Year Ended March 31, 2008 - Lumax Auto Technologies Ltd.
Year Ended March 31, 2008 - Lumax Auto Technologies Ltd.
Year Ended March 31, 2008 - Lumax Auto Technologies Ltd.
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<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.BOARD OF DIRECTORSMr. D.K. Jain (Chairman)Mrs. Usha Jain(Managing Director)Mr. Anmol Jain(Director)Mr. Manmohan Sachdev(Independent Director)Mr. Sandeep Dinodia(Independent Director)Mr. A. V. Alexander(Independent Director)Mr. Dhiraj Dhar Gupta(Independent Director)FINANCE HEADMr. Ashish DubeyCOMPANY SECRETARYMs. Milita BharREGISTRAR & TRANSFER AGENTM/s Big Share Services Pvt. <strong>Ltd</strong>.E/2, Ansa Industrial Estate,Saki Vihar Road, Sakinaka,Andheri (E) Mumbai – 400 072.E-mail : prema@bigshareonline.comAUDITORSM/s D. R. Barve & Co.Chartered Accountants4 th Floor, Above. Dr. Phatak Hospital,Opp. New English High School,Tilak Road, Pune-411030REGISTERED & CORPORATE OFFICEW-230, ‘S’ Block,M.I.D.C. Bhosari,Pune - 411 026Website: www.lumaxautotech.comBANKERSABN Amro Bank NVHDFC Bank <strong>Ltd</strong>.State Bank of IndiaWORKSa)b)c)d)e)f)g)W-230. ‘S’ Block, M.I.D.C. Bhosari Pune, MaharashtraPlot No. 70, Sector-10, PCNTDA, Bhosari Pune, MaharashtraGat No. 156/1, Mahalunge, Chakan Pune, MaharashtraPlot No. 54/8, D-II, Block-2, M.I.D.C. Chinchwad, Pune, MaharashtraW-28, M.I.D.C., Waluj, Industrial Area Aurangabad, MaharashtraA-8, M.I.D.C., Waluj, Industrial Area Aurangabad, MaharashtraB-86, Mayapuri, Industrial Area, New Delhi (Marketing Division)1
Contentsth27Annual Report2007-<strong>2008</strong>Page No.Financial Data at a Glance.......................................................................................................... 03Graphs ........................................................................................................................................ 04Directors' Report & Annexures.................................................................................................... 05-21Auditors' Report on Accounts...................................................................................................... 22-23Balance Sheet............................................................................................................................. 24Profit & Loss Account .................................................................................................................. 25Cash Flow Statement.................................................................................................................. 26Schedules to Balance Sheet and P&L Account .......................................................................... 27-32Notes Forming Part of Accounts ................................................................................................. 33-40Balance Sheet Abstract............................................................................................................... 41Statement Pursuant to Section 212 of the Companies Act, 1956 ............................................... 42Subsidiary Company................................................................................................Directors' Report ......................................................................................................................... 43-45Auditors' Report on Accounts...................................................................................................... 46-47Balance Sheet............................................................................................................................. 48Profit & Loss Account .................................................................................................................. 49Cash Flow Statement.................................................................................................................. 50Schedules to Balance Sheet and P&L Account........................................................................... 51-56Notes Forming Part of Accounts ................................................................................................. 57-66Balance Sheet Abstract............................................................................................................... 67Consolidated.............................................................................................................Auditors' Report on Consolidated Accounts................................................................................ 68Balance Sheet............................................................................................................................. 69Profit & Loss Account .................................................................................................................. 70Cash Flow Statement.................................................................................................................. 71Schedules to Balance Sheet and P&L Account........................................................................... 72-77Notes Forming Part of Accounts ................................................................................................. 78-90Attendance Slip ........................................................................................................................... 91ANNUAL GENERAL MEETING ON 13th AUGUST, <strong>2008</strong>
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.FINANCIAL DATA AT A GLANCE(Rs. in lacs)PARTICULARS 2007-08 * 2006-07 * 2005-06 * 2004-05 2003-04 2002-03 2001-02 2000-01Net Sales 29,114.90 21,642.57 11,723.18 8,549.29 5,897.28 4,032.57 4,824.03 3,969.19% Growth 34.53% 84.61% 37.12% 44.97% 46.24% (16.41)% 21.54% 19.28%Other Income 103.70 25.92 15.33 13.49 9.88 10.95 9.54 20.03Total Income 29,218.60 21,668.49 11,738.51 8,562.78 5,907.16 4,043.52 4,833.57 3,989.22Total Expenses 26,741.33 20,349.60 10,828.11 8,144.06 5,611.61 3,823.98 4,514.00 3,799.<strong>31</strong>Earning Before Depreciation, Interest & Tax 2,477.27 1,<strong>31</strong>8.89 910.40 418.72 295.55 219.54 <strong>31</strong>9.57 189.91Interest 264.88 128.91 120.43 45.47 38.51 56.28 75.69 86.36Cash Profit 2,212.39 1,189.98 789.97 373.25 257.04 163.26 243.88 103.55% Rise In Cash Profits 85.92% 50.64% 111.65% 45.21% 57.44% (33.06)% 135.52% (36.07)%Depreciation 407.14 236.30 166.53 88.52 86.10 74.<strong>31</strong> 67.94 59.72Earning Before Tax (EBT) 1,805.25 953.68 623.44 284.73 170.94 88.95 175.94 43.83% of EBT To Total Income 6.18% 4.40% 5.<strong>31</strong>% 3.33% 2.89% 2.20% 3.64% 1.10%Provision for Tax 614.66 340.02 239.91 92.66 66.84 24.79 0.30 5.57Earning After Tax (EAT) 1,190.59 613.66 383.53 192.07 104.10 64.16 175.64 38.26% of EAT To Total Income 4.07 2.83 3.27 2.24 1.76 1.593.63 0.96Gross Block 8,140.13 5,432.95 4,083.26 1,649.20 1,382.92 1,2<strong>31</strong>.04 1,118.71 1,028.98Net Block 6,710.37 4,390.54 3,276.53 1,121.28 938.11 856.56 815.21 792.78Capital Work In Progress 693.56 2,052.20 116.44 132.43 14.23 44.61 8.56 3.08Investments 139.49 0.01 0.01 0.01 0.01 0.02 41.53 41.53Current Assets 7,980.16 6,261.69 3,207.91 1,622.26 1,626.87 964.35 1,064.25 634.85Current Liabilities 6,974.62 5,718.39 3,117.82 1,612.76 1,641.85 986.95 924.73 576.30Net Current Assets 1,005.54 543.30 90.09 9.50 (14.98) (22.60) 139.52 58.55Deferred Revenue Expenditure 22.58 41.94 61.<strong>31</strong> 24.24 32.32 - - -Equity Share Capital 1,163.15 1,163.15 714.46 343.53 343.53 343.53 396.03 253.84Reserve & Surplus 4,295.04 3,360.59 673.38 161.44 47.91 3.98 103.74 126.41Loan Funds 2,576.<strong>31</strong> 2,151.14 1,889.19 643.69 444.69 410.35 505.05 515.69Deferred Tax Liabilities 537.03 353.11 267.35 138.80 133.56 118.73 - -* Figures given on Consolidated basis.3
