BSE Prices delayed by 5 minutes... << Prices as on Sep 19, 2019 - 12:11PM >>   ABB 1323.85 [ -0.15 ]ACC 1490.55 [ -0.01 ]AMBUJA CEM 193.3 [ -1.23 ]ASIAN PAINTS 1561.75 [ 0.88 ]AXIS BANK 646 [ -0.34 ]BAJAJ AUTO 2747.35 [ -1.13 ]BANKOFBARODA 95 [ -1.04 ]BHARTI AIRTE 341.85 [ 1.82 ]BHEL 47.7 [ -1.95 ]BPCL 380.85 [ -0.34 ]BRITANIAINDS 2644 [ 1.12 ]CAIRN INDIA 285.4 [ 0.90 ]CIPLA 456.05 [ -0.63 ]COAL INDIA 192.95 [ 0.23 ]COLGATEPALMO 1335.35 [ 1.34 ]DABUR INDIA 457.85 [ -0.55 ]DLF 155.65 [ -0.95 ]DRREDDYSLAB 2733.1 [ -0.45 ]GAIL 132.6 [ -1.70 ]GRASIM INDS 701.1 [ -0.28 ]HCLTECHNOLOG 1035 [ -2.16 ]HDFC 1988.15 [ -0.03 ]HDFC BANK 1085.3 [ -0.75 ]HEROMOTOCORP 2534.25 [ -1.62 ]HIND.UNILEV 1827.4 [ -0.10 ]HINDALCO 195.65 [ -1.16 ]ICICI BANK 389.8 [ -2.34 ]IDFC 35.45 [ 4.11 ]INDIANHOTELS 132.7 [ -1.12 ]INDUSINDBANK 1297 [ -2.46 ]INFOSYS 820.9 [ -1.08 ]ITC LTD 237.55 [ -0.86 ]JINDALSTLPOW 102.8 [ -2.05 ]KOTAK BANK 1456.35 [ -0.45 ]L&T 1301.4 [ -1.29 ]LUPIN 742.5 [ -2.24 ]MAH&MAH 520.5 [ -1.28 ]MARUTI SUZUK 6104.1 [ 0.17 ]MTNL 5.74 [ -4.49 ]NESTLE 12678.2 [ -1.49 ]NIIT 88 [ -0.17 ]NMDC 84.35 [ -2.71 ]NTPC 121.65 [ -0.61 ]ONGC 125.45 [ -1.22 ]PNB 61.95 [ -1.51 ]POWER GRID 199.8 [ -1.14 ]RIL 1198.25 [ -0.62 ]SBI 278.05 [ -0.87 ]SESA GOA 145.65 [ -2.54 ]SHIPPINGCORP 33.9 [ -3.14 ]SUNPHRMINDS 412 [ -1.15 ]TATA CHEM 573.7 [ -1.42 ]TATA GLOBAL 254.45 [ -2.02 ]TATA MOTORS 123.35 [ 1.23 ]TATA STEEL 345.05 [ -3.63 ]TATAPOWERCOM 64.2 [ 0.23 ]TCS 2098.35 [ -1.87 ]TECH MAHINDR 705.75 [ -1.53 ]ULTRATECHCEM 3868.8 [ -0.85 ]UNITED SPIRI 600.3 [ -0.42 ]WIPRO 241.35 [ -1.17 ]ZEETELEFILMS 320.2 [ -4.50 ] BSE NSE
You can view the entire text of Notes to accounts of the company for the latest year

BSE: 532977ISIN: INE917I01010INDUSTRY: Auto - 2 & 3 Wheelers

BSE   ` 2747.35   Open: 2789.00   Today's Range 2722.85
2789.00
-31.35 ( -1.14 %) Prev Close: 2778.70 52 Week Range 2400.00
3145.55
Year End :2019-03 

38 Disclosure of transactions with related parties as required by the Indian Accounting Standard 24

( Rs In Crore)

Name of related party and nature of relationship

Nature of transaction

2018-19

2017-18

Transaction value

Outstanding amounts carried in Balance Sheet

Transaction value

Outstanding amounts carried in Balance Sheet

A Subsidiaries:

PT.Bajaj Auto Indonesia (99.25% shares held by Bajaj Auto Ltd.)

