1. Corporate information
Bharat Seats Limited (‘the company’) is a public limited company domiciled in India and incorporated on March 06, 1986 under the provisions of Companies Act,1956 having its registered office at Plot No. 1, Nelson Mandela Road, Vasant Kunj, New Delhi 110070. . The Company is listed on Bombay Stock Exchange of India Limited. The Company is a joint venture of Suzuki Motor Corporation- Japan, Maruti Suzuki India Ltd. and M/s Rohit Relan and Associates for the manufacture of complete seating system and interior component for the automotive and surface transport. The Company’s manufacturing facilities are located at Gurugram and Manesar in Haryana. The financial statements were authorized by the Board of Directors for issue in accordance with resolution April 19, 2018.
2 Significant accounting judgements, estimates and assumptions:
The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.
Judgements
In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements.
a) Operating lease commitments - Company as lessor
The Company has entered into commercial property leases on its investment property portfolio. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a substantial portion of the economic life of the commercial property, and that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.
b) Operating lease commitments -Company as lessee:
The Company has taken various commercial properties on leases. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a substantial portion of the economic life of the commercial property, and that it does not retain all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
a) Property, plant and equipment
The useful lives and residual values of property, plant and equipment are determined by the management based on technical assessment by the management. The Company believes that the derived useful life best represents the period over which the Company expects to use these assets.
b) Taxes
Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.
Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.
c) Gratuity benefit
The cost of defined benefit plans (i.e. Gratuity benefit) is determined using actuarial valuations. An actuarial valuation involves making various assumptions which may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and its longterm nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. In determining the appropriate discount rate, management considers the interest rates of long term government bonds with extrapolated maturity corresponding to the expected duration of the defined benefit obligation. The mortality rate is based on publicly available mortality tables for the specific countries. Future salary increases and pension increases are based on expected future inflation rates for the respective countries. Further details about the assumptions used, including a sensitivity analysis, are given in Note 38(a).
3 Standards issued but not yet effective
The standard issued, but not yet effective up to the date of issuance of the Company financial statements is disclosed below. The Company intends to adopt the standard when it becomes effective.
a) Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:
The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.
Entities may apply the Appendix requirements on a fully retrospective basis. Alternatively, an entity may apply these requirements prospectively to all assets, expenses and income in its scope that are initially recognised on or after:
(i) The beginning of the reporting period in which the entity first applies the Appendix, or
(ii) The beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the Appendix.
The Appendix is effective for annual periods beginning on or after 1st April 2018. However, since the Company’s current practice is in line with the interpretation, the Company does not expect any effect on its financial statements.
b) Ind AS 115 Revenue from Contracts with Customers:
Ind AS 115 was issued on 28 March 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.
The new revenue standard will supersede all current revenue recognition requirements under Ind AS. The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.This standard will come into force from accounting period commencing on or after 1st April 2018. The Company will adopt the new standard on the required effective date using the full retrospective method.
The Company is in the business of manufacture of complete seating system and interior component for the automotive and surface transport.
a) Sale of goods
For contracts with customers in which the sale of goods is generally expected to be the only performance obligation, adoption of Ind AS 115 is not expected to have any impact on the Company’s revenue and profit or loss. The Company expects the revenue recognition to occur at a point in time when control of the goods is transferred to the customer, generally on delivery of the goods.
In preparing to adopt Ind AS 115, the Company is considering the following:
(i) Variable Consideration
Some contracts with customers provide a right of return, trade discounts or volume rebates. Currently, the Company recognises revenue from the sale of goods measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. If revenue cannot be reliably measured, the Company defers revenue recognition until the uncertainty is resolved. Such provisions give rise to variable consideration under Ind AS 115, and will be required to be estimated at contract inception and updated thereafter.
Ind AS 115 requires the estimated variable consideration to be constrained to prevent over-recognition of revenue. The Company however does not expects that application of the constraint will result in any revenue being deferred than under current Ind AS.
b) Advances received from customers
Generally, the Company receives only short-term advances from its customers. They are presented as part of Trade and other payables. Under Ind AS 115, the Company must determine whether there is a significant financing component in its contracts. However, the Company decided to use the practical expedient provided in Ind AS 115, and will not adjust the promised amount of the consideration for the effects of a significant financing components in the contracts, where the Company expects, at contract inception, that the period between the Company transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Therefore, for short-term advances, the Company will not account for a financing component as there is not a significant financing component involved in these contracts.
c) Presentation and disclosure requirements
The presentation and disclosure requirements in Ind AS 115 are more detailed than under current Ind AS. The presentation requirements represent a significant change from current practice and significantly increases the volume of disclosures required in the Company’s financial statements. Many of the disclosure requirements in Ind AS 115 are new and the Company is in the preliminary stage of assessment of impact of of these disclosures.
d) Other adjustments
In addition to the major adjustments described above, on adoption of Ind AS 115, other items of the primary financial statements such as deferred taxes, assets held for sale and liabilities associated with them will be affected and adjusted as necessary.