GRAPHSAmount Rs. in Lacs35000300002500020000150001000050000Turnover291152164<strong>31</strong>1723589785492003-04 2004-05 2005-06 2006-07 2007-08Amount Rs. in Lacs30002400180012006000Earning Before Depreciation, Interest andTax296 4199101<strong>31</strong>924772003-04 2004-05 2005-06 2006-07 2007-08<strong>Year</strong>s<strong>Year</strong>sEarning Before TaxEarning After TaxAmount Rs. in Lacs25002000150010005000180595462<strong>31</strong>712852003-04 2004-05 2005-06 2006-07 2007-08Amount Rs. in Lacs140012001000800600400200011916143841041922003-04 2004-05 2005-06 2006-07 2007-08<strong>Year</strong>s<strong>Year</strong>s*Figures given on consolidated basis4
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.To The Members,DIRECTORS' REPORTYour Directors are pleased to present the 27th Annual Report on the business and operations together with Audited Balance Sheet andProfit & Loss A/c of your Company for the year ended <strong>31</strong>st <strong>March</strong>, <strong>2008</strong>.FINANCIAL RESULTSRs. In Lacs2007-<strong>2008</strong> 2006-2007Sales (Excluding Excise Duty)Gross Profit (GP)(-) Interest(-) DepreciationProfit Before Taxation (PBT)(-) Provision for Taxation, Deferred TaxAdjustment and FBTProfit After Tax (PAT)(+) Balance in the P&L A/c b/f(-) Prior Period Adjustment(+) Adjustments made during the <strong>Year</strong>Profit for AppropriationAppropriation :Proposed Equity DividendTax on DividendTransfer to General ReserveBalance retained in P & L A/cDIVIDEND17,719.26778.84133.85209.97435.02158.10276.92225.9350.01-452.84174.4729.6527.00221.7216,035.18642.6554.89152.20435.56160.71274.85170.59-12.11457.55174.4729.6527.50225.93Your Directors are pleased to recommend a Dividend of 15% (Rs.1.50 per share) for the year ended <strong>31</strong>st <strong>March</strong>, <strong>2008</strong> as against 15% Dividenddeclared in the previous year. The total amount of Dividend proposed to be distributed is Rs. 174.47 Lacs (excluding Dividend Tax). The Dividendpayout ratio for the year works out to 62.55%. An amount of Rs.27.00 Lacs is proposed to be transferred to General Reserve and the balanceamount of Rs.221.72 Lacs is retained in the Profit & Loss account.BUSINESS PERFORMANCEFor the Financial <strong>Year</strong> 2007-<strong>2008</strong>, your Company has achieved a Sales Turnover (net of excise) of Rs.17,719.26 Lacs (on Standalone Basis) asagainst Rs.16035.18 Lacs (on Standalone Basis) in the previous year, showing a marginal growth of around 10.50%. The Profit After Tax (PAT)for the current year has increased to Rs. 276.92 Lacs (on Standalone Basis) from Rs.274.85 Lacs (on Standalone Basis) as compared toprevious year.However, on Consolidated Basis, for the Financial <strong>Year</strong> 2007-<strong>2008</strong>, your Company has achieved a Sales Turnover (net of excise) ofRs. 29,114.90 Lacs as against Rs. 21,642.57 Lacs in the previous year, showing an impressive growth of around 34.52%. The Profit After Tax(PAT) for the current year has increased to Rs. 1,190.59 Lacs (on Consolidated Basis) from Rs.613.66 Lacs (on Consolidated Basis) of theprevious year having a jump of 94.01% in the Consolidated Profit After Tax of the Company as compared to last Financial <strong>Year</strong>.The financial performance of the Company, on Standalone Basis, was largely impacted by the steep decline in the two wheelers sales, whichcommands 75% market share, being dropped by 7.92% to 72.48 Lacs units in FY 08 against the previous years 78.72 Lacs. The substantialCapital Investments made by the Company during the year 2006-2007, further kept the margins under pressure. However, the Company wasable to maintain its profitability due to introduction of new models and better business with the existing OEM customers.Further, on Consolidated Basis, the operations of the Company have shown remarkable improvement. This growth has been contributed, amongothers by new business on account of new models viz SX4 and Dzire introduced by Maruti Suzuki India <strong>Ltd</strong>. for which the Subsidiary of yourCompany- <strong>Lumax</strong> DK <strong>Auto</strong> Industries <strong>Ltd</strong> (LDK) is the single source supplier of Gear-Shifter and Parking Brakes. In addition, the LDK has alsocommenced commercial production of its Pantnagar Plant- Uttarakhand for supplies to Bajaj <strong>Auto</strong> <strong>Ltd</strong>. and its operations have been stabilizedduring the year. Your directors feel pleasure to inform that all major Original Equipment Manufacturers (OEMs) like Bajaj <strong>Auto</strong> <strong>Ltd</strong>. and MarutiSuzuki India <strong>Ltd</strong>. who visited the unit have appreciated the operations of the unit and rated this plant as best plant of its kind. Further, TotalProductive Maintenance (TPM) activities at this plant have enabled it to considerably improve product quality and cost reduction & control leadingto further improvement in the profitability of the Subsidiary Company.A detailed discussion on the business performance and future outlook is provided in the Chapter on Management Discussion and Analysis (MDA).SETTING UP OF NEW JOINT VENTURE COMPANY- LUMAX CORNAGLIA AUTO TECHNOLOGIES PRIVATE LIMITEDDuring the year under review your Company has entered in to Joint Venture Agreement with Officine Metallurgiche G. Cornaglia, S.p.A, Italy throughits subsidiary Cornaglia Metallurgical Products India Private Limited to manufacture and supply Air Intake Systems and Exhaust Systems to<strong>Auto</strong>mobile manufacturers. The JV Company is in the process of setting up the new project and the first phase of the project is expected to becompleted in the year <strong>2008</strong>-2009.5
DIRECTORSMr. Anmol Jain, Mr. Sandeep Dinodia, Directors are retiring by rotation at the ensuing Annual General Meeting and being eligible, offer themselvesfor re-appointment.Your Directors recommend the re-appointment of the above said Directors at the ensuing Annual General Meeting.DIRECTORS RESPONSIBILITY STATEMENTAs required under Section 217(2AA) of the Companies Act 1956, the Directors state:(i)(ii)(iii)(iv)that in the preparation of the Annual Accounts for the Financial <strong>Year</strong> ended <strong>31</strong>st <strong>March</strong>, <strong>2008</strong>, the applicable Accounting Standards havebeen followed along with proper explanation relating to material departures;that the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that arereasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profitor loss of the company for that period;that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with theprovisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and otherirregularities;that the Directors have prepared the Annual Accounts on a “going concern” basis.FIXED DEPOSITSDuring the year under review the company has not accepted any Deposit under Sections 58A and 58AA of the Companies Act, 1956 read with theCompanies (Acceptance of Deposits) Rules, 1975.AUDITORSM/s D. R. Barve & Co, Chartered Accountants are proposed for re-appointment as Statutory Auditors of the Company from the conclusion of theensuing Annual General Meeting till the conclusion of the next Annual General Meeting. They have given their consent to act as Auditors of theCompany and have further confirmed that their appointment would be in conformity of the provision of Section 224(1B) of the Companies Act,1956. The Board recommends their re-appointment for the approval of members in the ensuing Annual General Meeting.SUBSIDIARY COMPANY100% SUBSIDIARY- LUMAX DK AUTO INDUSTRIES LIMITEDIn accordance with Section 212 of the Companies Act, 1956 the Audited Statements of the Accounts of the Companies Subsidiary <strong>Lumax</strong> DK<strong>Auto</strong> Industries Limited together with the reports of the Directors and Auditors thereon for the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong> are annexed hereto andform part of this Report.CONSOLIDATED FINANCIAL STATEMENTThe Consolidated Financial Statements of the Company and its 100% subsidiary <strong>Lumax</strong> DK <strong>Auto</strong> Industries Limited as prepared in accordancewith the Accounting Standard 21 are annexed hereto and forms part of this Report.MANAGEMENT DISCUSSION & ANALYSISPursuant to the provisions of Clause 49 of the Listing Agreement, Management Discussion & Analysis is annexed as part of this report separatelyas Annexure - A.OTHER INFORMATIONDisclosure of information regarding Conservation of Energy, Research & Development, Technology Absorption and Foreign Exchange Earningand Outgo etc. under Section 217(1)(e) of the Companies Act, 1956 is annexed separately as Annexure - B. None of the employees were inreceipt of remuneration exceeding the limits prescribed pursuant to Section 217 (2A) of the Companies Act, 1956, read with Companies(Particulars of Employees) Rules, 1975 during the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong>.CORPORATE GOVERNANCEThe report on Corporate Governance together with the Auditor's Certificate regarding the Compliance of conditions of Corporate Governance asstipulated in Clause 49 of the Listing Agreement is annexed and forms part of this Annual Report as Annexure C.6