Contrbuton to eguty (411,875 shares of USD 3 each)

-

6.17

-

6.17

Provision for diminution in value of investment

-

(2.17)

-

(2.17)

Write-down of investment

-

-

199.41

-

Provision for diminution written-back

-

-

199.41

-

Bajaj Auto hternat onal Holdings BV Amsterdam Netherlands (Fully owned subsidiary)

Contr but on to eguity (1,980,000 shares of Euro 100 each)

-

1,218.72

-

1,218.72

Dividend received

94.36

-

135.07

-

B Associates, joint ventures and investing parties:

Bajaj Holdings & Investment Ltd. (Investing party-holds 33.43% shares of Bajaj Auto Ltd.)

Purchase of shares by BHIL [96,727,050 shares (Previous year 91,280,000) of Rs 10 each]

-

(96.73)

-

(91.28)

Purchase of shares by BAL [2,910,050 shares of Rs 10 each]

-

909.91

-

-

Dividend paid

547.68

-

502.04

-

Business support service received

1.98

-

1.55

-

Business support service rendered

12.52

-

15.26

-

C Key management personnel and their relatives:

Rahul Bajaj (Chairman)

Short-term employee benefits (including Commission)

10.63

(6.75)

10.79

(6.75)

Post-employment benefits

0.80

-

0.80

-

Rent paid for premises

0.20

-

0.17

-

Deposit paid against premises taken on lease

0.90

3.60

-

2.70

Rajiv Bajaj (Managing Director)

Short-term employee benefits (including Commission)

29.95

(20.02)

26.27

(17.41)

Post-employment benefits

2.36

-

2.05

-

Rent paid for premises

1.99

-

1.98

-

Deposit paid against premises taken on lease

0.90

1.92

-

2.82

Pradeep Shrivastava (Executive Director)

Short-term employee benefits

6.05

-

3.78

-

Post-employment benefits

0.61

-

0.43

-

Rakesh Sharma (Executive Director)

Short-term employee benefits

4.99

-

3.61

-

Post-employment benefits

0.49

-

0.44

-

Madhur Bajaj (Vice Chairman)

Rent paid for premises

0.27

-

0.05

-

Deposit paid against premises taken on lease

3.52

4.40

-

0.88

Sitting fees

0.08

-

0.08

-

Commission

0.12

(0.12)

0.12

(0.12)

Sanjiv Bajaj

Sitting fees

0.08

-

0.08

-

Commission

0.12

(0.12)

0.12

(0.12)

Shekhar Bajaj

Sitting fees

0.06

-

0.07

-

Commission

0.09

(0.09)

0.11

(0.11)

Rent paid for premises

-

-

0.16

-

Deposit paid against premises taken on lease

2.64

-

-

2.64

Niraj Bajaj

Sitting Fees

0.08

-

0.08

-

Commission

0.12

(0.12)

0.12

(0.12)

Rent paid for premises

-

-

0.05

-

Deposit paid against premises taken on lease

0.88

-

-

0.88

38 Disclosure of transactions with related parties as required by the Indian Accountinq Standard 24 (Contd.)

( Rs In Crore)

Name of related party and nature of relationship

Nature of transaction

2018-19

2017-18

Transaction value

Outstanding amounts carried in Balance Sheet

Transaction value

Outstanding amounts carried in Balance Sheet

D Other entities/persons:

Bajaj Finserv Ltd.

