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Crompton Greaves Ltd.<br />
SCHEDULE [B] (Contd.)<br />
II<br />
Secondary Segment (Geographical Segment)<br />
(a)<br />
The distribution of the <strong>com</strong>pany’s sales by geographical market is as under:<br />
Rs. Crores<br />
Sales Revenue: <strong>2003</strong>-04 2002-03<br />
India 1673.47 1519.40<br />
Outside India 187.58 206.99<br />
Total 1861.05 1726.39<br />
82<br />
(b) The <strong>com</strong>pany’s tangible fixed assets are located entirely in India.<br />
III Segment Identification, Reportable Segment and Definition of each Reportable Segment:<br />
(i) Segment Revenue and Results<br />
The expenses which are not directly attributable to any business segment are shown as unallocable<br />
expenditure<br />
(ii) Segment Assets and Liabilities<br />
Segment assets include all operating assets used by the business segment and mainly consist of<br />
fixed assets, debtors and inventories. Segment liabilities primarily include creditors and other<br />
liabilities. Common Assets and Liabilities which cannot be allocated to any of the segments are<br />
shown as a part of unallocable assets / liabilities.<br />
(iii) Primary / Secondary Segment Reporting Format:<br />
1 The risk-return profile of the Company’s business is determined predominantly by the nature<br />
of its products and services. Accordingly, the business segment constitutes the primary<br />
segment for disclosure of segment information.<br />
2 In respect of secondary segment information, the Company has identified its geographical<br />
segments as (a) Domestic and (b) Overseas. The secondary segment information has been<br />
disclosed accordingly.<br />
(iv) Segment Identification:<br />
Business segments have been identified on the basis of the nature of products / services, the<br />
risk-return profile of individual business, the organizational structure and the internal reporting<br />
system of the Company.<br />
(v) Reportable Segments:<br />
Reportable segments have been identified as per the quantitative criteria specified in “Accounting<br />
Standard-17 Segment Reporting” issued by the Institute of Chartered Accountants of India.<br />
(vi) Primary Segment<br />
In the opinion of the management, the business segment <strong>com</strong>prises the following :<br />
(a) Power Systems : Transformer, Switchgear, Turnkey Projects<br />
(b) Consumer Products : Fans, Luminaires, Light Sources and Pumps<br />
(c) Industrial Systems : Electric Motors and Alternators<br />
(d) Digital : Tele<strong>com</strong>munication<br />
37 (a) The Company has not entered into any Finance / Operating Lease as specified in AS-19 “Leases”. The<br />
Company has however taken various residential/<strong>com</strong>mercial premises and plant & machinery under<br />
cancellable operating lease. These lease agreeements are normally renewed on expiry.<br />
(b) The lease agreements provide for an option to the <strong>com</strong>pany to renew the lease period at the end of<br />
the non-cancellable period.<br />
(c) There are no exceptional / restrictive covenants in the lease agreements.<br />
38 Disclosure in respect of Joint Ventures:-<br />
For the purposes of disclosure pertaining to AS-27, all Joint Venture Companies have been considered as<br />
Associates since these Joint Venture Companies do not fulfill the criterian specified in AS-27.
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