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.ACKNOWLEDGEMENTThe Directors wish to place on record their sincere thanks to all its highly valued customers, its Technical Collaborators, all other businesspartners, all the Shareholders, Financial Institutions, Banks, Vendors and various Government agencies for their continued support andpatronage.The Board would also like to acknowledge the co-operation & commitment rendered by all the associates & employees of the Company.For and on behalf of the Board of DirectorsPlace : GurgaonDated : 28th June <strong>2008</strong>D.K. JAINChairmanMANAGEMENT DISCUSSION & ANALYSISANNEXURE - Aa) INDUSTRY STRUCTURE , DEVELOPMENTS AND OUTLOOKThe economy has moved decisively to a higher growth phase. Till, few years ago, there was still a debate among informed observers aboutwhether the economy had moved above the 5 to 6 percent average growth seen since the 1980s. There is now no doubt that the economyhas moved to a higher growth plane, with growth in GDP at market prices exceeding 8 percent in every year since 2003-04. The economicgrowth of 9% in 2007-08, faster than the advance estimate of 8.7%, is fully in line with this trend. Agriculture was principally responsible forthe faster growth.(Source: Central Statistical Organisation) However, the auto component industry turnover increased from $15 Billion inthe year 2006-07 to $ 18 Billion in the year 2007-08 registering a growth of 20% over the previous year. (Source: ACMA)AUTO AND AUTO COMPONENT INDUSTRYA well developed transport network indicates a well developed economy. For rapid development a well-developed and well-knittransportation system is essential. As India's transport network is developing at a fast pace, Indian <strong>Auto</strong>mobile Industry is growing too. Also,the <strong>Auto</strong>mobile industry has strong backward and forward linkages and hence provides employment to a large section of the population.Thus the role of <strong>Auto</strong>mobile Industry is very important in Indian Economy. Various kinds of vehicles are produced by the <strong>Auto</strong>mobileIndustry. India <strong>Auto</strong>mobile Industry includes the manufacture of trucks, buses, passenger cars, defense vehicles, two-wheelers, etc.However, after seven straight years of growth, automobile sales slumped by 4.70% to 96.48 Lacs units in 2007-08 against the previousfinancial year's 101 Lacs units. The industry was largely impacted by the steep decline in the two wheelers sales, which commands 75%market share, being dropped by 7.92% to 72.48 Lacs units in FY 08 against the previous years 78.72 Lacs unit. The industry plagued byhigh interest rates hitting local consumer demand, a credit squeeze and rising input costs, however, reported a robust growth of 22.44% inexports.The Indian automobile component industry is emerging as a world-classoutsourcing destination for global auto majors. The Indian automobilecomponent industry is fully equipped to deliver compelling value to theworld in design, engineering and component manufacture. Theopportunity for India is to plug into all aspects of the global value chain. Ithas also the opportunity and the potential to dramatically increase itsshare of global automobile market.The present size of the <strong>Auto</strong> Components industry in India is estimatedat US $18 Billion. It has been growing at a CAGR 27.2% p.a. for last fiveyears which is highest in the Industrial Sector.b) OPPORTUNITIES & THREATSIndia holds huge potential in the automobile sector including theautomobile component sector owing to its technological, cost andmanpower advantage. Further, India has a well-developed, globallycompetitive <strong>Auto</strong> Ancillary Industry and established automobile testing and R&D centers. The country enjoys natural advantage and isamong the lowest cost producers of steel in the world. The current scenario offers huge growth opportunities for <strong>Auto</strong> Component Industryin India and abroad and for your Company in particular.The area of major competition for the Indian <strong>Auto</strong> Industry is in the component sector. Firstly, global sourcing of components from Chinabrings savings of nearly 17-20% as against the 15% - 17% in the case of India which is mainly due to their scale economies, lower powercosts, reduced freight, local government concessions, lower transactional costs etc. With the increasing competition from global OEM's,Indian Component exporters might lose out in the price wars, if they start with higher base. Further, the structure of the component industryin India shows a largely fragmented industry (implying low scale operations). Hence the Chinese dragon could eat away a diverse set ofsmall and medium enterprise in India through low cost imports of components (primarily in low end, low technology parts). The otherchallenges being faced by the <strong>Auto</strong> Component Industry is presence of Counterfeit Components, Rising Input Costs, Higher Interest rates,continuous pressure from OEM's to reduce prices.7
Your Company proposes to address these threats and convert the opportunities into growth of the Company by cost reduction measures,developing economies of scale, process improvements, quality up-gradations, increase market share and by diversifying existingcustomer base with the addition of new strategic customers and enhancing the existing relationship.c) PRODUCT WISE PERFORMANCEThe Company is engaged only in one segment of products viz. manufacture of <strong>Auto</strong> Components. The Company continued to perform wellduring the year as shown below:S.No.12345678d) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACYThe Company maintains a system of internal controls designed to provide a high degree of assurance regarding effectiveness andefficiency of operations, the adequacy of safeguards for assets, the reliability of financial controls and compliance with applicable laws andregulations. The Company has appointed Independent firm of Internal Auditors who regularly conducts Audit of all the functional areas andis responsible to examine the adequacy and the compliance with policies and plans of the Company. Continuous audit and verification ofthe systems enables the various business groups to plug any shortcomings sooner rather than later. In addition, the top management andthe Audit Committee of the Board review the findings and recommendations.e) RISK AND CONCERNProductsChassisFrame Sub AssemblyHead Lamp AssemblySilencerLamp Shed AssemblyRear Assembly/Fender AssemblyTail LampOthersTotalIn order to promote a common risk language, improved understanding of risk and the ability to consolidate risk information across all units,risk identification framework has been developed which will continue to be updated with the specific risks identified through various risksassessments from time to time.f) DISCUSSION ON FINANCIAL PERFORMANCE WITH REFERENCE TO OPERATIONAL PERFORMANCEThe Company has achieved a Sales Turnover (net of excise) of Rs. 17,719.26 Lacs as against Rs.16,035.18 Lacs in the previous year,showing a marginal growth of around 10.50%. The Profit After Tax (PAT) for the current year has increased to Rs. 276.92 Lacs fromRs.274.85 Lacs as compared to the previous year.g) HUMAN RESOURCES AND INDUSTRIAL RELATIONSThe Company has given emphasis to upgrade the skills of its technical and marketing personnel. This is in keeping with its policy ofenhancing the individual's growth potential within the framework of corporate goals.The Directors acknowledge and appreciate the contribution of all employees towards the performance of the Company.During the year under review the Company maintained cordial relationship with all employees.Turnover3,425.782,266.39700.94244.51754.51991.2746.059,289.8117,719.26(Rs. in Lacs)CAUTIONARY STATEMENTThe above mentioned statements are only “forward looking statements” based on certain assumptions/expectations. The Company'sactual performance could differ materially from those expressed/projected depending upon changes in various factors. The Companydoes not assume any responsibility to any change(s) in “forward looking statements”, on the basis of subsequent development, informationor events etc.8
