ANNUAL REPORT 2014-2015 - Bharat...

BHARAT SEATS LIMITED

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28TH

ANNUAL REPORT

2014-2015

Notice...........................................................................................................................................2-6Director’s Report .................................................................................................................................. 7-29Management Discussion & Analysis ................................................................................................... 30-31Report on Corporate Governance ....................................................................................................... 32-46Auditors’ Report ................................................................................................................................... 47-50Notes to Financial Statements:Index of Notes to Financial Statements .................................................................................................... 51Part A : Significant Accounting Policies ............................................................................................... 52-54

Balance Sheet ............................................................................................................................. 55Statement of Profit & Loss Account ............................................................................................. 56Cash Flow Statement ................................................................................................................. 57

Part B .................................................................................................................................................. 58-75Part C .................................................................................................................................................. 76-81

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BOARD OF DIRECTORS

CORPORATE IDENTITY NUMBER

BANKERS

REGD. OFFICE

FACTORY

AUDITORS

LISTED AT

CHIEF FINANCIAL OFFICER

COMPANY SECRETARY & COMPLIANCE OFFICER

REGISTRAR & SHARE TRANSFER AGENT

E-MAIL & WEBSITE [email protected], www.bharatseats.com

CIN: L34300DL1986PLC023540

STATE BANK OF TRAVANCORETHE BANK OF TOKYO - MITSUBISHI UFJ LTD.YES BANK LTD.IDBI BANK LTD.

D-188, OKHLA INDUSTRIAL AREA, PHASE - 1,NEW DELHI - 110 020

PLANT 1PLOT NO. 1, MARUTI UDYOG JOINT VENTURE COMPLEX,GURGAON - 122 015 (HARYANA)

PLANT 2PLOT NO. MUSTTIL NO. 226, KILA NO. 7/1,VILLAGE BHORAKALAN, TEHSIL - FARUKHNAGAR,GURGAON (HARYANA)

PLANT 3PLOT NO. 26, SECTOR-3A,MARUTI SUPPLIER PARK, IMT, MANESARGURGAON (HARYANA)

M/S S.S. KOTHARI MEHTA & CO.CHARTERED ACCOUNTANTSNEW DELHI

BSE LIMITED

SANJEEV KUMAR

RITU BAKSHI

M/S ALANKIT ASSIGNMENTS LIMITED1E/13, ALANKIT HEIGHTS,JHANDEWALAN EXTENSION,NEW DELHI - 110 055

NARINDER DEV RELANYOICHI KOJIMA VEERABHADRA RAO INALA ROHIT RELAN AJAY RELANGIRISH NARAIN MEHRAPRATEEP KUMAR LAHIRISHYAMLA KHERAKISHAN N.PARIKHRAVINDRA GUPTAARVIND VARMAT.J.CHACKO

CHAIRMAN (DIN: 00240280)DIRECTOR-NOMINEE-SUZUKI MOTOR CORPORATION, JAPAN (DIN: 02973263)DIRECTOR-NOMINEE-MARUTI SUZUKI INDIA LIMITED (DIN: 00329370)MANAGING DIRECTOR (DIN: 00257572)DIRECTOR (DIN: 00257584)DIRECTOR (DIN: 00059311)DIRECTOR (DIN: 00039653)DIRECTOR (DIN: 06929439)DIRECTOR (DIN: 00453209)DIRECTOR (DIN: 01521168)DIRECTOR (DIN: 02225281)DIRECTOR(OPERATIONS) (DIN: 07005026)

Bharat SeatS Limited

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NOTICE is hereby given that the Twenty Eighth Annual General Meeting of the members of BHARAT SEATS LIMITED will be held on Friday, 17th July, 2015 at 11:00 a.m. at Air Force Auditorium, Subroto Park, New Delhi - 110010 to transact the following business:

ORDINARY BUSINESS:

1. Toreceive,considerandadopttheauditedfinancialstatements of the Company for the year ended 31st March,2015includingtheAuditedBalanceSheetasatMarch31,2015,Profit&LossAccountfortheyearended on that date together with the report of theBoardofDirectorsandAuditorsthereon.

2. Todeclaredividendonequityshares.

3. ToappointaDirectorinplaceofMr.I.V.Rao(holdingDIN: 00329370) who retires by rotation and beingeligible,offershimselfforreappointment.

4. To appoint aDirector in place ofMr.YoichiKojima(holdingDIN:02973263),whoretiresbyrotationandbeingeligible,offershimselfforreappointment.

5. Toappointconsiderand,ifthoughtfit,topasswithorwithoutmodification(s),thefollowingasanOrdinaryResolution:

“RESOLVED THAT M/s S.S. Kothari Mehta &Co., Chartered Accountants (ICAI Registration No. 000756N), be and are hereby appointed asAuditors of the Company, to hold office from theconclusion of this Annual General meeting till theconclusionofthenextAnnualGeneralMeetingoftheCompanyonsuchremunerationasshallbefixedbytheBoardofDirectorsoftheCompany.”

ByOrderOfTheBoardDate :15thApril,2015 RituBakshiPlace:NewDelhi CompanySecretary

NOTES :

1. TheRegisterofMembersandShareTransferBooksoftheCompanywillremainclosedfromSaturday,11thJuly,2015toFriday,17thJuly,2015,bothdaysinclusive,forannual closinganddetermining theentitlementoftheshareholderstotheDividendfor2014-15.

BHARAT SEATS LIMITED(CIN:L34300DL1986PLC023540)

Registered Office: D-188,OkhlaIndustrialArea,PhaseI,NewDelhi110020Email:[email protected],Website:www.bharatseats.com

Phone:011-26815592,Fax:0124-2341188

NOTICE

2. Amemberentitledtoattendandvoteatthemeetingisentitled toappointaproxy/proxies toattendandvote insteadofhimself/herself.Suchaproxyneednot be a member of the Company. A person canact as proxy on behalf of members not exceedingfiftyandholdingintheaggregatenotmorethantenpercentofthetotalsharecapitaloftheCompany.

The instrument of Proxy in order to be effective,shouldbedepositedat theRegisteredofficeof theCompany,dulycompletedandsigned,notlessthan48hoursbeforethecommencementofthemeeting.ProxiessubmittedonbehalfofCompanies,societiesetc. must be supported by appropriate resolution/authorityasapplicable.

3. The Dividend on Equity Shares, if declared at themeeting,will bepaidonorafter17thJuly,2015 tothose shareholders whose names appear in theRegister of Members on 17th July, 2015; in caseof sharesheld indematerialised form, thedividendthereon, will be paid to Beneficial Owners, as perdetailsfurnishedbytheDepositories,asonthatdate.

4. MemberswhoholdsharesindematerialisedformmaykindlynotethattheirBankAccountdetails,registeredagainst their respectivedepositoryaccountswill beusedbytheCompanyforpaymentofdividend.TheCompanyoritsRegistrarscannotactonanyrequestreceiveddirectly from themembers holding sharesindematerialised form, fordeletionofor change insuch BankAccount details. Members who wish tochange such Bank Account details are thereforerequested to advise their Depository Participantsabout such change with complete details of BankAccount.Members holding shares in physical formanddesirousofeitherregisteringbankparticularsorchangingbankparticularsalreadyregisteredagainsttheir respective folios for payment of dividend, arerequestedtowritetotheCompany.

5. Pursuant to the provisions of section 205A(5) and205C of the Companies Act, 1956, and Section124(5)oftheCompanesAct,2013,theCompanyhastransferredtheUnclaimedorunpaiddividendsforthefinancialyearsended31stMarch,1996to31stMarch,


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2007totheInvestorEducationandProtectionFund(theIEPF)establishedbytheCentralGovernment.

6. Dividendforthefinancialyearended31stMarch,2008andthereafterwhichremainunpaidorunclaimedforaperiodofsevenyearsfromthedatetheybecamedue for payment will be transferred to InvestorEducation&ProtectionFund(IEPF).Memberswhohave not encashed their Dividend warrants mayapproach theRegisteredofficeof theCompany forrevalidation of the Dividend warrants The unpaiddividendforthefinancialyearendedMarch31,2008is due for transfer to IEPF on 3rd July, 2015. TheMinistry of Corporate Affairs (MCA) on 10th May,2012 notified the IEPF (Uploading of informationregardingunpaidandunclaimedamountslyingwithCompanies) Rules, 2012 (IEPF Rules), which isapplicabletotheCompany.TheobjectiveoftheIEPFRulesistohelptheshareholdersascertainstatusoftheunclaimedamounts.TheCompanyhasuploadedtheinformationonthewebsiteoftheCompany&onthewebsiteoftheIEPFviz.www.iepf.gov.in.

7. To prevent fraudulent transactions, members arerequestedtonotifyanychangeinaddressordemiseofanymember,assoonaspossible.

8. TheSecuritiesandExchangeBoardof India(SEBI)hasmandatedthesubmissionofPermanentAccountNumber(PAN)byeveryparticipant inthesecuritiesmarket.Membersholdingsharesinelectronicform,are therefore requested to submit thePAN to theirDepositoryparticipantsandmembersholdingsharesinphysicalformcansubmittheirPANdetailstotheCompany.

9. Details under clause 49 of the Listing AgreementwiththeStockExchangeinrespectoftheDirectorsseekingappointment/ re-appointmentat theAnnualGeneralmeeting,formsintegralpartofthenotice.

10. ElectroniccopyoftheAnnualReportfor2014-15isbeingsenttoall thememberswhoseemail IDsareregisteredwiththeCompany/DepositoryParticipant,unlessanymemberhas requested forahardcopyofthesame.Formemberswhohavenotregisteredtheir email address, physical copies of theAnnualReportisbeingsentinthepermittedmode.

11. Electronic copy of theNotice of theTwenty EighthAnnualGeneralMeetingof theCompany indicatingthe process and manner of e-voting alongwithAttendanceSlipandProxyFormisbeingsenttoallthe members whose email IDs are registered withthe Company/ Depository participant, unless the

memberhasrequestedforahardcopyofthesame.For members who have not registered their emailIDs,physicalcopiesoftheNoticealongwithprocessand manner of e-voting alongwithAttendance SlipandProxyFormisbeingsentinthepermittedmode.

12. TheNotice for theAnnualgeneralmeetingand theAnnualReportwillbeavailableforinspectionattheRegistered Office of the Company on all workingdaysbetween9:30a.m.to11:30a.m.uptothedateofAnnualGeneralMeeting.Theabovesaidshallalsobe available on the Company’s website at: www.bharatseats.com.

13. In order to provide protection against fraudulentencashment of dividend warrants, Members whoholdsharesinphysicalformarerequestedtointimatetheCompany’sRegistrarsandTransferAgents,M/sAlankitAssignmentsLimited,underthesignatureoftheSole/FirstJointholder,thefollowinginformationtobeincorporatedondividendwarrants:

a. NameoftheSole/FirstjointholderandtheFolioNumber.

b. ParticularsofBankAccount,viz.:

NameoftheBank

NameoftheBranch

CompleteAddress of the Bank with Pin CodeNumber

AccountType,whetherSavingAccount(SA)orCurrentAccount(CA)

BankAccountNumber

14. Membersarerequestedtosendtheirqueries,ifany,on the accounts and operations of the Company to theCompanySecretary at least 7 days before theAnnualGeneralMeeting.

15. The Company has designated an exclusive e-mailID namely, [email protected] forreceivingandaddressinginvestors’grievances.

16. The Ministry of Corporate Affairs has undertakena ‘Green Initiative in Corporate Governance’ andallowed companies to share documents with itsshareholdersthroughtheelectronicmode.Membersare requested to support this green initiative byregistering/updatingtheiremailaddresses,inrespectof shares held in dematerialised form with theirrespectiveDepositoryparticipantsand inrespectofsharesheldinphysicalformwiththeCompanyoritsTransferAgent.


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17. Votingoptions:

I) In compliancewith provisions of Section 108oftheCompaniesAct,2013andRule20oftheCompanies(ManagementandAdministration)Rules, 2014, substituted by the Companies(Management And Administration) Rules,2015, the Company is pleased to providemembersfacilitytoexercisetheirrighttovoteon resolutions proposed to be considered atthe 28th Annual general meeting (AGM) byelectronic means and the business may betransacted through e-voting services. Thefacility of casting the votes by the membersusing an electronic voting system from aplace other than the venue of the AGM(“remotee-voting”)willbeprovidedbyCentralDepositoryServices(India)Limited.(CDSL).

II) The facility for voting through ballot papershall bemade available at theAGMand themembersattendingthemeetingwhohavenotcasttheirvotebyremotee-votingshallbeableto exercise their right at themeeting throughballotpaper.

III) The members who have cast their vote byremote e-voting prior to the AGM, may alsoattendtheAGM,butshallnotbeentitledtocasttheirvoteagain.

IV) Votingrightsshallbereckonedonthepaidupvalueofsharesregistered in thenameof themember/beneficialowner,asonthecutoffdatei.e.10thJuly,2015.Theremotee-votingperiodbegins on Tuesday, 14th July, 2015 at 9:00a.m.andendsonThursday,16thJuly,2015at5:00p.m.During this period, shareholders oftheCompany,holdingshareseitherinphysicalformorindematerializedform,asonthecut-offdateof10thJuly,2015,maycasttheirvotebyremotee-voting.The remotee-votingmoduleshallbedisabledbyCDSLforvotingthereafter.Once the vote on a resolution is cast by theshareholder, the shareholder shall not beallowedtochangeitsubsequently.

V) Theprocessandmannerforremotee-votingisasunder:(i) The shareholders should log on to the

e-votingwebsitewww.evotingindia.com.(ii) ClickonShareholders.(iii) NowEnteryourUserID

a. ForCDSL:16digitsbeneficiaryID,

b. For NSDL: 8 Character DP IDfollowedby8DigitsClientID,

c. MembersholdingsharesinPhysicalForm should enter Folio NumberregisteredwiththeCompany.

(iv) NextentertheImageVerificationasdisplayedandClickonLogin.

(v) Ifyouareholdingsharesindematformandhadloggedontowww.evotingindia.comandvotedonanearliervotingofanycompany,thenyourexistingpasswordistobeused.

(vi) Ifyouareafirsttimeuserfollowthestepsgivenbelow:

For Members holding shares in Demat Form and Physical Form

PAN Enter your 10 digit alpha-numeric*PAN issued by Income TaxDepartment (Applicable for bothdemat shareholders as well asphysicalshareholders)• Memberswhohavenotupdated

their PAN with the Company/Depository Participant arerequested to use the first twolettersof their nameand the8digits of the sequence numberinthePANfield.

• In case the sequence numberis less than 8 digits enter theapplicablenumberof0’sbeforethe number after the first twocharacters of the name in CAPITAL letters. Eg. If yourname is Ramesh Kumar withsequencenumber1 thenenterRA00000001inthePANfield.

DOB EntertheDateofBirthasrecordedin your demat account or in the company records for the said demat account or folio in dd/mm/yyyy format.

DividendBankDetails

EntertheDividendBankDetailsasrecorded in your demat account or in the company records for the said demataccountorfolio.• Please enter the DOB or

DividendBankDetails in orderto login. If the details are notrecorded with the depositoryor company please enter thememberid/folionumberintheDividend Bank details field asmentionedininstruction(iv).

(vii) Afterenteringthesedetailsappropriately,clickon“SUBMIT”tab.


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(viii) Members holding shares in physicalform will then directly reach theCompany selection screen. However,membersholdingsharesindematformwill now reach ‘Password Creation’menu wherein they are required tomandatorilyentertheirloginpasswordinthenewpasswordfield.Kindlynotethatthispasswordistobealsousedbythedematholdersforvotingforresolutionsofanyothercompanyonwhichtheyareeligible tovote,provided thatcompanyoptsfore-votingthroughCDSLplatform.Itisstronglyrecommendednottoshareyour password with any other personand take utmost care to keep yourpasswordconfidential.

(ix) ForMembersholdingsharesinphysicalform, the details can be used only fore-votingontheresolutionscontainedinthisNotice.

(x) Click on the EVSN for Bharat SeatsLimited.

(xi) On the voting page, you will see“RESOLUTION DESCRIPTION” andagainst the same theoption “YES/NO”for voting. Select the option YES orNOasdesired.TheoptionYESimpliesthat you assent to the Resolution andoptionNOimpliesthatyoudissenttotheResolution.

(xii) Click on the “RESOLUTIONS FILELINK” if you wish to view the entireResolutiondetails.

(xiii) After selecting the resolution you havedecided tovoteon,clickon“SUBMIT”.Aconfirmationboxwill bedisplayed. Ifyouwish toconfirmyourvote,clickon“OK”,elsetochangeyourvote,clickon“CANCEL”andaccordinglymodifyyourvote.

(xiv) Onceyou“CONFIRM”yourvoteontheresolution, you will not be allowed tomodify your vote.

(xv) Youcanalsotakeoutprintofthevotingdonebyyoubyclickingon“Clickheretoprint”optionontheVotingpage.

(xvi) If Demat account holder has forgotten

the changed password then Enter theUserIDandtheimageverificationcodeand click on Forgot Password & enterthedetailsaspromptedbythesystem.

(xvii) NoteforNon–IndividualShareholdersand Custodians

• Non-Individual shareholders (i.e.other than Individuals, HUF, NRIetc.) andCustodianare required tologontowww.evotingindia.comandregisterthemselvesasCorporates.

• Ascannedcopyof theRegistrationForm bearing the stamp and signof the entity should be emailed [email protected].

• After receiving the login details acompliance user should be createdusingtheadminloginandpassword.TheComplianceuserwouldbeabletolinktheaccount(s)forwhichtheywishtovoteon.

• Thelistofaccountsshouldbemailedto helpdesk.evoting@cdslindia.comandonapprovaloftheaccountstheywouldbeabletocasttheirvote.

• A scanned copy of the BoardResolution and Power of Attorney(POA) which they have issued infavour of the Custodian, if any, should be uploaded in PDF formatin the system for the scrutinizer toverify the same.

VI) In case you have any queries or issuesregarding e-voting, you may refer theFrequently Asked Questions (“FAQs”) ande-votingmanualavailableatwww.evotingindia.com, under help section orwrite an email [email protected])Incaseyouhaveanyqueriesorissuesregardinge-voting,youmayrefertheFrequentlyAskedQuestions(“FAQs”) and e-voting manual available atwww.evotingindia.com under help section [email protected] or send email to Company at [email protected] or contact theCompanyorRegistrar&ShareTransferAgent.

VII) The voting rights of shareholders shall be inproportiontotheirsharesofthepaidupequity


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sharecapitaloftheCompanyasonthecutoffdatei.e.10thJuly,2015.

VIII) Any person, who acquires shares of theCompany and become member of theCompanyafterdispatchoftheNoticeofAGMandholdingsharesasonthecutoffdate i.e.10th July, 2015,mayobtain the login IDandpassword by sending a request at [email protected] or send email toCompany at [email protected],ifyouarealreadyregisteredwithCDSL for remote e-voting, then you can useyourexistinguserIDandpasswordforcastingyour vote. If you forgot your password, youcanresetyourpasswordbyusing‘ForgotUseDetails/Password’ option available on www.evotingindia.com.

IX) Apersonwhosenameisrecordedintheregisterof members or in the register of beneficialownersmaintainedby thedepositoriesasonthecutoffdateonlyshall beentitled toavailthefacilityofremotee-votingaswellasvotingattheAGMthroughballotpaper.

X). Mr. A. K. Goyal, Company Secretary inPractice (Membership Number: 1565) hasbeenappointedastheScrutinizertoscrutinizethevotingandremotee-votingprocessinafairand transparent manner.

XI) TheChairmanshall,attheAGM,attheendofdiscussionontheresolutionsonwhichvotingistobeheld,allowvotingwiththeassistanceofscrutinizer,byuseofballotpaperforallthosemembers who are present at the AGM buthavenotcasttheirvotesbyavailingtheremotee-votingfacility.

XII) The Scrutinizer shall after the conclusion ofvoting at theAGM, will first count the votescast at the meeting and thereafter unblockthevotescast throughremotee-voting in thepresenceofat least twowitnessesnot in theemploymentoftheCompanyandshallmake,not later than threedaysof theconclusionoftheAGM,aconsolidatedScrutinizer’sReportof the total votes cast in favour or against, ifany,totheChairmanorapersonauthorizedbyhiminwriting,whocancountersignthesameanddeclaretheresultofthevotingforthwith.

XIII) TheresultsdeclaredalongwiththeScrutinizer’sReport shall be placed on the Company’s

website www.bharatseats.com and will becommunicated to the BSE Ltd. immediatelyafterthedeclarationofresultbytheChairmanorapersonauthorizedbyhiminwriting.

DETAILS OF DIRECTORS SEEKING REAPPOINTMENT AT THE FORTHCOMING ANNUAL GENERAL MEETING IN PURSUANCE TO CLAUSE 49 OF THE LISTING AGREEMENT WITH THE STOCK EXCHANGE

Re-appointment of Mr. I. V. Rao (Item no. 3)

UnderSection152(6)of theCompaniesAct,2013,onethird of the Directors as are liable to retire by rotation,shallretirefromoffice.

IncompliancewithSection152(6)oftheCompaniesAct,2013,Mr. I. V. Rao retire at the forthcomingAGM andbeingeligible,offershimselfforre-appointment.

Mr.I.V.Rao,62,isagraduateinMechanicalEngineering,Osmania University and Post Graduate in MechanicalDesign,IITKanpur.HejoinedtheBoardwitheffectfrom14.02.2005.Mr. I.V.Raohasawideexperience in thefieldoftechnologytransfer,design,productdevelopmentandhomologation,alongwithexperienceinproduction.

He is a member of the Board of Machino PolymersLimited.HeisnotamemberofanyBoardCommitteeanddoesnotholdanysharesoftheCompany.

Except Mr. I. V. Rao, none of the Directors and KeyManagerialPersonneloftheCompanyandtheirrelativesis concerned or interested, financial or otherwise, inAgendaitemno.3.

Re-appointment of Mr. Yoichi Kojima (Item no. 4)

IncompliancewithSection152(6)oftheCompaniesAct,2013,Mr.YoichiKojimaretireattheforthcomingAGMandbeingeligible,offershimselfforre-appointment.

Mr. Yoichi Kojima, 50, is a graduate in Law, ChuoUniversity.HejoinedtheBoardwitheffectfrom15.03.2010. Mr.YoichiKojimahas awide experience in the field ofMarketing,LegalandHR.HeisadirectorofHallaVisteonClimate Systems India Private Ltd., SKH Metals Ltd, J. J. Impex (Delhi) Private Limited and Suzuki MotorGujarat Pvt. Ltd. He is not a member of any BoardCommitteeanddoesnotholdanysharesoftheCompany.

ExceptMr.YoichiKojima,noneoftheDirectorsandKeyManagerialPersonneloftheCompanyandtheirrelativesis concerned or interested, financial or otherwise, inAgendaitemno.4.

ByOrderOfTheBoardDate :15thApril,2015 RituBakshiPlace:NewDelhi CompanySecretary


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DIRECTORS’ REPORTDearShareholders

YourDirectorshavepleasureinpresentingthe28thAnnualReporttogetherwiththeAuditedAccountsfortheyearended 31st March, 2015

FINANCIAL RESULTS Rupeesinlakhs

PARTICULARS 2014-2015 2013-2014 NETREVENUEFROMOPERATIONS 69394.36 56003.83

OTHERINCOME 114.19 24.05

PROFITBEFOREFINANCIALCHARGES&DEPRECIATION 3401.21 2878.36

LESS:FINANCECOSTS 620.92 625.84

PROFITBEFOREDEPRECIATION&TAXATION 2780.29 2252.52

LESS:

A) DEPRECIATION 1642.25 1352.14

B) PROVISIONFORTAXATION

-CURRENTTAX(NETOFMATCREDITENTITLEMENT)

-TAXESPAIDFOREARLIERYEARS

-DEFERREDTAX

234.95

-

91.10

37.05

1.85

190.72

NETPROFITAFTERTAX 811.99 670.76

ADD:BROUGHTFORWARDFROMPREVIOUSYEAR 50.00 50.00

PROFITAVAILABLEFORAPPROPRIATION 861.99 720.76

APPROPRIATIONS:PROPOSEDDIVIDEND

CORPORATEDIVIDENDTAX

TRANSFERTOGENERALRESERVE

BALANCECARRIEDFORWARDTOBALANCESHEET

282.60

57.53

471.86

50.00

251.20

42.69

376.87

50.00

PERFORMANCE REVIEW

ThegrossrevenuefromoperationsandotherincomeforthefinancialyearunderreviewwasRs.78371.57lacsasagainstRs.63,199.95lacsforthepreviousfinancialyear.Theprofitbeforefinancecosts,depreciationandtaxationisRs.3401.21lacsforthefinancialyearunderreviewasagainstRs.2878.36lacsforthepreviousfinancialyear,i.e.anincreaseby18%.TheprofitaftertaxincreasedtoRs.811.99lacs,ascomparedtoRs.670.76lacsforthepreviousfinancialyear,i.e.anincreaseby21%.ThisismainlyduetoincreaseinvolumesandothercostsavingmeasuresbytheCompany.

OPERATIONS

YourCompanyiswellonthewaytofurthergrowth.YourCompanyhasalreadybeenawardedbusinessofseatsetsforthenextmodelsofMarutiSuzukiIndiaLimited(MSIL),theproductionofwhichstartsinApril,2015andJanuary,2016.

During the year under review, your Company hasmanufactured and supplied extruded componentsfor the prestigious top selling models of MSIL. YourCompany has localized the rawmaterials used in themanufactureofextrudedcomponents.Thishasresultedin lower inventories, reduced dependence on importsandcontrolonforeigncurrencyfluctuations.

As regards the twowheeler business, your CompanysuppliedTwowheelerseatsandSheetMetalfabricatedparts for newmodels of Scooters andmotorcycles toSuzukiMotorcycleIndiaPrivateLimited.

Your Company also received further orders for theirforthcomingmodels.

DIVIDENDYour Directors are pleased to recommend for theapproval of the shareholders, a dividend of 45% (Re 0.90/- per share) for the financial year ended31.03.2015.


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AWARDS AND RECOGNITIONYour company has received Recognition Award forSuperior Performance in the field of Design andDevelopment for the year 2014-15 at Annual VendorConferenceofMSIL.

PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES REFERRED TO IN SUB SECTION (1) OF SECTION 188 OF THE COMPANIES ACT, 2013Alltherelatedpartytransactionsarerepetitiveinnatureand are entered on arm’s length basis and are incompliancewiththeapplicableprovisionsoftheActandtheListingAgreement.All Related party transactions are presented to theAuditCommitteeand theBoard,onaquarterlybasis.Omnibusapproval is obtained for all the relatedpartytransactions. TheRelatedPartyTransactionsPolicyasapprovedbytheBoardisuploadedontheCompany’swebsiteattheweblink:http://www.bharatseats.com/investors/PolicyonRelatedPartyTransactionsThe information relating to particulars of contracts orarrangements with related parties referred to in subsection(1)ofsection188of theCompaniesAct,2013inFormAOC-2isannexedasAnnexureI,formingpartofthisReport.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGOThe information relating to conservation of energy,technologyabsorption, foreignexchangeearningsandoutgopursuanttoSection134(3)(m)oftheCompaniesAct,2013readwithRule8(3)ofCompanies(Accounts)Rules,2014isannexedheretoasAnnexureII,formingpartofthisReport.

STATEMENT OF FORMAL ANNUAL EVALUATION BY THE BOARD OF ITS OWN PERFORMANCE AND OF ITS COMMITTEES AND INDIVIDUAL DIRECTORSIn compliance with the Companies Act, 2013 andClause49oftheListingAgreement,duringtheyear,theNominationandRemunerationCommitteelaiddowntheevaluationcriteriaforperformanceevaluationofallthedirectors.TheevaluationofIndependentDirectorswascarriedoutbytheentireBoardandthatoftheChairmanandnon-independentDirectors,bytheindependentDirectors.This exercise was carried out through structuredevaluation process covering various aspects of theBoardsuchascompositionof theBoard/Committees,experience, competencies, performance of specific

dutiesetc.Separateexercisewascarriedouttoevaluatetheperformanceofindividualdirectors,includingBoardChairmanwhowereevaluatedontheparameterssuchasattendance,contributionatthemeeting,independentjudgmentetc.andwasfoundtobesatisfactory.

DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL WHO WERE APPOINTED OR HAVE RESIGNED DURING THE YEARI. RETIREMENT BY ROTATION

InaccordancewiththeArticlesofAssociationoftheCompanyandrelevantprovisionsoftheCompaniesAct,2013,Mr.YoichiKojima(DIN:02973263)andMr.I.V.Rao(DIN:00329370)areliabletoretirebyrotationattheensuingAnnualGeneralMeetingandbeingeligible,offer themselves for reappointment.TheBoardrecommendstheirre-appointment.

II. APPOINTMENT ThefollowingDirectorswereappointedduring the

year:• Mrs. Shyamla Khera (DIN: 06929439), was

appointed as an Independent Director w.e.f.21.07.2014,foraperiodoffiveyears.

• Mr. Arvind Varma (DIN: 02225281) wasappointed as an Independent Director w.e.f.21.10.2014foraperiodoffiveyears.

• Mr.T.J.Chacko(DIN:07005026)wasappointedasDirector(Operations)w.e.f.01.12.2014foraperiod of three years.

III. CESSATION During the year, Mr. Gautam Khaitan, Director

resigned w.e.f. 20.05.2014. The Board placed onrecord its appreciation for the valuable servicesrenderedbyMr.GautamKhaitan.

IV. KEY MANAGERIAL PERSONNEL (KMP) During the year, Mr. Rohit Relan, Managing

Director,andMr.T.J.Chacko,appointedasDirector(Operations)weredesignatedasKMP.

In addition to above, Mr. Sanjeev Kumar, CFOand Ms. Ritu Bakshi, Company Secretary weredesignatedasKMP.

COMPANIES WHICH BECAME OR CEASED TO TO BE ITS SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIESToyo Sharda India Pvt. Ltd. is a newly incorporatedAssociateCompany.

CORPORATE GOVERNANCEPursuanttoClause49ofthelistingagreementwiththeStockExchange, the reportonCorporateGovernanceandManagementDiscussionandAnalysisReporthave


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beenincludedinthisAnnualReportasseparatesection,alongwiththeAuditors’Certificate.

DETAILS OF DEPOSIT AS PROVIDED UNDER CHAPTER V OF THE COMPANIES ACT, 2013(a) Acceptedduringtheyear Your Company has not accepted any deposits

within the meaning of Section 2(31), read withsection73oftheCompaniesAct,2013andassuch,noamountofprincipalorinterestwasoutstandingasonthedateoftheBalanceSheet.

(b) Remainingunpaidorunclaimedasattheendoftheyear:None

(c) Whether therehasbeenanydefault inrepaymentof deposits or payment of interest thereon duringtheyear:None

(d) DetailsofdepositwhicharenotincompliancewiththerequirementofChapterVoftheAct:None

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGISTRARS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATION IN FUTURENone

DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTSA strong internal control culture is prevalent in theCompany. A formalised system of internal controlsfacilitates effective compliance with Clause 49 of theListing Agreement. The Internal Auditor monitors thecompliancewith theobjectiveofproviding to theAuditCommitteeandtheBoardofDirectorsanindependentand reasonable assurance on the adequacy andeffectiveness of the organisation’s governanceprocesses.

LISTINGTheEquitysharesoftheCompanyarelistedatBombayStockExchange.TheCompanyhaspaidlistingfeestotheStockExchangefortheyear:2014-2015.

CSR REPORTTheCorporateSocialResponsibilityReportasprovidedinCompanies (CorporateSocialResponsibilityPolicy)Rules,2014isasperAnnexureIIIattached.

EXTRACT OF ANNUAL RETURN ExtractofAnnualreturnasprovidedundersubsection(3)ofSection92oftheCompaniesAct,2013isasperAnnexureIVattached.

NUMBER OF MEETINGS OF THE BOARDFormspartofCorporateGovernanceReport

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant toSection 134(3) (c) of theCompaniesAct,2013,theDirectorsconfirmthat:(a) In the preparation of the annual accounts, the

applicable accounting standards have beenfollowed and no material departures have beenmade from the same.

(b) Appropriateaccountingpolicieshavebeenselectedand applied consistently and judgments andestimatesmadethatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsof the Company at 31st March, 2015 and of the ProfitorLossoftheCompanyfortheyearending31stMarch,2015;

(c) Properandsufficientcarehasbeen taken for themaintenance of adequate accounting records inaccordancewith theprovisionsof theCompaniesAct, 2013 , for safeguarding the assets of theCompany and for preventing and detecting fraudandotherirregularities;

(d) The annual accounts have been prepared on agoingconcernbasis.

(e) Internal financial controls to be followed by theCompany have been laid down and that suchinternal financial controls are adequate and wereoperatingeffectively.

(f) Proper systems have been devised to ensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemsareadequateandoperatingeffectively.

DISCLOSURE AS REQUIRED UNDER SUB RULE 2 OF RULE 5 OF COMPANIES(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL)RULES, 2014AsperAnnexureV

DISCLOSURE IN BOARD’S REPORTHaving regard to the provisions of the first proviso tosection136(1)of theAct, theannual report,excludingtheinformationasrequiredundersection197(12)oftheAct readwithRule5(1)of theCompany(Appointmentand Remuneration of Managerial Personnel) Rules,2014, is being to the sent to the members of theCompany. The said information is available at thewebsiteoftheCompanyandisavailableforinspectionat theregisteredofficeof thecompanyduringworkinghours and any member interested in obtaining suchinformationmaywritetobeCompanySecretaryandthesamewillbefurnishedonrequest.


10

STATEMENT ON DECLARATION GIVEN BY INDEPENDENT DIRECTORS UNDER SUB SECTION 6 OF SECTION 149 ReceivedfromallIndependentDirectors.

COMPANY’S POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION INCLUDING CRITERIA FOR DETERMINING QUALIFICATIONS, POSITIVE ATTRIBUTES, INDEPENDENCE OF A DIRECTOR AND OTHER MATTERS AS PROVIDED UNDER SUB SECTION(3) OF SECTION 178 OF THE COMPANIES ACT, 2013The Company has formulated a Nomination AndRemuneration Policy as perAnnexure VI. Details areprovidedinCorporategovernanceReport.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186.None

STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY FOR THE COMPANY INCLUDING IDENTIFICATION THEREIN OF ELEMENTS OF RISK, IF ANY, WHICH IN THE OPINION OF THE BOARD MAY THREATEN THE EXISTENCE OF THE COMPANY1. In line with the new regulatory requirements, the

CompanyhasformallyframedaRiskManagementPolicytoidentifyandassessthekeyriskareasandmonitor the same.

The Board periodically reviews the risks andsuggestsstepstobetakentocontroltherisks.

2. WHISTLEBLOWERPOLICY AfairandTransparentworkculturehasbeencoreto

theCompany.Tomeetthisobjective,theCompanyhadlaiddowntheWhistleBlowerPolicy.TheBoardApproved theWhistleBlowerPolicy on 21st July,2014.

HUMAN RESOURCESOurrelationswiththeemployeesareverycordial.YourDirectorswouldliketoplaceonrecordtheirappreciationofthecommitmentandefficientservicesrenderedbyallemployeesoftheCompany,withoutwhosewholeheartedefforts, the overall satisfactory performance of theCompanywouldnothavebeenpossible.

AUDITORS AND AUDITORS’ REPORTStatutory AuditorsM/sS.S.KothariMehta&Co.,CharteredAccountants,StatutoryAuditors of the Company, hold office till theconclusionoftheensuingAnnualGeneralMeetingandareeligibleforre-appointment,ifmade,wouldbewithintheprescribedlimitsundertheActandthattheyarenotdisqualifiedforre-appointment.

The Notes on financial statement referred to in theAuditors’Reportareself-explanatoryanddonotcallfor

any further comments. TheAuditors’ Report does notcontainanyqualification,reservationoradverseremark.

Secretarial AuditorTheBoardhadappointedMs.NidhiChawla,PractisingCompanySecretary,toconductSecretarialAuditforthefinancialyear2014-15.TheSecretarialAuditReportforthe financial year ended March 31, 2015 is annexedherewith marked as Annexure VII to this Report.The Secretarial Audit Report does not contain anyqualification,reservationoradverseremark.

ENVIRONMENTThe Company is committed to the protection of environmentand isnot involved inany typeofactivityhazardous to environment. It strictly adheres to theprovisions of environmental laws. There is no tradeeffluentgeneratedby theCompany,whichmaycausepollution. Our Company is an ISO14001 certifiedcompany.

DISCLOSURE AS REQUIRED UNDER SECTION 22 OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013TheCompanyhasinplaceanAntiSexualHarassmentPolicy in line with the requirement of the SexualHarassment of Women at Workplace (Prevention,ProhibitionandRedressal)Act,2013.Thefollowingisthesummaryofthecomplaintsreceivedanddisposedoffduringthefinancialyear:2014-2015:a)No.ofcomplaintsreceived:NILb)No.ofcomplaintsdisposedoff:NIL

ACKNOWLEDGEMENTSTheDirectorsplaceon record their deepappreciationof the valuable assistance and co-operation extendedto theCompanybySuzukiMotorCorporation, Japan,MarutiSuzukiIndiaLtd.,SuzukiMotorcycleIndiaPrivateLimited,ToyoSeatCo.Ltd.,Japan,HouwaKogyoCoLtd, Japan, Inoac Corporation, Japan, State Bank ofTravancore, Bank of Tokyo-Mitsubishi UFJ Ltd., YesBankLtd.,IDBIBankLtd.,variousdepartmentsofCentralGovernment and Haryana State Government. Thedirectorsconvey theirdeepappreciation toemployeesat all levels for their commitment and collective teamwork.Yoursupportasshareholdersisgreatlyvalued.YourDirectorsthankyouandlookforwardtothefuturewithconfidence.

ForandonbehalfoftheBoardBHARATSEATSLIMITED

PLACE:NewDelhi (N.D.RELAN)DATED:15thApril,2015 CHAIRMAN


11

ANNEXURE I Form No. AOC-2

(Pursuant to clause (h) of sub-section (3)of section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)

Form for disclosure of particulars of contracts/arrangements entered into by the company with related partiesreferredtoinsub-section(1)ofsection188oftheCompaniesAct,2013includingcertainarmslengthtransactionsunder third proviso thereto1. Details of contracts or arrangements or transactions not at arm’s length basis: -NONE -

(a) Name(s)oftherelatedpartyandnatureofrelationship(b) Natureofcontracts/arrangements/transactions(c) Durationofthecontracts/arrangements/transactions(d) Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany(e) Justificationforenteringintosuchcontractsorarrangementsortransactions(f) Date(s)ofapprovalbytheBoard(g) Amountpaidasadvances,ifany:(h) Dateonwhich thespecial resolutionwaspassed ingeneralmeetingas requiredunderfirstproviso to

section1882. Details of material contracts or arrangement or transactions at arm’s length basis:

(a) Name(s)oftherelatedpartyandnatureofrelationship

MARUTI SUZUKI INDIA LIMITED, of which Bharat Seats Limited is an Associate Company

(b) NatureofContracts/arrangements/transactions Sale,PurchaseorSupplyofGoods,Materials

Saleoftooling/Jobcharges

Payment of LeaseRent

Purchase of Electricity

(c) Durationofthecontracts/arrangements/transactions

-Transactionsarerepetitiveinnature-

(d) Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany

Uptoamax.ofRs.1200crores

per annum

Uptoamax.ofRs.50

crores per annum

Uptoamax.ofRs.50lakhsperannum

Uptoamax.ofRs.30

crores per annum

(e) Date(s)ofapprovalbytheBoard,ifany: Board:21.10.2014Shareholders:27.12.2014

(f) Amountpaidasadvances,ifany -

(a) Name(s)oftherelatedpartyandnatureofrelationship

SHARDA MOTOR INDUSTRIES LIMITED, of which Bharat Seats Limited is an Associate Company

(b) NatureofContracts/arrangements/transactions PurchaseofGoods,materials

PurchaseofTooling/Jobcharges

(c) Durationofthecontracts/arrangements/transactions

Transactions are repetitive in nature

(d) Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany

Uptoamax.ofRs.500croresper annum

Uptoamax.ofRs.100croresper annum

e) Date(s)ofapprovalbytheBoard,ifany: Board:21.10.2014Shareholders:27.12.2014

(f) Amountpaidasadvances,ifany -


12

ANNEXURE II

Information pursuant to Section 134(3) of the Companies Act, 2013 read with Rule 8 of the Companies(Accounts)Rules, 2014, forming part of Board of Directors’ Report for the year ended 31st March, 2015.

(A) CONSERVATION OF ENERGY(i) thestepstakenorimpactonconservationofenergy

Thefollowingstepshavebeenimplementedtosaveelectricity: AtGurgaonPlant:

1. AutotimersprovidedinPUandAssemblyPlanttoswitchoffexhaustfanandcoolingfansduringlunchandteabreaks.

2. Autotimersprovidedinnonproductionareaincanteenandtoolroomtoswitchoffpowerduringidletime.3. InPUPlant,steamcondensatewaterisbeingreusedtogeneratesteam.4. Carpetplantheaterheightincreasedtoreducethecycletime.

AtManesarPlant:1. InPUPlant,steamcondensatewaterisbeingreusedtogeneratesteam2. Windblowerhavebeenprovidedontheroof.

AtBhorakalanPlant:1. 250KVADGisbeingusedinplaceof500KVAgeneratortopreventthewastage.2. AutotimersprovidedinPlanttoswitchoffpowerduringlunchandteabreaks(ii) thestepstakenbytheCompanyforutilisingalternatesourcesofenergy asprovidedabove(iii) thecapitalinvestmentonenergyconservationequipments None

(B) TECHNOLOGY ABSORPTION

I. RESEARCH AND DEVELOPMENT(R&D)1) Specific areas in which Research & Development work is carried out by your company is

a) DevelopingseatingsystemsforpassengercaraswellasSportutilityvehicle.b) Mouldedfloorcarpets,Luggagecarpetsc) Extrudedcomponentsforvehicleroof&windshieldinsulation, allforMarutiSuzukiIndiaLimited.d) DevelopingtheSeatsandthecompleteframeassemblyforSuzukiMotorcycleIndiaPrivateLtd.Currently theR&Ddepartment isengagedwith thedevelopmentofnewmodelsandrefreshmodels, inabovesegments,slatedforlaunchincomingfewyears.TheR&Ddepartmenthassuccessfullysuppliedtheseatingsystemforrunwaysuccessmodel“Ciaz“fromMarutiSuzuki.Thisseatingsystemhasfeaturesanotchaboveallrangesofseats,like–FortheexportmodelstocoldcountrieslikeRussia,aHeatermathasbeenprovidedforheatingtheseats.Similarly,Leatherseatcovershavebeenprovided.Thisdemandsaveryhighlevelofcraftsmanshipandhas introducedauniquekind leathercutting&stitching technology,etc.Withsuccessful launchof thisproduct,personnelhavegainedimmenseknowledgeandtraininginhandlingProductsofhigherstandardandquality.Besidesthis,theR&Ddepartmenthassuccessfullysuppliedmanyminorprogramstermedas“Refresh’incurrentplatformslikeSwiftwith50:50splitrearseat,Altoexportprogram,re-locatingpartialproductionvolumeofcurrentproductlinestonewlyestablishedManesarplant,etc.


13

2) Benefits derived as a result of above R&D CiazseatingsystemisbeingmanufacturedatthecompaniesnewlyestablishedplantinManesar,which

hashelpedimproveutilisationoftheplant’sinstalledcapacity. To reduce the cost of development of jigs & fixture used in production plants, theR&D is developing

morethan20%workin-house.This initiativewillcontinuetobebolsteredthroughpeopledevelopment,deploymentoftechnologies,etc.atthein-housetoolroom.

3) Future Plan of action Seatsina4-wheelerareclassifiedasasafetyitemasperCMVR(CentralMotorVehicleRegulations).Itis

notonlyanaestheticpartbutalsoprovidesseatingcomforttotheoccupantandthereforethedesignoftheseatplaysanimportantrole.Itisoneofthemostexpensivecommodityofthevehicle.

TheSeathasauniquesystemthatemploys4differentmanufacturingtechnologiesvizMetalforming&welding/PUfoammanufacturing,Fabriccutting&sewing,MouldingandPlasticinjection.

Asmanufactureresofalltheaboveuniquecharacteristics,itmakesusavaluedsupplierofouresteemedcustomer.

Inordertomaintainthepositionofthepreferredsupplierofcustomer&keepinginmindtheuniquenessofthisproductasstatedabove,yourCompanyislayingimmenseemphasisonR&D’sa) Peopledevelopment.b) Processbasedapproachtomanufactureandsupplynewproductswhichwillimproveefficiencyaswell

asqualityofproduct.c) Upgradationoffacilitytofacilitateandencouragepeopletodoinnovationinproductaswellasproduct

developmentprocesses. Fortheinitiative#aaboveyourcompanyisengaginginternationalplayersinthesimilarfieldfortechnology

transferlikeToyoSeatsfromJapanforseatingsystemdesignandInoacfromJapanforextrusionproductline. ExpertsfromthesereputedorganisationfrequentlyvisitourproductionfacilityforKaizeninitiatives,R&D

forpeopletraining,etc. Forinitiative#b,statedabove,yourcompanyisengagedinputtinglotofthrustondigitisationofproduct

developmentprocess,internalproductqualitystandardsandpartqualitystandards. Forinitiative#cabove,yourcompanyisengagedinaddingnewfacilitieslike

1) Product Benchmarking Room - This facility is to dismantle competing products in the market, tolearnbesttechnologiesofproductandproductmanufacturingprocesses,whichshalloveraspanofyear,helpoptimisethequalityandcostoftheproductproducedinyourcompanyandalsokeeptheemployeesupdatedwiththecompetitors’technologies.

2) UpgradationofProtoMakingFacility–Duringtheproductdevelopmentcycle,itbecomesvitaltocheckthequalityofpartsthatgoesinbuildingtheproduct&finallythequalityofproductthatwillgoliveinproductionplant.

Thisfacilitywillsimulateissueswhichmayimpedethequalityofproduct&alliedpartsbeforegoingliveinproductionplantwhichinturnhelpsindoingflawlesslaunchwithzeroqualityissues–Themottoofeverycompanythatwantstoscaleup

Yourcompanyisengagedinupgradingthisfacilitytobringittohighestlevelofstandardsbydeployingbestpractices.

3) UpgradationofTestingFacility–Asanendeavourtocontinuouslyincreaseefficiencyandaccuracyofproductdevelopmentyourcompanyisupgradingthetestfacilitytobringittointernationalstandardlevel.Thisnotonlyincludesaddingdigitalstateoftheartinstrumentstodotestingbutalsobenchmarkingthefacilityagainstinternationaltestlabs.

Alltheaboveinitiativesdemonstratetheseriousnessofthecompanyonproductinnovationandquality.


14

4) R&D Expenditure

Your Company is undertaking Research and Development activities for development of varieties of newproducts,toolingandtestingfixturesaspertherequirementofesteemedcustomerbesidesinternalinitiativesasstatedhasresultedincapital&otherexpendituresasfollowsa) Capital Rs.31.00lacsb) Recurring Rs.129.08lacsc) Total Rs.160.08lacsd) TotalR&Dexpenditureasa

percentageoftotalturnover 0.23%

II. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

(i) EffortsmadetowardsTechnologyabsorption

BharatSeatsLimitediscontinuouslyundertakingproductdevelopment/improvementforexistingaswellasnewproductswiththehelpofinhouseresourcesaswellasthroughtechnicalassistancefromtechnicalcollaborators.Forthispurpose,expertsfromToyoSeats,JapanandInoacCorporation,JapanhadfrequentvisitstoyourCompanytogivespecialtrainingondesigningtheprocessofnewtypeofseatsandalsotoaddnewproducttypeseatmechanism.

(ii) BenefitsderivedlikeProductimprovement.Costreduction,productdevelopmentorimportsubstitution.

a. Processbasedapproachtomanufacturehasimprovedefficiencyandqualityofproduct.

b. Inhousedeploymentoftechnologieshasreducedthecostofproduction.

c. FlexiblelineshavebeeninstalledbyyourCompanytomeettherequirementofnewmodelsinaveryshortleadtime.

(iii) Incaseofimportedtechnology,technologyimportedduringthelastthreeyearsreckonedfromthebeginningofthefinancialyear

DETAILS OF TECHNOLOGY IMPORTED YEAR OF IMPORT HAS TECHNOLOGY BEEN FULLY ABSORBED

(a) (b) (c)

-Forcontinuousimprovement-Formanufactureofmouldedcarpetsandseatingsystemforfourwheelers-ForManufactureofTwoWheelerSeatAssemblies-ForManufactureofextrudedcomponentsforautomobiles.

2012-2013 Yes


2013-2014 Yes


2014-2015 Yes


15

(C) FOREIGN EXCHANGE EARNINGS AND OUTGO

Intermsofactualinflowsandactualoutflows

ForeignexchangeoutflowonaccountofimportofCapitalGoodsandrawmaterialsamountedtoRs.1220.26lakhs (Rs.1128.57lakhs).Otherexpenditure in foreigncurrency relating to travelling, trainingand technicalfeesamountedtoRs.288.82lakhs(Rs.270.66lakhs).RemittancesinforeigncurrencyonaccountofdividendamountedtoRs.37,20,000/-(Rs.37,20,000/-).(Figuresinbracketpertaintolastyear)

ANNEXURE III

CSR REPORT1. Abriefoutlineofthecompany’sCSRpolicy, including

overview of projects or programs proposed to beundertakenandareferencetotheweb-linktotheCSRpolicyandprojectsorprograms.

The Company has framed a CSR Policy incompliancewiththeprovisionsoftheCompaniesAct, 2013 and the same is placed on theCompany’swebsiteandtheweblinkforthesameis:www.bharatseats.com/investors/csrpolicy.pdf

2. TheCompositionoftheCSRCommittee 1. Mr.RavindraGupta,Chairman2. Mr.N.D.Relan3. Mr.G.N.Mehra4. Mrs.ShyamlaKhera

3. Averagenetprofltofthecompanyforlastthreefinancialyears

Rs.5,91,40,929/-

4. Prescribed CSR Expenditure (two per cent. of theamountasinitem3above)

Rs.12,00,000/-

5. DetailsofCSRspentduringthefinancialyear.(a) Totalamounttobespentforthefinancialyear;(b) Amountunspent,ifany;(c) Manner in which the amount spent during the

financialyearisdetailedbelow:

Rs.12,00,000Rs.2,79,000

1 2 3 4 5 6 7 8

S.No CSR project or activityidentified.

SectorinwhichtheProject is covered

Projects or programs1. Local Area or other2. Specify the state

and district where projects or programs was undertaken

Amount outlay (budget) project or programs wise

Amount spent on the projects or programs.Sub-heads:1. Direct expenditure

on projects or programs

2. Overheads:

Cumulative expenditure upto the reporting period

Amount Spent: Direct or through implementing agency

(a) Health Care & Sanitation

Health Care & Sanitation

Delhi 2,21,000 2,21,000 2,21,000 2,21,000

(b) Sports development

Sports development

Delhi 7,00,000 7,00,000 7,00,000 7,00,000

6. TheCommitteedecidedthatthebalanceamountofRs.2,79,000/-maybecontributedtowards‘WelfareCentreforPersonswithSpeech&HearingImpairment’ortowardsanyoftheactivities,inaccordancewiththepolicyapprovedbytheCommittee.

7. TheCSRCommitteeconfirmsthattheimplementationandmonitoringofCSRPolicy,isincompliancewithCSRobjectivesandPolicyofthecompany.

sd/- sd/-ROHITRELAN RAVINDRAGUPTAMANAGINGDIRECTOR Chairman-CSRCommittee


16

ANNEXURE IVForm No. MGT-9

EXTRACT OF ANNUAL RETURNasonthefinancialyearendedon31stMarch,2015

[Pursuanttosection92(3)oftheCompaniesAct,2013andrule12(1)oftheCompanies(ManagementandAdministration)Rules,2014]

I. REGISTRATION AND OTHER DETAILS:i) CIN L34300DL1986PLC023540

ii) RegistrationDate 6THMARCH,1986

iii) NameoftheCompany BharatSeatsLimited

iv) Category/Sub-CategoryoftheCompany PublicCompany

v) AddressoftheRegisteredofficeandcontactdetails D-188,OkhlaIndustrialArea,PhaseI,NewDelhi110020

vi) WhetherlistedcompanyYes/No Yes

vii) Name,AddressandContactdetailsofRegistrarandTransferAgent,ifany

M/sAlankitAssignmentsLimited.1E/13,JhandewalanExtn.,NewDelhi

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:-

Sl.No.