The recognition and measurement requirements in Ind AS 115 are also applicable for recognition and measurement of any gains or losses on disposal of non-financial assets (such as items of property, plant and equipment and intangible assets), when that disposal is not in the ordinary course of business. However, on transition, the effect of these changes is not expected to be material for the Company.
(c) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 2/- per share ( 31st March 2017 : Rs 2/per share). Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in India Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Loan covenants
Bank loans contain certain debt covenants relating to limitation on indebtedness, debt-equity ratio, net borrowings to EBITDA ratio, current ratio and debt service coverage ratio. The Company has satisfied all debt covenants prescribed in the terms of bank loan. Current ratio is low considering the economic environment in the automotive industry which is within the acceptable norms.
The other loans do not carry any debt covenant.
Note : During the year the company has paid dividend to its shareholders for the year ended 31st March, 2017. This has resulted in payment of corporate dividend tax (CDT) to the taxation authorities. The Company believes that CDT represents additional payment to taxation authority on behalf of the shareholders. Hence CDT paid is charged to equity.
* Trade Payables include due to related parties Rs 3,188.99 lakhs ( 31st March 2017: Rs 3,696.96 lakhs) refer note 38 (c)
* Trade Payables are unsecured and usually paid within 60 days of recognition.
* Trade Payables are usually non-interest bearing.
Disclosure under MSMED Act
Information as required to be furnished as per section 22 of Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for year ended 31st March, 2018 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.
(a) Investor Education and Protection Fund is being credited by the amount of unclaimed dividend after seven years from the due date. The Company has transferred Rs. 1.66 lakhs ( 31st March, 2017 Rs. 1.67 lakhs) out of unclaimed dividend pertaining to the financial year 2008-2009 and 2009-2010 to Investor Education and Protection Fund of Central Government in accordance with the provisions of section 125 of the Companies Act, 2013.
a) The Company has made a provision of excise duty payable amounting to Rs. Nil (31st March, 2017 Rs. 20.48 lakhs) on stocks of finished goods at the end of the year. Excise duty is considered as an element of cost at the time of manufacture of goods. The Government of India has implemented Goods and Service Tax (“GST”) from 01st July, 2017 replacing Excise Duty, Service Tax and various other indirect taxes. Accordingly, as per IND AS
18, no provision is required to be made for excise duty on closing inventory of finished goods.
a) Contingent liability with respect to item (i) above represents disputed excise demands pertaining to various years ranging from 1996-1997 to 2005-2006. All these matters are pending with appellate authorities and the company believes that it has merit in these cases and more likely than not the company will succeed in these cases.The company is contesting these demands and the management, including its tax advisors, believe that its position will likely to be upheld in the appellate process and accordingly no provision has been accrued in the financial statements for the demand raised.
b) The Company has suspended few workmen in the year 2002 for misconduct and instigating other workmen to give less production including himself. The Company has adhered to all the stipulated process as is desired by statue, mainly the Industrial Dispute Act and The Payment of Wages Act. The workmen has raised a demand notice and state government has raised the dispute to Industrial Tribunal cum Labour court. The tribunal has passed order in favour of workmen with reinstatement with back wages. The Company has filed a Writ in the Punjab and Haryana High court in Chandigarh for these cases and the same was listed for hearing for grant of stay on May 25, 2018. The Company is contesting the demands and the management, including its legal advisors, believe that its position will likely to be upheld in the High Courts and accordingly no provision has been accrued in the financial statements for the demand raised.
The management believes that the ultimate outcome of these proceeding will not have a material adverse effect on the
Company’s financial position and results of operations
(C) Undrawn committed borrowing facility
(a) The company has availed working capital limit amounting to Rs. 1,760 lakhs from HDFC Bank Limited which remain undrawn as at 31st March, 2018.