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.ANNEXURE - BInformation as per Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of theBoard of Directors) Rules 1988, and forming part of Directors' Report for the year ended <strong>31</strong>st <strong>March</strong> <strong>2008</strong>.A. CONSERVATION OF ENERGYThough the Company does not come under the category of power intensive unit, adequate measures have been taken for energyconservation and thereby to reduce energy cost.(a) Energy Conservation Measures taken and their impact.During the year under review the Company has taken following measures to conserve the energy.• The Company has installed AFC i.e <strong>Auto</strong> Control on Power Factor Panel Board in Chakan Unit & which has resulted in saving in PowerCharges approximately by Rs. 2 Lacs per annum.• The Company has used light duty “V” pulleys instead of Heavy duty in milling machines to reduce ampere rating, which has resulted inreduction in Energy Consumption.• Improvement in Shot Blasting Machine Process for reduction in Cycle Time which reduces approximately one third consumption ofelectricity for the same process.• Change in weekly - off at Chakan in parlance with the Weekly Power Cut of M.S.E.B, thereby reduction in power generation cost throughalternative fuel.(b) Additional Investments and Proposals being implemented for reduction of consumption of Energy.• The Company is also proposing to install separate AFC panel for lighting division to maintain Power Factor for Chakan Unit with anInvestment of Rs. 50,000.• The Company is proposing to install capacitor bank with an investment of Rs. 30,000 for 50 KVAR to maintain Power Factor for BhosariUnit, which will save energy bill approximately by Rs. 10,000 per month.• The Company is also proposing to install capacitor bank with an Investment of Rs. 50,000 for 100 KVAR to maintain Power Factor forPCNTDA Unit. This will save in energy bill by approximately Rs. 15,000 per month.• Proposal to Change in weekly off at Aurangabad Units, in parlance with the Weekly Power Cut of M.S.E.B, thereby reduction in powergeneration cost through alternative fuel.(c) Impact of measures at (a) and (b) for reduction of energy consumption and consequent impact on the cost of production ofGoods.It is difficult to quantify the impact of individual energy reduction measures on the Cost of Production of Goods. The above measures ofenergy reduction will reduce overall cost of energy.B. TECHNOLOGY ABSORPTION AND RESEARCH & DEVELOPMENTThe company does not have any imported technology and hence the details required to be given for the imported technology are notapplicable.As a trend in the <strong>Auto</strong> Industries is changing from import in technology to provide and develop local competency, the Company has takenthe initiatives to improve local technical capabilities.RESEARCH & DEVELOPMENTa) Specific Areas in which R & D carried out by the Company• Steering Wheel Design & Development For Four Wheelers.• New Design and Process Technology Developed for the Development and manufacturing of Chassis, Petrol Tanks, and Muffler of<strong>Auto</strong>mobiles, such as, Robotic Assembly Process Developed for the Assembly of Muffler and Chassis.b) Benefits derived as a result of the above R & D:• Reinforced knowledge and Technology involving New Technology & Diversification from Two to Four Wheeler Segments.• Robotic Assembly Process benefits in the improved accuracy and quality, also, reduction in manpower cost.c) Future Plan of Action:• The Company will be applying to the Ministry of Science and Technology, Department of Scientific and Industrial Research Technologyfor recognition of In-House Research & Development Unit.• To upgrade our existing design and development infrastructure.• To start in-house designing of new generation automotive lamps for <strong>Auto</strong>motive OEMs (located in Pune region)9
d) Expenditure on Research & DevelopmentS.No.(i)ParticularsCapitalAmount39.284.1343.410.24%(Rs. in Lacs)C. FOREIGN EXCHANGE EARNINGS AND OUTGO(a) Activities relating to exports; initiatives taken to increase exports; development of new export markets for products andservices; and export plans :Your Company has been continuously striving for opportunities for growth in export business. During the year under review the followingexport development and promotion measures were taken.• Participated in 9th <strong>Auto</strong> Expo meet organized at New Delhi. Various procurement groups visited the stall & face to face meetings heldwith them to explore the opportunities for supplying the parts worldwide.b) Total Foreign Exchange used and earned:S.No.(i)Particulars AmountPayment in Foreign CurrencyEarning in Foreign Currency169.4124.38(Rs. in Lacs)10
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CORPORATE GOVERNANCE REPORTANNEXURE - C1. COMPANY'S PHILOSOPHYWe believe in establishing a mechanism by which the most effective and efficient values, principles, management policies and proceduresof the Company are inculcated. The essence of Corporate Governance for the Company lies in promoting and maintaining integrity,transparency and accountability throughout the organization. It is not only a sine qua non for facing intense competition for sustainablegrowth in the emerging global business scenario but is also an embodiment of the parameters of fairness, accountability and transparencyto maximize value for the stakeholders.The Board of Directors is at the core of our Corporate Governance Practice, which oversees how the management serves and protects thelong term interest of all stakeholders of the Company.2. BOARD OF DIRECTORSThe policy of the company is to have an appropriate mix of Executive and Non Executive Directors to maintain the independence of theBoard, and to separate the Board functions of Management and Governance. The Board consists of 7 Directors comprising of oneExecutive Director, Six Non-Executive Directors out of which four are Independent Directors. The composition of the Board is in conformitywith the requirements of Clause 49 of the Listing Agreement and the details of Directors are as follows:Sl.No.Name of theDirectorsCategory ofDirectorship1 Mr. D.K. Jain Non-ExecutiveDirector(Chairman)No. ofBoardMeetingsattendedNo. of Directorshipsin otherPublicNo. of CommitteePositions held in otherPublic companies.*Companies Chairman Member05 3 - 1 Yes2 Mrs. Usha Jain ExecutiveDirector ( MD)05 - - - Yes3 Mr. Anmol Jain Non-ExecutiveDirector4 Mr. ManmohanSachdev5 Mr.SandeepDinodiaNon-ExecutiveIndependentDirectorNon-ExecutiveIndependentDirector6 Mr. A. V. Alexander Non-ExecutiveIndependentDirector7 Mr.Dhiraj DharGupta**Non-ExecutiveIndependentDirector05 2 - - Yes05 - - - No04 2 2 1 Yes05 - - - No03 2 - - NoLast AGMAttendedRelationship,InterseRelated asHusband toMrs. UshaJain and asFather toMr. AnmolJainRelated asWife toMr. D.K Jainand asMother toMr. AnmolJainRelated asSon toMr. D.K Jain &Mrs. UshaJain.Not relatedto anyDirectorNot relatedto anyDirectorNot relatedto anyDirectorNot relatedto anyDirector*As per amended guidelines, Committee here means Audit Committee and Shareholders/ Investor Grievance Committee.** Mr. Dhiraj Dhar Gupta was appointed as an Additional Director at the Board Meeting held on 25th June, 2007 and as a regular Director retiringby rotation in the Annual General Meeting held on September 26, 2007a) Board Meetings and AttendanceThe Board of Directors had met five times during the financial year ended <strong>31</strong>st <strong>March</strong>, <strong>2008</strong>. The intervening period between two BoardMeetings was well within the maximum time gap of 4 months, as prescribed under Code of Corporate Governance. The details of BoardMeetings held during the year are as under :11