Purchase of windpower

13,82

-

7,68

-

Business support service rendered

0,41

-

0,30

-

Bajaj Finance Ltd

Purchase of shares by BFL (150 shares of Rs 10 each) - Rs 1,500

-

-

Subvention charges paid

9,88

0,86

23,78

(1,91)

Service rendered

25,68

-

26,55

0,78

Service received

0,20

-

0,51

-

Security deposit received

-

(0,21)

-

(0,21)

Dividend paid ( Rs 9, 000, previous year- Rs 8,250)

Bajaj Allianz General Insurance Co, Ltd

hsurance premiums paid

15,89

4,68

10,98

4,21

Claims received

0,01

-

-

-

Bajaj AUianz Life Insurance Co, Ltd

hsurance premiums paid

1,16

-

1,01

(0,01)

Purchase of shares by BALIC (125,000 shares of Rs 10 each)

-

(0,13)

-

(0,13)

Dividend paid

0,75

-

0,69

-

Bajaj Housing Finance Ltd

Services rendered

0,01

-

-

-

Security deposit received

0,02

(0,02)

-

-

Bajaj Electricals Ltd,

Purchases

0,05

(0,25)

0,55

(0,22)

Hind Musafir Agency Ltd

Services received

20,71

(1.06)

18,66

(1.46)

Hindustan Housing Co, Ltd

Maintenance charges paid

0,26

(0,07)

0,20

-

KTM AC

Sale of vehicles and material

414,62

(46,42)

405,86

(4.38)

Services rendered and other debits

0,16

-

-

-

Purchase of accessories and other credits

2,65

-

1,51

-

KTM Sportmotorcycle GmbH

Sale of vehicles and material

382,62

(149,06)

425,64

(11.03)

Royalty paid and payable

13,99

(3,27)

9,48

(2.05)

Services rendered and other debits

0,08

-

0,23

-

Purchase of accessories and other credits

5,03

-

0,12

-

KTM Southeast Europe A, E,

Sale of vehicles and material ( Rs 13,506, previous year - Rs 13,506)

0,44

0,43

KTM Southeast Europe S, A,

Sale of vehicles and material ( Rs 19,151 , previous year - Rs 12,955)

-

0,41

KTM Sportmotorcycle India Pvt, Ltd,

Royalty paid and payable

8,05

(0,56)

9,21

(1.74)

Services rendered and other debits

2,25

-

2,35

-

Maharashtra Scooters Ltd

Purchase of shares by MSL (6,774,072 shares of Rs 10 each)

-

(6,77)

-

(6.77)

Dividend paid

40,64

-

37,26

-

Purchases

0,31

-

0,16

-

Sales (including capital asset)

-

-

0,33

-

Services rendered

0,12

(0,04)

0,10

0.04

Mukand Ltd

Purchases

-

-

0,03

-

CERG Advisory Pvt, Ltd

Services received

0,10

-

0,09

-

Bajaj Auto Charitable Trust

CSR payment

0,25

-

-

-

Bajaj Auto Employees Group Gratuity Fund

Gratuity contribution

61,50

-

0,50

-

Bajaj Auto Senior Staff Group Gratuity Fund

Gratuity contribution

74,50

-

16,05

-

Bajaj Auto Employees Superannuation Fund

Superannuation contribution

9,46

(0,20)

9,07

1.00

Bajaj Auto Limited Provident Fund

Provident fund contribution (Employer's share)

34,08

(10,05)

28,48

(9.35)

38 Disclosure of transactions with related parties as required by the Indian Accounting Standard 24 (Contd.)

( Rs In Crore)

Name of related party and nature of relationship

Nature of transaction

2018-19

2017-18

Transaction value

Outstanding amounts carried in Balance Sheet

Transaction value

Outstanding amounts carried in Balance Sheet

D J Balaji Rao

Sitting fees

0.18

-

0.15

-

Commission

0.27

(0.27)

0.23

(0.23)

D S Mehta

Sitting fees

0.04

-

0.06

-

Commission

0.06

(0.06)

0.09

(0.09)

Naresh Chandra

Sitting fees

-

-

0.03

-

Commission

-

-

0.05

(0.05)

Nanoo Pamnan

Sitting fees

0.13

-

0.11

-

Commission

0.50

(0.50)

0.37

(0.37)

Manish Kejriwal

Sitting fees

0.04

-

0.07

-

Commission

0.06

(0.06)

0.11

(0.11)

P Murar

Sitting fees

0.04

-

0.03

-

Commission

0.06

(0.06)

0.05

(0.05)

Dr. Gita Piramal

Sitting fees

0.17

-

0.15

-

Commission

0.26

(0.26)