(b) Working capital limit from HDFC Bank are secured by way of:
(i) pari-passu first charge with HDFC Bank Limited by way of hypothecation on entire stocks of raw materials, semifinished goods, finished goods, stores and spares, bill receivables, book debts and all movable and other current assets of the Company.
(ii) pari-passu second charge with HDFC Bank Limited by way of equitable mortgage of land and building at Bhorakalan, Haryana.
(iii) pari-passu second charge on all moveable fixed assets.
(c) The Company has a debit balance in cash credit account with HDFC Bank as on date of Balance Sheet except in case of Yes Bank Limited where the company has sanctioned working capital limit of Rs. 1,760 lakhs and balance outstanding of Rs. 74.40 lakhs represented under short- term borrowings as at 31st March, 2018. {refer note no. 22}.
(D) For commitments relating to leases, refer note 38(h).
Note :
a) According to the requirement of IND AS, revenue for the year ended 31st March, 2017 were reported inclusive of excise duty. The Government of India has implemented Goods and Service Tax (“”GST””) from 01st July, 2017 replacing Excise Duty, Service Tax and various other indirect taxes. Accordingly, as per IND AS 18, the revenue for the year ended 31st March, 2018, is reported net of GST and inclusive of excise duty pertaining to April’ 2017 to June’ 2017.
b) Excise duty collected from customers included in sale of products amounting to Rs. 3,109.72 lakhs (31st March, 2017: Rs. 10,736.69 lakhs).
4. OTHER NOTES TO ACCOUNTS
a. Disclosures pursuant to Ind AS-19 “Employee Benefits”(specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015) are given below :
Defined Benefit Plan
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with the Life Insurance Corporation of India in the form of a qualifying insurance policy.
The Company has also provided for leave encashment which is unfunded.
The following tables summarize the components of net benefit expense recognised in the other comprehensive income in the statement of the profit and loss and the funded status and amounts recognised in the balance sheet for the respective plans:
xi) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.
xii) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.
xiii) The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefits obligation as a result of reasonable changes in key assumption occurring at the end of the reporting period.
xiv The plan assets are maintained with Life Insurance Corporation of India (LIC).
b. Operating segment information
The Company has only one reportable business segment as it manufactures and deals only in different seating systems, carpet etc. in terms of Ind AS 108 ‘‘Operating Segment”. Further, the Company operates only in one geographical segment -India. All the assets of the Company are located in India. The chief operating officer and chief financial officer (chief operating decision maker) monitors the operating results as one single segment for the purpose of making decisions about resource allocation and performance assessment. Hence, the disclosure requirements of the standard are not considered.
The revenue from external customer includes revenue from one customer which is equal to 10% or more of entity’s revenue amounts to Rs. 93,986.42 lakhs (31st March, 2017: Rs 89,904.80 lakhs).
c. Related party transactions
The related parties as per the terms of Ind AS-24,”Related Party Disclosures”, (specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015) are disclosed below:-
Note: The remuneration to the key management personnel does not include the provision made for leave benefits, as it has been determined on an actuarial basis for the Company as a whole.
Terms and Conditions of transactions with related parties
The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2018, the Company has not recorded any impairment of receivables relating to amounts owed by related parties .This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
d. Expenditure on corporate social responsibility
As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of the preceding three financial years towards Corporate Social Responsibility (“CSR”). Accordingly, a CSR committee has been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. The Company has contributed a sum of Rs. 26.23 lakhs (31st March, 2017: Rs. 6.50 lakhs) towards education and healthcare purpose. The same is debited to the Statement of Profit And Loss.
e. Fair Value measurements
Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of their fair value:
The fair value of the financial assets and liabilities is included at the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following method and assumption were used to estimate the fair value.
i) The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other noncurrent financial liabilities is estimated by discounting future cash flow using rates currently available for debt on similar terms, credit risk and remaining maturities. In additional to being sensitive to a reasonably possible change in the forecast cash flow or the discount rate, the fair value of the equity instruments is also sensitive to a reasonably possible change in the growth rates. The valuation requires management to use unobservable inputs in the model, of which the significant unobservable inputs are disclosed in the tables below. Management regularly assesses a range of reasonably possible alternatives for those significant unobservable inputs and determines their impact on the total fair value.
ii) Receivables/Payables are evaluated by the Company based on parameters such as interest rate, risk factors, and individual credit worthiness of the counterparty and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.
iii) The significant unobservable inputs used in the fair value measurement categorized within level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31st March,2018 are as shown below :-
Fair Value Hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly
Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data
Note: The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
f. Financial risk management
The Company has instituted an overall risk management programme which also focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Corporate Finance department, evaluates financial risks in close co-operation with the various stakeholders.
