding off
Amounts mentioned as â0â in the financial statements denote amounts rounded off being less than Rupees one million.
Notes to the financial statements 1 to 47
The accompanying notes are an integral part of these financial statements.
Mar 31, 2015
Note 1: General information
Bosch Limited (the "Company") is the flagship company of Robert Bosch
Group in India. Headquartered out of Bengaluru, the Company has its key
manufacturing facilities in Bengaluru, Nashik, Naganathapura, Jaipur,
Goa, Gangaikondan and Bidadi. The Company has presence across
automotive technology, industrial technology, consumer goods and energy
and building technology. it manufactures and trades products as diverse
as diesel and gasoline fuel injection systems, automotive aftermarket
products, starters and generators, industrial equipments, packaging
machines, electrical power tools, security systems and industrial and
consumer energy products and solutions. The Company's shares are listed
on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
2 Rights, preferences and restrictions attached to shares:
The Equity shares of the Company, having face value of Rs.10/- per
share, rank pari passu in all respects including voting rights and
entitlement to dividend.
(i) Nature of the provision has not been given on the grounds that it
can be expected to prejudice the interests of the Company. Due to the
very nature of such provisions, it is not possible to estimate the
timing/ uncertainties relating to their outflows.
(ii) Warranty estimates are established using historical information on
the nature, frequency and average cost of warranty claims and also
management estimates regarding possible future outflow on servicing the
customers for any corrective action in respect of product failure which
is generally expected to be settled within a period of 1 to 3 years.
(iii) Figures in bracket relate to previous period.
Disclosure on Retirement Benefits as required in Accounting Standard
(AS) 15 on "Employee Benefits" are given below:
(a) Post Employment Benefit - Defined Contribution Plans
The Company has recognised an amount of Mio INR 355 (2013: Mio INR 238)
as expense under the defined contribution plans in the Statement of
Profit and Loss.
(b) Post Employment Benefit - Defined Benefit Plans
The Company makes annual contributions to the Mico Employees' Gratuity
Fund and makes monthly contributions to Bosch Employees (Bangalore)
Provident Fund Trust and Bosch Workmen's (Nashik) Provident Fund Trust,
funded defined benefit plans for qualifying employees. The Gratuity
Scheme provides for lumpsum payment to vested employees at retirement,
death while in employment or on termination of employment of an amount
equivalent to 15 days salary payable for each completed year of service
or part thereof in excess of six months. Vesting occurs only upon
completion of five years of service, except in case of death or
permanent disability.
The Provident Fund Scheme provides for lumpsum payment/transfer to the
member employees at retirement, death while in employment or on
termination of employment of an amount equivalent to the credit
standing in his account maintained by the Trusts. The present value of
the defined benefit obligation and the related current service cost are
measured using the projected unit credit method with actuarial
valuation being carried out at each balance sheet date.
As per AS-15 benefits involving employer established provident fund,
which require interest short falls to be compensated are to be
considered as defined benefit plan. The Company actuary has accordingly
provided the valuation and based on the below provided assumption there
is no shortfall as at March 31, 2015.
(viii) Contribution expected to be paid to the Mico Employees' Gratuity
Fund within next year is Mio INR 249 (2013: Mio INR 200). Contribution
expected to be paid to the Mico Workmen (Bangalore) Provident Fund
Trust and Mico Workmen's (Nashik) Provident Fund Trust within the next
year is Mio INR 379 (2013: Mio INR 305).
(a) The discount rate is based on the prevailing market yield on
Government Bonds as at the balance sheet date for the estimated term of
obligations.
(b) The expected return on plan assets is determined considering
several applicable factors mainly the composition of the plan assets
held, assessed risks of asset management, historical results of the
return on plan assets and the Company's policy for plan asset
management.
(c) The estimate of future salary increases considered in actuarial
valuation takes into account inflation, seniority, promotion and other
relevant factors such as supply and demand in the employment market.
The Company's operations predominantly relate to manufacturing and
trading of automotive products. The Company is also manufacturing and
/or trading in industrial technology products, consumer goods and
energy and building technology products which are non-automotive
products. The risks and rewards associated with these two businesses
are significantly different. Therefore, the primary segment consists of
"Automotive Products" and "Others" which are essentially non-automotive
products. Secondary segmental reporting is organised in two
geographical segments, namely "India" and "Outside India".
The Accounting principles and policies adopted in the preparation of
the financial statements are also consistently applied to record income
/ expenditure and assets/liabilities in individual segments. The
inter-segment sales are recorded at cost.