NameandDescriptionofmainproducts/services

NICCodeoftheProduct/service

%tototalturnoverofthecompany

1 CarSeatsAssemblies 2930 91%

2 CarpetSetsforAutomobiles 2930 4%

3 Motorcycleseats 2930 3%

4 Othersales&tradedgoods 2930 2%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –

S.No.

NAME ANDADDRESS OFTHE COMPANY

CIN/GLN HOLDING/SUBSIDIARY/ASSOCIATE

% of shares

held

Applicable Section

1 Maruti Suzuki India Limited

L34103DL1981PLC011375 JointVenture 14.81 2(6)

2 Suzuki Motor Corporation, Japan

FOREIGNCOMPANY JointVenture 14.81 2(6)

3 Sharda Motor Industries Limited

L74899DL1986PLC023202 Associate 28.66 2(6)


17

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category-wise Share Holding

Category ofShareholders

No. of Shares held at thebeginning of the year

(As on 01.04.2014)

No. of Shares held at the end of the year(As on 31.03.2015)

% Changeduring

the year

Demat Physical Total % ofTotal

Shares


Shares

A. Promoters(1) Indian

a) Individual/HUFb) Central Govtc) State Govt (s)d) Bodies Corp.e) Banks / FIf) Any Other

Sub-total (A) (1):-(2) Foreign

a) NRIs - Individualsb) Other – Individualsc) Bodies Corp.d) Banks / FIe) Any Other

Sub-total (A) (2):-

4958000--

13693000--

18651000

--

4650000--

4650000

-------

------

4958000--

13693000--

18651000

--

4650000--

4650000

15.79--43.61

--59.40

--14.81

--14.81

5035458--

13683000--

18718458

--

4650000--

4650000

-------

------

5035458--

13683000--

18718458

--

4650000--

4650000

16.03--

43.58--

59.61

--

14.81--

14.81

0.24--

-0.03--

0.21

------

Total shareholdingof Promoter (A) =(A)(1)+(A)(2)

23301000 - 23301000 74.21 23368458 - 23368458 74.42 0.21


18

Category ofShareholders

No. of Shares held at thebeginning of the year

(As on 01.04.2014)

No. of Shares held at the end of the year(As on 31.03.2015)

% Changeduring

the year


Shares


Shares

B. PublicShareholding1. Institutions

a) Mutual Fundsb) Banks / FIc) Central Govtd) State Govt(s)e) Venture CapitalFundsf) InsuranceCompaniesg) FIIsh) Foreign VentureCapital Fundsi) Others (specify)

Sub-total (B)(1):-2. Non-Institutions

a) Bodies Corp.i) Indianii) Overseasb) Individualsi) Individualshareholdersholding nominalshare capital uptoRs. 1 lakhii) Individualshareholdersholdingnominal sharecapital inexcess of Rs 1lakhc) Others

(specify)TRUSTSub-total (B)(2):-Total PublicShareholding(B)=(B)(1)+(B)(2) C. Shares held by Custodian for GDRs & ADRs Grand Total (A+B+C)

100034000---

-

--

35000

586778-

6128703

741896

5609775134747548474

-

30849474

-----

-

--

-

8010-

542516

-

-550526550526

-

550526

100034000---

-

--

35000

594788-

6671219

741896

5609780640008099000

-

31400000

-0.11

---

-

--

0.11

1.89-

21.25

2.36

0.1825.6825.79

-

100.00

100034000---

-

20248-

55248

645342-

5837975

908110

56097 74475247502772

-

30871230

-----

-

--

-

8010-

520760

-

-528770528770

-

528770

100034000---

-

20248-

55248

653352-

6358735

908110

5609779762948031542

-

31400000

-0.11---

-

0.06-

0.17

2.08-

20.25

2.89

0.1825.4025.58

-

100.00

-----

-

0.06-

0.06

0.19-

-1.00

0.53

--0.28-0.21

-

-


19

(ii) Shareholding of Promoters

SlNo.

Shareholder’sName

Shareholding at the beginning of the year Share holding at the end of the year

No. ofShares

% oftotalSharesof thecompany

%of SharesPledged /encumberedto totalshares

No. ofShares

% oftotalSharesof thecompany

%of SharesPledged /encumberedto totalshares

%changeinshareholdingduringtheyear

1 MARUTI SUZUKI INDIA LIMITED

4650000 14.81 - 4650000 14.81 - -

2 SUZUKI MOTOR CORPORATION JAPAN

4650000 14.81 - 4650000 14.81 - -

3 SHARDA MOTOR INDUSTRIES LIMITED

9000000 28.66 - 9000000 28.66 - -

4 NARINDER DEV RELAN

1103500 3.51 - 1108950 3.53 - 0.02

5 ROHIT RELAN 650000 2.07 - 655000 2.09 - 0.02

6 AJAY RELAN 598200 1.91 - 619808 1.97 - 0.06

7 SHARDA RELAN 184500 0.59 - 193900 0.62 - 0.03

8 RITU RELAN 262500 0.83 - 272500 0.86 - 0.03

9 MALA RELAN 382500 1.22 - 398500 1.27 - 0.05

10 RISHABH RELAN 349000 1.11 - 349000 1.11 - -

11 PRANAV RELAN 405500 1.29 -- 410500 1.31 -- 0.02

12 AYUSH RELAN 195800 0.62 - 195800 0.62 - -

13 AASHITA RELAN 460500 1.47 - 465500 1.48 - 0.01

14 AASHIM RELAN 366000 1.17 - 366000 1.17 - -

15 RELAN INDUSTRIAL FINANCE LTD.

43000 0.14 - 33000 0.11 - -0.03

Total 23301000 74.21 23368458 74.42 0.21


20

(iii) Change in Promoters’ Shareholding ( please specify, if there is no change)

Sl.No.

Shareholdingatthebeginningoftheyear(Ason01.04.2014)

CumulativeShareholdingduringtheyear(01.04.2014to31.03.2015)

No.ofshares %oftotalshares of thecompany

No.ofshares %oftotalshares ofthe company

Atthebeginningoftheyear 23301000 74.21 67458 0.21

DatewiseIncrease/DecreaseinPromotersShare holding during the year specifyingthe reasons for increase / decrease (e.g.allotment / transfer / bonus/ sweat equityetc):

-ASPERANNEXURE-

AttheEndoftheyear(31.03.2015) 23368458 74.42

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Sl.No.

Top 10Shareholders

Shareholdingason1.4.2014

Shareholdingason31.03.2015

No.ofshares

%oftotalsharesof the company

No.ofShares

%oftotalsharesof the company

1 NILAMKUMARIKAPUR 182328 0.58 192328 0.61

2 SANTOSHSITARAMGOENKA 136460 0.43 127548 0.41

3 MLBHANOT 98578 0.31 98578 0.31

4 LEKHRAJCHANNA 87865 0.28

5 PRABHABHANOT 66000 0.21 66000 0.21

6 NASIRUDINHYDERALIJAVERI 65511 0.21 67790 0.22

7 CUSTODIAN(SPECIALCOURT)A/CRASILASMEHTA/SUDHIRSMEHTA

56097 0.18 56097 0.18

8 AUCHLITECHEMICALPRIVATELIMITED 55000 0.18 55000 0.18

9 RAVINDRADATTATRAYASHEMBEKAR 53600 0.17

10 JALALUDINJAFFERALIKAMDAR 51554 0.16

11 SUNITASANTOSHGOENKA 160400 0.51

12 SUPRIYASANTOSHGOENKA 142601 0.45

13 ANGELFINCAPPRIVATELIMITED 58377 0.19

(v) Shareholding of Directors and Key Managerial Personnel:Sl.No.

Shareholdingatthebeginningoftheyear:on1.4.2014

Shareholdingattheendoftheyear:31.3.2015

ForEachoftheDirectorsandKMP No.ofshares

%oftotalsharesofthe company

No.ofshares

%oftotalsharesofthe company

1 MRNARINDERDEVRELAN 1103500 3.51 1108950 3.53

2 MRROHITRELAN 650000 2.07 655000 2.09

3 MRAJAYRELAN 598200 1.91 619808 1.97

4 MRG.N.MEHRA 20000 0.06 20000 0.06

5 MRKISHANN.PARIKH 7500 0.02 7500 0.02


21

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment AmountinRs.

SecuredLoansexcludingdeposits

UnsecuredLoans

Deposits TotalIndebtedness

Indebtednessatthebeginningofthefinancialyeari) PrincipalAmountii) Interestduebutnotpaidiii) Interestaccruedbutnotdue

87,30,74,9671,86,52645,885

14,92,38,089-

1,12,647

---

1,02,23,13,0561,86,5261,58,532

Total(i+ii+iii) 87,33,07,378 14,93,50,736 - 1,02,26,58,114

ChangeinIndebtednessduringthefinancialyearAdditionReductionExchangeDifference

11,41,29,226

(21,89,97,235)3,38,59,288

58,527(2,95,36,034)(77,45,360)

---

11,41,87,753(24,85,33,269)

2,61,13,928

NetChange (7,10,08,721) (3,72,22,867) - (10,82,31,588)

Indebtednessattheendofthefinancialyeari) PrincipalAmountii) Interestduebutnotpaidiii) Interestaccruedbutnotdue

80,22,60,453-

38,204

11,20,69,342-58,527

---

91,43,29,795-96,731

Total(i+ii+iii) 80,22,98,657 11,21,27,869 - 91,44,26,526

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager: AmountinRs.

Sl.no.

ParticularsofRemuneration NameofManagingDirector/WholeTimeDirector

TotalAmount

Mr.RohitRelan

Mr.T.J.Chacko(appointedw.e.f.1.12.14,i,e,4monthsincurrentfinancialyear)

1. Grosssalary(a)Salaryasperprovisionscontained insection

17(1)oftheIncome-taxAct,1961(b)Valueofperquisitesu/s17(2)Income-taxAct,

1961(c)Profits in lieu of salary under section 17(3)

Income-taxAct,1961

75,00,000

5,09,250

-

9,12,200

-

-

84,12,200

5,09,250

-

2. StockOption - - -

3. SweatEquity - - -

4. Commission-as%ofprofit

- - -

5. Others,pleasespecifyContributiontoprovidentFund

10,20,750 68,594 10,89,344

Total(A) 90,30,000 9,80,794 1,00,10,794

CeilingaspertheAct/ApprovalofCentralgovernment

90,30,000 9,80,794 1,00,10,794


22

B. Remuneration to other directors:

Sl.no.

Particulars of Remuneration

Name of Directors TotalAmount

(Rs.)MR.MEHRA MR. LAHIRI MR. GUPTA MRS. KHERA MR. VARMA MR. PARIKH MR. KHAITAN1 Independent Directors

• Fee for attending board / committee meetings

• Commission• Others, please specify

6,40,000

--

6,00,000

--

5,00,000

--

3,20,000

--

40,000

--

40,000

--

40,000

--

21,80,000

--

Total (1) 6,40,000 6,00,000 5,00,000 3,20,000 40,000 40,000 40,000 21,80,000MR N. D. RELAN

MR Y. KOJIMA

MR I.V. RAO MR AJAY RELAN

2 Other Non-Executive Directors

• Fee for attending board / committee meetings

• Commission• Others, please specify

6,00,000

--

1,40,000

--

1,40,000

--

80,000

--

9,60,000

--

Total (2) 6,00,000 1,40,000 1,40,000 80,000 9,60,000Total (B)=(1+2) 12,40,000 7,40,000 6,40,000 4,00,000 40,000 40,000 40,000 31,40,000

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

Sl.no.

ParticularsofRemuneration KeyManagerialPersonnel

Mr.SanjeevKumar Ms.RituBakshi Total(Rs.)1. Grosssalary

(a)Salaryasperprovisionscontainedinsection17(1)oftheIncome-taxAct,1961(b)Valueofperquisitesu/s17(2)Income-taxAct,1961(c)Profitsinlieuofsalaryundersection17(3)IncometaxAct,1961

15,71,250 9,00,591 24,71,841

2. StockOption - - -3. SweatEquity - - -4. Commission

-as%ofprofit-others,specify…

- - -

5. Others,pleaseSpecifyProvidentFund

97,664 48,816 1,46,480

Total 16,68,914 9,49,407 26,18,321

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section ofthe

CompaniesAct

BriefDescription

Details ofPenalty /

Punishment/Compoundingfees imposed

Authority[RD /NCLT/

COURT]

Appeal made, if

any(give

Details)PenaltyPunishmentCompounding

OTHER OFFICERS IN DEFAULT : PenaltyPunishmentCompounding

NIL


23

ANNEXUREREFER POINT IV (iii) OF FORM NO. MGT-9: CHANGE IN PROMOTER’S SHAREHOLDING: 1.4.14 TO 31.3.15Sr.No. NAME SHARE

HOLDINGATTHEBEGINNINGOFTHEYEAR

DATEOFTRANSACTION(TRANSFER)

NO.OFSHARESTRANSACTED

SHAREHOLDINGATTHEENDOFTHEYEAR

1 NARINDERDEVRELAN 1103500

17/12/2014 450

25/02/2015 5000

1108950

2 ROHITRELAN 650000

26/02/2015 5000

655000

3 AJAYRELAN 598200

29/04/2014 16608

25/02/2015 5000

619808

4 SHARDARELAN 184500

16/05/2014 4100

15/05/2014 900

14/05/2014 2900

12/05/2014 200

11/05/2014 1300

193900

5 RITURELAN 262500

29/04/2014 10000

272500

6 MALARELAN 382500

29/04/2014 16000

398500

7 PRANAVRELAN 405500

25/03/2015 5000

410500

8 AASHITARELAN 460500

25/03/2015 5000

465500

9 RELANINDL.FIN.LTD. 43000

26/06/2014 -10000

33000

Total 4090200 67458 4157658


24

ANNEXURE V

DISCLOSURE AS REQUIRED UNDER SUB RULE 2 OF RULE 5 OF COMPANIES(APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL)RULES, 2014

EMPLOYEDFORTHEFULLFINANCIALYEAR:2014-2015:

NAME DESIGNATION & NATURE OF

DUTIES

REMUNERATION GROSS (RS.)

QUALIFICATIONS DATE OF COMMENCEMENT OF EMPLOYMENT

TOTAL EXPERIENCE

AGE IN YEARS

LAST EMPLOYMENT

PERCENTAGE EQUITY

MR. ROHIT RELAN

MANAGING DIRECTOR

Rs.90,30,000/- B.COM(HONS.) F.C.A., OWNER/ PRESIDENT MANAGEMENT PROGRAMME FROM HARVARD BUSINESS SCHOOL

6.3.1986 36YRS 59 YEARS

M/S S.P. MARWAH & CO.,

CHARTERED ACCOUNTANTS

2.09%

NOTES:1. REMUNERATION INCLUDES PERQUISITES AND COMPANY’S CONTRIBUTION TO PROVIDENT FUND2. THE NATURE OF EMPLOYMENT OF MR.ROHIT RELAN IS CONTRACTUAL.3. MR.ROHIT RELAN IS RELATED TO MR.N.D.RELAN, CHAIRMAN AND MR. AJAY RELAN, DIRECTOR OF THE COMPANY

EMPLOYEDFORAPARTOFTHEFINANCIALYEAR:2014-2015:

NAME DESIGNATION & NATURE OF

DUTIES

REMUNERATION GROSS (RS.)

QUALIFICATIONS DATE OF COMMENCEMENT OF EMPLOYMENT

TOTAL EXPERIENCE

AGE IN YEARS

LAST EMPLOYMENT

PERCENTAGE EQUITY

MR.ROHIT KAPUR

BUSINESS HEAD

Rs. 22,91,844 BACHELOR OF ENGINEERING

5.1.2015 22YRS 45 YEARS

LEAR CORPORATION

LTD.

NIL

NOTES:1. REMUNERATION INCLUDES PERQUISITES AND COMPANY’S CONTRIBUTION TO PROVIDENT FUND2. NATURE OF EMPLOYMENT OF MR ROHIT KAPUR IS NOT CONTRACTUAL.3. MR ROHIT KAPUR IS NOT A RELATIVE OF ANY DIRECTOR OF THE COMPANY.

ANNEXURE VI

Nomination And Remuneration Policy of Bharat Seats Limited in terms of Section 178 of Companies Act, 2013 and Clause no. 49 B(5) of Listing Agreement with the Stock Exchange

Objective:

ToappriseandassureBoardMembersthroughNominationandRemunerationCommittee(hereinafterreferredasCommittee)regardingavailabilityofframeworkforconductingcompanybusinessefficientlybyensuringavailabilityof requisiteTalent, Reasonable and Sufficient Remuneration for retaining theTalent, Transparent PerformanceEvaluationandRewardSystemtoCreateHighPerformanceCulture.

Applicability:

AllemployeesinserviceofM/sBharatSeatsLimitedincludingDirectors,KeyManagementPersonnelandSeniorManagementPersonnel.

Performance Evaluation Policy

Allemployeesarecoveredunderfollowingbasicprinciplesguidingthepolicy&processthereof:

BasicPrinciples:

• ObjectiveandTransparentPerformanceEvaluation• AlignmentofCompanyObjectivesandIndividualPerformance• SuitablyRewardingHighPerformance• CreatingPerformanceOrientedCulture


25

Process of Performance Evaluation:• CompanyObjectivesaredefinedonYearOnYearbasisinlinewithlongtermgoals• AlldepartmentandindividualKeyResultArea(KRA)aredefinedinlinewithCompanyObjectives• All employees up to Jr. Management level i.e. below Manager are evaluated on annual basis based on

ManagementbyObjective• ManagerandabovelevelemployeesareevaluatedonQuarterlybasisagainstpredefinedKRA• FinalevaluationofeachemployeeintheorganizationisdoneinthemonthofMarcheveryyear• Eachindividualisappraisedonindividualperformanceandcompetence(levelspecific)ona1to5pointscale

(where1islowest)• KRAfornextPerformanceYeararefinalized• Eachindividualisappraisedatthreelevelstoensurecorrectevaluation

Outcome of Performance Evaluation Exercise• CareerPlanforeachposition• Trainingneedsofincumbent• RemunerationEnhancement• Potentialemployeeforfuturegrowth• PerformanceOrientedCulture

Remuneration• RemunerationisbaseduponLevel,ResponsibilitiesofthepositionandPerformanceofincumbent• Remunerationisdividedintotwopartsi.e.FixedCostandVariablePay,• VariablePayisfurtherdividedintotwoparts

• CompanyPerformancePay• IndividualPerformancePay

• AllStatutorybenefitsareextendedtoemployeesAttracting,RetainingandNurturingTalentPolicyAttractingTalent

• NewPositionavailabilityisbasedonsanctionedstrength/replacementlookingatthreeyearsrollingorganizationstructure

• CompetenceBasedHiringforallpositions• Jobrelated• Behavioral

• Internal&ExternalSourcingforeachposition• MinimumThreeroundsofpersonalmeeting/panelinterviewtakesplaceforManager&abovelevelpositions• Eachmemberevaluatetheintervieweeonprescribedformatagainstpositionspecificcompetence• Manager&abovelevelpositionsarefinalizedwithinvolvementofManagingDirectoressentially

Retention & Nurturing of Talent• FairRemuneration&otheremployeerelatedpolicies• TransparentPerformanceEvaluationandRewardsSystem• DefinedCareerpathandDevelopmentOpportunitiesforallwithoutbias• IndividualCompetenceenhancementthroughTraining• InvolvementinImprovementsandChangeonregularbasis• OpenDoorPolicyforemployees


26

ANNEXURE VII

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED 31st MARCH, 2015

[Pursuant to Section 204(1) of theCompaniesAct, 2013 andRuleNo. 9 of theCompanies (Appointment andRemunerationofManagerialPersonnel)Rules,2014]

To,TheBoardofDirectorsBharatSeatsLimitedNewDelhi

DearSirs

IhaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyBharatSeatsLimited(hereinaftercalled“theCompany”).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingmyopinionthereon.

BasedonmyverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbytheCompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduringtheconductofsecretarialaudit,Iherebyreportthatinmyopinion,theCompanyhas,duringtheauditperiodcoveringthefinancialyearendedon31stMarch,2015,compliedwiththestatutoryprovisionslistedhereunderandalso that theCompanyhasproperBoardprocessesandcompliancemechanism inplace to theextent,inthemannerandsubjecttothereportingmadehereinafter:

1. Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbyBharatSeatsLimited(“TheCompany”)asgiveninAnnexureI,forthefinancialyearendedon31stMarch2015,accordingtotheprovisionsof:

I. TheCompaniesAct,2013(theAct)andtheRulesmadethereunder;

II. TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtheRulesmadethereunder;

III. TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;

IV. ForeignExchangeManagementAct,1999andtheRulesandRegulationsmadethereundertotheextentofForeignDirectInvestmentandExternalCommercialBorrowings;

V. ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):-

a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)Regulations,2011;

b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,1992;

c. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRegulations,2009;

d. The Securities and Exchange Board of India (Registrars to an Issue and Share TransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient.

2. ProvisionsofthefollowingregulationsandguidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’)werenotapplicabletothecompanyundertheFinancialYearunderreport:-

a. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;

b. TheSecuritiesandExchangeBoardofIndia(BuybackofSecurities)Regulations,1998;

c. TheSecuritiesandExchangeBoardofIndia(IssueandListingofDebtSecurities)Regulations,2008;

d. The Securities and Exchange Board of India (Employees StockOption Scheme and Employee StockPurchaseScheme)Guidelines,1999.

3. ProvisionsoftheForeignExchangeManagementAct,1999andtherulesandregulationsmadethereundertotheextentofOverseesDirectInvestmentwerenotattractedtotheCompanyunderthefinancialyearunderreport.


27

4. IhavereliedontherepresentationmadebytheCompanyanditsOfficersforsystemsandmechanismformedbytheCompanyforcompliancesunderotherapplicableActs,LawsandRegulationstotheCompany.Thelistofmajorhead/groupsofActs,LawsandRegulationsasapplicabletotheCompanyisgiveninAnnexureII.

Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

i) SecretarialStandardsissuedbyTheInstituteofCompanySecretariesofIndia.

ii) TheListingAgreemententeredintobytheCompanywiththeBombayStockExchangeLimited.

Duringtheperiodunderreview,theCompanyhascompliedwiththeprovisionsoftheAct,Rules,Regulations,Guidelines,Standards,ListingAgreementsetcmentionedabove.

Ifurtherreportthat:TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsand IndependentDirectors.Thechanges in thecompositionof theBoardofDirectors that tookplaceduringtheyearunderreviewwerecarriedoutincompliancewiththeprovisionsoftheAct.AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentatleastsevendaysinadvance,andasystemexistsforseekingandobtainingfurtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.Majoritydecisioniscarriedthroughwhilethedissentingmembers’views,ifany,arecapturedandrecordedaspartof the minutes.I furtherreportthatbasedontheinformationreceivedandrecordsmaintained,thereareadequatesystemsandprocesses in theCompanycommensuratewith thesizeandoperationsof theCompany tomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.Ifurtherreportthatduringtheyearunderreport,theCompanyhasundertakenevent/actionhavingamajorbearingontheCompany’saffairs inpursuanceof theabovereferredlaws,rules,regulations,guidelines,standards,etc.referredtoaboveviz.a. ApprovalsfromshareholdersobtainedthroughpostalballotunderSection180(1)(a)andSection180(1)(c)for

exercisingborrowingpowersandforcreatingmortgage.

ForNidhiChawla&AssociatesCompanySecretaries

NidhiChawlaProprietor

FCS:6870COP:10276

NewDelhi15thApril,2015


28

ANNEXURE IList of documents verified1. MemorandumandArticlesofAssociationoftheCompany

2. AnnualReportforthefinancialyearended31stMarch,2014.

3. MinutesofthemeetingsoftheBoardofDirectors,AuditCommittee,Nomination&RemunerationCommittee,StakeholdersRelationshipCommitteeandCSRCommitteealongwiththeAttendanceRegisterheldduringthefinancialyearunderreport.

4. MinutesofGeneralBodymeetingsheldduringthefinancialyearunderreport.

5. StatutoryRegistersviz.

• RegisterofDirectors&KMPwiththeirshareholdings.

• Registerofcharges

• RegisterofContracts

6. Agendapaperssubmittedtoallthedirectors/membersfortheBoardMeetingsandCommitteeMeetings.

7. Declarations received from theDirectors of theCompanypursuant to the provisions ofSection 184of theCompaniesAct,2013.

8. E-formsfiledbytheCompany,fromtimetotime,underapplicableprovisionsoftheCompaniesAct,2013andattachmentsthereoftotheRegistrarofCompaniesandtheCentralGovernmentduringthefinancialyearunderreport.

9. Intimations/documents/reports/returnsfiledwiththeStockExchangepursuanttotheprovisionsofListingAgreementduringthefinancialyearunderreport.

10. FilingsmadewithReserveBank of India under theForeignDirect InvestmentGuidelines and forExternalCommercialBorrowingsmadebytheCompany.

11. Documentsrelatedtopaymentsofdividendmadetoitsshareholdersduringthefinancialyearunderreport.

12. ApprovalreceivedfromCentralGovernmentundersection197oftheCompaniesAct,2013videletterbearingNo.SRNC23367865/4/2014CL-VIIdated9thJanuary,2015forapprovalforremunerationofMr.RohitRelan,ManagingDirectorfortheperiodfrom01/10/2014to30/09/2016.