S.No.Date of BoardMeetingBoard’s StrengthNo. of DirectorsPresent1.2.3.4.5.17/05/200725/06/2007<strong>31</strong>/07/200723/10/200730/01/<strong>2008</strong>6777767676b) Board's ProcessesIt is always been the Company's policy and practice that apart from matter requiring Board's approval by statute, all major decisionsincluding quarterly results of the Company, financial restructuring, capital expenditure proposals, collaborations, material investmentproposals in joint venture / group companies, sale and acquisition of material nature of assets, mortgages, guarantees, donations etc, asand when applicable, are placed before the Board.The minimum information required as per Code of Corporate Governance, is being made available to the Board as and when applicable.The Board meets at least once a Quarter. The Board Meetings are generally scheduled well in advance and the notice of each BoardMeeting is given in writing to each Director. The items placed at the meeting of the Board include the following:-1. Unaudited quarterly/half yearly financial results and audited annual accounts of the company.2. Minutes of meeting of Audit, Shareholders Grievance Committee, Remuneration Committee along with the Minutes of the subsidiaryCompany.3. Abstract of circular resolution passed, general notices of interest and Sales and /or purchase of investments, fixed assets, if any.4. Review of compliance of all laws applicable to the company including the requirement of the Listing Agreement with the Stock Exchangeand steps taken by the company to rectify instances of non compliance, If any.5. Related party transaction, if any.6. Reviewing the company's financial and risk management policies.7. Reviewing the business plan and strategy of the company.All the items in agenda are accompanied by notes giving comprehensive information on related subject and in certain matters such asfinancial/business plans, financial results, detailed presentations are made. The agenda and relevant notes are given to each Directorseparately at the Board Meeting to enable the Board to take informed decisions.The minutes of the Meeting of the Board are circulated to all Directors and confirmed at the subsequent meeting. The minutes of the AuditCommittee, Remuneration Committee and Shareholders' Grievance Committee are also individually given to the members of theCommittee and thereafter placed before the Board at the subsequent board meeting for taking on record.3. COMMITTEES OF THE BOARDCurrently, the Board has three Committees: (A) Audit Committee, (B) Remuneration Committee, (C) Investor Grievance and ShareTransfer Committee. The brief details of the various committees of the Board and their constitution and functions are as under:A. Audit Committeea) Composition and AttendanceThe Audit Committee comprises of three Non-Executive Independent Directors. The Composition of the Audit Committee is as follows:S.No.1.2.3.Name of DirectorsMr. Sandeep DinodiaMr. Manmohan SachdevMr. A.V. AlexanderStatusChairmanMemberMemberCategory ofMembershipNon-ExecutiveIndependent DirectorNon-ExecutiveIndependent DirectorNon-ExecutiveIndependent DirectorThe Audit Committee had met four times during the Financial <strong>Year</strong> April 1, 2007 to <strong>March</strong> <strong>31</strong>, <strong>2008</strong>. The attendance of the meetings are asunder :-S.No.123DirectorsMr. Sandeep DinodiaMr. Manmohan SachdevMr. A.V. AlexanderNo. of Meetings attended34412
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Statutory Auditors, Managing Director, are permanent invitees to the Audit Committee Meetings. The Company Secretary acts as theSecretary to the Audit Committee.The Chairman of the Audit Committee attended the last Annual General Meeting, held on 26-09-2007.The Audit Committee has been constituted as per Section 292A of the Companies Act, 1956 and the guidelines set out in the ListingAgreement. The Audit Committee of the Company, inter-alia, provides assurance to the Board on the existence and adequacy of aneffective Internal Control systems that ensures:• Efficiency and effectiveness of operations.• Safeguarding of Assets and adequacy of provisions for all liabilities.• Reliability of all financial and other management information and adequacy of disclosures.• Compliance with all relevant statutes.The Committee has powers as envisaged under Clause 49(II) of the Listing Agreement and as specified by the Board of Directors of theCompany and includes the following terms of references:-b) Powers of Audit CommitteeAudit Committee shall have following Powers:a) To investigate any activity within its terms of referenceb) To seek any information from any employee.c) To obtain outside professional legal advice.d) To secure attendance of outsiders with relevant expertise, if considered necessary.c) Role of Audit Committee1. Oversight of the company's financial reporting process and the disclosure of its financial information to ensure that the financialstatement is correct, sufficient and credible.2. Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal of the Statutory Auditorand the fixation of audit fee.3. Approval of payment to Statutory Auditors for any other services rendered by the Statutory Auditors.4. Reviewing, with management, the annual financial statements before submission to the Board for approval with particular referenceto:a. Matters required to be included in the Directors' Responsibility Statement to be included in the Board's Report in terms of clause(2AA) of Section 217 of the Companies Act, 1956.b. Changes, if any, in accounting policies and practices and reasons for the same.c. Major accounting entries involving estimates based on the exercise of judgement by management.d. Significant adjustments made in the financial statements arising out of audit findings.e. Compliance with Listing and other legal requirements relating to financial statements.f. Disclosure of any related party transactions i.e. transactions of the company of material nature, with promoters or themanagement, their subsidiaries or relatives etc., that may have potential conflict with the interests of company at large.g. Qualifications in Draft Audit Report.5. Reviewing with the management, the quarterly financial statements before submission to the Board for approval.6. Reviewing with the management, performance of the Statutory and Internal Auditors, adequacy of Internal Control systems.7. Reviewing the adequacy of Internal Audit function, if any, including the structure of the internal audit department, staffing and seniorityof the official heading the department, reporting structure coverage and frequency of Internal Audit.8. Discussion with Internal Auditors on any significant findings and follow-up thereon.9. Reviewing the findings of any internal investigations by the Internal Auditors into matters where there is suspected fraud or irregularityor a failure of internal control system of a material nature and reporting the matter to the Board.10. Discussion with Statutory Auditors before the audit commences, about the nature and scope of audit as well as post-audit discussionto ascertain any area of concern.11. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of nonpayment of declared dividends) and creditors.12. To Review the functioning of Whistle Blower mechanism, in case the same is existing.13. Carrying out any other function, which may be specified as a role of the Audit Committee under amendments, if any, from time to timeas per the listing agreement, Companies Act, 1956, and other statutes.d) Review of information by Audit Committee13