(a) List of related parties:
Holding Company : Robert Bosch GmbH, Federal Republic of Germany Other
related parties where transactions have taken place during the period :
Fellow Subsidiary Companies:
Beissbarth GmbH, Germany
Bosch (China) Investment Ltd., China
Bosch (Zhuhai) Security Systems Co., Ltd., China
Bosch Automotive Components (Changchun) Co., Ltd., China
Bosch Automotive Diagnostics Equipment (Shenzhen) Ltd., China
Bosch Automotive Diesel Systems Co., Ltd., China
Bosch Automotive Electronics India Private Ltd., India
Bosch Automotive Products (Changsha) Co., Ltd., China
Bosch Automotive Products (Nanjing) Co., Ltd., China
Bosch Automotive Products (Suzhou) Co., Ltd., China
Bosch Automotive Service Solutions (Suzhou) Co., Ltd., China
Bosch Automotive Service Solutions Corporation, Japan
Bosch Automotive Service Solutions GmbH, Germany
Bosch Automotive Service Solutions Inc., United States of America
Bosch Automotive Service Solutions Ltd., United Kingdom
Bosch Automotive Service Solutions Pty. Ltd., Australia
Bosch Automotive Service Solutions S.A. de C.V., Mexico
Bosch Automotive Service Solutions S.R.L., Italy
Bosch Automotive Service Solutions SARL, France
Bosch Automotive Thailand Co. Ltd., Thailand
Bosch Car Multimedia Portugal, S.A., Portugal
Bosch Chassis Systems India Ltd., India
Bosch Corporation, Japan
Bosch Diesel s.r.o., Czech Republic
Bosch Electrical Drives Co., Ltd., Korea
Bosch Electrical Drives India Private Ltd., India
Bosch Energy and Building Solutions GmbH, Germany
Bosch Engineering GmbH, Germany
Bosch Engineering Holding GmbH, Germany
Bosch Fren Sistemleri Sanayi ve Ticaret A.S., Turkey
Bosch Industriekessel GmbH, Germany
Bosch Lawn and Garden Ltd., United Kingdom
Bosch Management Support GmbH, Germany
Bosch Packaging Services AG, Switzerland
Bosch Packaging Systems AG, Switzerland
Bosch Packaging Technology (Chengdu) Co., Ltd., China
Bosch Packaging Technology (Singapore) Pte. Ltd., Singapore
Bosch Packaging Technology B.V., Netherlands
Bosch Packaging Technology K.K., Japan
Bosch Packaging Technology Limited, United Kingdom
Bosch Packaging Technology SA, Switzerland
Bosch Power Tec GmbH, Germany
Bosch Power Tools (China) Ltd., China
Bosch Rexroth (India) Ltd., India
Bosch Rexroth AG, Germany
Bosch Rexroth Ltd., United Kingdom
Bosch Rexroth Ltda., Brazil
Bosch Sanayi ve Ticaret A.S., Turkey
Bosch Security Systems B.V., Netherlands
Bosch Security Systems Inc., United States of America
Bosch Security Systems Ltd., United Kingdom
Bosch Sicherheitssysteme GmbH, Germany
Bosch Sistemas De Frenado, S.L.U., spain
Bosch Software Innovations GmbH, Germany
Bosch Solar Energy AG, Germany
Bosch Solarthermie GmbH, Germany
Bosch Solutions Serviqos Automotivos Ltda., Brazil
Bosch Technology Licensing Administration GmbH, Germany
Bosch Thermotechnology (Shanghai) Co., Ltd., China
Bosch Trading (Shanghai) Co., Ltd., China
Bosch Transmission Technology B.V., Netherlands
Bosch Vietnam Co., Ltd., Vietnam
BSH Home Appliances Private Limited, India
Centro Studi Componenti per Veicoli S.p.A., Italy
DECA SRL, Italy
ETAS Automotive India Private Ltd., India
ETAS GmbH, Germany
Freud S.p.A., Italy
Huttlin GmbH, Germany
Koller Schwemmer GmbH, Germany
Matra-Werke GmbH, Germany
MIVIN Engineering Technologies Private Ltd., India
Moehwald GmbH, Germany
Moeller & Devicon A/S, Denmark
Nippon Injector Corporation, Japan
OOO Robert Bosch Saratow, Russia
OOO Robert Bosch, Russia
P.T. Robert Bosch, Indonesia
Pharmatec GmbH, Germany
Precision Seals Manufacturing Ltd., India
Robert Bosch (Australia) Pty. Ltd., Australia
Robert Bosch (Bangladesh) Ltd., Bangladesh
Robert Bosch (France) S.A.S., France
Robert Bosch (Malaysia) Sdn. Bhd., Malaysia
Robert Bosch (Pty.) Ltd., South Africa
Robert Bosch (South East Asia) Pte. Ltd., Singapore
Robert Bosch A/S, Denmark
Robert Bosch AG, Austria
Robert Bosch Argentina Industrial S.A., Argentina
Robert Bosch Automotive Technologies (Thailand) Co., Ltd., Thailand
Robert Bosch Car Multimedia GmbH, Germany
Robert Bosch Car Multimedia Holding GmbH, Germany
Robert Bosch Company Ltd., China
Robert Bosch Elektronik GmbH, Germany
Robert Bosch Elektronika Gyarto Kft., Hungary
Robert Bosch Elektrowerkzeuge GmbH, Germany
Robert Bosch Energy and Body Systems Kft., Hungary
Robert Bosch Engineering and Business Solutions Private Ltd., India
Robert Bosch Engineering and Business Solutions Vietnam Co. Ltd.,
Vietna
Robert Bosch Espana Fabrica Castellet S.A., Spain
Robert Bosch Espana Fabrica Madrid S.A., Spain