29

ANNEXURE-IIList of applicable laws to the Company ListofapplicablelawstotheCompanyanditsplantsituatedat:Registeredoffice:D-188,OkhlaIndustrialArea,Phase–1,NewDelhi–110020Plants:1. PlotNo.1,MarutiUdyogJointVentureComplex,Gurgaon–1220152. PlotNo.MusttilNo.226,KilaNo.7/1,VillageBhorakalan,TehsilFarukhnagar,Gurgaon3. PlotNo.26,Sector-3A,MarutiSupplierPark,IMT,Manesar,GurgaonUnderthemajorGroupandHead1. FactoriesAct,1948;2. LabourLawsandotherincidentallawsrelatedtolabourandemployeesappointedbytheCompanyeitheron

itspayrolloroncontractualbasisasrelatedtowages,gratuity,providentfund,ESIC,compensationetc.;3. Actsprescribedunderthepreventionandcontrolofpollution4. ActsprescribedunderEnvironmentprotection5. ActsasprescribedunderDirectTaxandIndirectTax6. LabourWelfareActofHaryana


30

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

INDUSTRY REVIEW AND MACRO ECONOMY

Withtheincreasinggrowthindemandonbackofrisingincome,expandingmiddleclassandyoungpopulationbase, in addition to a large pool of skilledmanpowerandgrowingtechnology,willpropel India tobeamongtheworld’stopfiveauto-producersby2015.Thelatestbudget puts the growth target for 2015-2016 andsubsequent yearsat 8.5 to 9%. India’sCADhasalsocomedowntoaround1.9%ofGDP.Twoyearsbackitwas4.7%.

India is expected to become a major automobilemanufacturing hub and the third largest market forautomobileby2020.

Throughtheperiodwhengrowthhadsloweddownandtheeconomywasnotveryfavorable,Marutisustaineditspositionasthemarketleaderandcontinuedtogrowand this isattributable tohigher localisation, favorableforeign exchange and cost reduction initiatives by theCompany.

FUTURE OUTLOOK

BharatSeatsLimited(BSL)iswellpositionedtoexploitthe growth opportunity. Your Company has beenawarded business for various upcoming models ofMSIL, the production of which will start this year andthefollowingyear,attheCompany’splantsatGurgaon,BhorakalanandManesar.YourCompanyhasreceivedfurtherordersforextrudedcomponentsfornewModelsof MSIL for production at Bhorakalan Plant. YourCompany has received further orders of Seats andframes fornewmodelsofTwoWheelers, fromSuzukiMotorcycle India Private Ltd., the production of whichshallstartthisyearatBhorakalanandGurgaonPlant.

RESEARCH & DEVELOPMENT

BSLisengagedindevelopingnewmodelsandrefreshmodelsforlaunchincomingyears.YourCompanyhasbeentryingtogearupitsresourcestoprovidecompletesolution, fromdesigntostart–of–production(SOP), tocustomer inorder tokeepabreastwithcompetition. Inordertomaintainthepositionofvaluedsuppliertoouresteemedcustomer,yourCompanyislayingemphasisonprocessbasedapproachtomanufactureandsupplynewproductsandupgradationoffacilitytodoinnovationinproductaswellasproductdevelopmentprocesses.

OPPORTUNITIES AND THREATS

During the year, your Company focused its attentionon long term initiatives despite challenging marketsituations, with special focus on Research andDevelopment.

Besides, passenger car industry, your Company hasfocused its attention on design and development ofSeating System and components for two wheelers ofSuzuki Motorcycle India Private Ltd. Your Companyhasbeenawardedtheorderforseatingsystemforthenewmodel ofMotorcycle the production of whichwillcommencein2015-2016.

RISK AND CONCERNS

Themanagement perceives the following as risk andconcernforitsbusiness:

BUSINESS RISK

TheCompanyisoperatinginthebusinessofautomotivecomponents and the performance of auto component industry is largely dependent on the performance ofautomobile industry. The Company operates in anenvironmentwhichisaffectedbyvariousfactorssomeofwhicharecontrollable,whileothersareoutside thecontroloftheCompany.TheCompanyisdependentonseveralfactorssuchaschangesinGovernmentpolicies& legislation,economy’sgrowth,marketpracticesandpricingetc.

The global automotive manufacturers are expandingtheir production capacities in India, leading to globalcompetitionwhichcanonlybecounteredbymaintaininglowcostproductdevelopment.Althoughrisinginflation,interestratesandcrudeoilpricesareconcernsofshortterm, the Company is optimistic about medium andlongtermand isgearingupforgrowth.TheCompanyis actively exploring all new business opportunities intermsofproductdiversification.

FINANCIAL RISK

TheCompany isexposed to the risksassociatedwithfluctuations in foreign currency rates on account ofimports and foreign currency loans. The company’ssalesandmarginsaresubjecttothemarketforcesthataffectMaruti andSuzukiMotorcycle IndiaPrivateLtd.Your Company reviews forward exchange contracts/derivativecontractsonaregularbasistoanalyseforeign


31

exchangeexposureandconfirmsthattheCompanyhasapolicyonforeignexchangeriskmanagementinplace.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

YourCompanyhas a proper andadequate systemofinternalcontroltoensurethatallassetsaresafeguardedand protected against loss from unauthorized use ordisposition and that the transactions are authorized,reported and recorded correctly. Further internal auditcovers all the areas e.g. Finance,Production, IT,HR,Purchase, Statutory Compliance etc. and regularaudits are conducted by Internal Auditors. The Auditobservations are periodically reviewed by the AuditCommittee of the Board of Directors and necessarydirectionsareissued,whereverrequired.

FINANCIAL PERFORMANCE

Thedetailsofthefinancialperformanceofthecompanyare appearing in the Balance Sheet, Profit & LossAccountandotherfinancialstatementsformingpartofthisAnnual report.Forfinancialhighlightspleaserefer

heading‘FINANCIALRESULTS’ofDirectors’Report.

HUMAN RESOURCES AND DEVELOPMENT

Industrial relations have continued to be harmoniousthroughout theyear.BSLbelievesthatsuccessofanyorganization depends on its ability to recruit, train,deployandretaingoodpeople.Thecompanytakescareofemployeemotivationandskillupgradation.

CAUTIONARY STATEMENT

Statementsinthe‘ManagementDiscussionandAnalysis’describing the company’s objective, projections,estimates, expectations may be “forward lookingstatements”withinthemeaningofapplicablelawsandregulations.Theactualresultscoulddiffermateriallyfromthoseexpressedor implied.The important factors thatmay effect the company’s operations include demand& supply situation, input prices and their availability,change in Government policies/ regulations, tax lawsandotherstatute.Therefore,allconcernedshouldbearallabovefactorsinmind.


32

A. COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE

CorporateGovernance is based on the principlesof integrity, fairness, equity, transparency,accountability and commitment to values. Goodgovernance practices stem from the culture andmindsetoftheorganization.Asstakeholdersacrosstheglobeshowkeen interest in thepracticesandperformanceofcompanies,CorporateGovernancehasemergedonthecentrestage.BharatSeatsLtd.recognizes that good Corporate Governance is acontinuingexerciseandreiteratesitscommitmenttopursuehigheststandardsofCorporateGovernanceintheoverall interestofall thestakeholders.TheCompany has Audit Committee, StakeholdersRelationship Committee, Nomination AndRemuneration Committee and Corporate SocialResponsibility Committee and these Committeesreport to the Board of Directors about the tasksassignedtothem.

B. BOARD OF DIRECTORS1. Composition of the Board Ason31stMarch,2015,theCompanyhasaNon-

ExecutiveChairmanandthenumberofIndependentDirectors is fifty percent of the total number ofDirectors, including one woman Director. TheBoard of Company consisted of twelve directors,comprising2(two)Executivedirectorsand10(ten)Non-ExecutiveDirectors(NEDs),ofwhich6(six)areindependent The Company is in compliance withtheClause49oftheListingAgreementspertainingtocompositionofDirectors.Theoperationsof theCompany are looked after by Mr. T. J.Chacko,Director(Operations) under the superindentanceandcontroloftheManagingDirector.

The day-to-day management of the Company isconductedbytheManagingDirectorsubjecttothesupervisionandcontroloftheBoardofDirectors.

CORPORATE GOVERNANCE REPORT(FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED

31ST MARCH, 2015)

During2014-15,theBoardofDirectorsmetfourtimeson16thApril,2014,21stJuly,2014,21stOctober,2014and19thJan,2015.ThemaximumgapbetweentwoBoardmeetingswaslessthenonehundredtwentydays.

ThedetailsofthecompositionoftheexistingBoardofDirectorsisasunder:

Sr. No.

NAME OF THE DIRECTORS (DIN) DESIGNATION CATEGORY

NO. OF OUTSIDE DIRECTORSHIP

NUMBER OF OUTSIDE COMMITTEES

PUBLIC PRIVATE MEMBER CHAIRMAN

1. MR NARINDER DEV RELAN DIN: 00240280

CHAIRMAN PROMOTER/ NON-EXECUTIVE/ NON-INDEPENDENT

3 4 2 -

2. MR.ROHIT RELAN DIN: 00257572

MANAGING DIRECTOR

PROMOTER/ EXECUTIVE/ NON-INDEPENDENT

2 4 - -

3. MR .YOICHI KOJIMA DIN: 02973263

DIRECTOR NOMINEE – SUZUKI MOTOR CORPORATION/ NON-EXECUTIVE/ NON-INDEPENDENT

1 3 - -

4. MR AJAY RELAN DIN: 00257584

DIRECTOR PROMOTER/ NON-EXECUTIVE/ NON-INDEPENDENT

2 4 - -

5. MR. I.V.RAO DIN: 00329370

DIRECTOR NOMINEE – MARUTI SUZUKI INDIA LTD. NON-EXECUTIVE / NON-INDEPENDENT

1 - - -

6 MR G.N.MEHRA DIN: 00059311

DIRECTOR NON-EXECUTIVE/ INDEPENDENT 4 - 1 3

7. MR P.K.LAHIRI DIN: 00039653

DIRECTOR NON-EXECUTIVE/ INDEPENDENT 1 - - -

8. MR RAVINDRA GUPTA DIN: 01521168

DIRECTOR NON-EXECUTIVE/ INDEPENDENT - - - -

9. MR KISHAN N.PARIKH DIN: 00453209

DIRECTOR NON-EXECUTIVE/ INDEPENDENT 3 4 4 -

10. MRS SHYAMLA KHERA DIN: 06929439


11. MR ARVIND VARMA DIN: 02225281


12. MR T.J.CHACKO DIN: 07005026

DIRECTOR (OPERATIONS)

EXECUTIVE/ NON-INDEPENDENT - - - -


33

NOTES:

The Committees considered for the purpose are thoseprescribedunderclause49(I)(c)ofthelistingagreement.NoneoftheDirectorsontheBoardisamemberofmorethan10CommitteesorChairmanofmorethan5Committees(asspecifiedinclause49 of the Listing Agreement) across all PublicLimitedCompaniesinwhichheisaDirector.

All the relevant information, required tobeplacedbefore the Board of Directors as per Clause 49of theListingAgreementaredulyconsideredandtakenonrecord/approvedbytheBoard.Further,theBoardperiodicallyreviewsComplianceReportsinrespectoflawsandregulationsapplicabletotheCompany.

During the year, a separate meeting of theIndependent Directors was held on 24.03.2015without the attendance of Non IndependentDirectors. All the Independent Directors except Mr.KNParikhattendedthesaidmeeting.

BOARD MEETING ATTENDANCE RECORD OFTHEDIRECTORSIN2014-2015ISASUNDER:

NAME OF DIRECTOR NO. OF BOARD MEETINGS ATTENDED

ATTENDANCE AT LAST AGM HELD

MR. NARINDER DEV RELAN 4 YESMR. ROHIT RELAN 4 YESMR. YOICHI KOJIMA 4 YESMR. AJAY RELAN 2 NOMR. I.V.RAO 4 YESMR. G.N.MEHRA 4 YESMR. P.K.LAHIRI 4 YESMR. GAUTAM KHAITAN**** 1 N.A.MR. KISHAN N.PARIKH 1 YESMR. RAVINDRA GUPTA 4 YESMRS. SHYAMLA KHERA* 3 N.A.MR. ARVIND VARMA** - N.A.MR. T. J. CHACKO*** 1 N.A.

* Mrs. Shyamla Khera was appointed w.e.f.21.07.2014. 3 meetings were held during hertenure.

** Mr.ArvindVarmawasappointedw.e.f.21.10.2014.1meetingwasheldduringhistenure.

*** Mr.T.J.Chackowasappointedw.e.f.1.12.2014.1meetingwasheldduringhistenure.

****Mr.GautamKhaitanresignedw.e.f.20.05.2014.1meetingwasheldduringhistenure.

The Chairman of the Audit Committee attended theAnnualgeneralMeeting.

2. Pecuniary Relationship

IndependentDirectorsdonothaveanypecuniaryrelationships or transactions with the CompanyexceptfortheSittingfees,drawnforattendingthemeetingsoftheBoardandCommittee(s)thereof.

3. Board’s Functioning & Procedures

The Board plays a pivotal role in ensuring goodgovernance. Its styleof functioning isdemocratic.TheMembers of the Board have always hadcomplete freedom to express their opinion anddecisions are taken on the basis of a consensusarrivedatafterdetaileddiscussion.Themembersarealsofreetobringupanymatterfordiscussionat theBoardMeetingswith the permission of theChairman.

The Board’s role, functions, responsibility andaccountability are clearly defined. In addition toits primary role of setting corporate goals andmonitoring corporate performance, it directs andguides the activities of the management towardsthe set goals and seeks accountability with aview to ensure that the corporate philosophy andmissionviz.,tocreatelongtermsustainablegrowththat translates itself into progress, prosperityand the fulfillment of stakeholders’ aspirations, isaccomplished. It also sets standards of corporatebehaviorandensuresethicalbehavioratall timesandstrictcompliancewithLawsandRegulations.

The items placed at the Meetings of the Boardincludethefollowing:

• Reportonoperationsofallbusinessesincludingprogressonongoingprojects.

• Opportunities for expansion, modernization,newprojects.

• Financial plans and budgets and updates/reviewsthereof.

• Strategic and business plans and updates/reviewsthereof.

• Corporate performance against strategic andbusinessplans.

• The unaudited quarterly financial results andtheauditedannualaccountsofthecompany.

• Financial statements such as cash flow,inventories, sundry debtors, and/or otherliabilitiesorclaimsofsubstantialnature.

• Status of borrowings and details of materialforeign exchange exposures and the stepstakenby themanagement to limit the risksof


34

adverseexchangeratemovement,ifany.

• Delegationofpowerstothemanagement.

• Anymaterial default in financialobligations toandbythecompany.

• Review compliance of all laws applicable tothecompanyincludingtherequirementsoftheListingAgreement with the Stock Exchangesand steps taken by the company to rectifyinstancesofnon-compliances,ifany.

• Material communications from Governmentincluding show cause notices, demand andpenalty notices, if any, which are materiallyimportant.

• Communication to the Stock exchanges,the Shareholders and the press regardingCompany’sperformance,futureplansandotherdecision/changes of significant importance orof price sensitive nature.

All the itemson theAgenda are accompanied bynotes giving comprehensive information on therelated subject and in certain matters such asfinancial/businessplans, financial results, detailedpresentations are made. The Agenda and therelevant notes are sent in advance separately toeachDirectortoenabletheBoardtotakeinformeddecisions.

The minutes of the meetings of the Board areindividually given to all directors and confirmedat the subsequent Board Meeting. The Minutesof the various Committees of the Board are alsoindividually given to the Board Directors andthereafter tabled fordiscussionat thesubsequentBoardMeeting.

C. COMMITTEES OF THE BOARD

TheBoardofDirectorshasconstitutedthefollowingCommitteeswithadequatedelegationofpowerstodischargeday-to-dayaffairsoftheCompanyaswellas tomeet the exigencies of the business of theCompany.

1. Audit Committee

ThecompositionandtermsofreferenceoftheAuditCommitteeisincompliancewithSection177oftheCompaniesAct, 2013 and with Clause 49 of theListingAgreement TheAudit Committee acts asa link between the statutory and internal auditorsand the Board of Directors. It addresses itself tomatterspertainingtoadequacyofinternalcontrols,reliabilityoffinancialstatements/othermanagementinformation, adequacy of provisions for liabilities,

and whether the audit tests are appropriate andscientifically carried out and that they are alignedwith the realities of the business, adequacy ofdisclosures, compliance with all relevant statutesandotherfacetsofCompany’soperationthatareofvitalconcerntotheCompany.Inparticular,theroleofAuditCommitteeincludesthefollowing:

I. The role of the Audit Committee:

1. Oversight of the company’s financial reportingprocess and the disclosure of its financialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible;

2. Recommendation for appointment, remunerationand terms of appointment of auditors of the company;

3. Approval of payment to statutory auditors for anyotherservicesrenderedbythestatutoryauditors;

4. Reviewing, with the management, the annualfinancial statements and auditor’s report thereonbefore submission to the board for approval,withparticularreferenceto:

a. Matters required to be included in the Director’sResponsibility Statement to be included in theBoard’sreportintermsofclause(c)ofsub-section3ofsection134oftheCompaniesAct,2013

b. Changes,ifany,inaccountingpoliciesandpracticesand reasons for the same

c. Majoraccountingentriesinvolvingestimatesbasedontheexerciseofjudgmentbymanagement

d. Significant adjustments made in the financialstatementsarisingoutofauditfindings

e. Compliancewithlistingandotherlegalrequirementsrelatingtofinancialstatements

f. Disclosureofanyrelatedpartytransactions

g. Qualificationsinthedraftauditreport

5. Reviewing, with the management, the quarterlyfinancialstatementsbeforesubmissiontotheboardforapproval;

6. Reviewing,withthemanagement,thestatementofuses/applicationoffundsraisedthroughanissue(publicissue,rightsissue,preferential issue,etc.),the statementof fundsutilized for purposesotherthanthosestatedintheofferdocument/prospectus/noticeandthereportsubmittedbythemonitoringagency monitoring the utilisation of proceeds ofa public or rights issue, and making appropriaterecommendationstotheBoardtotakeupstepsinthismatter;


35

7. Reviewandmonitortheauditor’sindependenceandperformance,andeffectivenessofauditprocess;

8. Approval or any subsequent modification oftransactionsofthecompanywithrelatedparties;

9. Scrutinyofinter-corporateloansandinvestments;

10. Valuationofundertakingsorassetsofthecompany,whereveritisnecessary;

11. Evaluation of internal financial controls and riskmanagementsystems;

12. Reviewing, with the management, performanceofstatutoryand internalauditors,adequacyof theinternalcontrolsystems;

13. Reviewingtheadequacyof internalaudit function,if any, including the structure of the internal auditdepartment, staffing and seniority of the officialheading the department, reporting structurecoverageandfrequencyofinternalaudit;

14. Discussionwith internalauditorsofanysignificantfindingsandfollowupthereon;

15. Reviewingthefindingsofanyinternalinvestigationsbytheinternalauditorsintomatterswherethereissuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheboard;

16. Discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspost-auditdiscussiontoascertainanyareaofconcern;

17. Tolookintothereasonsforsubstantialdefaults inthepaymenttothedepositors,debentureholders,shareholders(incaseofnon-paymentofdeclareddividends)andcreditors;

18. To review the functioning of the Whistle Blowermechanism;

19. Approval of appointment of CFO (i.e., the whole-timeFinanceDirectororanyotherpersonheadingthe finance function or discharging that function)after assessing the qualifications, experience andbackground,etc.ofthecandidate;

20. CarryingoutanyotherfunctionasismentionedinthetermsofreferenceoftheAuditCommittee.

II. Powers of Audit Committee

1. To investigate any activity within its terms ofreference.

2. Toseekinformationfromanyemployee.

3. Toobtainoutsidelegalorotherprofessionaladvice.

4. To secure attendance of outsiders with relevantexpertise,ifitconsidersnecessary.

III. Review of information by Audit Committee

TheAuditCommitteeshallmandatorily review thefollowinginformation:

1. Management discussion and analysis of financialconditionandresultsofoperations;

2. Statement of significant related party transactions(asdefinedbytheAuditCommittee),submittedbymanagement;

3. Management letters / letters of internal controlweaknessesissuedbythestatutoryauditors;

4. Internal audit reports relating to internal controlweaknesses;and

5. Theappointment,removalandtermsremunerationof the Chief internal auditor shall be subject toreviewbytheAuditCommittee.

ThemeetingsofAuditCommitteewereheldon16thApril,2014,21stJuly,2014,21stOctober,2014and19thJan,2015.Themaximumgapbetweentwomeetingswaslessthenfourmonths.

ThecompositionoftheAuditCommitteeandthemeetingsattendedbythemembersduringtheyearareasfollows:

S. No.

Name Category Status No. of meetings held

No. of meetings attended

1 Mr.G.N.Mehra Non-Executive/IndependentDirector

Chairman 4 4

2 Mr.P.K.Lahiri Non-Executive/IndependentDirector

Member 4 4

3 Mr.RavindraGupta Non-Executive/IndependentDirector

Member 4 4

4 Mr.N.D.Relan Non-Executive/Non-IndependentDirector

Member 4 4

Ms.RituBakshi,CompanySecretaryactsastheSecretaryoftheCommittee. CFO,InternalAuditorandpartnerofStatutoryAuditorsarealsoinvitedtothemeetingoftheAuditCommittee.


36

2. Nomination And Remuneration Committee

ThemeetingsofNominationAndRemunerationCommitteewereheldon16thApril,2014,21stJuly,2014,21stOctober,2014and24thMarch,2015.

ThecompositionofNominationAndRemunerationCommitteeisasfollows:

S. No.



1. Mr.P.K.Lahiri Non-Executive/IndependentDirector

Chairman 4 4

2 Mr.N.D.Relan Non-Executive/Non-IndependentDirector

Member 4 4

3 Mr.G.N.Mehra Non-Executive/IndependentDirector

Member 4 4

4. Mr.RavindraGupta Non-Executive/IndependentDirector

Member 4 4

MsRituBakshi,CompanySecretaryactsastheSecretaryoftheCommittee.

The InterestedDirectorsdidnotparticipate/vote in themeeting.

Thetermsofreferenceinclude:

(a) Formulationofpolicyfordeterminingqualifications,positiveattributesand independenceofaDirector&RemunerationfortheDirectors,KeyManagerialPersonnel and Senior Management andrecommendingthesametotheBoardand

(b) IdentificationofpersonwhoarequalifiedtobecomeDirectors and who may be appointed in SeniorManagementinaccordancewiththecriteriaasperthepolicyapprovedbytheBoard.Thepolicyofthecompany is to remain competitive in the industry, to attractandretainthebesttalentandappropriatelyreward employed for their individual performanceandcontributiontothebusiness.

C.TheNominationandRemunerationCommittee laysdownthecriteriafortheperformanceevaluationofIndependentDirectorsandotherDirectors,BoardofDirectorsandcommitteeoftheBoardofDirectors.

The Non-Executive Director do not draw anyremuneration from thecompanyexcept thesittingfeeswhichwerepaidata rateofRs.20,000/- formeetings held in April, 2014 and at the rate ofRs.40,000/-formeetingsheldafterApril,2014,foreachmeetingoftheBoard/CommitteeoftheBoardattendedbythem.

Remuneration policy

TheCommittee’sconstitutionandtermsofreferenceareincompliancewiththeprovisionsoftheSection178ofTheCompaniesAct,2013andClause49oftheListingAgreementbesidesothertermsasmaybereferredbytheBoardofDirectors.

TheappointmentofManagingDirector,asapprovedbytheCentralGovernment,isfromtheperiod:1stOctober,2011to30thSeptember,2016.TheManagingDirectorispaidsalaryandperquisiteswithintheoveralllimits,asapprovedbytheCentralGovernment.

TheremunerationpaidtotheManagingDirector, isasapproved by the shareholders in theAnnual Generalmeeting held on 21st July, 2014, for a period of twoyears,from1.10.2014to30.09.2016.

The appointment and remuneration paid to Mr.T.J.Chacko,Director(Operations) isasapprovedbyshareholdersbypostalballot,theresultofwhichwasdeclaredon27thDecember,2014foraperiodofthreeyears,from1.12.2014to30.11.2017.

ForapprovingtheRemunerationofManagingDirector,the Nomination And Remuneration Committee andBoard of Directors in their respective meetings on16.4.2014,haveapprovedtheremunerationofMr.RohitRelan,ManagingDirectorw.e.f.1.10.2014.

For approving the appointment and Remunerationof Director (Operations), the Nomination AndRemunerationCommitteeandBoardofDirectorsintheirrespectivemeetingson21.10.2014,haveapprovedtheremunerationofMr.T.J.Chacko,Director(Operations)w.e.f.1.12.2014.


37

Thedetailsofsalary,perquisites(includingcontributiontoProvidentFund)andsittingfeespaidtodirectorsaregivenasunder:

Name Position GrossRemuneration(Rs.) SittingFee(Rs.)Mr.N.D.Relan Chairman 6,00,000Mr.RohitRelan ManagingDirector Salary 75,00,000

Allowances&Perquisites

5,09,250

ContributiontoP.F. 10,20,750Total 90,30,000 -

Mr.Y.Kojima Director - 1,40,000Mr.I.V.Rao Director - 1,40,000Mr.AjayRelan Director - 80,000Mr.G.N.Mehra Director - 6,40,000Mr.P.K.Lahiri Director - 6,00,000Mrs.ShyamlaKhera Director - 3,20,000Mr.RavindraGupta Director - 5,00,000Mr.KishanN.Parikh Director - 40,000Mr.ArvindVarma Director - 40,000Mr.T.J.Chacko Director(Operations) *Salary 5,04,000

Allowances&Perquisites

4,08,200

ContributiontoP.F. 68,594Total 9,80,794

Mr.GautamKhaitan Director 40,000

*Remunerationw.e.f.1stDecember,2014.

3. Stakeholders Relationship Committee

The Committee’s composition and the terms ofreference are in compliance with the provisionsof theCompaniesAct,2013andClause49of theListingAgreement.

Stakeholders Relationship Committee is primarilyresponsiblewithvariousmattersrelatingto:-

• Transfer/Transmissionofshares.

• Issueofduplicatesharecertificate

• Review of shares dematerialized and all otherrelatedmatters

• Monitors expeditious redressal of investors’grievances

• Non receipt of Annual Report and declareddividend

• Allothermattersrelatedtoshares.

Themeetingswereheldon16thApril,2014,21stJuly,2014,21stOctober,2014and19thJan,2015.