The Audit Committee shall mandatorily review the following information:-1.Management Discussion and Analysis of financial conditions and results of operations;2.Statement of significant related party transaction (as defined above), as submitted by management;3.Management letters/ letters of internal control weakness issued by the Statutory Auditors;4.Internal Audit Reports relating to internal control weakness; and5.The appointment, removal and terms of remuneration of the Chief Internal Auditors shall be subject to review by the Audit Committee.e) Any other matter with the specific permission of the Board.B. Remuneration CommitteeThe Remuneration Committee consists of Independent and Non-Executive Directors to review and recommend payment of annualsalaries, commission, service agreements and other employment conditions of the Executive Directors of the Company. The committeefixes the remuneration after taking into consideration remuneration practices followed by Companies of similar size and standing in theIndustry.The Remuneration Committee comprises of three Directors as its members. All the members of the Committee are Non-Executive Directorand have sound knowledge of management practices.The Chairman of the Committee, Mr. Sandeep Dinodia is a Non-Executive Independent Director nominated by the Board. The power androle of the Remuneration Committee is as per guidelines set out in the Listing Agreement.The constitution of the remuneration committee is as followsS.No.1.2.The Remuneration Committee had met once during the year 2007-<strong>2008</strong> to consider the appointment and remuneration of Mrs. Usha Jain,Managing Director of the Company. All the members of the Remuneration Committee were present and the appointment was unanimouslyapproved by all the members.a) Remuneration Policy:Name of Directors Status Category of MembershipMr. Sandeep Dinodia Chairman Non-Executive Independent DirectorMr. D.K. Jain Member Non-Executive Director3. Mr. A.V. Alexander Member Non-Executive Independent DirectorThe Remuneration Committee fixes the remuneration of the Executive Directors after considering various factors such as qualification,experience, expertise, and the prevailing remuneration in the competitive industries, financial position of the Company, etc. Theremuneration structure comprises of Basic Salary, Commission, Perquisites and Allowances, contribution to Provident Fund etc. Theremuneration policy for Executive Directors is directed towards rewarding performance, based on review of achievements of ExecutiveDirectors.The Non-Executive Directors have not drawn any remuneration from the Company, except sitting fees for attending meetings of the Boardand Committees.b) Details of remuneration paid to Directors during the accounting year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong> are as under:Name of Directors SalaryMrs. Usha Jain 960,000Perquisites& Allowances115,966Commission900,000(Amount in Rs.)Total1,975,966c) The number of shares held by Non-Executive Directors in the Company are mentioned below.S.No. Name of the Non-Executive Directors No. of Shares held as on <strong>31</strong>.03.<strong>2008</strong> % Age1. Mr. D.K. Jain 2,548,757 21.91%2. Mr. Anmol Jain 765,890 6.58%3. Mr. Sandeep Dinodia --4. Mr. Manmohan Sachdev 134 0.001%5. Mr. A.V. Alexander 200 0.001%6. Mr. Dhiraj Dhar Gupta - -There is no Stock Option Scheme of the Company for any Director and there are no Security / Investment of the Company pending forconversion into Equity Shares.14
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.C. Shareholders/Investors Grievance & Share Transfer CommitteeThe Company has a Shareholders/Investors Grievance & Share Transfer Committee to oversee Investors Grievances and Redressalmechanism and recommends measures to improve the level of Investors' services and to look into and decide matters pertaining to share,transfers, duplicate share certificates and related matters. The Committee comprises of three Non Executive Directors, with two of thembeing Independent Directors. The present composition of the Committee is as under :S.No.Name of DirectorsStatusCategory of Membership1.Mr. D.K. Jain Chairman Non-Executive Director2. Mr. Sandeep Dinodia Member Non-Executive Independent Director3.Mr. Manmohan Sachdev Member Non-Executive Independent DirectorThe functioning and terms of reference of the Committee are, as prescribed under the Listing Agreement entered with the StockExchanges, with particular reference to transfer, dematerialization and complaints of Shareholders etc.The Quorum for the functioning of the Committee is any two Members present. The Share Transfer Committee meets normally once in aQuarter, as per the requirement of matters pertaining to Share Transfer and other related matters.The total complaints received and replied to the shareholders during the year ended <strong>31</strong>st <strong>March</strong>, <strong>2008</strong> were 42.During the year 3 meetings of Committee were held. The following is the attendance record at the Committee during the year :Shareholders/Investors Grievance & Share Transfer Committee Attendance.S.No. Name of Members No. of Meetings attended1. Mr. D.K. Jain 32. Mr. Sandeep Dinodia 23. Mr. Manmohan Sachdev 34. COMPLIANCE OFFICER OF THE COMPANYMs. Milita BharCompany Secretary5. GENERAL BODY MEETINGThe details of Annual General Meeting (AGMs) held in the last three years are as follows :Financial <strong>Year</strong> Date Time Location2004-05 29-08-05 11.00 A.M.2005-06 11-07-06 10.00 A.M.2006-07 26-09-07 10.30 A.M.W - 230, “S” Block M.I.D.C. BhosariPune - 411001W-230, “S” Block M.I.D.C. BhosariPune - 411001Panchshil Club, 705, Club RoadMoshi, Pune - 412015.Special Resolutions passed in previous three Annual General Meetings1. AGM held on 29-08-05 : -2. AGM held on 11-07-06 : i) Change the Name of Company from DHANESH AUTO ELECTRICALS LIMITED toLUMAX AUTO TECHNOLOGIES LIMITED.ii) Increase the remuneration of Mrs. Usha Jain Managing Director3. AGM held on 26-09-07 : i) Appointment of Mrs. Usha Jain as Managing Director.ii) Amendment of Articles 80 of Articles of Association.Postal Ballot Resolution:There were no Ordinary or Special Resolution that needed to be passed through Postal Ballot mechanismduring the year 2007-08. During the year <strong>2008</strong>-09, Company proposes to alter the Object Clause by wayof Postal Ballot process as prescribed under Section 192A of the Companies Act, 1956 and TheCompanies (Passing of Resolution by Postal Ballot), Rules, 2001.15
6. CODE OF CONDUCTThe Company has adopted a Code of Conduct for all Board Members and Senior Employees of the Company. The Code of Conduct hasalready been posted on the website of Company for general viewing. All Board Members and Senior Management Personal have affirmedcompliance with the Code of Conduct on annual basis. The Annual Report contains a declaration to this effect signed by the ManagingDirector. The code of conduct has also been posted on company's website: www.lumaxautotech.com.7. DISCLOSURESa. During 2007-08, other than the transactions entered in the normal course of business and reported as the related party transactions inthe annual accounts, the Company had not entered any materially significant related party transactions i.e. transaction of the Companyof material nature with its Promoters/ Directors/Senior Employees or Relatives etc., which could have a potential conflict with theinterest of Company at large.b. The Audit Committee is briefed with all related party transaction undertaken by the Company.c. The Senior Employees have made disclosures to Board that they did not have personal interest in any material financial andcommercial transactions that could result in a conflict with the interest of the Company at large.d. The Company has a Code of Conduct for its Board and Senior Employees (as per