Robert Bosch Espana Fabrica Treto S.A., Spain
Robert Bosch Espana Gasoline Systems S.A., Spain
Robert Bosch Fahrzeugelektrik Eisenach GmbH, Germany
Robert Bosch Fuel Systems LLC, United States of America
Robert Bosch Inc., Philippines
Robert Bosch Korea Diesel Ltd., Korea
Robert Bosch Korea Ltd., Korea
Robert Bosch Licensing Administration C.V., Netherlands
Robert Bosch LLC, United States of America
Robert Bosch Ltd., Thailand
Robert Bosch Ltda., Brazil
Robert Bosch Mexico S.A. de C.V., Mexico
Robert Bosch Mexico Sistemas Automotrices, S.A. de C.V., Mexico Robert
Bosch Middle East FZE, United Arab Emirates Robert Bosch Oy, Finland
Robert Bosch Packaging Technology B.V., Netherlands
Robert Bosch Packaging Technology Inc., United States of America
Robert Bosch Power Tool Elektromos Szerszamgyarto Kft., Hungary
Robert Bosch Power Tools Sdn. Bhd., Malaysia
Robert Bosch Produktie N.V., Belgium
Robert Bosch S. A., Chile
Robert Bosch Sdn. Bhd., Malaysia
Robert Bosch Sp. z o.o., Poland
Robert Bosch Taiwan Co., Ltd., Taiwan
Robert Bosch Tecnologia de Embalagem Ltda., Brazil
Robert Bosch Tool Corporation, United States of America
Robert Bosch, S. de R.L. de C.V., Mexico
Robert Bosch, spol. s.r.o., Czech Republic
SBM Schoeller-Bleckmann-Medizintechnik GmbH, Austria
Scintilla AG, Switzerland
Service- und Betriebsgesellschaft Heidehof GmbH, Germany
sia Abrasives Company Ltd., China
sia Abrasives Industries AG, Switzerland
SICAM S.r.l., Italy
Tecnologie Diesel e Sistemi Frenanti S.p.A., Italy
Unipoint Electric MFG Co., Ltd., Taiwan
United Automotive Electronic Systems Co., Ltd., China
ZF Lenksysteme India Private Ltd., India
Subsidiary Company : MICO Trading Private Limited, India
Associate (also a fellow subsidiary) : Newtech Filter India Private
Limited, India (formerly known as MHB Filter India Private Limited,
India) [Pursuant to further share purchase by Robert Bosch Investment
Nederland B.V., Netherlands from Mann and Hummel Filter Private Ltd.,
India (joint venture parties) on December 19, 2014, the joint venture
agreement between Bosch Group and Mann and Hummel stands terminated.
Consequently, the relationship with Newtech Filter India Private Ltd.,
India has changed from joint venture to an associate.]
Other entity under the control of the company : Bosch India Foundation,
India.
Key Management Personnel: Dr. Steffen Berns, Mr. Soumitra Bhattacharya,
Mr. Franz Hauber (from January 01, 2014 to February 28, 2015) and Dr.
Andreas Wolf (from March 01, 2015)
Note : The information disclosed is based on the names of the parties
as identified by the management.
3 Contingentliabilities [Rs. in Millions (Mio INR)]
(a) Claims against the Company
not acknowledged as debts:
Excise/ Customs
Net of tax 0 0
Gross 0 0
(b) Bills discounted not
matured 572 577
4 Exceptional items
Exceptional items represent one time changes in retirement benefits
consequent to wage settlement during the period.
5 Change in the financial year
The company has changed its accounting year to commence from 1st April
of every year and to end on 31st March of following year to comply with
the requirement of the Companies Act, 2013. Consequently, the current
accounting period is for the fifteen months from January 1, 2014 to
March 31, 2015. Hence, the current period's figures are not comparable
to those of the previous period.
6 Previous period figures
Previous period's figures have been regrouped/ reclassified, wherever
necessary, to conform to current period classification.
7 Rounding off
Amounts mentioned as "0" in the financial statements denote amounts
rounded off being less than Rupees one million.
Dec 31, 2013
Note 1 : Segmental Reporting :
The Company''s operations predominantly relate to manufacturing and
trading of automotive products. The Company is also manufacturing
and/or trading in industrial equipments, consumer goods and energy and
building technological goods which are non-automotive products. The
risks and rewards associated with these two businesses are
significantly different. Therefore, the primary segment consists of
"Automotive Products" and "Others" which are essentially non-automotive
products. Secondary segmental reporting is organised in two
geographical segments, namely "India" and "Outside India".
The Accounting principles and policies adopted in the preparation of
the financial statements are also consistently applied to record
income/ expenditure and assets/liabilities in individual segments. The
inter-segment sales are recorded at cost.