Thecompositionofthecommitteeandthedetailsregardingmeetingsheldandattendedaregivenasunder:

S. No.



1. Mrs.ShyamlaKhera Non-Executive/IndependentDirector

Chairperson 4 3

2 Mr.P.K.Lahiri Non-Executive/IndependentDirector

Member 4 4

3. Mr.N.D.Relan Non-Executive/Non-IndependentDirector

Member 4 4

4. Mr.G.N.Mehra Non-Executive/IndependentDirector

Member 4 4

5. Mr.GautamKhaitan Non-Executive/IndependentDirector

Chairman 4 1

• MrGautamKhaitanresignedw.e.f.20.05.2014andMrs.ShyamlaKherawasappointedChairmanoftheCommitteew.e.f.21.07.2014.


38

Details of the status of the complaints received during the year are as follows :

S. No.

Nature of Complaint Received Resolved Pending

1 Non-receiptofdividend - - -

2 ShortReceiptofDividend - - -

3 Non-receiptofDematCredit - - -

4 LossofShareTransferDeeds - - -

5 SEBI - - -

6 DelayinTransferofsharesandnon-receiptofsharecertificates

- - -

7 Non-receiptofAnnualReport - - -

8 Others 4 4 -

Ms.RituBakshi,CompanySecretaryistheComplianceOfficer.

Therearenosharespendingfortransferason31stMarch2015.

4. Corporate Social Responsibility(CSR) Committee

TheCommittee’sconstitutionandtermsofreferenceareincompliancewiththeprovisionsoftheSection135ofTheCompaniesAct,2013.

TheCommitteewas constitutedon16.04.2014.TheCommitteedischarge the role ofCSRu/s 135ofTheCompaniesAct2013whichincludeformulatingandrecommendingtotheBoardaCSRpolicyandindicatingtheactivitiesundertakenbytheCompanyasperScheduleVIIofTheCompaniesAct2013.

Thecompositionofthecommitteeandthedetailsregardingdateofmeetingsheldandattendedaregivenasunder:

Meetingheldon24thMarch2015.

S. No.

Name Category Status No. ofmeetings

held

No. ofmeetingsattended

1. Mr.RavindraGupta Non-Executive/IndependentDirector Chairman 1 1

2. Mr.N.D.Relan Non-Executive/Non-IndependentDirector Member 1 1

3. Mr.G.N.Mehra Non-Executive/IndependentDirector Member 1 1

4. Mrs.ShyamlaKhera Non-Executive/IndependentDirector Member 1 1

D. GENERAL BODY MEETINGS DetailsofAnnualGeneralMeetingsheldduringthelastthreeyears:

Year Date Time Venue Whether SpecialResolution passed

2014 21.07.2014 11 a.m. AirForceAuditorium,NewDelhi Yes

2013 29.07.2013 11 a.m. AirForceAuditorium,NewDelhi Yes

2012 26.07.2012 11 a.m. AirForceAuditorium,NewDelhi No


39

E. POSTAL BALLOTS DURING THE YEAR:

The Company successfully completed the process ofobtaining approval of the members on the followingresolutions through Postal Ballot during the year; 2014-2015:

POSTAL BALLOT THE RESULT OF WHICH WAS ANNOUNCED ON 14TH JULY, 2014:

1. SpecialResolutionunderSection180(1)(a)of theCompaniesAct,2013.

2. SpecialResolutionunderSection180(1)(c)of theCompaniesAct,2013.

VOTING PATTERN AND PROCEDURE FOR POSTAL BALLOT:

I) The Board of Directors of the Company vide itsresolutiondated16thApril,2014,hasappointedMr.A. K.Goyal as the Scrutinizer for conducting thePostalBallotprocess.

II) The Company had completed the despatch ofPostal Ballot Notice dt. 16.04.2014 together with

the explanatory statement on 10th June, 2014alongwiththeformsandpostageprepaidbusinessreply envelopes to all the shareholders whosename(s)appearedontheRegisterofMembers/listofbeneficiariesason30thMay,2014.

III) The votingunder thepostal ballotwas kept openfrom 11th June, 2014 to 10th July, 2014.(eitherphysicallyorthroughelectronicmode)

IV) Particulars of Postal Ballot Forms received fromthememberswereenteredinaRegisterseparatelymaintained for the purpose.

V) ThePostalBallotFormswerekeptinasafecustodyin sealed and tamper proof ballot boxes beforecommencing the scrutiny of such Postal Ballotforms.

VI) Allpostalballotformsreceiveduptothecloseoftheworkinghourson10thjuly,2014,thelastdateandtimefixedbytheCompanyforreceiptoftheforms,hadbeenconsideredforhisscrutiny.

VII)On14thJuly,2014,Mr.N.D.Relan,ChairmanannouncedthefollowingresultsofthepostalballotaspertheScrutinizer’sReport,asfollows:

S. No.

Particulars Special Resolution u/s 180(1)(c)

Special Resolution u/s 180(1)(a)

1 Numberofvalidpostalballotforms/e-votingdetailsreceived

310 307

2 Numberofinvalidpostalballotformsreceived 2 2

3 Numberofsharesheld(Paid-upCapital) 31400000 31400000

4 No.ofVotedPolled 23954730 23953225

5 %ofVotesPolledonOutstandingshares(4/3*100) 76.29% 76.28%

6 No.ofVotesinFavour 23950619 23950063

7 No.ofVotesagainst 4111 3162

8 %ofVotesinfavouronvotespolled(6/4*100) 99.98% 99.99%

9 %ofVotesagainstonvotespolled(7/4*100) 0.02% 0.01%

POSTAL BALLOT THE RESULT OF WHICH WAS ANNOUNCED ON 27TH DEC., 2014 :

1. Ordinary Resolution for Appointment of Mr T. J.Chackoasadirectorofthecompany

2. Special resolution for Appointment of Mr. T. J.Chackoasawholetimedirector

3. OrdinaryResolution forAppointmentofMr.ArvindVarmaasanindependentdirector

4. Ordinary Resolution for Appointment of Mrs.ShyamlaKheraasanindependentdirector

5. SpecialresolutionforAuthorisationforrelatedpartytransactions

VOTING PATTERN AND PROCEDURE FOR POSTAL BALLOT:

I) The Board of Directors of the Company vide itsresolutiondated21stOctober,2014,hasappointedMr.A.K.GoyalastheScrutinizerforconductingthePostalBallotprocess.

II) The Company had completed the despatch ofPostal Ballot Notice dt. 21.10.2014 together withtheexplanatorystatementon25thNovember,2014


40

alongwiththeformsandpostageprepaidbusinessreply envelopes to all the shareholders whosename(s)appearedontheRegisterofMembers/listofbeneficiariesason31stoctober,2014.

III) The votingunder thepostal ballotwas kept openfrom 26th November, 2014 to 25th December,2014.(eitherphysicallyorthroughelectronicmode)

IV) Particulars of Postal Ballot Forms received fromthememberswereenteredinaRegisterseparately

VII)On27thDecember,2014,Mr.N.D.Relan,ChairmanannouncedthefollowingresultsofthepostalballotaspertheScrutinizer’sRepor,asfolows:

S. No.

Particulars 1. Ordinary Resolution: Appointment of Mr. Thadikaran Chacko Joseph as a Director of the Company

2. Special Resolution: Appointment of Mr. Thadikaran Chacko Joseph as a Wholetime Director of the Company

3. Ordinary Resolution: Appoint-ment of Mr. Arvind Varma as an Independent Director

4. Ordinary Resolution: Appointment of Mrs Shyamla Khera as an Independent Director

5. Special Resolution: Authorisa-tion for Re-lated Party Transac-tions

1 Numberofvalidpostalballotforms/e-votingdetailsreceived

875 874 874 873 856

2 Numberofinvalidpostalballotformsreceived

1 1 1 1 1

3 Numberofsharesheld(Paid-upCapital)

31400000 31400000 31400000 31400000 31400000

4 No.ofvalidVotedPolled 24074018 24072168 24072143 24072118 729135

5 %ofVotesPolledonOutstandingshares(4/3*100)

76.67% 76.66% 76.66% 76.66% 2.32%

6 No.ofVotesinFavour 24070827 24068927 24068866 24068841 725827

7 No.ofVotesagainst 3191 3241 3277 3277 3308

8 %ofVotesinfavouronvotespolled(6/4*100)

99.99% 99.99% 99.99% 99.99% 99.55%

9 %ofVotesagainstonvotespolled(7/4*100)

0.01% 0.01% 0.01% 0.01% 0.45%

maintained for the purpose.

V) ThePostalBallotFormswerekeptinasafecustodyin sealed and tamper proof ballot boxes beforecommencing the scrutiny of such Postal Ballotforms.

VI) Allpostalballotformsreceiveduptothecloseoftheworking hours on 25th December, 2014, the lastdateandtimefixedbytheCompanyforreceiptoftheforms,hadbeenconsideredforhisscrutiny.


41

F. DISCLOSURES

Theparticularsoftransactionsbetweenthecompanyand its related parties as per the AccountingStandard18“RelatedPartyDisclosures”issuedbytheInstituteofCharteredAccountantsofIndia(ICAI)aredisclosed inNoteNo.43ofPartCofNotes toFinancialStatements.However,thesetransactionsarenotlikelytohaveanyconflictwiththeCompany’sinterest.Allrelatedpartytransactionsaregenerallywith itsassociatesandareentered intobasedonconsiderations of various business exigencies.All related party transcations are negotiated onarms lengthbasisandare intended to further theCompany’s interests. However, during the year,as per requirement of Clause 49 of the ListingAgreement,approvalofshareholderswasobtainedforrelatedpartytransactions.

NoStrictures/PenaltieshavebeenimposedonthecompanybytheStockExchangeortheSecuritiesandExchangeBoardofIndia(SEBI)oranystatutoryauthorityonanymattersrelatedtocapitalmarketsduringthelastthreeyears.

In thepreparationof the financial statements, theCompany has followed theAccounting StandardsissuedbyICAI.Thesignificantaccountingpolicies,whichareconsistentlyapplied,havebeensetoutintheNotestotheAccounts.

TheManagementDiscussionandAnalysisReportisanongoingprocesswithin theOrganization.AnexerciseonBusinessRiskwascarriedoutcoveringthe entire gamut of Business operations and theBoardwasinformedofthesame.

The Company has framedWhistle Blower Policy.NopersonnelhasbeendeniedaccesstotheauditCommittee.

TheCompanyisintheprocessofimpartingtrainingtoIndependentDirectors.

Adoption of Non Mandatory requirements underClause 49 of the Listing Agreement are beingreviewedbytheBoardfromtimetotime.

G. CODE OF CONDUCT

The Board of Directors has adopted theCode ofBusiness Conduct and Ethics for Directors andSenior Management. The said Code has beencommunicatedtotheDirectorsandtheMembersoftheSeniorManagement.Acopyofcodeofconducthasbeenmadeavailabletostockexchangeforitswidecirculationandisbeingpostedatthewebsiteof the Company. All Board members and seniormanagement personnel affirm their compliance

with the Code on annual basis. A declaration tothiseffectsignedby theManagingDirectorof theCompany, forms part of theAnnualReport of theCompany.

H. REPORT ON CORPORATE GOVERNANCE

A report on Corporate Governance forms part oftheAnnualReportof theCompanyand issent tothe shareholders accordingly. The Company alsosubmitsaquarterlycompliancereportonCorporateGovernancetotheStockExchangeswithin15daysfromthecloseofthequarter.

I. CEO/CFO CERTIFICATION

In compliance with Clause 49(IX) of the ListingAgreement,theCompanydulyplacesaCertificatesigned byManaging Director and Chief FinancialOfficer of the Company before the Board ofDirectors.

J. COMPLIANCE

TheCompanyobtainsacertificatefromourStatutoryAuditors regarding compliance of conditions ofCorporateGovernance stipulated inClause 49 ofthe Listing Agreement and the said certificate isattachedtotheDirectorsReportandformsapartoftheAnnualReport.ThesaidcertificateissenttotheshareholdersandStockExchangesalongwiththeAnnualReportoftheCompany.

K. MEANS OF COMMUNICATION

• The unaudited quarterly results are announcedwithinforty-fivedaysoftheendofthequarterandthe audited annual results within sixty days fromtheendof the lastquarterasstipulatedundertheListingAgreement with the Stock Exchange. Theaforesaid financial results are taken on record bytheBoardofDirectorsandarecommunicatedtotheStock Exchange where the company’s securitiesarelisted.

• Once the Stock Exchange has been intimated,theseresultsaregivenbywayofaPressReleaseto various news agencies/analysts and are alsopublished within 48 hours in English newspaper:Pioneer,Free Press Journal-Mumbai and HindinewspaperVeerArjun-Delhi.

• Allthedatarequiredtobefilledelectronically,suchasquarterlyfinancial results,shareholdingpatternare being regularly uploaded on the Company’swebsite pursuant to Clause 52 of the ListingAgreementwiththeStockExchange.


42

• The Annual Report containing interalia AuditedAnnual Accounts, Directors’ Report, Auditors’’ReportandotherimportantinformationformingpartofAnnual Report is displayed on the Company’swebsite.

L. GENERAL SHAREHOLDERS INFORMATION

1. Appointment/ Re-appointment of Directors

Asrequired,abriefprofileandotherparticularsoftheDirectorsseekingappointment/re-appointmentaregivenintheNoticeofthe28thAnnualgeneralmeetingandformspartoftheCorporategovernanceReport.

2. Dividend Payment:- Final dividend of Rs. 0.90/-per share has been recommended by the Boardon15thApril, 2015subject to theapprovalof theShareholdersattheensuingAGM.

3. Annual General Meeting

NumberofAnnualGeneralMeeting

28thAnnualGeneralMeeting

Date&Time 17thJuly,2015at11:00a.m.

Venue AirForceAuditorium,SubrotoPark,NewDelhi-110010

4. Financial Calendar 2015-2016

FinancialCalendar 1stApril2015to31stMarch2016

ResultsforQuarterEndedJune,2015

Willbeannouncedbefore15thAugust,2015

ResultsforQuarterEndedSeptember,2015

Willbeannouncedbefore15thNovember,2015

ResultsforQuarterEndedDecember,2015

Willbeannouncedbefore15thFebruary,2016

AnnualResultsfor the year ended March,2016

Willbeannouncedbefore30thMay,2016

BookClosureDates 11thJuly,2015to17th July,2015

DividendPaymentdate

20ndJuly,2015

5. As on 31st March 2015, the Equity Shares of the company are listed on:

BSELimited. 25thFloor,P.J.Towers,DalalStreet,

Mumbai–400001

Listingfeefor2014-2015hasbeenpaidtothestockexchange.

6. Stock CodeName of the Stock Exchange CodeBSELimited 523229

InternationalSecuritiesIdentificationNumber(ISIN)forNSDL&CDSL:INE415D01024.

7. Market Price data:

Monthly High & Low quotations as well as thevolumeoftheequitysharesofthecompanytradedfortheyear2014-2015baseduponBSEPricedataisgivenbelow:

MONTH BSE – HIGH

BSE - LOW

VOLUMES BSE SENSEX

APRIL, 2014 18.45 15.45 574340 22418

MAY, 2014 20.90 15.10 297613 24217

JUNE, 2014 30.90 17.10 1897726 25414

JULY, 2014 28.15 23.00 600488 25895

AUGUST, 2014 26.40 21.00 272285 26638

SEPTEMBER, 2014

35.00 24.10 1717394 26631

OCTOBER, 2014 31.65 26.75 300727 27866

NOVEMBER, 2014 30.65 27.05 333393 28694

DECEMBER, 2014 30.00 24.65 305510 27499

JANUARY, 2015 42.40 27.00 2028302 29183

FEBRUARY, 2015 37.90 31.10 437979 29362

MARCH, 2015 35.90 27.60 402483 27957

Registrar&TransferAgents: (ForDematSharesandforPhysicalShares) M/sAlankitAssignmentsLtd. 1E/13,AlankitHeights,JhandewalanExtension NewDelhi-110055, Ph:42541234 Fax:42541201 E-Mail:[email protected]

8. Share Transfer System

The Share Transfers (pertains to shares inPhysicalMode)areregisteredandreturnedwithinthe stipulated time, if documents are clear in allrespects.


43

9. Distribution of Shareholding as on 31.03.2015:

S.No. NO.OFSHARESHELD

NO.OFHOLDERS

PERCENTAGEOFHOLDERS(%)

HOLDING PERCENTAGEOFHOLDING(%)

1. UPTO500 20091 89.69 753831 2.40

2. 501TO1000 1216 5.43 1141311 3.64

3. 1001TO5000 856 3.82 2105099 6.70

4. 5001TO10000 103 0.46 819323 2.61

5. 10001TO20000 68 0.30 958278 3.05

6. 20001TO30000 24 0.10 578033 1.84

7. 30001TO40000 9 0.04 307739 0.98

8. 40001TO50000 5 0.02 220324 0.70

9 50001TO100000 8 0.04 506207 1.61

10. 100001TO500000 17 0.08 4652405 14.82

11. 500001&ABOVE 4 0.02 19357450 61.65

TOTAL 22401 100.00 31400000 100.00

10. Shareholding pattern as on 31.03.2015

S. No.

Category No. of Shareholders

% of Shareholders

No. of Equity Shares

% of Shares

1. Promoters & Associate Companies:

a. Indian 17 0.08 18718458 59.61

b. Foreign 1 4650000 14.81

2. Non-Promoter Shareholding:

a. IndianCompanies 188 0.84 653352 2.08

b. MutualFunds 1 1000

c. FinancialInstitutions 2 0.01 54248 0.17

d. NRIs 51 0.23 130414 0.42

e. Trust 1 56097 0.18

f. Public 22140 98.84 7136431 22.73

TOTAL 22401 100.00 31400000 100.00

Shares held by Non Executive Directors

S. No

Name of Non Executive Director No. of Shares held as on 31.03.15

1 Mr.N.D.Relan 1108950

2 Mr.AjayRelan 619808

3 Mr.G.N.Mehra 20000

4 Mr.KishanN.Parikh 7500


44

11. Dematerialisation of Shares and liquidity

98.31% of the Equity Shares of the Companyhavebeendematerializedasat31stMarch’2015.The Company has entered into agreementswith both National Securities Depository Limited(NSDL) and Central Depository Services Limited

(CDSL) whereby shareholders have an optionto dematerialize their shares with either of theDepositories.

No GDRs/ ADRs/ Warrants or any convertibleinstrumentshavebeenissuedbytheCompany.

PursuanttoClause5AoftheListingAgreement,theCompanyhasmaintainedaDematAccountnamed:

“BharatSeatsLimited–UnclaimedSuspenseAccount”withAlankitAssignmentsLimited.ThedetailsofsharesheldinUnclaimedSuspenseAccountareasbelow:

Type of Securities

BalanceAson1stApril,2014

No.ofshareholderswhoapproachedfor transfer from

SuspenseAccount

No.ofshareholderstowhomshareswere

transferred from SuspenseAccount

BalanceAson31stMarch, 2015

No.ofrecords

No.ofshares

No.ofrecords

No.ofshares

EquityShares

82 103020 - - 82 103020

12. Plant Location:

a) BharatSeatsLimited JointVenturePlotNo.1, MarutiComplex,Gurgaon–122015(Haryana) Ph:+91-9643339870-74 Fax:0124-2341188 E-Mail:[email protected] [email protected] Website:www.bharatseats.com

b) BharatSeatsLimited-PlantII PlotNo.MustillNo.226,KilaNo.7/1, VillageBhorakalan,Gurgaon(Haryana)

c) BharatSeatsLimited-PlantIII PlotNo.26,Sector-3A,MarutiSupplierPark, IMT,Manesar,Gurgaon(Haryana)

13. Registered Office : BharatSeatsLimited D-188,OkhlaIndl.Area, PhaseI,NewDelhi–110020 Ph:011–26815592,011-47334100

14. Investor Relation Cell address for Correspondence

The Company’s Secretarial Department isfunctioningattheworksoftheCompanyatGurgaon,headed by Ms. Ritu Bakshi, Company Secretary– Compliance officer and as already mentioned,itsRegistrar for electronicandphysicalmodeareAlankitAssignmentsLtd.


45

DECLARATIONS CERTIFICATE OF CODE OF CONDUCT FOR THE YEAR: 2014-15

BharatSeatsLimitediscommittedtoconductingitsbusinessinaccordancewiththeapplicablelaws,rulesandregulationsandwiththehigheststandardsofbusinessethics.

AsprovidedunderClause49oftheListingAgreementwiththeStockExchange,IherebycertifythatalltheBoardmembersandSeniorManagementpersonnelhaveaffirmedthecompliancewiththeCodeofEthicsandBusinessConductfortheyearended31stMarch,2015.

For Bharat Seats Limited

(Rohit Relan)Managing Director

CEO / CFO CertificationAsrequiredbyclauseIXofClause49oftheListingAgreementwiththeStockExchange,wehavecertifiedtotheBoardthatforthefinancialyearendedMarch31,2015,theCompanyhascompliedwiththerequirementsofthesaidsubclause.

For Bharat Seats Limited For Bharat Seats Limited For Bharat Seats Limited

Rohit Relan Rajat Bhandari Sanjeev Kumar Managing Director Sr. Vice President Chief Financial Officer

DATED : 15th April, 2015


46

THE MEMBERS,BHARAT SEATS LIMITED

WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyBharatSeatsLimited,(the‘Company’)fortheyearended31stMarch,2015asstipulatedinclause49ofthelistingagreementofthesaidCompanywithStockExchange(s).

ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Ourexaminationwas limited to a review of procedures and implementation thereof, adopted by the Company for ensuring thecomplianceoftheconditionsofCorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.

InouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventousandtherepresentationmadebytheDirectorsandManagementoftheCompany,wecertifythattheCompanyhassubstantiallycompliedwiththeconditionsoftheCorporateGovernanceasstipulatedintheabovementionedlistingagreement.

Wefurtherstate thatsuchcompliance isneitheranassuranceas to the futureviabilityof theCompanynor theefficiencyoreffectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.

For S. S. Kothari Mehta & Co.CharteredAccountants

FirmRegistrationNo.000756N

(Neeraj Bansal)Partner

MembershipNo.095960

Place:NewDelhiDate : 15thApril,2015

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE


47

To The Members of Bharat Seats Limited

Report On the Financial Statements

We have audited the accompanying FinancialStatements of Bharat Seats Limited (“the Company”)whichcomprisestheBalanceSheetasat31stMarch,2015, the Statement of Profit and Loss and theCashFlowStatement for the year then ended, and asummaryofthesignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible forthemattersstatedinSection134(5)oftheCompaniesAct, 2013(“theAct”)with respect to thepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciples generally accepted in India, including theAccountingStandardsspecifiedundersection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.This responsibilityalso includesmaintenanceofadequate accounting records in accordance with theprovisionsof theAct forsafeguardingof theassetsoftheCompanyand for preventinganddetecting fraudsand other irregularities; selection and application ofappropriate accounting policies; making judgementsand estimates that are reasonable and prudent; anddesign,implementation, and maintenance of adequateinternalfinancialcontrolsthatwereoperatingeffectivelyfor ensuring the accuracy and completeness of theaccounting records, relevant to the preparation andpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatements,whetherduetofraudorerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on thesefinancialstatementsbasedonouraudit.

WehavetakenintoaccounttheprovisionsoftheAct,theaccounting and auditing standards andmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

We conducted our audit in accordance with theStandardsonAuditingspecifiedundersection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancial

statementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidence about the amounts and disclosures in thefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentofthe risks of thematerialmisstatement of the financialstatements, whether due to error or fraud. In makingthose riskassessments, theauditor considers internalcontrol relevant to the Company’s preparation of thefinancial statements that give a true and fair view inordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressingan opinion onwhether theCompany has in place anadequateinternalcontrolssystemoverfinancialreportingand the operating effectiveness of such controls. Anaudit also includes evaluating the appropriateness ofaccounting policies used and reasonableness of theaccountingestimatesmadebytheCompany’sDirectorsas well as evaluating the overall presentation of thefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononfinancialstatements.

Opinion

In our opinion and to the best of our information andaccordingtotheexplanationsgiventous,theaforesaidfinancial statements give the information required bytheAct inthemannersorequiredandgiveatrueandfair view in conformity with the accounting principlesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasat31stMarch,2015anditsprofitanditscashflowsfortheyearendedonthatdate.

Emphasis of Matter

Withoutqualifying,wedrawattentiontonoteno.44(6)ofthefinancialstatementstatingthat:Pursuant to schedule II of the Companies Act,2013 depreciation expense for the Year is lower by Rs.4.00lacsandRs.9.67lacshasbeendeductedfromtheopeningretainedearnings.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report)Order, 2015 (‘the Order’) issued by the CentralGovernmentofIndiaintermsofsection143oftheAct, we give in theAnnexure a statement on thematters specified in paragraphs 3 and 4 of theOrder;

Independent Auditors’ Report


48

2. Asrequiredbysection143(3)oftheAct,wereportthat:

a. We have sought and obtained all theinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofouraudit;

b. In our opinion proper books of account asrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks;

c. The Balance Sheet, Statement of Profit andLossandCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;

d. Inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e. Onthebasisofwrittenrepresentationsreceivedfrom the directors as on 31 March 2015, and takenonrecordbytheBoardofDirectors,noneofthedirectorsisdisqualifiedason31March2015, from being appointed as a director intermsofSection164(2)oftheAct.

f. WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014, in our opinion and to the best of ourinformationandaccordingto theexplanationsgiventous:

i) TheCompanyhasdisclosedtheimpactofpendinglitigationonitsfinancialpositioninitsfinancialstatements-ReferNote20 tothefinancialstatements;

ii) As there is not any material foreseeablelosses, on long term contracts, thereforethe Company has not made any provision, required under the applicable law oraccountingstandards;

iii) There has been no delay in transferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbythe Company.

ForS.S. KOTHARI MEHTA & CO.CharteredAccountants

(FirmRegistrationNo.000756N)


MembershipNo.95960Place: NewDelhiDate: 15thApril,2015


49

Referredtoinparagraph1ofreportonotherlegalandregulatoryrequirement’sparagraphofourreportonthefinancialstatementofevendate,

(i) (a) The Company has maintained properrecords showing full particulars includingquantitative details and situation of fixedassets.