The Company is exposed to capital risk, market risk, credit risk and liquidity risk. These risks are managed pro-actively by the Senior Management of the Company.
i) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprises three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity price risk. Financial instruments affected by market risks include loans and borrowings, deposits, investments and foreign currency receivables and payables. The sensitivity analyses in the following sections relate to the position as at 31st March, 2018 and 31st March, 2017. The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities. The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of 31st March, 2018 and 31st March, 2017.
a) Currency risk:-
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in foreign currency). Foreign currency exchange rate exposure is partly balanced by purchasing of goods from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.
Foreign currency risk sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD, Euro and JPY exchange rates, with all other variables held constant. The impact on the Company profit before tax is due to changes in the fair value of monetary assets and liabilities.
The Company has derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rate on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial instruments. The details of the outstanding foreign exchange forward are as follows:
b) Interest rate risk:
Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long term debt obligation at floating interest rates:
c) Price risk
The Company is not exposed to any price risk as there is no investment in equities and the Company does not deal in commodities.
ii) Liquidity risk:
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company employees’ prudent liquidity risk management practices which inter alia means maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. Given the nature of the underlying businesses, the corporate finance maintains flexibility in funding by maintaining availability under committed credit lines and this way liquidity risk is mitigated by the availability of funds to cover future commitments. Cash flow forecasts are prepared and the utilized borrowing facilities are monitored on a daily basis and there is adequate focus on good management practices whereby the collections are managed efficiently. The Company while borrowing funds for large capital project, negotiates the repayment schedule in such a manner that these match with the generation of cash on such investment. Longer term cash flow forecasts are updated from time to time and reviewed by the senior management of the Company.
The table below represents the maturity profile of Company’s financial liabilities at the end of 31st March, 2018 and 31st March, 2017 based on contractual undiscounted payments:
iii) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or the counterparty to a financial instrument fails to meet its contractual obligation, and arises principally from the Company’s receivables from customers. Credit risk arises from cash held with banks, as well as credit exposure to customers including outstanding accounts receivables. The maximum exposure to credit risk is equal to the carrying value of the financials assets. The Company assesses the credit quality of the counterparties, taking in to account their financial position, past experience and other factors.
Credit risk relating to trade receivable, securities given is considered negligible as counterparties are having good credit quality.
g. Capital Management
For the purposes of Company’s capital management, Capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2018 and 31st March, 2017.
The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. The Company’s policy is to keep the gearing ratio between 0% to 10%.
The gearing ratio for each year is as follows:-
h. Lease
Operating lease commitments-Company as lessee
i) The Company has taken various commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry. There are no restrictions placed upon the Company by entering into these leases and there are no subleases. The annual increments are expected to be in line with the expected general inflation to compensate the lessor for the expected inflationary cost increase.
ii) The Company has also taken few commercial premises under non-cancellable operating leases. There are no restrictions placed upon the Company by entering into these leases and there are no subleases. Normally there are renewal and escalation clauses in these contracts. The total of future minimum lease payments in respect of such leases are as follows:
Operating lease commitments-Company as lessor
The Company has entered into a cancellable operating lease with Toyo Sharda India Private Limited for 2 years starting from 01 June 2015. It can be extended for 2 years at such terms and conditions mutually agreed upon. The rent shall increase by 5% annually. Lessee shall not assign/ sublet property to any other person. The total rent recognised as income during the year is Rs. 22.31 lakhs (31st March 2017: Rs. 21.25 lakhs).
i. Disclosures pursuant to Ind AS-8 “Accounting policies, changes in accounting estimates and errors”(specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2015) are given below :
Following are the restatement made in the current year financial statements in previous year.
- The above restatements in previous year have been made, wherever necessary to conform to the current year classification/disclosure and doesn’t have any impact on the profit, hence no change in the basic and diluted earnings per share of the previous year.
- The above restatements doesn’t have any impact at the beginning of the previous year i.e. 01st April, 2016.
The Research and Development facilities are located at the Head office, Gurugram in Haryana and are approved by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India. The Company is entitled to a weighted deduction of 150% of the expenditure incurred at this unit under section 35(2AB) of the Income Tax Act, 1961.
l. Note no. 1 to 38 pertaining to balance sheet and statement of profit and loss form an integral part of the financial statements.
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