Note 2 : Lease Disclosures
Information on leases as per Accounting Standard 19 on "Accounting for
Leases":
(a) Finance Lease :
The Company does not have any item covered under finance lease which
needs disclosure as per Accounting Standard 19 - "Accounting for
Leases".
(b) Operating Lease Expenses :
The Company has various operating leases for office facilities, guest
houses and residential premises for employees that are renewable on a
periodic basis. Rental expenses for operating leases recognised in the
Statement of Profit and Loss for the year is Mio INR 360 (2012: Mio INR
302).
Note 3 : Research and Development expenses
Total Research and Development expenditure recognised in the Statement
of Profit and Loss (including amounts shown under Note 12 and Note 32
to the Financial Statements) amounts to Mio INR 1,605 (2012: Mio INR
1,377)
Note 4 : Interest in Joint Venture
Details of Company''s share in the Joint Venture assets, liabilities,
revenue and expenses as required by Accounting Standard 27 " Financial
Reporting of Interests in Joint Ventures" is as indicated below:
Name of the Joint Venture : MHB Filter India Private Limited.
Country of Incorporation : India
Percentage of ownership interest : 25%
Note 5 : Derivative Instruments
The Company uses forward exchange and currency option contracts to
hedge against its foreign currency exposures relating to highly
probable forecast transactions. The Company does not enter into
derivative instruments for trading or speculative purposes.
Note 6 : Previous Year Figures
Previous year''s figures have been regrouped/ reclassified, wherever
necessary, to conform to current year classification.
Note 7 : Rounding Off
Amounts mentioned as "0" in the financial statements denote amounts
rounded off being less than Rupees one million.
Dec 31, 2012
Note 1:Company Information
Bosch Limited (the "Company") is the flagship company of Robert Bosch
Group in India. Headquartered out of Bangalore, the Company has its
manufacturing facilities in Bangalore, Nashik, Naganathapura, Jaipur
and Goa. The Company has presence across automotive technology,
industrial technology and consumer technology. It manufactures and
trades products as diverse as diesel and gasoline fuel injection
systems, automotive aftermarket products, auto electricals, special
purpose machines, packaging machines, electric power tools, security
systems, solar energy and thermo technology. The Company''s shares are
listed on Bombay Stock Exchange (BSE) and National Stock Exchange
(NSE).
Note 2: Pursuant to the agreement entered into between Robert Bosch
GmbH, Germany (the holding Company) and SPX Corporation, USA in January
2012, the Company has acquired Indian unit of ''Service Solutions''
business from SPX India Private Limited with effect from December 3,
2012 on a going concern basis for an aggregate consideration of Mio INR
99.
(a) Rights, preferences and restrictions attached to shares:
The Equity shares of the Company, having face value of Rs. 10/- per
share, rank pari passu in all respects including voting rights and
entitlement to dividend.
(a) Addition to capital reserve represents subsidy received during the
year under the Package Scheme of Incentives, 2001 from the Government
of Maharashtra Mio INR 1,056 (2011: Nil).
(a) There are no amounts due for payment to the Investor Education and
Protection Fund under Section 205C of the Companies Act, 1956 as at the
year end.
(i) Nature of the provision has not been given on the grounds that it
can be expected to prejudice the interests of the Company. Due to the
very nature of such costs, it is not possible to estimate the timing /
uncertainties relating to their outflows.
(ii) Warranty estimates are established using historical information on
the nature, frequency and average cost of warranty claims and also
management estimates regarding possible future outflow on servicing the
customers for any corrective action in respect of product failure which
is generally expected to be settled within a period of 1 to 3 years.
(iii) Figures in bracket relate to previous year.
(a) Includes excise duty on increase / (decrease) of finished goods Mio
INR 33 (2011: Mio INR 191)
Note 4: Employee Retirement Benefits:
Disclosure on Retirement Benefits as required in Accounting Standard
(AS) 15 on "Employee Benefits" are given below:
(a) Post Employment Benefit - Defined Contribution Plans
The Company has recognised an amount of Mio INR 233 (2011: Mio INR 223)
as expense under the defined contribution plans in the Statement of
Profit and Loss.
(b) Post Employment Benefit - Defined Benefit Plans
The Company makes annual contributions to the Mico Employees'' Gratuity
Fund and makes monthly contributions to Mico Workmen (Bangalore Works &
Sales Houses) Provident Fund Trust and Mico Workmen''s (Nashik)
Provident Fund Trust, funded defined benefit plans for qualifying
employees. The Gratuity Scheme provides for lumpsum payment to vested
employees at retirement, death while in employment or on termination of
employment of an amount equivalent to 15 days salary payable for each
completed year of service or part thereof in excess of six months.
Vesting occurs only upon completion of five years of service, except in
case of death or permanent disability. The Provident Fund Scheme
provides for lumpsum payment/transfer to the member employees at
retirement, death while in employment or on termination of employment
of an amount equivalent to the credit standing in his account
maintained by the Trusts. The present value of the defined benefit
obligation and the related current service cost are measured using the
projected unit credit method with actuarial valuation being carried out
at each balance sheet date.