(b) Thefixedassetsarephysicallyverifiedbythe management according to a phasedprogramme designed to cover all theitemsoveraperiodof threeyears,whichin our opinion, is reasonable havingregard to the size of the Company andthe nature of its assets. Pursuant to the programme, a portion of the fixedassets has been physically verified bythemanagement during the year and nomaterial discrepancies were noticed onsuchverification.

(ii) (a) TheinventoriesoftheCompanyhavebeenphysically verified by the managementduringtheyear.

(b) In our opinion and according to theinformationandexplanationsgiven tous,the procedures of physical verification ofinventories followed by the managementarereasonableandadequateinrelationtothesizeoftheCompanyandthenatureofitsbusiness.

(c) In our opinion and according to theinformation and explanations given tous, the Company is maintaining properrecordsofinventories.Asexplainedtous,the discrepancies noticed on verificationbetweenthephysicalstocksandthebookrecordswerenotmaterialandhavebeenproperlydealtwithinthebooksofaccount.

(iii) (a) As informed to us, the Company hasgiveninterest-freeunsecuredmobilizationadvanceagainstprocurementofmaterials/toolingoveraperiodoftimetoacompanycovered in the registermaintained undersection189oftheCompaniesAct,2013.

(b) As explained to us, the aforesaidmobilization/tooling advance is beingregularly adjusted against the supplieswhicharebeingprocuredfromtheaboveparty.

ANNEXURE TO THE AUDIT REPORT TO THE BHARAT SEATS LIMITED (c) Sincetheamountisregularlyadjusted,so

thereisnooverdueamountoutstandingatthe end of the year.

(iv) In our opinion and according to the informationandexplanationsgiventous,thereareadequateinternal control systems commensurate withthe size of the Company and the nature of itsbusinessforthepurchaseofinventoryandfixedassets and for the sale of goods and services.Further, on the basis of our examination of thebooksandrecordsoftheCompanycarriedoutinaccordancewiththegenerallyacceptedauditingpracticesinIndiaandaccordingtotheinformationand explanations given to us, we have neithercome across nor have been informed of anyinstanceofa continuing failure to correctmajorweaknesses in the aforesaid internal controlsystem.

(v) TheCompanyhasnotacceptedanydepositsfromthepublicwithinthemeaningofdirectivesissuedby theReserveBankof Indiaandprovisionsofsections73to76oranyotherrelevantprovisionsoftheCompaniesAct,2013andtherulesframedthereunder.

(vi) Wehavebroadlyreviewedthebooksofaccountrelating to materials, labour and other items ofcostmaintainedbytheCompanyasspecifiedbythe Central Government of India under section148(1)oftheCompaniesAct,2013andareoftheopinionthatprimafacie,theprescribedaccountsandrecordshavebeenmadeandmaintained.Wehavenot,however,madeadetailedexaminationoftherecordswithaviewtodeterminewhethertheyareaccurateandcomplete.

(vii) (a) According to the information andexplanations given to us and the recordsof the Company examined by us, in ouropinion, the Company is generally regularin depositing undisputed statutory dues inrespect of provident fund, investor education and protection fund, employees’ stateinsurance, income tax, sales tax, wealthtax,service tax,customsduty,exciseduty,cess and other material statutory dues asapplicable with the appropriate authorities.Further,therewerenoundisputedamountsoutstandingat theyear-end foraperiodofmore than six months from the date theybecamepayable.


50

(b) AccordingtotheinformationandexplanationsgiventousandtherecordsoftheCompanyexaminedbyus,theparticularsofduesofincometax,salestax,customduty,wealthtax,exciseduty,servicetaxandcess,whichhavenotbeendepositedonaccountofanydispute,areasfollows:-

S. No

Name of the Statute

Nature of Dues Amount (Rs. in Lacs)

Period to which the amount relates

Forum where the dispute is

pending

1 CentralExciseAct,1944

Recovery of Modvat CreditavailedonInputandPenalty.Case was already decidedinfavouroftheCompanybyCEGAT,NewDelhi

3,195.00 1989-90and1991-93

HonorableDelhiHighCourt


Demand of Excise Dutyon account of difference in reconciliation (IncludingPenalty)

228.20 1997-99 Hon’bleCESTAT,NewDelhi


SCNforexcisedutyu/s11A 27.69 2004-06 FirstAppellateAuthority(WithAdjudicatingauthority)


Recovery of Cenvat Creditof addl. Excise duty (GSI)taken&utilized forpaymentofbasicexcisedutyonfinalproducts.

5.00 Upto 31.03.2000

Hon’bleCESTAT-NewDelhi

(c) The company has transferred theamount required to be transferred toinvestor education and protection fund in accordancewiththerelevantprovisionsoftheCompaniesAct,1956(1of1956)andrulesmadethereunderwithintime

(viii) The Company does not have any accumulatedlossesasat thecloseof thefinancialyear.TheCompany has not incurred any cash lossesduringthefinancialyearcoveredbyourauditandtheimmediatelyprecedingfinancialyear.

(ix) According to the records of the Companyexamined by us and the information andexplanations given to us, in our opinion, theCompanyhasnot defaulted in repayment of itsduestobanks.TheCompanyhasnottakenanyloans from financial institutions or debentureholders.

(x) As per the information and explanations givento us and on the basis of our examination ofthe records, the Company has not given anyguaranteefor loanstakenbyothers frombanksorfinancialinstitutions.

(xi) As per the information and explanations giventousandonthebasisofourexaminationoftherecords, inouropinion, the term loanstakenbytheCompanyhavebeenappliedforthepurposeforwhichtheywereobtained.

(xii) During the course of our examination of thebooksandrecordsoftheCompanycarriedoutinaccordancewiththegenerallyacceptedauditingpracticesinIndia,wehaveneithercomeacrossany instance of fraud on or by the Companynoticedorreportedduringtheyear,norhavewebeeninformedofsuchcasebythemanagement.

ForS.S. KOTHARI MEHTA & CO.CharteredAccountants

(FirmRegistrationNo.000756N)


MembershipNo.95960Place:NewDelhiDate :15thApril,2015


51

NOTES TO FINANCIAL STATEMENTSINDEX

S. No. ParticularsPART-A

1 SignificantAccountingPoliciesPART-B

2 ShareCapital3 Reserves&Surplus4 Long-termBorrowings5 DeferredTaxLiabilities(Net)6 OtherLong-termLiabilities7 Long-termProvisions8 Short-termBorrowings9 TradePayables10 OtherCurrentLiabilities11 Short-termProvisions12 TangibleAssetsandIntangibleAssets13 CapitalWork-in-Progress14 Long-termLoansandAdvances15 CurrentInvestments16 Inventories17 TradeReceivables18 Cash&BankBalances19 Short-termLoansandAdvances20 ContingentLiabilities&Commitments21 Dividends22 ValueonRealization23 RevenuefromOperations24 OtherIncome25 CostsofMaterialsConsumed26 PurchasesofStock-in-Trade27 ChangesinInventoriesofFinishedGoods,etc.28 EmployeeBenefitsExpenses29 FinanceCosts30 DepreciationandAmortizationexpense31 OtherExpenses32 CurrentTax33 DeferredTax34 EarningsperEquityShares35 Transferto/fromReserves36 Transferto/fromProvisions37 ValueofImportsonCIFBasis38 ExpenditureinForeignCurrency39 AnalysisofConsumptionofImported&IndigenousRawMaterials,SpareParts&Components40 DetailsofDividendRemittedinForeignCurrency

PART-C41 GratuityandEarnedLeaveBenefitPlans42 SegmentReporting43 RelatedPartyDisclosure44 AdditionalNotestotheAccounts45 Previousyearfiguresregrouped


52

i) Basis for Preparation of Financial Statements The financial statement has been prepared in

accordance with the historical cost convention,accounting standards issued vide Companies(AccountingStandard),Rules2006,asprescribedundersection133oftheCompaniesAct2013readwith rule7ofCompanies (Accounts)Rules, 2014and other relevant provisions of the CompaniesAct, 2013 and earlier years financial statementwere prepared as per relevant provisions of theCompanies Act, 1956 (refer General circular08/2014 dated 04/04/2014 of the Ministry ofCorporate Affairs for applicability of relevantprovisions/schedules/rulesoftheCompaniesAct,1956 for thefinancialstatementsprepared for thefinancialyearcommencedearlierthan01.04.2014)andtheprovisionsoftheCompaniesAct,2013(totheextentapplicable).

ii) Use of Estimates The presentation of financial statements in

conformitywith thegenerallyacceptedaccountingprinciples requires estimates and assumptions tobemade thataffect reportableamountsofassetsandliabilitiesonthedateofthefinancialstatementsandthereportedamountofrevenuesandexpensesduringthereportingperiod.Differencebetweentheactualresultsandestimatesarerecognizedintheyearinwhichtheresultsareknown/materialised.

iii) Recognition of Income/Expenditure Allincome&expenditurehavingamaterialbearing

onthefinancialstatementsisaccountedforonanaccrualbasisandprovision ismade forallknownlossesandliabilities.

Further, sales include revision in prices receivedfromcustomerswithretrospectiveeffect.Similarly,pricerevisionformaterialpurchasedhasalsobeen

Part ANote No. 1 SIGNIFICANT ACCOUNTING POLICIES

includedinpurchases.Furtheradjustments,ifany,aremadeintheyearoffinalsettlement.

Dividend Income is recognized when the right toreceivethedividendisestablishedbythebalancesheet date.

Interest Income is recognized on time proportionbasis.

iv) Fixed Assets FixedAssets are stated at cost (net of CENVAT,

whereverapplicable)lessaccumulateddepreciation.Cost is inclusiveof freight, duties, leviesandanydirectly attributable cost of bringing the assets totheirworkingconditionforintendeduse.

v) Impairment of Assets The carrying amount of assets are reviewed at

eachbalancesheetdatetoascertainifthereisanyindicationofimpairmentbasedoninternal/externalfactors.

If the carrying amount of the asset exceeds itsestimatedrecoverableamount,animpairmentlossis recognized in the profit & loss account to theextentthecarryingamountexceedstherecoverableamount.

Reversalof impairment losses recognized inprioryears is recordedwhen there isan indication thattheimpairment,recognizedfortheassets,nolongerexistsorhasdecreased.

vi) Depreciation :a) Depreciation has been provided as per

ScheduleIIofCompaniesAct,2013onwrittendown valuemethod for assets purchased onorbefore31stMarch2005andonStraightlinemethodbasisforassetsputtouseonorafter1st April 2005 after considering five percentresidualvalue.

Howeverelectricalfittingandplant&machineryhasbeendepreciatedoveruseful lifedifferentfromlifespecifiedinScheduleIIofCompaniesAct,2013basedonthetechnicalestimatesasdetailgivenbelow:

1. Electrical Fittings

Assets put to use Method Estimated Useful Life (years)

Useful Life as per Com-panies Act, 2013 (years)

upto 31.03.2005 WrittenDownValue 20 10

01.04.2005onwards StraightLineMethod 20 10


53

2. Plant & Machinery:

Assets put to use Method Useful Life (years)

Useful Life as per Companies Act, 2013 (years)

upto 31.03.2005 WrittenDownValue 10 15

01.04.2005onwards StraightLineMethod 20 15

01.04.2010onwards-Tools&Dies StraightLineMethod 5 15

01.04.2010onwards-Otherplant&Machinery

StraightLineMethod 8 15

FixedassetscostinguptoRs.5000/-peritemarefullydepreciatedintheyearofacquisition.

vii) Foreign Exchange Transactions Transactions in foreign currency are recorded on

initialrecognitionattheexchangerateprevailingatthe time of the transaction.

Monetary items (i.e. receivables, payables, loansetc.)denominatedinforeigncurrencyarereportedusing the closingexchange rateoneachbalancesheet date.

Theexchangedifferencearisingonthesettlementofmonetaryitemsoronreportingtheseitemsatratesdifferentfromtheratesatwhichthesewereinitiallyrecorded/reportedinpreviousfinancialstatementsarerecognizedas income/expense in theperiodin which they arise. Exchange differences arisingonreportingoflongtermforeigncurrencymonetaryitems at rates different from those at which theywereinitiallyrecordedduringtheperiodorreportedin the previous financial statements in so far as

theyrelatetotheacquisitionofdepreciablecapitalassetsbyadditionto/deductionfromthecostoftheassets.

Non-monetaryitemsarecarriedatcost.

viii) Investments Long term investments are stated at cost and

currentinvestmentsarecarriedatlowerofcostandfair value.Provision for diminution in the valueoflongtermInvestmentsismadeonlyifsuchadeclineis other than temporary.

ix) Borrowing Costs Borrowing costs that are attributable to the

acquisitionorconstructionofqualifyingassetsarecapitalizedaspartofthecostofassets.Aqualifyingasset is one that necessarily takes a substantialperiodoftimetogetreadyforitsintendeduse.Allotherborrowingcostsarechargedtorevenue.

x) Valuation of Inventories ValuationofInventoriesisdoneasunder:

RawMaterial,PackingMaterialandConsumableStores&Spares

Atlowerof'Cost'and'NetRealisableValue'

Work-in-ProgressandFinishedGoods. At lower of ‘Cost’ (raw material cost andappropriate proportion of overheads) and ‘NetRealisableValue’.

Tooling–WIP Atlowerof‘Cost’and‘NetRealisableValue’.Scrap At‘NetRealisableValue’

Note: a) Cost is determined on the basisof FIFO method. Cost includesthepurchasepriceaswellastheincidentalexpenses.

b) Valuation of Finished GoodsincludesExciseDutythereon.

xi) Employees Retirement Benefitsa) Retirement benefits in the form of Provident

fund/PensionSchemesaredefinedcontribution

schemesandthecontributionsarechargedtotheProfit&LossAccountoftheyearwhenthecontributions to the respective funds becomedue.

b) Gratuity liability isadefinedbenefitobligationandisprovidedforonthebasisofanactuarialvaluation made at the end of each financialyear.However,theCompanythroughitsTrusthastakenapolicywithLICtocoverthegratuityliability of the employees. The difference


54

between theactuarial valuationofgratuity foremployeesattheyear-endandthebalanceoffundswithLICisprovidedforasliabilityinthebooks.

c) Provisionforleaveencashmentisaccruedforand provided for on the basis of an actuarialvaluation made at the end of each financialyear.

d) Actuarialgains/lossesareimmediatelytakentotheProfit&LossAccount.

e) Expenses incurred on voluntary retirement ofemployeesarechargedofftotheProfit&LossAccountintheyearofoccurrence.

xii) IncomeTaxexpensecomprisesofcurrenttaxanddeferredtaxchargeorcredit.Provisionforcurrenttax is made with reference to taxable incomecomputed for the financial year for which thefinancial statementsarepreparedbyapplying thetaxratesasapplicable.

Minimum Alternate Tax (MAT) paid in a year ischarged to the Statement of Profit and Loss ascurrent tax. The company recognizes MAT creditavailable as an asset only to the extent there isconvincing evidence that the company will paynormalincometaxduringthespecifiedperiod,i.e.,the period for whichMATCredit is allowed to becarriedforward.IntheyearinwhichtheCompanyrecognizesMATCreditasanasset inaccordancewith the Guidance Note onAccounting for CreditAvailable in respect of Minimum Alternate TaxundertheIncomeTaxAct,1961, thesaidasset iscreatedbywayofcredit to thestatementofProfitandLossandshownas“MATCreditEntitlement.”TheCompanyreviewsthe“MATCreditEntitlement”assetateach reportingdateandwritesdown theasset to the extent the company does not haveconvincing evidence that it will pay normal taxduringthesufficientperiod.

Deferred income taxcharge reflects the impactofcurrent period timing differences between taxableincome and accounting income.The deferred taxcharge or credit is recognized using prevailing

enactedorsubstantivelyenactedtaxrates.Wherethere is an unabsorbed depreciation or carryforward loss, deferred tax assets are recognizedonlyifthereisvirtualcertaintyofrealizationofsuchassets. Other deferred tax assets are recognizedonly to theextent there is reasonable certaintyofrealization in future. Deferred tax assets/liabilitiesarereviewedasateachbalancesheetdatebasedon developments during the period and availablecaselaws,toreassessrealizations/liabilities.

xiii) Research and Development InaccordancewithAccountingStandard(AS)–26,

revenueexpenditureonResearch&DevelopmentischargedtotheProfit&LossAccountintheyearinwhichitisincurred.Capitalexpenditureonresearchanddevelopment isshownasanadditiontofixedassetsanddepreciatedaccordingly.

xiv) Earnings Per Share BasicEarningspershareiscomputedbydividingthe

netprofitaftertaxbytheweightedaveragenumberof equity shares outstanding during the period.For the purpose of calculating Diluted earningspershare, thenetprofit for theperiodattributableto equity shareholders and theweighted averagenumberofsharesoutstandingduringtheperiodareadjustedfortheeffectsofalldilutivepotentialequityshares.

xv) Contingent Liabilities, Contingent Assets & Provisions

Contingent liabilities, if material, are disclosedby way of notes and contingent assets are notrecognizedordisclosedinthefinancialstatements.Aprovisionisrecognized,whenanenterprisehasapresentobligationasaresultofpasteventsanditisprobablethatanoutflowofresourcesembodyingeconomic benefits will be required to settle theobligation, in respect of which a reliable estimatecanbemadefortheamountofobligation.

xvi)Technical know-how fees is accounted for to theextentithasbecomedueduringtheyear.


55

BALANCE SHEET AS AT 31ST MARCH 2015 Particulars NoteNo. ASAT ASAT 31STMARCH,2015 31STMARCH,2014 Rs. Rs.

I. EQUITY AND LIABILITIES 1 Shareholders’funds (a) Sharecapital 2 62,800,000 62,800,000 (b) Reservesandsurplus 3 400,072,562 353,852,860 462,872,562 416,652,860 2 Non-currentliabilities (a) Long-termborrowings 4 380,335,910 526,083,241 (b) Deferredtaxliabilities(Net) 5 108,329,279 99,684,190 (c) OtherLongtermliabilities 6 80,874,777 92,259,080 (d) Long-termprovisions 7 7,744,498 5,027,406 577,284,464 723,053,917

3 Currentliabilities (a) Short-termborrowings 8 300,150,428 296,059,406 (b) Tradepayables 9 917,411,591 782,527,041 (c) Othercurrentliabilities 10 352,542,844 283,977,003 (d) Short-termprovisions 11 36,068,913 30,676,068 1,606,173,776 1,393,239,518

TOTAL 2,646,330,802 2,532,946,295

II. ASSETS 1 Non-currentassets (a) Fixedassets (i) Tangibleassets 12 1,494,860,890 1,496,512,689 (ii) Intangibleassets 12 5,520,561 5,740,627 (ii) Capitalwork-in-progress 13 30,958,465 39,349,272 (b) Long-termloansandadvances 14 165,966,706 172,628,987 1,697,306,622 1,714,231,575

2 Current assets (a) Currentinvestments 15 - 387,605 (b) Inventories 16 115,782,640 110,482,543 (c) Tradereceivables 17 767,551,353 659,828,222 (d) Cashandbankbalances 18 9,069,633 8,316,348 (e) Short-termloansandadvances 19 56,620,554 39,700,002 949,024,180 818,714,720

TOTAL 2,646,330,802 2,532,946,295

SIGNIFICANT ACCOUNTING POLICIES 1Seeaccompanyingnotestothefinancialstatements

Asperourreportofevendateattached ForandonbehalfoftheBoardofDirectorsFor S. S. KOTHARI MEHTA & CO. CHARTEREDACCOUNTANTS Firm’sRegistrationNo.000756N N.D.RELAN ROHITRELAN Chairman&Director ManagingDirectorNeerajBansalPartner RITUBAKSHI SANJEEVKUMAR RAJATBHANDARIMembershipNo.095960 CompanySecretary ChiefFinancialOfficer Sr.VicePresident

Place :NewDelhiDated :15thApril,2015


56



STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2015 Particulars NoteNo. YEARENDED YEARENDED 31STMARCH,2015 31STMARCH,2014 Rs. Rs.

I. Revenuefromoperations,Gross 7,825,737,662 6,317,589,029

Less:ExciseDuty 886,301,675 717,205,903

Revenuefromoperations,Net 23 6,939,435,987 5,600,383,126

II. Otherincome 24 11,419,672 2,405,587

III. Total Revenue (I + II) 6,950,855,659 5,602,788,713

IV. Expenses:

Costofmaterialsconsumed 25 6,028,933,363 4,845,557,401

PurchasesofStock-in-Trade 26 6,598,767 2,324,496

Changesininventoriesoffinishedgoods

work-in-progressandStock-in-Trade 27 (3,081,451) 4,018,708

Employeebenefitsexpense 28 147,826,905 114,701,842

Financecosts 29 62,091,715 62,583,956

Depreciationandamortizationexpense 30 164,224,573 135,213,525

Otherexpenses 31 430,457,494 348,350,294

Total expenses 6,837,051,366 5,512,750,222 V. Profit before tax (III-IV) 113,804,293 90,038,491 VI. Taxexpense:

CurrentTax 32 23,674,318 18,705,497 MATCreditEntitlement (179,062) (15,000,566)

NetCurrentTaxExpense 23,495,256 3,704,931

Taxespaidforearlieryears - 184,631

DeferredTax 33 9,109,438 19,072,731

32,604,694 22,962,293

VII. Profit after tax for the period (V - VI) 81,199,599 67,076,198 VIII. EarningsperequityshareofRs.2each: (1)Basic 34 2.59 2.14

(2)Diluted 34 2.59 2.14

SIGNIFICANT ACCOUNTING POLICIES 1 Seeaccompaningnotestothefinancialstatements


57

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2015 FORTHE FORTHE YEARENDED YEARENDED 31STMARCH,2015 31STMARCH,2014 Rs. Rs.A. CASH FLOW FROM OPERATING ACTIVITIES: Profitbeforetax 113,804,293 90,038,491 Adjustments for : Depreciation 164,224,573 135,213,525 Loss(+)/Profit(-)onsaleofFixedassets/Assetsw/o 1,373,707 819,027 Loss(+)/Profit(-)onsaleofinvestments (19,131) - Interestexpense 62,091,715 62,583,956 InterestreceivedonFixedDeposits - (77,863) ProvisionforDiminutioninInvestments - (9,305) Operating Cash Flow before Working Capital Changes 341,475,157 288,567,831 Adjustments for changes in Working Capital : (Increase)/DecreaseinInventories (5,300,097) 32,743,420 (Increase)/Decreaseintrade&otherreceivables (107,723,132) (61,812,771) (Increase)/Decreaseinloans&advances (12,129,121) (78,119,708) Increase/(Decrease)intrade&otherpayables 158,500,111 197,683,508 Increase/(Decrease)inprovisions 3,486,023 (2,220,882) Cash Generated from Operating Activities 378,308,941 376,841,398 DirectTaxesPaid (21,624,405) (20,316,077) Net Cash from Operating Activities 356,684,536 356,525,321 B. CASH FLOW FROM INVESTING ACTIVITIES: PurchaseofFixedAssets (130,652,866) (171,236,747) PurchaseofInvestments - - SaleofInvestments 406,736 - DividendReceived - - InterestreceivedonFixedDeposits - 77,863 Net Cash from/(used in) Investing Activities (130,246,130) (171,158,884)C. CASH FLOW FROM FINANCING ACTIVITIES: ProceedsfromLongtermborrowings&itscurrentmaturity 110,000,000 50,000,000 RepaymentofLongTermLoan (248,188,212) (161,970,554) ProceedsfromShortTermborrowings 4,091,022 19,098,820 DividendPaid (25,120,000) (25,120,000) CorporateDividendTax (4,269,144) (4,269,144) InterestPaid (62,340,044) (62,717,939) Net Cash from Financing Activities (225,826,378) (184,978,817) Net Increase(+)/Decrease (-) in cash and bank balances (A+B+C) 612,028 387,620 Cash and Bank balances as at 1st April 2014 6,879,678 6,492,058 Cash and Bank balances as at 31st March 2015 7,491,706 6,879,678 Reconciliation CashandBankbalancesasperBalanceSheet 9,069,633 8,316,348 Less:UnpaiddividendcurrentaccountwithBanks 1,577,927 1,436,670 Net Cash and Bank balances as at 31st March 2015 7,491,706 6,879,678




58

NOTES TO FINANCIAL STATEMENTSPART-B2. Share Capital

(All amounts in Rs., unless otherwise stated)Particulars As at 31st March 2015 As at 31st March 2014

Number Amount Number AmountAuthorisedEquitySharesofRs.2/-each 35,000,000 70,000,000 35,000,000 70,000,000

35,000,000 70,000,000 35,000,000 70,000,000 Issued ,Subscribed & Fully Paid upEquitySharesofRs.2/-eachOpening 31,400,000 62,800,000 31,400,000 62,800,000Additions - - - -Deductions - - - -Closing 31,400,000 62,800,000 31,400,000 62,800,000 Total 31,400,000 62,800,000 31,400,000 62,800,000

2.1 The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital are as under:

Equity shares

TheCompanyhasonlyoneclassofequityshareshavingaparvalueofRs.2pershare.Eachshareholderisentitledtoonevotepershare.ThedividendproposedbytheBoardofDirectorsissubjecttotheapprovaloftheshareholdersintheensuingAnnualGeneralMeeting,exceptincaseofinterimdividend.Duringtheyearended31stMarch2015,theamountofpersharedividendrecognizedasdistributionstoEquityShareholdersisRe0.90/-(31stMarch2014:Re0.80).Thetotaldividendappropriationfortheyearended31stMarch2015amountedtoRs.34,013,058/-(Rs29,389,144)includingcorporatedividendtaxofRs.5,753,058/-(Rs4,269,144). IntheeventofliquidationoftheCompany,theholdersofequityshareswillbeentitledtoreceiveanyoftheremainingassetsofthecompany,afterdistributionofallpreferentialamounts.However,nosuchpreferentialamounts exist currently.The distributionwill be in proportion to the number of equity shares held by theshareholders.