Corporate Governance Code) and the same isavailable at the Company's website. The Company has obtained a compliance certificate from all concerned.e. There has been no non-compliance penalties/strictures imposed on the Company by Stock Exchange(s) or SEBI or any other statutoryauthority, on any matter related to capital markets, during the last three years.f. The Company follows the Accounting Standards laid down by the Institute of Chartered Accountants of India, and there has been nodeviation in the accounting treatment during the year.g. The Company do not have any Whistle Blower Policy.h. The Company has complied with all the mandatory requirements of the Clause 49 of the Listing Agreement.8. MEANS OF COMMUNICATIONIt is the Management belief that all share holders should have access to complete information regarding its position to enable them toaccurately access its future potential. The company's website (www.lumaxautotech.com) serves as a key awareness facility for allshareholders, allowing them to access information at their convenience. It provide information of the company's financial performance,business strategy displays latest press releases as required by SEBI and Listing Agreements.The Annual / Quarterly results were published in national daily newspapers - The Economic Times (English All edition), Prabhat (Marathiedition) and Nav Bharat Times, Financial Times, Mumbai Mirror.9. MANAGEMENT DISCUSSION AND ANALYSIS REPORT FORMS PART OF THE DIRECTORS REPORT.10. GENERAL SHAREHOLDERS INFORMATIONa) Annual General Meeting : The 27th Annual General Meeting is Scheduled as under:-Date : 13th August, <strong>2008</strong>Time : 4.00 P.M.Venue : Panchshil Club, 705, Club Road, Moshi, Pune-412105b) Date of Book Closure : 09-08-<strong>2008</strong> to 13-08-<strong>2008</strong> (both days inclusive)c) Registered Office : <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> LimitedW-230, “S” Block M.I.D.C. Bhosari Pune-411026,d) Financial <strong>Year</strong> : 1st April, 2007 to <strong>31</strong>st <strong>March</strong>, <strong>2008</strong>e) For the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong> results were announced on:Adoption of Quarterly Results <strong>Ended</strong>In the Month of30 th June, 2007 July <strong>31</strong>, 200730 th September, 2007 October 23, 2007<strong>31</strong> st December, 2007 January 30, <strong>2008</strong><strong>31</strong> st <strong>March</strong>, <strong>2008</strong> (Audited Annual Accounts) June 28, <strong>2008</strong>16
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.f) Financial Calendar for <strong>2008</strong>-09 (Provisional)g) Dividend & Dividend Payment Date :A dividend of Rs.1.50 per share (15%) has been recommended by the Board of Directors for the Financial <strong>Year</strong> 2007-08 which is subject tothe approval of the shareholders at the ensuing Annual General Meeting. For Demat shareholders and Physical shareholders who haveopted for ECS, Dividend Amount of Rs.1.50 per share will be credited directly to their respective bank accounts through ECS, whereversuch facilities are available, soon after the declaration of dividend in the AGM. For others, Dividend Warrants will be posted byAugust 23, <strong>2008</strong> (tentative date).h) Share Transfer System :The shares lodged for transfer are processed by the Registrar and Transfer Agent and are approved by Shareholders/ Investors GrievanceCommittee. Share sent for transfer in physical form, if any, are registered and returned within a maximum period of 30 days from the date ofreceipt, subject to document being valid and complete in all respects. Similarly all request for demat are received and processed by theRegistrar and Transfer Agents and confirmations given to the Depositories within the prescribed time limit.i) Registrars and Share Transfer Agent (For Physical as well as for Demat Segment).Address : Bigshare Services Private LimitedE/2, Ansa Industrial Estate, Saki Vihar Road,Sakinaka, Andheri (E), Mumbai 400 072Tel: +91-22-40430200Fax: +91-22-2847 5207Email: prema@bigshareonline.comWebsite: www.bigshareonline.comContact Person: Ms. Premaj) Investors Correspondence :All queries of investors regarding the Company's shares in Physical / Demat form may be sent either to the Registrar & Share Agentor to the Secretarial Department of the Company at the following address :Address : <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> LimitedW-230, 'S' Block, M.I.D.C.Bhosari Pune - 411026Tel : 91-20-66304606, 66304617Fax : 91-20-66304624E-mail : militabhar@lumaxautotech.comWebsite : www.lumaxautotech.comk) Listing on Stock Exchanges:l) ISIN No : INE872H01019Listing Fee for the year <strong>2008</strong>-09 has been paid to The Bombay Stock Exchange <strong>Ltd</strong>. and National Stock Exchange of India <strong>Ltd</strong>.m) Listing of GDRs / ADRs / FCCB :Adoption of Quarterly Results <strong>Ended</strong>In the Month of30 th June, <strong>2008</strong> 4 th week of July <strong>2008</strong>30 th September, <strong>2008</strong> 4 th week of October <strong>2008</strong><strong>31</strong> st December, <strong>2008</strong> 4 th week of January 2009<strong>31</strong> st <strong>March</strong>, 2009 (Audited Annual Accounts) 4 th week of June 2009Stock ExchangeScrip CodeBombay Stock Exchange Limited 532796National Stock Exchange of India <strong>Ltd</strong>.LUMAXTECHThere are no convertible instrument which could result in increasing the Equity Capital of the Company and the Company has not issuedany GDR/ADR/FCCB.17
n) Share Holding Pattern of the Company as on <strong>March</strong> <strong>31</strong>, <strong>2008</strong>CategoryA. Promoters’ Holding1. PromotersIndian PromotersForeign Promoters2 Persons acting in concertSUB -TOTAL (A)B. Non Promoters’ Holding3. Institutional Investors.a. Mutual Funds and UTIb. Banks, Financial Institutions , Insurance Companiesc. FIIsSUB -TOTALNo. of Shares6894592--6894592-376926000436924. Othersa. Private Corporate Bodies.1483065b. Indian Public2947334c. NRIs/OCBs261077d. Any others 1781SUB -TOTAL4693257SUB-TOTAL (B)4736949GRAND -TOTAL 116<strong>31</strong>541o) Distribution of Shareholding as on <strong>31</strong>st <strong>March</strong>, <strong>2008</strong>.Shareholding of NominalValue of Rs.Up to 5,0005,001 to 10,00010,001 to 20,00020,001 to 30,00030,001 to 40,00040,001 to 50,00050,001 to 1,00,0001,00,001 and aboveTotalp) Dematerialisation of Shares :ShareholdersNumber5530164103% of Shareholding59.27--59.27-0.320.050.3712.7525.342.250.0240.3640.7<strong>31</strong>00.00As per notifications issued by the Securities and Exchange Board of India (SEBI), the trading in Company's shares is permitted only indematerialized form. In order to enable the shareholders to hold their shares in electronic form and to facilitate scripless trading, theCompany has enlisted its shares with National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited(CDSL).q) Status of Dematerialisation as on <strong>31</strong>st <strong>March</strong>, <strong>2008</strong> :48171843605983Shareholders% to TotalShare Amount.In RupeesShareAmount % to TotalThe shares of the Company are under compulsory Demat segment and are listed on Bombay Stock Exchange, Mumbai and National StockExchange of India Limited Mumbai. The Company's shares are available for trading in the depository of both NSDL & CDSL.Category92.432.741.720.800.280.300.721.00100.007,123,530.001,329,100.001,632,500.001,248,950.00611,220.00859,090.003,177,260.00100,333,760.006.121.141.401.070.530.742.7486.26116,<strong>31</strong>5,410.00 100.00No. of SharesShares in Demat mode with NSDL 3,678,228Shares in Demat mode with CDSL 477,978Shares in Physical mode 7,475,335Total 11,6<strong>31</strong>,54118