As per Accounting Standard 15 issued by the Institute of Chartered
Accountants of India, benefits involving employer established provident
fund, which require interest short falls to be compensated are to be
considered as defined benefit plan. The Company actuary has accordingly
provided the valuation and based on the below provided assumption there
is no shortfall as at December 31, 2012.
(vii) Contribution expected to be paid to the Mico Employees'' Gratuity
Fund within next year is Mio INR 261 (2011: Mio INR 228).
Contribution expected to be paid to the Mico Workmen (Bangalore Works &
Sales Houses) Provident Fund Trust and Mico Workmen''s (Nashik)
Provident Fund Trust within the next year is Mio INR 258 (2011: Mio INR
236).
Notes:
a) The discount rate is based on the prevailing market yield on
Government Bonds as at the balance sheet date for the estimated term of
obligations.
b) The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company''s policy for plan asset management.
c) The estimate of future salary increases considered in actuarial
valuation takes into account inflation, seniority, promotion and other
relevant factors such as supply and demand in the employment market.
Note 5 : Segmental Reporting :
The Company''s operations predominantly relate to manufacturing and
trading of automotive products. The Company is also manufacturing
industrial equipments and consumer goods which are non-automotive
products. The risks and rewards associated with these two businesses
are significantly different. Therefore, the primary segment consists of
"Automotive Products" and "Others" which are essentially non-automotive
products. Secondary segmental reporting is organised in two
geographical segments, namely "India" and "Outside India".
The Accounting principles and policies adopted in the preparation of
the financial statements are also consistently applied to record
income/ expenditure and assets/liabilities in individual segments. The
inter-segment sales are recorded at cost.
Note 6 : Lease Disclosures
Information on leases as per Accounting Standard 19 on "Accounting
for Leases":
(a) Finance Lease :
The company does not have any item covered under finance lease which
needs disclosure as per Accounting Standard 19 - "Accounting for
Leases".
(b) Operating Lease Expenses :
The Company has various operating leases for equipments, office
facilities, guest houses and residential premises for employees that
are renewable on a periodic basis. Rental expenses for operating leases
recognised in the Statement of Profit and Loss for the year is Mio INR
302 (2011 : Mio INR 224).
(c) Operating Lease Income :
Rental income received during the year in respect of operating lease is
Mio INR 370 (2011: Mio INR 342). Details of assets given on operating
lease as on December 31, 2012 are as below:
NOTE 7 : RESEARCH AND DEVELOPMENT EXPENSES
Total Research and Development expenditure recognised in the Statement
of Profit and Loss (including amounts shown under Note 13 and Note 33
to the Financial Statements) amounts to Mio INR 1,377 (2011: Mio INR
1,258)
Note 8 : Interest in Joint Venture
Details of Company''s share in the joint venture assets, liabilities,
revenue and expenses as required by Accounting Standard 27 "Financial
Reporting of Interests in Joint Ventures" is as indicated below:
Name of the Joint Venture : MHB Filter India Private Limited.
Country of Incorporation : India
Percentage of ownership interest : 25%
Note 9 : Derivative Instruments
The Company uses forward exchange contracts to hedge against its
foreign currency exposures relating to highly probable forecast
transactions.
The Company does not enter into derivative instruments for trading or
speculative purposes.
Note 10 : Previous Year Figures
The Financial Statements for the year ended December 31, 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 December 31, 2012 are prepared as per Revised Schedule VI.
Accordingly, the previous year''s figures have also been reclassified to
conform to current year''s classification. The adoption of Revised
Schedule VI for previous year''s figures does not impact recognition and
measurement principles followed for preparation of the Financial
Statements.
Note 11 : Rounding Off
Amounts mentioned as "0" in the financial statements denote amounts
rounded off being less than Rupees one million.
Dec 31, 2011
1. Disclosure on Retirement Benefits as required in Accounting
Standard (AS) 15 on "Employee Benefits" are given below:
(a) Post Retirement Benefit- Defined Contribution Plans
The Company has recognised an amount of TINR 222,990 (2010-.TINR
213,526) as expense under the defined contribution plans in the Profit
and Loss Account.
(b) Post Retirement Benefit- Defined Benefit Plans
The Company makes annual contributions to the Mico Employees' Gratuity
Fund and makes monthly contributions to Mico Workmen (Bangalore Works &
Sales Houses) Provident Fund Trust, a funded defined benefit plan for
qualifying employees. The Gratuity Scheme provides for lumpsum payment
to vested employees at retirement, death while in employment or on
termination of employment of an amount equivalent to 15 days salary
payable for each completed year of service or part thereof in excess of
six months. Vesting occurs only upon completion of five years of
service, except in case of death or permanent disability. The Provident
Fund Scheme provides for lumpsum payment/transfer to the member
employees at retirement, death while in employment or on termination of
employment of an amount equivalent to the credit standing in his
account maintained by the trusts. The present value of the defined
benefit obligation and the related current service cost are measured
using the projected unit credit method with actuarial valuation being
carried out at each balance sheet date.