2.2 The following hold more than 5% shares:

Name of Shareholder

As at 31st March 2015 As at 31st March 2014

No. of Shares held

% of Holding No.ofSharesheld

%ofHolding

MarutiSuzukiIndiaLimited 4,650,000 14.81 4,650,000 14.81

SuzukiMotorCorporation,Japan 4,650,000 14.81 4,650,000 14.81

ShardaMotorIndustriesLtd. 9,000,000 28.66 9,000,000 28.66

Total 18,300,000 58.28 18,300,000 58.28


59

3. Reserves and Surplus (All amounts in Rs., unless otherwise stated)

Particulars As at 31st March

2015

As at 31st March

2014

Capital Reserves

GrantfromWorldBank-OpeningBalance 18,416,620 18,416,620

(+)CurrentYearTransfer - -

ClosingBalance 18,416,620 18,416,620

General Reserve

OpeningBalance 330,436,240 292,749,186

Less:Depreciation(netofdeferredtaxes)(referPointno.6ofNoteno.44) 966,839 -

NetBalance 329,469,401 292,749,186

(+)CurrentYearTransferfromProfit&LossA/c 47,186,541 37,687,054

ClosingBalance 376,655,942 330,436,240

Surplus in Statement of Profit and Loss

Balanceasatthebeginningoftheyear 5,000,000 5,000,000

(+)NetProfitforthecurrentyear 81,199,599 67,076,198

Amountavailableforappropriation 86,199,599 72,076,198

(-)ProposedDividends 28,260,000 25,120,000

(-)CorporateDividendTax 5,753,058 4,269,144

(-)TransfertoGeneralReserve 47,186,541 37,687,054

ClosingBalance 5,000,000 5,000,000

Total 400,072,562 353,852,860

4. Long Term Borrowings(All amounts in Rs., unless otherwise stated)

ParticularsAs at 31st March 2015 As at 31st March 2014Secured Unsecured Secured Unsecured

Termloans-frombanks 288,297,473 26,038,437 408,072,890 52,010,351 Loansandadvancesfromrelatedparties - 66,000,000 - 66,000,000Total 288,297,473 92,038,437 408,072,890 118,010,351Grand Total 380,335,910 526,083,241


60

4.1 The requisite particulars in respect of secured borrowings are as under:(All amounts in Rs., unless otherwise stated)

Particulars As at 31 March 2015

As at 31 March 2014

Particulars of security / guarantees / terms of repayment / default

- FCNR(B)LoanfromBanks

Loan-1 Particulars of Security:Primary Security-Exclusive first charge onspecificmachineriesvaluedatRs151,500,000/-,Collateralsecurity-Extensionoffirstchargeontheentirefixedassetsofthecompany.

Terms of Repayment:Theperiodofloanis5years,originallysanctionedin USD on 31.05.2010 now converted in INRw.e.f.23.06.2012withbalanceamountdueonthat date repayable inmonthly installmentsasperdetailsgivenbelow:Rs.1,800,000*42monthsRs.249,318*1monthRs.954,214*1month

RateofInterest-12.5%perannum.

Balanceoutstanding - 4,554,214

Current Maturity - 4,554,214

Non-currentamount - -

Loan-2 Particulars of Security:Primary Security-Exclusive first charge onspecific machineries/ equipments valued Rs.39,31,00,000/-,Collateralsecurity-extensionoffirstchargeontheentirefixedassetsof theCompany.

EquitablemortgageontheCompany’spropertyhasbeencreatedforthebalancedue.

Terms of Repayment:The period of loan is 5 years, sanctioned on28.03.2011,repayablein60monthlyinstallmentshadbeenconvertedintoFCNR(B)termloanon11.10.2012with following repayment scheduleforbalanceamountonthatdate:

USD61,238.84*48months

USD61,238.91*01month

Rateofinterest450bpsabovesixmonthUSDLIBOR

Balanceoutstanding 74,380,719 125,952,448

Current Maturity 44,628,417 47,232,166

Non-currentamount 29,752,302 78,720,282


61

Particulars As at 31 March 2015

As at 31 March 2014


Loan-3 Particulars of Security:Primary Security- First charge on Building,Machinery, tools and dyes valued at Rs. 61,13,00,000, purchased out of bankfinance, Collateral security- extension of firstcharge on entire fixed assets of the companyexcept machineries which are exclusivelycharged to Bank of Tokyo, second charge onmachineries which are financed by Bank ofTokyo,Secondchargeonentirecurrentassetsof the Company, extension of EM of 4.325acresoflandwithfactorybuildingatBhorakalanregistered in the name of the Company Terms of repayment:Period of loan is 60months(20 quarters) withfirst installment falling due for payment inDecember,2012 as per detail given below: USD214,014.49*3quartersUSD403,415.33*4quartersUSD473,492.15*12quartersUSD111,755.68*1quartersRateofinterestis450bpsabove6monthUSDLIBORInitial Rupee loan had been converted inFCNR(B) Term loan w.e.f. 11.10.2012 forUSD 6,536,196.08 & 22.10.2012 for USD1,513,170.19”

Particulars of Security: Firstpari passuchargeonall thefixedassets(excludingthosewhichareexclusivelychargedtootherlenders)bothpresentandfuture.FirstparipassuchargeonthelandwithfactorylocatedatBhorakalan.Terms of RepaymentPeriod of loan is 48 months, sanctioned10.02.2014 Repayable in 12 equal quarterlyinstallments commencing from 18.05.2015 asperdetailgivenbelow:USD67,171.80*12quartersUSD55,251.6714*12quartersUSD98,236.49*11quartersUSD98,236.41*1quarterRateofinterestisabove3monthsUSDLIBORasfollows:i)ForUSD8,06,061.58is505bpsii)ForUSD18,41,857.86is480bps

Balanceoutstanding 266,733,902 398,064,759

Current Maturity 115,518,999 117,156,291

Non-currentamount

Loan-4

Balanceoutstanding

Current Maturity

Non-currentamount

151,214,903

160,995,40453,665,136

107,330,268

280,908,468

48,444,140-

48,444,140

Total 288,297,473 408,072,890

(All amounts in Rs., unless otherwise stated)


62

The requisite particulars in respect of unsecured borrowings are as under:(All amounts in Rs., unless otherwise stated)

Particulars As at 31st March 2015

As at 31st March 2014


Termloans-frombanks

The period of loan is 6 years, sanctioned on15.09.2009, Repayable in 24 equal quarterlyinstallments commencing from 15.12.2009 upto15.09.2015 amounting to JPY 73,20,833 each. Rate of Interest- 400 BPS p.a over 3 months JPYLIBOR.

The period of loan is 6 years (approx.), sanctionedon 19.08.2011, repayable in 24 equal quarterlyinstallments,startingfrom15.06.2012upto15.03.2018amountingtoJPY35,77,246each.Rateofinterest-JPYLIBOR+250BPS

The period of loan is 6 years, sanctioned on13.03.2012, Repayable in 24 equal quarterlyinstallments commencing from 15.09.2012 upto15.06.2018 amounting to JPY 23,72,250 each. RateofInterest-JPYLIBOR+250BPS

Repayableasperagreedterms.Rateofinterestis@11%p.a.

- Loan from Bank of Tokyo (External Commercial Borrowing)Loan-1

Balance outstanding 7,629,775 25,841,081 Current Maturity 7,629,775 17,227,384Non-currentamount - 8,613,697

Loan-2Balanceoutstanding 22,369,232 33,671,899 Current Maturity 7,456,412 8,417,975Non-currentamount 14,912,820 25,253,924

Loan-3Balanceoutstanding 16,070,334 23,725,109 Current Maturity 4,944,717 5,582,379Non-currentamount 11,125,617 18,142,730Loans & advances from related parties

-LoanFromDirectors

Balanceoutstanding 66,000,000 66,000,000 Current Maturity - -Non-currentamount 66,000,000 66,000,000

Total 92,038,437 118,010,351

5. Deferred tax liabilities (net)(All amounts in Rs., unless otherwise stated)

ParticularsAs at

31st March 2015Charge/(Credit) during the year

Adjustment in opening balance (refer point 6 of

Note no. 44)


Charge/(Credit) during the year


Deferred Tax Assets on account of :Expenseallowedonpaymentbasis-BroughtForwardLosses - - - - (7,516,108) 7,516,108-LeaveEncashment 2,926,718 935,257 - 1,991,461 (721,237) 2,712,698

-BonusPayable 189,127 44,545 - 144,582 137 144,445 -GratuityPayable 196,198 196,198 - - - -Total Deferred tax Assets 3,312,043 1,176,000 - 2,136,043 (8,237,208) 10,373,251

Deferred Tax Liabilities on account of :

DifferencebetweenBookandtaxdepreciation 111,641,322 10,285,438 (464,349) 101,820,233 10,835,523 90,984,710

TotalDeferredtaxliabilities 111,641,322 10,285,438 (464,349) 101,820,233 10,835,523 90,984,710Total Deferred Tax (Net) 108,329,279 9,109,438 ( 464,349 ) 99,684,190 19,072,731 80,611,459


63

6. Other Long Term Liabilities(All amounts in Rs., unless otherwise stated)



SecurityDeposit

ToolingAdvancereceived

50,000 1,013,280

80,824,777 91,245,800

Total 80,874,777 92,259,080

7. Long Term Provisions(All amounts in Rs., unless otherwise stated)



Provision for employee benefits(refernote41)LeaveEncashment(unfunded) 7,744,498 5,027,406

Total 7,744,498 5,027,406

8. Short Term Borrowings(All amounts in Rs., unless otherwise stated)

ParticularsAs at 31st March 2015 As at 31st March 2014

Secured Unsecured Secured Unsecured

WorkingcapitalLoanfrombanks 300,150,428 - 296,059,406 -

Total 300,150,428 - 296,059,406 -

Grand Total 300,150,428 296,059,406

The requisite particulars in respect of secured borrowings are as under:(All amounts in Rs., unless otherwise stated)




Working Capital Loan from banksHypothecation of the borrowers current assetsviz.stocksofRawmaterials,semi-finishedgoods,finishedgoods, consumablestores&spares,Billsreceivables, Book debts and all other movableof the borrower (excluding suchmovables as arepermitted by such bank from time to time), bothpresent & future whether installed or not in favorof consortiumwithStateBankofTravancore,TheBankofTokyo-MitsubishiUFJ,Ltd.,andYesBankLimitedjointlyandtoeachofthemseverally.

StateBankofTravancore-Rs28,00,00,000

The Bank of Tokyo Mitsubishi UFJ, Ltd.- Rs3,80,00,000

YESBank-Rs.25,00,00,000

[email protected]%to11.15%p.a.

60,031,806 57,547,061

[email protected]%to11.75%p.a.

240,118,622 238,512,345

Total 300,150,428 296,059,406


64

9. Trade Payables(All amounts in Rs., unless otherwise stated)



DuesofMSMEparties(ReferPointNo.1ofNote44) 108,821,090 90,395,257

DuesofotherthanMSMEparties 808,590,501 692,131,784

Total 917,411,591 782,527,041

10. Other Current Liabilities(All amounts in Rs., unless otherwise stated)



(a)Currentmaturitiesoflong-termdebt 233,843,456 200,170,409

(b)Interestaccruedbutnotdue 96,731 158,533

(c)Interestaccruedanddue - 186,526

(d)Unpaiddividends 1,577,927 1,436,670

(e)Otherpayables

-ExpensePayable 27,684,452 19,758,036

-Creditorsforcapitalitems 24,899,290 18,007,084

-SecurityDepositPayable 963,280 -

-Accruedsalaries&benefits 25,339,364 20,170,099

-Withholdingandothertaxespayable 15,488,473 6,874,911

-Technicalfeepayable 18,504,322 13,065,359

-Others 4,145,549 4,149,376

Total 352,542,844 283,977,003

11. Short Term Provisions(All amounts in Rs., unless otherwise stated)

Short Term ProvisionsAs at

31st March 2015As at

31st March 2014

(a) Provision for employee benefits (refer note 41)

Gratuity(Funded) 604,408 -

LeaveEncashment(Unfunded) 1,276,054 1,110,554

(b) Others

ProposedDividend 28,260,000 25,120,000

Provisionfortaxondividend 5,753,058 4,269,144

Provision for Wealth Tax Payable 175,393 176,370

Total 36,068,913 30,676,068


65

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57,7

49

-

-

5,9

76,9

97

2,3

20,4

87

458

,237

7

81,9

03

-

3,5

60,6

27

2,4

16,3

70

2,7

98,7

61

Com

pute

rs 1

7,58

9,40

3 2

,289

,624

-

-

1

9,87

9,02

7 1

1,57

9,65

3 5

10,7

74

3,1

05,0

68

-

15,

195,

495

4,6

83,5

32

6,0

09,7

50

Elec

tric

al F

ittin

gs 8

9,98

5,98

5 6

,763

,222

-

-

9

6,74

9,20

7 1

6,10

4,28

7 -

4

,182

,139

-

2

0,28

6,42

6 7

6,46

2,78

1 7

3,88

1,69

8

Tot

al

2,0

79,9

26,0

57

135

,011

,243

26,

486,

459

33,

240,

026

2,2

21,6

90,8

67 6

33,1

35,0

59

1,0

49,9

86

158

,996

,635

17,

552,

735

775

,628

,945

1,44

6,06

1,92

2 1,

446,

790,

998

RES

EAR

CH &

DEV

ELO

PMEN

T

Build

ing

1,6

41,9

48

426

,578

-

-

2,0

68,5

26

400

,330

-

5

3,83

1 -

4

54,1

61

1,6

14,3

65

1,2

41,6

18

Plan

t and

Equ

ipm

ent

81,

584,

347

2,6

73,6

33

-

272

,624

8

4,53

0,60

4 3

6,96

2,63

1 -

3

,206

,946

-

4

0,16

9,57

7 4

4,36

1,02

7 4

4,62

1,71

6

Furn

iture

and

Fix

ture

s 3

,350

,882

-

-

-

3

,350

,882

1

,052

,348

-

5

04,2

33

-

1,5

56,5

81

1,7

94,3

01

2,2

98,5

34

Offi

ce e

quip

men

t 2

99,7

50

-

-

-

299

,750

8

6,99

9 -

5

2,07

2 -

1

39,0

71

160

,679

2

12,7

51

Com

pute

rs 8

,444

,385

-

-

-

8

,444

,385

7

,920

,481

3

81,2

02

37,

091

-

8,3

38,7

74

105

,611

5

23,9

04

Elec

tric

al F

ittin

gs 1

,267

,003

-

-

-

1

,267

,003

4

43,8

35

-

60,

183

-

504

,018

7

62,9

85

823

,168

Tot

al

96,

588,

315

3,1

00,2

11

-

272

,624

9

9,96

1,15

0 4

6,86

6,62

4 3

81,2

02

3,9

14,3

56

-

51,

162,

182

48,

798,

968

49,

721,

691

Inta

ngib

le A

sset

s

Softw

are

Acqu

ired

8,1

53,1

24

759

,583

-

333

,933

9

,246

,640

2

,412

,497

-

1,3

13,5

82

- 3

,726

,079

5

,520

,561

5

,740

,627

Gra

nd T

otal

2

,184

,667

,496

1

38,8

71,0

37 2

6,48

6,45

9 3

3,84

6,58

3 2

,330

,898

,657

682

,414

,180

1,4

31,1

88

164

,224

,573

17,

552,

735

830

,517

,206

1,50

0,38

1,45

1 1,

502,

253,

316

**ForeignExchangecapitalisedRs.26,113,927/-includesRs.26,580,685/-incurredduringtheyearanddeductionofRs.4,66,758/-recognisedincapitalw

orkinprogressintheearlier

yearsasperNotificationissuedbytheMinistryofC

orprateAffairs,G

overnm

entofIndia,relatingtoAccountingStandard(AS-11),dated29thDecem

ber,2011.

**BorrowingCostcapitalisedRs.7,732,656/-asperAccountingStandard16in

cludesRs.4,319,858/-incurredduringtheyearandRs.3,412,798/-recognisedin

Capitalw

orkin

Progressintheearlieryears.


66

12. T

angi

ble

Ass

ets

and

Inta

ngib

le a

sset

s: 2

013-

14(A

ll am

ount

s in

Rs.

, unl

ess

othe

rwis

e st

ated

)

Part

icul

ars

Gros

s Ca

rryi

ng V

alue

Depr

ecia

tion

/ Im

pairm

ent

Net C

arry

ing

Valu

e

Bala

nce

as a

t 1s

t Apr

il 20

13Ad

ditio

nsDi

spos

als

Othe

r Ad

just

men

ts**

Bala

nce

as a

t 31

st M

arch

20

14

Bala

nce

as a

t 1s

t Apr

il 20

13De

prec

iatio

n fo

r th

e pe

riod

Disp

osal

sBa

lanc

e as

at

31st

Mar

ch

2014

Bala

nce

as a

t 31

st M

arch

20

14

Bala

nce

as a

t 31

st M

arch

20

13

Land

Fre

e Hol

d 21

,109,1

32

-

-

-

21,10

9,132

-

-

-

-

21

,109,1

32

21,10

9,132

La

nd L

ease

Hol

d 3,

941,4

38

-

-

- 3,

941,4

38

538,6

12

340,1

46

-

878,7

58

3,06

2,680

3,

402,8

26

Build

ings

(on

lease

d lan

d) 12

7,074

,937

261,9

87,46

4 -

65

,094,3

02

454,1

56,70

3 31

,663,8

40

8,832

,764

-

40,49

6,604

41

3,660

,099

95,41

1,097

Bu

ildin

gs (o

n fre

ehol

d lan

d) 14

7,291

,951

769,6

92

-

15,64

4,545

16

3,706

,188

7,13

8,802

5,2

63,94

0 -

12

,402,7

42

151,3

03,44

6 14

0,153

,149

Plan

t and

Equ

ipm

ent

1,16

1,221

,182

89,48

4,836

-

28,39

4,259

1,

279,1

00,27

7 42

2,620

,644

107,4

66,03

4 -

53

0,086

,678

749,0

13,59

9 73

8,600

,538

Furn

iture

and

Fixt

ures

12,37

1,269

1,

172,8

06

-

-

13,54

4,075

8,

820,1

11

337,8

74

-

9,15

7,985

4,

386,0

90

3,55

1,158

Ve

hicle

s 29

,775,0

47

5,54

5,506

3,

646,9

45

-

31,67

3,608

8,

504,8

23

2,57

5,976

97

2,934

10

,107,8

65

21,56

5,743

21

,270,2

24

Offic

e equ

ipm

ent

4,71

6,791

68

5,175

28

2,718

-

5,

119,2

48

2,40

1,192

20

1,963

28

2,668

2,

320,4

87

2,79

8,761

2,

315,5

99

Com

pute

rs 15

,429,0

67

2,16

0,336

-

-

17

,589,4

03

9,93

7,427

1,

642,2

26

-

11,57

9,653

6,

009,7

50

5,49

1,640

El

ectri

cal F

ittin

gs 61

,511,1

83

28,47

4,802

-

-

89

,985,9

85

12,74

6,534

3,

357,7

53

-

16,10

4,287

73

,881,6

98

48,76

4,649

Tot

al

1,5

84,4

41,9

97

390

,280

,617

3,9

29,6

63

109

,133

,106

2

,079

,926

,057

5

04,3

71,9

85

130

,018

,676

1,

255,

602

633

,135

,059

1,44

6,79

0,99

8 1,

080,

070,

012

RESE

ARCH

& D

EVEL

OPME

NTBu

ildin

g 1,

641,9

48

-

-

-

1,64

1,948

34

5,489

54

,841

-

400,3

30

1,24

1,618

1,

296,4

59

Plan

t and

Equ

ipm

ent

62,44

7,704

18,07

5,490

-

1,

061,1

53

81,58

4,347

33

,798,4

67 3,

164,1

64 -

36

,962,6

31

44,62

1,716

28

,649,2

37

Furn

iture

and

Fixt

ures

3,35

0,882

-

-

-

3,

350,8

82

840,2

37

212,1

11

-

1,05

2,348

2,

298,5

34

2,51

0,645

Of

fice e

quip

men

t 29

9,750

-

-

-

29

9,750

72

,344

14,65

5 -

86

,999

212,7

51

227,4

06

Elec

trica

l Fitt

ings

1,23

3,994

33

,009

-

-

1,26

7,003

38

4,030

59

,805

-

443,8

35

823,1

68

849,9

64

Com

pute

rs 8,

504,8

09

-

60,42

4 -

8,

444,3

85

7,54

3,718

43

7,183

60

,420

7,92

0,481

52

3,904

96

1,091

Tot

al

77,

479,

087

18,

108,

499

60,

424

1,0

61,1

53

96,

588,

315

42,

984,

285

3,9

42,7

59

60,

420

46,

866,

624

49,

721,

691

34,

494,

802

Inta

ngib

le As

sets

: 20

13-1

4 S

oftw

are A

cqui

red

7,30

8,831

84

4,293

-

-

8,15

3,124

1,

160,4

07

1,25

2,090

-

2,

412,4

97

5,74

0,627

6,

148,4

24

Gra

nd T

otal

1

,669

,229

,915

4

09,2

33,4

09 3

,990

,087

1

10,1

94,2

59

2,1

84,6

67,4

96

548

,516

,677

1

35,2

13,5

25

1,31

6,02

2 6

82,4

14,1

801,

502,

253,

316

1,12

0,71

3,23

8

**ForeignExchangecapitalisedRs.76,418,744/-includes70,423,963/-incurredduringtheyearandRs.5,994,781/-recognisedincapitalw

orkinprogressintheearlier

yearsasperNotificationissuedbytheMinistryofC

orprateAffairs,G

overnm

entofIndia,relatingtoAccountingStandard(AS-11),dated29thDecem

ber,2011.

**BorrowingCostcapitalisedRs.33,775,515/-asperAccountingStandard16includesRs.11,627,828/-incurredduringtheyearandRs.22,147,687/-recognisedin

Capitalw

orkinProgressintheearlieryears.


67

13. Capital Work - in - Progress(All amounts in Rs., unless otherwise stated)



CapitalWorkinProgress

OpeningCost 39,349,272 315,727,951

Additionduringtheyear* 30,958,465 39,349,272

Deduction&Adjustment (39,349,272) (315,727,951)

Total 30,958,465 39,349,272

*CurrentyearadditionincludesRs.979,464/-(previousyeardeductionRs.466,758/-)onaccountofforeignexchangefluctuation&additionofRs.1,082,321/-(previousyearRs.3,412,798/-)onaccountofborrowingcost.

14. Long Term Loans and Advances (Unsecured, considered good)(All amounts in Rs., unless otherwise stated)



a)CapitalAdvances 100,658,418 105,649,848b)SecurityDeposits 4,760,238 4,560,238c)OtherLoans&Advances-MATTaxcreditentitlement 55,404,286 55,225,224 -PrepaidIncometax 28,639,020 39,991,830-Less:Provisionfortaxation (23,495,256) (32,798,153)

5,143,764 7,193,677 165,966,706 172,628,987

15. Current Investments(All amounts in Rs., unless otherwise stated)



Unquoted,Non-Trade:[email protected] - 500,000 Sales/(Provision)fordiminutioninvalueofinvestments - (112,395)Total - 387,605

*ThevaluationisbasedonthecostlessProvisioni.e,atNetAssetValue




Aggregatebookvalueofquotedinvestments - -Aggregatemarketvalueofquotedinvestments - -Aggregatebookvalueofunquotedinvestments - 500,000 Provisionfordiminutioninvalueofinvestments - (112,395)

- 387,605


68

16. Inventories(All amounts in Rs., unless otherwise stated)



RawMaterialsandcomponents 77,682,095 73,753,632

RawMaterialintransit - -

Work-in-progress 6,643,855 5,011,098

Finishedgoods 15,332,204 14,362,918

Stock-in-trade 498,430 21,060

Storesandspares 15,576,056 17,288,835

Scrap 50,000 45,000

Total 115,782,640 110,482,543

17. Trade Receivables (Unsecured, considered good)(All amounts in Rs., unless otherwise stated)



Tradereceivablesoutstandingforaperiodlessthansixmonths from the date they are due for payment

766,706,739 659,447,047

Tradereceivablesoutstandingforaperiodexceedingsixmonths from the date they are due for payment

844,614 381,175

Total 767,551,353 659,828,222

18. Cash and Bank Balances(All amounts in Rs., unless otherwise stated)



a.Cash&CashEquivalents

Cash in hand 423,975 284,364

BankBalanceswithScheduledbanks:

-CurrentAccount 896,334 827,505

b.Balanceswithscheduledbanks

-FixedDepositAccount 6,171,397 5,767,809

-CurrentAccount* 1,577,927 1,436,670

Total 9,069,633 8,316,348

*UnpaidDividendbalancelyingincurrentaccount


69

19. Short Term Loans and Advances (unsecured, considered good)(All amounts in Rs., unless otherwise stated)



BalancewithExcise&CustomsAuthorities

PrepaidExpenses

PrepaidInsurance

AdvancesRecoverableincashorInKindorforValuetobereceived-others

25,083,118 25,387,963

1,790,355 5,324,522

3,723,443 3,301,788

26,023,638 5,685,729

Total 56,620,554 39,700,002

20. Contingent Liabilities & Commitments(All amounts in Rs., unless otherwise stated)



(i) Contingent Liabilities(a)Claimsagainstthecompanynotacknowledgedasdebt-DisputedExciseMatters-DisputedServiceTaxDemands-DisputedIncomeTaxDemands(b)Bankguaranteefurnished

345,668,355 345,668,355

- 1,147,470

- 185,241

93,315,100 121,205,000

438,983,455 468,206,066

(ii) Commitments(a)Estimatedamountofcontractsremainingtobeexecutedoncapitalaccountandnotprovidedfor(Netofadvance)

116,873,490 83,818,325

116,873,490 83,818,325

555,856,945 552,024,391

21. Dividends(All amounts in Rs., unless otherwise stated)

ParticularsAs at 31st March 2015 As at 31st March 2014

Total Per share Total Per share

Dividendsproposedtobedistributedtoequityshareholders 28,260,000 0.90 25,120,000 0.80

22. Statement Of Realization Of Assets Other Than Fixed Assets And Non - Current InvestmentsIntheopinionofthemanagement,currentassets,loansandadvanceshaveavalueonrealisationintheordinarycourseofbusiness,atleastequaltotheamountshownintheBalanceSheet.InrespectofTrade&otherreceivables,thereisnomajordifferenceordisputependingreconciliation/settlement.InrespectofTrade&otherpayables,managementisintheprocessofreconciliation.