0.23

(0.23)

Naushad D Forbes

Sitting fees

0.15

-

0.09

-

Commission

0.23

(0.23)

0.14

(0.14)

Omkar Goswam

Sitting fees

0.08

-

0.08

-

Commission

0.12

(0.12)

0.12

(0.12)

Anam Roy

Sitting fees

0.08

-

0.06

-

Commission

0.12

(0.12)

0.09

(0.09)

Name of the related party and nature of the related party relationship where control exists have been disclosed irrespective of whether or not there have been transactions between the related parties. In other cases, disclosure has been made only when there have been transactions with those parties.

F , as defined under clause 9 of the Indian Accounting Standard -24 'Related Party Disclosures' have been identified based on representations made by key managerial personnel and information available with the Company.

All above transactions are in the ordinary course of business and on arms' length basis. All outstanding balances are unsecured and are repayable in cash.

39 Lease

As a lessor:

The Company has given premises on operating leases. These lease arrangements range for a period between eleven months to ten years and include both cancellable and non cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

The total future minimum lease rentals receivable at the Balance Sheet date is as under:

As a lessee:

The Company has operating leases for premises. These lease arrangements range for a period between one to ninety years which include both cancellable and non cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

The total future minimum lease rentals payable at the Balance Sheet date is as under:

(Rs In Crore)

As at 31 March Particulars 2019 2018

Payable Within one year 11.23 11.28

After one year but not more than five years 16.85 19.21

More than five years 14.25 15.07 42.33 45.56

40 Expenditure incurred on Research and Development

(Rs In Crore)

For the year ended 31 March Particulars 2019 2018

a Revenue expenditure - charged to Statement of Profit and Loss 392.35 334.11

b Revenue expenditure - capitalised 20.78 13.78

c Capital expenditure - excluding building 43.22 24.80 d Capital expenditure - building 456.35 372.69

(Rs In Crore)

Particulars

As at 31 March

2019

2018

Receivable

Within one year

24.27

23.93

After one year but not more than five years

40.52

62.98

More than five years

1.12

-

65.91

86.91

41 Considering the Company has been extended credit period upto 45 days by its vendors and payments being released on a timely basis, there is no liability towards interest on delayed payments under The Micro, Small and Medium Enterprises Development Act 2006' during the year. There is also no amount of outstanding interest in this regard, brought forward from previous years. Information in this regard is on basis of intimation received, on requests made by the Company, with regards to registration of vendors under the said Act.

42 Post the applicability of GST with effect from 1 July 201 7, Revenue from operations (i.e. Sales) are required to be disclosed net of GST. Sales before this date are disclosed as gross of excise duty. Accordingly, Revenue from operations for the current year is not comparable with the previous year.

43 During previous year, the Company has written-off its investment in PT Bajaj Auto Indonesia, to the extent of Rs 199.41 crore (USD 39.95 million), consequential to a share capital reduction effected in PT Bajaj Auto Indonesia to the same extent.

The transaction has been approved by the Reserve Bank of India vide its letter dtd. 22 March 2018. Accordingly, the Company has reversed an amount of Rs 199.41 crore from provision for diminution in the value of investments to the Statement of Profit and Loss for the previous year ended 31 March 2018.

44 Standards issued but not yet effective

The amendments to standards that are issued, but not yet effective, upto the date of issuance of the Company's financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 201 9 and Companies (Indian Accounting Standards) Second Amendment Rules, 201 9 introducing/amending the following standards:

Ind AS 116 Leases

Ind AS 116 Leases was notified in March 2019 and it replaces Ind AS 1 7 Leases, including appendices thereto. Ind AS 116 is effective for annual periods beginning on or after 1 April 2019. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition exemptions for lessees - leases of 'low-value1 assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 1 2 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.

Lessor accounting under Ind AS 116 is substantially unchanged from today's accounting under Ind AS 17. Lessors will continue to classify all leases using the same classification principle as in Ind AS 17 and distinguish between two types of leases: operating and finance leases.