(i) As per the best estimate of the management, contribution
expected to be paid to the Mico Employees Gratuity Fund is TINR 228,378
(2010:TINR 199,112) and to the Provident Fund Trusts is TINR 236,030
(2010: TINR 186,836) plans during the year ending December 31, 2012.
Notes:
1) The discount rate is based on the prevailing market yield on
Government Bonds as at the balance sheet date for the estimated term of
obligations.
2) The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company's policy for plan asset management.
3) The estimate of future salary increases considered in actuarial
valuation takes into account inflation, seniority, promotion and other
relevant factors such as supply and demand in the employment market.
2. Segment Information :
The Company's operations predominantly relate to manufacturing and
trading of automotive products. The Company is also manufacturing
industrial equipments and consumer goods which are non-automotive
products. The risks and rewards associated with these two businesses
are significantly different. Therefore, the primary segment consists of
"Automotive Products" and "Others" which are essentially non-automotive
products. Secondary segment information is organised in two
geographical segments, namely "India" and "Outside India".
The Accounting principles and policies adopted in the preparation of
the financial statements are also consistently applied to record
income/ expenditure and assets/ liabilities in individual segments.
These are as set out in the note on significant accounting policies.
The inter-segment sales are recorded at cost.
3. Information on leases as per Accounting Standard 19 on "Accounting
for Leases":
(a) Finance Lease :
The company does not have any item covered under finance lease which
needs disclosure as per Accounting Standard 19 - "Accounting for
Leases".
(b) Operating Lease Expenses :
The Company has various operating leases for equipments, office
facilities, guest houses and residential premises for employees that
are renewable on a periodic basis. Rental expenses for operating leases
recognised in the Profit and Loss Account for the year amounts to TINR
224,127 (2010 -. TINR 185,947).
[Rs. in Thousands (TINR)]
2011 2010
4. Contingent liabilities :
(a) Claims against the Company
not acknowledged as debts:
(i) Excise / Customs Net of tax 235 235
Gross 352 352
(ii) Trade Demands Net of tax - 155,603
Gross - 233,000
(b) Guarantees given by Banks
on behalf of the Company 215,692 256,380
(c) Bills Discounted not matured 650,363 845,620
(d) Certain industrial disputes
are pending before various
judicial authorities -
amounts not ascertainable.
5. Estimated amount of contracts
remaining to be executed
on capital accounts and not
provided for (net of advances) 2,521,192 1,115,504
6. (a) Advances include dues
from directors and an officer of
the Company 8,881 5,232
(b) Maximum amount due from directors
and an officer of the Company at
any time during the year 10,404 6,471
7. Previous year's figures have been regrouped/recast, wherever
necessary, to conform to current year's classifications.
Dec 31, 2009
1. Pursuant to the buyback announcement on December 08, 2008, the
company has bought back 652,560 fully paid up equity shares (including
26,589 fully paid up equity shares bought back in the year 2008). The
buyback offer closed on October 23, 2009.
2. During the previous year, appropriation of profit towards dividend
was made based on the number of shares outstanding as at December 31,
2008. Consequent to the buyback, the actual amount of dividend
distributed, however, was based on the number of equity shares
outstanding as at the record date, i.e. May 08, 2009. The excess
appropriation made in the year 2008 towards dividend (and tax thereon)
has been reversed in the current year.
3. Disclosure on Retirement Benefits as required in Accounting
Standard (AS) 15 on "Employee Benefits" are given below:
(a) Post Retirement Benefit - Defined Contribution Plans
The Company has recognised an amount of TINR 316,669 (2008 : TINR
301,837) as expense under the defined contribution plans in the Profit
and Loss account.
(b) Post Retirement Benefit - Defined Benefit Plans
The Company makes annual contributions to the Mico Employees Gratuity
Fund, a funded defined benefit plan for qualifying employees. The
Scheme provides for lumpsum payment to vested employees at retirement,
death while in employment or on termination of employment of an amount
equivalent to 15 days salary payable for each completed year of service
or part thereof in excess of six months. Vesting occurs only upon
completion of five years of service, except in case of death or
permanent disability. The present value of the defined benefit
obligation and the related current service cost are measured using the
projected unit credit method with actuarial valuation being carried out
at each balance sheet date.
4. Segmental Reporting:
The Companys operations predominantly relate to manufacturing and
trading of automotive products. The Company is also manufacturing
industrial equipments and consumer goods which are non-automotive
products. The risks and rewards associated with these two businesses
are significantly different. Therefore, the primary segment consists of
"Automotive Products" and "Others" which are essentially non-automotive
products. Secondary segmental reporting is organised in two
geographical segments, namely "India" and "Outside India".
The Accounting principles and policies adopted in the preparation of
the financial statements are also consistently applied to record
revenue/ expenditure and assets/liabilities in individual segments.
These are as set out in the note on significant accounting policies.
The inter-segment sales are recorded at cost.
(b) Details of Secondary Segment
Revenue from geographical segment is based on location of its customers
and total carrying amount of assets and total cost incurred during the
period to acquire fixed assets is based on geographical locations of
the assets.