70

23. Revenue From Operations(All amounts in Rs., unless otherwise stated)

Particulars For the year ended 31st March 2015

For the year ended 31st March 2014

Sale of products

CarSeatsAssemblies 6,302,548,939 5,031,335,195

CarpetSetsforAutomobiles 249,167,196 218,019,086

MotorcycleSeats 193,704,881 174,968,477

OtherSales 181,591,264 168,898,452

GypsyHoodsforseats 6,286,324 2,492,976

Total 6,933,298,604 5,595,714,186

Other operating revenues

ScrapSale 6,137,383 4,668,940

Total 6,939,435,987 5,600,383,126

24. Other Income(All amounts in Rs., unless otherwise stated)



InterestIncomeonFixedDeposits(gross) (includesTDSRs.Nil(PreviousyearRs.7,787)

Othernon-operatingincome(netofexpenses)

Profitonsaleofinvestment

- 77,863

11,400,541 2,327,724

19,131 -

Total 11,419,672 2,405,587

25. Cost of material consumed(All amounts in Rs., unless otherwise stated)



OpeningStock 73,753,632 77,764,130

Add:purchases 6,032,861,826 4,841,546,903

6,106,615,458 4,919,311,033

Less:ClosingStock 77,682,095 73,753,632

Rawmaterial&Componentconsumed(refernote39) 6,028,933,363 4,845,557,401

26. Purchase of stock-in-trade(All amounts in Rs., unless otherwise stated)



GypsyHoodsforseats 6,598,767 2,324,496

Total 6,598,767 2,324,496


71

27. Changes In Inventories of Finished Goods Work-In-Progress And Stock-In-Trade(All amounts in Rs., unless otherwise stated)



Opening stock:Finishedgoods 14,362,918 17,075,370Less:Exciseduty 1,662,110 1,986,575

12,700,808 15,088,795Work-in-progress 5,011,098 6,488,339

Stockintrade 21,060 189,540Scrap 45,000 30,000

17,777,966 21,796,674 Closing stock:

Finishedgoods 15,332,204 14,362,918Less:Exciseduty 1,665,072 1,662,110

13,667,132 12,700,808Work-in-progress 6,643,855 5,011,098

Stockintrade 498,430 21,060Scrap 50,000 45,000

20,859,417 17,777,966 Total (Increase) / Decrease in stock (3,081,451) 4,018,708

28. Employee Benefit Expense(All amounts in Rs., unless otherwise stated)



(a)Salariesandincentives 124,525,089 98,550,415

(b)Contributionsto-Providentfund&otherfunds 7,051,583 5,560,092(c)Gratuityfundcontributions-RefernoteNo.41 4,072,818 913,480(d)Staffwelfareexpenses 12,177,415 9,677,855Total 147,826,905 114,701,842

29. Finance Costs(All amounts in Rs., unless otherwise stated)



Interestexpense:-OtherInterest 60,236,215 60,916,925-InterestunderincomeTaxofearlieryears 221,836 46,158Otherborrowingcosts 1,633,664 1,240,251 Applicablenet(gain)/lossonforeigncurrencytransactionsandtranslation

- 380,622

Total 62,091,715 62,583,956


72

30. Depreciation And Amortization Expense(All amounts in Rs., unless otherwise stated)



Depreciation 164,224,573 135,213,525

Total 164,224,573 135,213,525

31. Other Expenses(All amounts in Rs., unless otherwise stated)



Power&Fuel 135,080,728 103,312,345 Rent(noncancellablelease) 1,772,002 1,985,702Repairstobuilding 6,121,954 699,601Repairstoplantandmachinery 24,050,999 23,314,699RepairstoOthers 949,623 1,966,270Insurance 3,790,950 3,294,990Ratesandtaxes(Includingwealthtax) 232,761 256,390Researchanddevelopmentexpenses 12,907,721 8,526,844Consumptionofstores&spareparts 8,771,935 9,717,214Payment to auditors for statutory audit 540,000 490,000Paymenttoauditorsfortaxationmatters 100,000 98,000Paymenttoauditorsforcertification&othermatters 417,850 450,750Paymenttoauditorforreimbursementofexpenses 23,380 69,065LossonSale/Discardoffixedassets 1,373,707 819,027Applicablenetgainonforeigncurrencytransactionsandtranslation

(3,321,099) -

ProvisionforDimunitioninvalueofInvestments - (9,305)Donations(referpointno.7ofnoteno.44) 921,000 810,000FactoryExpenses 114,235,283 90,638,750DiscountonSales 240,905 751,761Legal&ProfessionalExpenses 14,513,248 13,052,519TechnicalknowhowFees&Royalty 18,357,502 16,482,119ForeignTechnicianExpenses 645,402 1,149,511TravellingandConveyance 32,922,785 27,579,517Miscellaneousexpenses 55,808,858 42,894,525

Total 430,457,494 348,350,294


73

32. Current Tax(All amounts in Rs., unless otherwise stated)



CurrentTax 23,674,318 18,705,497

MATCreditEntitlement (179,062) (15,000,566)

Total 23,495,256 3,704,931

33. Deferred Tax(All amounts in Rs., unless otherwise stated)



DeferredTax 9,109,438 19,072,731

Total 9,109,438 19,072,731

34. Earnings Per Equity Shares(All amounts in Rs., unless otherwise stated)



WeightedAveragenumberofEquitySharesoutstanding 31,400,000 31,400,000

ProfitaftertaxasperProfit&LossA/c 81,199,599 67,076,198

Basic&DilutedEarningpershare 2.59 2.14

Nominalvaluepershare 2.00 2.00

35. Transfer To / From Reserves (All amounts in Rs., unless otherwise stated)



Transfertogeneralreserve 47,186,541 37,687,054

Total 47,186,541 37,687,054

36. Transfer to / from provisions (All amounts in Rs., unless otherwise stated)



Proposeddividendonequityshares 28,260,000 25,120,000

Corporatetaxondividend 5,753,058 4,269,144

Total 34,013,058 29,389,144


74

37. Value Of Imports On CIF Basis(All amounts in Rs., unless otherwise stated)



Rawmaterials 82,745,282 77,660,888

Capitalgoods 39,280,990 35,196,370

Total 122,026,272 112,857,258

38. Expenditure In Foreign Currency(All amounts in Rs., unless otherwise stated)



TechnicalKnow–howfees&royalty(netofTDS) 13,956,836 13,926,292

Travellingexpenses 14,197,584 10,325,518

TrainingFees(netofTDS) 727,145 2,813,820

Total 28,881,565 27,065,630

39. Analysis of Consumption of Imported & Indigenous Raw Materials, Spare Parts & Components(All amounts in Rs., unless otherwise stated)

Particulars Unit For the year ended 31st March 2015


Quantity Value Quantity Value

Trims Nos. 5,763,245 1,305,395,979 5,010,534 902,288,301

PURawMaterials Kgs 5,412,913 986,488,683 4,734,567 777,091,012

RecliningAssembly Nos. 5,273,815 1,627,716,322 4,253,938 1,408,910,971

Others 2,109,332,379 1,757,267,117

Total 6,028,933,363 4,845,557,401

Analysis of Consumption of Imported & Indigenous Raw Materials(All amounts in Rs., unless otherwise stated)



Imported 101,457,790 105,756,737

%thereof 2 2

Indigenous 5,927,475,573 4,739,800,664

%thereof 98 98

Total 6,028,933,363 4,845,557,401

Total % 100 100


75

Production, Sales, stocks:(All amounts in Rs., unless otherwise stated)



Quantity Value Quantity Value

Inrespectofmanufactureditems:

CarSeatsAssemblies OpeningStock 952 9,095,592 1,043 10,657,559

Production 547,448 6,302,921,150 473,416 5,029,773,228

ClosingStock 873 9,467,803 952 9,095,592

Sale&Others 547,527 6,302,548,939 473,507 5,031,335,195

CarpetSetsforAutomobiles OpeningStock 2,059 1,090,878 2,538 1,173,467

Production 406,179 249,716,254 373,541 217,936,497

ClosingStock 2,707 1,639,936 2,059 1,090,878

Sale&Others 405,531 249,167,196 374,020 218,019,086

MotorcycleSeats OpeningStock 1,377 758,715 1,489 613,919

Production 383,845 193,609,124 362,253 175,113,273

ClosingStock 1,410 662,958 1,377 758,715

Sale&Others 383,812 193,704,881 362,365 174,968,477

OthersSales&TradedGoods OpeningStock - 1,734,563 - 2,643,850

Production - 181,753,691 - 167,989,165

ClosingStock - 1,896,990 - 1,734,563

Sale&Others - 181,591,264 - 168,898,452

In respect of goods traded in:

GypsyHoodsforseats OpeningStock 9 21,060 81 189,540

Production (Purchase)*

2,829 6,763,694 969 2,324,496

ClosingStock 213 498,430 9 21,060

Sale&Others 2,625 6,286,324 1,041 2,492,976*Gypsyhood3nos.rejectedpiecerepaired.

40. Details of Dividend Remitted In Foreign Currency


Paticulars Total Number of non-resident shareholders

Total Number of shares held

by Non Resident shareholders

Amount of Dividend Remitted

Year to which it pertains

Period ended 31 March 2015

SuzukiMotorCorporation.Japan 1 4,650,000 3,720,000 2013-14-Final

Period ended 31 March 2014

SuzukiMotorCorporation.Japan 1 4,650,000 3,720,000 2012-13-Final


76

PART C :

Note no. 41 - GRATUITY AND EARNED LEAVE BENEFIT PLANS

TheCompanyhasa definedbenefit gratuity plan.Every employeewhohas completed five years ormoreofservicegetsagratuityondepartureat15dayssalary(lastdrawnsalary)foreachcompletedyearofservice.TheSchemeisfundedwith“TheLifeInsuranceCorporationofIndia”intheformofaqualifyinginsurancepolicy.TheCompanyhasalsoprovidedforLeaveEncashmentwhichisunfunded.

Thefollowingtablessummarizethecomponentsofnetbenefitexpenserecognizedintheprofitandlossstatementand the fundedstatusandamounts recognized in thebalancesheet for the respectiveplans (asperactuarialvaluationasonMarch31,2015).

Netemployeebenefitexpense(recognizedintheStatementofProfit&LossfortheyearendedMarch31,2015)

(AmountinRs.)

Particulars

Leave Encashment(Unfunded)

Gratuity(Funded)

As at 31.03.2015

As at31.03.2014

As at31.03.2015

As at31.03.2014

CurrentServiceCost 2,203,983 844,609 1,737,229 1,327,579InterestCostonbenefitobligation 546,278 668,873 1,378,362 1,201,578(Expectedreturnonplanassets) - - (1,461,650) (1,492,075)PastServiceCost - - - -Actuarial(gain)/lossrecognizedintheyear 1,219,285 730,201 485,512 (263,849)

Net benefit expense 3,969,546 2,243,683 2,139,453 773,233ActualreturnonPlanAssets - - - -

NetAsset/(Liability)recognizedintheBalanceSheetasonMarch31,2015

(AmountinRs.)

ParticularsLeave Encashment Gratuity

As at31.3.2015

As at31.3.2014

As at31.03.2015

As at31.03.2014

Present Value of Defined BenefitObligation 9,020,552 6,137,960 18,187,880 15,487,217

FairValueofPlanAssets - - 17,583,472 18,173,922NetAsset/(Liability)recognizedintheBalanceSheet (9,020,552) (6,137,960) (604,408) 2,686,705

ChangesinthepresentvalueofDefinedBenefitObligationareasfollows:

(AmountinRs.)


As at31.03.2015

As at31.03.2014

As at31.03.2015

As at31.03.2014

Openingdefinedbenefitobligation 6,137,960 8,360,912 15,487,217 15,019,726InterestCost 546,278 668,873 1,378,362 1,201,578CurrentServiceCost 2,203,983 844,609 1,737,229 1,327,579BenefitsPaid (1,086,954) (4,466,635) (749,964) (1,759,040)Actuarial(gain)/lossonobligation 1,219,285 730,201 335,036 (302,626)Closing defined benefit obligation 9,020,552 6,137,960 18,187,880 15,487,217


77

ChangesintheFairvalueofPlanAssetsareasfollows:

(AmountinRs.)

ParticularsGratuity

As at31.03.2015

As at31.03.2014

OpeningfairvalueofPlanAssets 18,173,922 16,554,369

Addition(Reduction)duetodifferenceidentifiedintheplanassetsatthebeginningoftheperiod (1,933,365) 24,247Correct fair value of plan assets at the beginning of the period 16,240,557 16,578,616ExpectedreturnonPlanAssets 1,461,650 1,492,075Contributionbyemployer 781,705 1,901,048Benefitspaid (749,964) (1,759,040)ActuarialGain/(Loss)onPlanAssets (150,476) (38,777)Closing fair value of Plan Assets 17,583,472 18,173,922

Themajorcategoriesofplanassetsasapercentageofthefairvalueoftotalplanassetsareasfollows:

Particulars Gratuity

InsuredwithLIC 100.00%

Theprincipal assumptionsused indetermininggratuityand leave liability for theCompany’splansare shownbelow:


2014-15 2013-14 2014-15 2013-14DiscountRate 7.80% 8.90% 7.80% 8.90%RateofincreaseinCompensation 6.00% 6.00% 6.00% 6.00%RateofReturnonPlanAssets - - 8.75% 9.00%Average Outstanding Service ofEmployeesuptoRetirement(years) 22.04 17.82 22.09 18.09

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority,promotionandotherrelevantfactors,suchassupplyanddemandintheemploymentmarket.

Classification of Liability into Current & Non Current Liability(AmountinRs.)


2014-15 2013-14 2014-15 2013-14CurrentLiability 1,276,054 1,110,554 997,400 NilNon-CurrentLiability 7,744,498 5,027,406 17,190,480 15,487,217

Contribution to Defined Contribution Plans: (AmountinRs.)

Particulars 2014-15 2013-14 2012-13 2011-12 2010-11ProvidentFund/otheremployee’sFund 7,051,583 5,560,092 5,397,514 4,537,403 4,040,085


78

Note No. 42: Segment ReportingTheCompanyhasonlyonereportablebusinesssegmentasitmanufacturesanddealsonlyindifferentseatingsystems,carpet etc. in termsofAS17 ”SegmentReporting” notifiedbyCentralGovernmentunderCompanies (AccountingStandards),Rules2006andtherefore, thedisclosurerequirementsof theStandardarenotapplicable.Further, theCompanyoperatesonly inonegeographical segment–“India”.All theassetsof thecompanyare located in India.FurthertheentirerevenueisalsoderivedfromcustomersinIndia.

Note No. 43: Related Party Disclosure (In pursuance of AS-18)

a) Names of partiesi) Wherecontrolexists(i.e.holdingcompanies

subsidiariesandfellowsubsidiaries): None

ii) PartiesinrespectofwhichBharatSeatsLtd.isanAssociate

: MarutiSuzukiIndiaLtd.SuzukiMotorCorporation,Japan.ShardaMotorIndustriesLimited

iii) Keymanagementpersonsandtheirrelatives : Mr.N.D.Relan-ChairmanMr.RohitRelan-ManagingDirectorMr.RishabhRelan–ChiefOperatingOfficerMr.SanjeevKumar-ChiefFinancialOfficerMs.RituBakshi-CompanySecretaryMr.T.J.Chacko–WholeTimeDirector(w.e.f.1stDecember,2014)Relatives:Mrs.ShardaRelan-WifeofMr.N.D.RelanMrs.RituRelan-WifeofMr.RohitRelanMr.PranavRelan-SonofMr.RohitRelanMr.AyushRelan-SonofMr.RohitRelanMr.AjayRelan-sonofMr.N.D.RelanMrs.MalaRelan-WifeofMr.AjayRelanMs.AashitaRelan-DaughterofMr.AjayRelanMr.AashimRelan–SonofMr.AjayRelan

iv) Other enterprises over which person(s)referred to in (iii) above is able to exercisesignificantinfluence

: N.D.Relan(HUF)RohitRelan(HUF)AjayRelan(HUF)ShardaEnterprisesRelanIndustrialFinanceLimitedProgressiveEngineering&AutomationPvt.Ltd.ShardaInoacPvt.Ltd.PebcoMotorsLtd.ToyotaBoshokuRelanIndiaPvt.Ltd.ToyoShardaIndiaPrivateLimited

b) Transactions with related parties:(AmountinRs.)

Particulars Parties in respect of which Bharat

Seats Limited is an associate

Key Management Persons

Relatives of Key Management Persons

Enterprises over which persons

referred to in (iii)above is able to

exercise significant influence

Sale of Material to Maruti Suzuki India Ltd. (Gross including Excise & Cess)

7,459,026,558 (5,958,844,652)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Purchases of Material(Including all taxes)

2,760,927,444(2,163,729,295)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Purchase of Tooling from Sharda Motors Industries Limited(Including all taxes)

105,284,310(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)


79

Particulars Parties in respect of which Bharat

Seats Limited is an associate

Key Management Persons

Relatives of Key Management Persons

Enterprises over which persons

referred to in (iii)above is able to

exercise significant influence

Sale of Tooling/ Job Charges to Maruti Suzuki India Limited(Including all taxes)

224,549,661 (6,915,309)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Dividend paid:-

Maruti Suzuki India Ltd.

Suzuki Motor Corporation, Japan,

Sharda Motor Industries Limited.

Others

3,720,000(3,720,000)3,720,000

(3,720,000)7,200,000

(7,200,000)

1,682,000(1,682,000)

2,326,006(2,284,400)

26,400(34,400)

Remuneration Nil(Nil)

15,143,315 (13,447,105)

Nil(Nil)

Nil(Nil)

Sitting Fees 280,000(160,000)

600,000(240,000)

80,000(60,000)

(Nil)(Nil)

Rent Paid 1,772,002(1,772,002)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Other Expenses 90,741,835(60,447,722)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Discount on sales to Maruti Suzuki India Ltd.

240,905(751,761)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Loan from Directors Nil(Nil)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Interest Paid Nil(Nil)

5,115,003(5,580,000)

2,144,998(2,340,000)

Nil(Nil)

Mobilisation/Tooling Advance re-ceived during the year

80,824,777(91,245,800)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Mobilisation/Tooling Advance Paid during the year

85,300,000 (78,300,000)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Unsecured Loan as on 31.03.2015 Nil(Nil)

46,500,000(46,500,000)

19,500,000(19,500,000)

Nil(Nil)

Net Outstanding receivable as on 31.03.2015

738,452,811(524,769,271)

Nil(Nil)

Nil(Nil)

Nil(Nil)

Net Outstanding payable as on 31.03.2015

204,317,942 (171,712,862)

Nil(Nil)

Nil(Nil)

Nil(Nil)

NoteNo.44Additionalnotestotheaccounts

1. UndertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006,theCompanyisinprocessofidentifyingsuch parties.However, to the extent they already been identified, necessary disclosures have beenmade asrequiredunderthesaidAct.


80

BasedontheresponsesreceivedfromthevendorstheCompanyhasdeterminedtherequireddisclosuresasgivenbelow:

(AmountinRs.)

Particulars 2014-15 2013-14

A Principalamountremainingunpaidason31stMarch,2015 108,821,090 90,395,257

B Interestduethereonason31stMarch,2015 Nil Nil

C InterestpaidbytheCompanyintermofSection16oftheMicro,SmallandMediumEnterprisesDevelopmentAct,2006,alongwiththeamountofthepaymentmadetothesuppliersbeyondtheappointeddayduringtheyear.

Nil Nil

D Interest due and payable for the period of delay in making payment(whichhavebeenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheMicro,SmallandMediumEnterprisesDevelopmentAct,2006.

Nil Nil

E Interestaccruedandremainingunpaidason31stMarch,2015 Nil Nil

F Furtherinterestremainingdueandpayableeveninthesucceedingyears,untilsuchdatewhen the interestduesasaboveareactuallypaid to thesmallenterprises.

Nil Nil

2. Research&Developmentexpensesreferredinnoteno.31includes:(AmountinRs.)

Particulars 2014-15 2013-14Salary/Wages 9,408,690 7,050,288Development&otherexpenses 3,499,031 1,476,556Total 12,907,721 8,526,844

3. (i) ParticularsofUn-hedgedForeignCurrencyExposureasatBalanceSheetDate:

ForeignCurrencyECB Rs.46,069,341(JPY88,407,872) [P.Y.Rs.83,238,089(JapaneseYen141,489,188)

Creditors Rs.1,931,436(Euro28609.47) [P.Y.–7,713,811(Euro97,377.60)]

Rs.3,182,439(JPY5,659,359) [P.Y.Rs.1,1070,785(JPY18,118,166)]

Advancesrecoverableincash Rs.60,606(USD984) orkind [P.Y.Rs.NIL]

Rs.15,664,268(Euro225,698.22) (P.Y.Rs.4,893,502(Euro60112.80)

Rs.12,161(JPY23,200) (P.Y.Nil)

TechnicalFeesPayable Rs.6,568,716(JPY12,395,423) (P.Y.3,623,657(JPY6,113,800)

Rs.11,935,606(USD190,560) (P.Y.Rs.9,441,702(USD154830)


81

(ii) ParticularsofHedgedForeignCurrencyExposureasatBalanceSheetDate:

ForeignCurrencyTermLoan Rs.502,110,025(USD8,245,878.92) (P.Y.Rs.572,461,347(USD8,962,779)

4. RemunerationtoManaging/whole-timeDirector(AmountinRs.)

S. No. Particulars 2014-15 2013-14i) Salaries 8,412,200 6,600,000ii) Perquisites&Allowances 509,250 901,740iii) ContributiontoProvidentFund 1,089,344 898,260

Total 10,010,794 8,400,000

Note:Sinceno commissionhasbeenpaid toanydirector, the computationof profit under section198of theCompaniesAct,2013andundersection349oftheCompaniesAct,1956hasnotbeenmade.

5. BorrowingcostcapitalizedduringtheyearRs.5,402,179/-(PreviousYearRs.15,040,626)includesRs.4,319,858/-towardsfixedassets(PreviousYearRs.11,627,828)&Rs.1,082,321/-towardscapitalworkinprogress(PreviousyearRs.3,412,798/-).

6. The estimated useful lives of certain fixed assets have been revised in accordance with Schedule II to theCompaniesAct2013,witheffectfrom1stApril,2014.Pursuanttothesechangesinusefullives,thedepreciationexpensefortheYearended31stMarch2015islowerbyRs.4,00,649andfortheassetswhoserevisedusefulliveshaveexpiredonor before31stMarch, 2014, thenet book valueofRs. 9,66,839 (net of deferred taxof Rs.4,64,349)hasbeendeductedfromtheretainedearnings.

7. During the current year pursuant to section 135 of the CompaniesAct, 2013 corporate social responsibilityexpensesofRs.921,000hasbeenincurredbythecompanywhichhavebeendisclosedinotherexpensesundernote no. 31.

8. CurrentyearfinancialstatementsarepreparedasperAccountingStandardprescribedundersection133readwithrule7ofCompanies(Accounts)Rules,2014andrelevantprovisionsofCompaniesact2013andpreviousyearfinancialstatementwerepreparedasperrelevantprovisionsoftheCompaniesAct,1956(referGeneralcircular08/2014dated04/04/2014oftheMinistryofCorporateAffairsforapplicabilityofrelevantprovisions/schedules/rulesoftheCompaniesAct,1956forthefinancialstatementspreparedforthefinancialyearcommencedearlierthan01.04.2014)andtheprovisionsoftheCompaniesAct,2013(totheextentapplicable).

9. Noteno.1to45pertainingtoBalanceSheetandstatementofProfitandLossAccountformanintegralpartoftheaccounts.

Note No. 45: Previous year figures have been regrouped and /or reclassified, wherever necessary.



BHARAT SEATS LIMITED(CIN: L34300DL1986PLC023540)

Registered Office: D-188, Okhla Industrial Area, Phase-I, New Delhi -110020Email: [email protected], Website: www.bharatseats.com

Phone: 011-26815592, Fax: 0124-2341188

I/WE HEREBY RECORD MY PRESENCE AT THE TWENTY EIGHTH ANNUAL GENERAL MEETING OF BHARAT SEATS LTD. BEING HELD AT AIR FORCE AUDITORIUM, SUBROTO PARK, NEW DELHI-110010 ON FRIDAY, 17TH JULY, 2015 AT 11 A.M.

Member’s Folio/DP ID-Client-ID Member’s/ Proxy’s name in Block Letters Member’s/Proxy’s Signature

I/ We being the member(s) of ……………...................……............................................................ Shares of the above named Company hereby appoint:

(1) Name:……………...............................................................……...…Address…………....................……………………………...........……………………

E-mail id…………………………………............................................Signature……………………….....................………….or failing him;

(2) Name:…………….................................….................................……Address…………....................………………………………...........…………………

E-mail id…………………………………............................................Signature…………………………......................……….or failing him;

(3) Name:…………….................................….................................……Address…………....................………………………………...........…………………

E-mail id…………………………………............................................Signature……………….....................................................…...........……………….

as my/ our proxy to attend and vote (on a poll) for me/ us and on my/our behalf at the 28th Annual general meeting of the Company to be held on Friday, the 17th day of July, 2015 at 11:00 a.m. at Air Force Auditorium, Subroto Park, New Delhi 110010 and at any adjournment thereof in respect of such resolutions as are indicated below:Resolution No. RESOLUTIONSORDINARY BUSINESS 1. To receive, consider and adopt the audited financial Statements, Reports of the Board of Directors and Auditors for the year ended 31st March, 20152. Declaration of Dividend3. Re-appointment of Mr. I.V. Rao, Director who retires by rotation4. Re-appointment of Mr. Yoichi Kojima, Director who retires by rotation5. Appointment of M/s S.S. Kothari Mehta & Co., Chartered Accountants, as Auditors of the Company and fixing their remuneration

Signed this ……………….day of ………………….2015

Signature of shareholder ……………………………….. Signature of proxy holder(s) ………………………….....

Note: This form of Proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company not less then 48 hours before the commencement of the meeting.

Affix Re 1.00

Revenue Stamp

ATTENDANCE SLIP

BHARAT SEATS LIMITED(CIN: L34300DL1986PLC023540)

Registered Office: D-188, Okhla Industrial Area, Phase-I, New Delhi -110020Email: [email protected], Website: www.bharatseats.com, Phone: 011-26815592, Fax: 0124-2341188

PROXY FORM

EVSN: 150615024

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