The Company intends to adopt these standards, if applicable, when they become effective. As the Company does not have any material leases, the adoption of this standard is not likely to have a material impact in its Standalone Financial Statements. Based on an assessment done by the Company, its right to use assets & financial liabilities are expected to increase by approx. Rs 30 crore with nominal impact in reserves.

Appendix C to Ind AS 12 Uncertainty over Income Tax Treatment

The interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of Ind AS 12 and does not apply to taxes or levies outside the scope of Ind AS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The Interpretation specifically addresses the following:

• Whether an entity considers uncertain tax treatments separately

• The assumptions an entity makes about the examination of tax treatments by taxation authorities

• How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates

• How an entity considers changes in facts and circumstances

An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other uncertain tax treatments. The approach that better predicts the resolution of the uncertainty should be followed. In determining the approach that better predicts the resolution of the uncertainty, an entity might consider, for example, (a) how it prepares its income tax filings and supports tax treatments; or (b) how the entity expects the taxation authority to make its examination and resolve issues that might arise from that examination.

The interpretation is effective for annual reporting periods beginning on or after 1 April 2019, but certain transition reliefs are available. The Company will apply the interpretation from its effective date. Based on the Company's preliminary evaluation, these amendments have no impact on the financial statements of the Company.

Amendments to Ind AS 109: Prepayment Features with Negative Compensation

Under Ind AS 109, a debt instrument can be measured at amortised cost or at fair value through other comprehensive income, provided that the contractual cash flows are 'solely payments of principal and interest on the principal amount outstanding' (the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to Ind AS 109 clarify that a financial asset passes the SPPI criterion regardless of the event or circumstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract.

The amendments should be applied retrospectively and are effective for annual periods beginning on or after 1 April 2019. These amendments have no impact on the financial statements of the Company.

Amendments to Ind AS 19: Plan Amendment, Curtailment or Settlement

The amendments to Ind AS 19 addresses the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an entity is required to:

• Determine current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuarial assumptions used to remeasure the net defined benefit liability/fasset) reflecting the benefits offered under the plan and the plan assets after that event.

• Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: the net defined benefit liability/fasset) reflecting the benefits offered under the plan and the plan assets after that event; and the discount rate used to remeasure that net defined benefit liability/fasset).

The amendments also clarify that an entity first determines any past service cost, or a gain or loss on settlement, without considering the effect of the asset ceiling. This amount is recognised in profit or loss.

An entity then determines the effect of the asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding amounts included in the net interest, is recognised in other comprehensive income.

The amendments apply to plan amendments, curtailments, or settlements occurring on or after the beginning of the first annual reporting period that begins on or after 1 April 2019. These amendments will apply only to any future plan amendments, curtailments, or settlements of the Company.

Annual improvement to Ind AS (2018);

These improvements include: Amendments to Ind AS 12: Income Taxes

The amendments clarify that the income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity recognises the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events.

An entity applies those amendments for annual reporting periods beginning on or after 1 April 2019. Since the Company's current practice is in line with these amendments, the Company does not expect any effect on its consolidated financial statements.

Amendments to Ind AS 23: Borrowing Costs

The amendments clarify that an entity treats as part of general borrowings any borrowing originally made to develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete.

An entity applies those amendments to borrowing costs incurred on or after the beginning of the annual reporting period in which the entity first applies those amendments. An entity applies those amendments for annual reporting periods beginning on or after 1 April 2019. Since the Company's current practice is in line with these amendments, the Company does not expect any effect on its consolidated financial statements.

45 Miscellaneous

Amounts less than ? 50,000 have been shown at actual against respective line items statutorily required to be disclosed.

As per our report of even date

On behalf of the Board of Directors

For S R B C & CO LLP

Rahul Bajaj

Chartered Accountants

Chairman

ICAI Firm Registration Number: 324982E/E300003

Kevin D'sa

Rajiv Bajaj

per Arvind Sethi

Chief Financial Officer

Managing Director

Partner

Membership Number: 89802

Dr. J Sridhar

Nanoo Pamnani

Pune: 17 May 2019

Company Secretary

Chairman - Audit Committee