Holding Company : Robert Bosch GmbH, Germany
Fellow Subsidiary Companies:
Beissbarth GmbH, Germany
Bosch (China) Investment Ltd..China
Bosch Automotive Diagnostics Equipment (Shenzhen) Ltd., China
Bosch Automotive Diesel Systems Co., Ltd., China
Bosch Automotive Electronics India Pvt Ltd, India
Bosch Automotive Products (Changsha) Co., Ltd. , China
Bosch Automotive Products (Suzhou) Co. Ltd., China
Bosch Automotive Thailand Co. Ltd., Thailand
Bosch Chassis Systems India Ltd, India
Bosch Corporation, Japan
Bosch Diesel, s.r.o., Czech Republic
Bosch Electrical Drives Co., Ltd., South Korea
Bosch Electrical Drives india Pvt Ltd, India
Bosch Engineering GmbH, Germany
Bosch Management Support GmbH, Germany
Bosch Packaging Services AG, Switzerland
Bosch Packaging Technology (Hangzhou) Co., Ltd., China
Bosch Packaging Technology (Singapore) Pte. Ltd., Singapore
Bosch Packaging Technology, Inc., United States
Bosch Power Tools (China) Ltd., China
Bosch Rexorth India Ltd., India
Bosch Rexroth AG, Germany
Bosch Rexroth Corporation, United States
Bosch Rexroth Electric Drives and Controls (Shenzhen) Co., Ltd., China
Bosch Rexroth Electric Drives and Controls GmbH, Germany
Bosch Rexroth Fluidtech S.A.S., France
Bosch Rexorth Ltda., Brazil
Bosch Rexroth Otomasyon Sanayi ve Ticaret A.S., Turkey
Moehwald GmbH, Germany
Nanjing Huade Spark Plug Co., Ltd., China
Nanjing Bovon Power Tools Co., China
OOO Bosch Rexroth, Russian Fedaration
Precision Seals Mfg Ltd, India
Robert Bosch (Australia) Proprietary Limited, Australia
Robert Bosch (France) S.A.S., France
Robert Bosch (Malaysia) SDN. BHD., Malaysia
Robert Bosch (Proprietary) Limited, South Africa
Robert Bosch (South East Asia) Pte. Ltd., Singapore
Robert Bosch AG, Austria *
Robert Bosch Argentina Industrial S.A., Argentina
Robert Bosch Car Multimedia Holding GmbH, Germany
Robert Bosch Company Limited, China
Robert Bosch Elektronika Gyarto Kft., Hungary
Robert Bosch Elektrowerkzeuge GmbH, Germany
Robert Bosch Energy and Body Systems Kft., Hungary
Robert Bosch Engineering and Business Solutions Ltd., India
Robert Bosch Espana Fabrica Castellet S.A., Spain
Robert Bosch Espana Fabrica Madrid, S.A., Spain
Robert Bosch Espana Fabrica Treto, S:A., Spain
Robert Bosch Espana Gasoline Systems S.A., Spain
Robert Bosch Fahrzeugelektrik Eisenach GmbH, Germany
Robert Bosch Fuel Systems LLC, United States
Robert Bosch Inc., Phillipines
Robert Bosch Korea Diesel Ltd., South Korea
Robert Bosch Korea Mechanics and Electronics Ltd., South Korea
Robert Bosch Limitada, Brazil
Bosch Sanayi ve Ticaret A.S., Turkey
Bosch Security Systems B.V., Netherlands
Bosch Security Systems Inc., United States
Bosch Sicherheitssysteme GmbH, Germany
Bosch Techniques dEmballage S.A.S., France
Bosch Thermotechnik GmbH, Germany
Bosch Trading (Shanghai) Co., Ltd., China
Bosch Transmission Technology B.V., Netherlands
BSH Bosch und Siemens Hausgerate GmbH, Germany
BT Magnet-Technologie GmbH, Germany
Centro Studi Component! PerVeicoli S.p.A., Italy
Erphi Electronic GmbH, Germany
ETAS Automotive India Private Ltd., India
ETAS Entwicklungs- und Applik.elektronische Systeme GmbH, Germany
MIVIN Engineering Technologies Private Limited, India
Robert Bosch Limited, Great Britain
Robert Bosch Limited, Thailand
Robert Bosch LLC, United States
Robert Bosch Middle East FZE, Dubai
Robert Bosch Packaging Technology B.V., Netherlands
Robert Bosch Power tools SDN BHD, Malaysia
Robert Bosch Sistemas de Frenos, S.A. de C.V., Mexico
Robert Bosch Tecnologia de Embalagem Ltda., Brazil
Robert Bosch, S. de R.L. de C.V., Mexico
Robert Bosch, spol. s r.o., Czech Republic
Scintilla AG, Switzerland
SICAM S.r.l., Italy
Tecnologie Diesel e Sistemi Frenanti S.p.A., Italy
Telex EVI Audio (Hong Kong) Co. Ltd, China
United Automotive Electronic Systems Co., Ltd., China
Weifu High Technology Co., Ltd., China
Note : The information disclosed is based on the names of the parties
as identified by the management.
Subsidiary of the company: MICO Trading Private Limited. Transaction
details below. (Rs. in Thousands) Reimbursement of expenses - 3
(2008:26) ; Receivable - 132 (2008:129)
Key Management Personnel: Mr. V.K. Viswanathan, Mr. M. Lakshminarayan
(Upto 31.12.2008), Dr. F. Allerkamp (Upto 31.12.2008), Dr. A.
Hieronimus (Upto 31.01.2008), Dr. Manfred Duemholz
Joint Venture:
MHB Filter India Private Ltd., Transaction details below. (Rs. in
Thousands)
Sales - TINR 11,009 (2008: Nil), Purchases - TINR 331,868 (2008 : TINR
136,167), Services rendered - TINR 3,100 (2008 : TINR 3,011)
Receivables - TINR 3,636 (2008: TINR 251), Payables - TINR 32,731 (2008
: TINR 21,943)
Other entity under control of the Company: Bosch India Foundation,
Transaction details below. (Rs. in Thousands) Donation: TINR 14,500
(2008: TINR 31,575), Amount payable: TINR 14,875 (2008: TINR 16,175)
Names of fellow subsidiaries having transaction value in excess of 10%
in line transactions Sales - Robert Bosch Korea Diesel Ltd, South Korea
TINR 1,021,757 Rent received - Robert Bosch Engineering and Business
Solutions Limited, India TINR 254,375
- Bosch Automotive Electronics India Pvt Ltd, India TINR 44,057
Professional, consultancies and other services received - Robert Bosch
Engineering and Business Solutions Ltd., India TINR 252,925 Interest
received - Bosch Rexroth (India) Ltd, India TINR 80,098, MIVIN
Engineering Technology Ltd., India TINR 12,186 Sale of business
divisions - Bosch Chassis Systems India Ltd,India TINR 2,500, Bosch
Electrical Drives India Pvt Ltd, India TINR 18,258 Sale of Investment -
Bosch Rexroth (India) Ltd, India TINR 19,110 Loan given - Bosch Rexroth
India Ltd, India TINR 300,000
5. Information on leases as per Accounting Standard 19 on "Accounting
for Leases":
(a) Finance Lease :
The company does not have any item covered under finance lease which
needs disclosure as per Accounting Standard 19 -" Accounting for
Leases".
(b) Operating Lease Expenses :
The Company has various operating leases for equipments, office
facilities, guest houses and residential premises for employees that
are renewable on a periodic basis. Rental expenses for operating leases
recognised in the Profit and Loss Account for the year is TINR 179,184
(2008 .- TINR 134,265).
[Rs. in Thousands (TINR);
2009 2008
13. Contingent liabilities :
(a) Claims against the Company not acknowledged as debts:
(i) Excise / Customs Net of tax 232 232
Gross 352 352
(ii) Service Tax Net of tax - 3,151
Gross - 4,774
(iii) Octrol Net of tax - 1,312
Gross - 1,987
(b) Guarantees given by
Banks on behalf of the
Company 200,486 178,765
(c) Bills Discounted not
matured 1,064,635 607,517
(d) Certain industrial disputes
are pending before various
judicial authorities - amounts
not ascertainable.
6. Previous years figures have been regrouped/recast, wherever
necessary, to conform to current years classifications.
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Bosch Ltd. குறித்த கூடுதல் தகவல்களை
-
Bosch Ltd. டூல்ஸ்
- பல்க் டீல்ஸ்
- பிளாக் டீல்ஸ்
-
Bosch Ltd. நிறுவன தகவல்கள்
- நிறுவன சுயவிவரம்
- நிறுவன வரலாறு
- நிர்வாக குழு
- மூலதன வடிவம்
- புராடெக்ட் மிக்ஸ்
- வங்கியாளர்/தணிக்கையாளர்/பதிவாளர்
-
நிறுவன வரலாறு
- மும்பை பங்குச் சந்தையில் விலை வரலாறு
- என்எஸ்இ விலை வரலாறு
-
Bosch Ltd. முக்கிய நிதியில் விகிதங்கள்
- விகிதங்கள்
-
Bosch Ltd. முடிவுகள்
- காலாண்டு முடிவுகள்
- அரையாண்டு முடிவுகள்
- 9 மாத முடிவுகள்
- வருடாந்திர முடிவுகள்
-
Bosch Ltd. நிதியியல் தகவல்கள்
- தணிக்கை முடிவுகள்
- பணப்பாய்வு
- இருப்பு நிலைக்குறிப்பு
-
Bosch Ltd. அறிக்கை
- கணக்கியல் கோட்பாடுகள்
- தணிக்கையாளர்கள் அறிக்கை
- இயக்குநர்கள் அறிக்கை
- கணக்கு குறிப்புகள்
-
Bosch Ltd. கார்ப்பரேட் அறிவிப்புகள்
- புத்தக முடிவு
- ஈவுத்தொகை
- நிர்வாகக் குழுக் கூட்டங்கள்