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.r) Stock Market Data during the Financial <strong>Year</strong> 2007-08The monthly high and low quotations and volume of shares traded on The Bombay Stock Exchange, Mumbai (BSE) and National StockExchange of India Limited (NSE) are as follows:Stock Exchange BSE NSEMonth High (Rs.) Low (Rs.)No. of SharesTradedHigh (Rs.)Low (Rs.)February <strong>2008</strong> 73.95 57.10 43986 71.65 58.25 61129No.ofShares tradedApril 2007 111.80 66.00 975240 117.70 68.50 1301561May 2007 109.00 80.95 663937 107.80 90.10 757013June 2007 110.00 87.00 1018889 108.65 88.50 1117039July 2007 102.90 86.50 342874 103.20 87.25 378560August 2007 103.00 83.50 22<strong>31</strong>29 103.95 83.55 572421September 2007 99.00 88.00 150<strong>31</strong>6 99.00 91.10 274586October 2007 94.35 75.00 102409 94.75 75.00 170032November 2007 87.45 65.00 45777 89.95 74.25 71913December 2007 99.00 76.25 101477 99.90 71.70 159787January <strong>2008</strong> 115.65 53.00 118097 105.00 49.05 216717<strong>March</strong> <strong>2008</strong> 65.50 43.50 114388 64.00 38.70 136573s )Monthly Closing Share Price on BSE & NSE and Performance of the Company in comparison with the S&P CNX NIFTY.MonthApril 2007May 2007June 2007July 2007August 2007September 2007October 2007November 2007December 2007January <strong>2008</strong>February <strong>2008</strong><strong>March</strong> <strong>2008</strong>BSE (Rs.)93.5091.0095.0093.3594.4091.7085.3078.4095.9063.8062.9048.45NSE (Rs.)93.5590.8096.4092.8095.0092.9085.2077.8095.4562.9063.9546.05LUMAXTECH.S&P CNX NIFTYt) Plant Locations of the Company as on <strong>31</strong>st <strong>March</strong>, <strong>2008</strong>a)b)c)d)e)f)W-230. ‘S’ Block, M.I.D.C. Bhosari Pune, MaharashtraPlot No. 70, Sector-10, PCNTDA, Bhosari Pune, MaharashtraGat No. 156/1, Mahalunge, Chakan Pune, MaharashtraPlot No. 54/8, D-II, Block-2, M.I.D.C. Chinchwad, MaharashtraW-28, M.I.D.C., Waluj, Industrial Area Aurangabad, MaharashtraA-8, M.I.D.C., Waluj, , Industrial Area Aurangabad, Maharashtrag) B-86, Mayapuri, Industrial Area, New Delhi (Marketing Division)11. Non-Mandatory requirementsThe Company is complying with mandatory requirements and partly complying with the non-mandatory requirements such as :The Company has constituted a Remuneration Committee of Independent & Non-Executive Directors. A detailed note on theRemuneration Committee has already provided in the foregoing paras of the report.12. CEO & CFO CERTIFICATEThe Managing Director, Mrs. Usha Jain and the Finance Head, Mr. Ashish Dubey have furnished the requisite certificate to the Board ofDirectors pursuant to Clause 49 (V) of the Listing Agreement.19
13. OTHER INFORMATIONElectronic Clearing Service (ECS)SEBI had vide its Circular No.DCC/FITTCIR-3/2001 dated October 15, 2001 advised that all Companies should mandatory use ECS facilitywherever available. In the absence of ECS facility, companies may use warrants for distributing the dividends and vide its CircularNo.D&CC/FITTCIR-04/2001 dated November 13, 2001 had advised companies to mandatorily print the Bank Account details furnished bythe Depositories, on the dividend warrants. This ensures that the dividend warrants, even if lost or stolen, cannot be used for any purposeother than for depositing the money in the accounts specified on the dividend warrants and ensures safety for the investors. However,members who wish to receive dividend in an account other than the one specified while opening the Depository Account, may notify theirDPs about any change in the Bank Account details.Nomination FacilityShareholders holding shares in physical form and desirous of making a nomination in respect of their shareholding in the Company, aspermitted under Section 109A of the Companies Act, 1956, are requested to submit to the Company in the prescribed Form 2B for thispurpose.Certificate of Compliance of Code of Conduct by Board of Directors andSenior Management PersonnelI Usha Jain, Managing Director of the Company hereby certify that the Board of Directors and the Senior Management Personnel have affirmedcompliance of the Code of Conduct of the Company for the FY-08.Place : GurgaonDate : June 28, <strong>2008</strong>USHA JAINMANAGING DIRECTORCEO & CFO Certification Under Clause 41 & 49(V) of the Listing Agreement to be placed before the Board along with Audited AnnualstAccounts for the year ended <strong>31</strong> <strong>March</strong> <strong>2008</strong>.sta. We certify to the Board that we have reviewed Financial Statements and Cash Flow Statement for the year ended <strong>31</strong> <strong>March</strong> <strong>2008</strong> andthat to the best of our knowledge and belief;(i)(ii)these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;these statements together present a true and fair view of the Company's affairs and are in compliance with existing accounting standards,applicable laws and regulations.b. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent,illegal or Violative of Company's Code of Conduct.c. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated theeffectiveness of the internal control systems of the Company pertaining to financial reporting and we have disclosed to the Auditors andthe Audit Committee deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we havetaken or propose to take to rectify these deficiencies, if any.d. We have indicated to the Auditors and the Audit Committee(i)(ii)(iii)significant changes in internal control over financial reporting during the year, if any;significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements,if any; andThere were no instances of fraud of which we have become aware and the involvement therein, if any, of the management or anemployee having a significant role in the Company's internal control systemPlace : GurgaonDate : June 28, <strong>2008</strong>ASHISH DUBEY(FINANCE HEAD)USHA JAIN(MANAGING DIRECTOR)20
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Auditors' Certificate on Corporate GovernanceTo,The Members of<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> LimitedWe have examined the compliance of conditions of Corporate Governance by <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> Limited, for the year endedon <strong>March</strong> <strong>31</strong>, <strong>2008</strong>, as stipulated in clause 49 of the Listing Agreement of the said Company with Stock Exchanges.The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to procedures andimplementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an auditnor an expression of opinion on the financial statements of the Company.In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with theconditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness withwhich the Management has conducted the affairs of the Company.For D.R.Barve & CoChartered AccountantsD.R. BarveProprietorMembership No.:17661Place : PuneDate : June 28, <strong>2008</strong>21
To,The Members of<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> Limited1. We have audited the attached Balance Sheet of <strong>Lumax</strong> <strong>Auto</strong>st<strong>Technologies</strong> Limited as at <strong>31</strong> <strong>March</strong>, <strong>2008</strong>, the Profit & LossAccount and also the Cash Flow Statement for the year ended onthat date annexed there to.These financial statements are the responsibility of the company'smanagement. Our responsibility is to express an opinion on thesefinancial statements based on our audit.2. We conducted our audit in accordance with the Auditing Standardsgenerally accepted in India. Those standards require that we planand perform our audit to obtain reasonable assurance aboutwhether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accountingprinciples used and significant estimates made by themanagement, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonablebasis for our opinion.3. As required by the Companies (Auditors' Report) Order, 2003 (asamended) issued by the Central Government of India in terms ofsub-section (4A) of section 227 of the Companies Act, 1956, weenclose in the Annexure, a statement on the matters specified inthe paragraphs 4 and 5 of the said order.4. Further to our comments in the Annexure referred to above, wereport that;i) We have obtained all the information and explanations, whichto the best of our knowledge and belief were necessary for thepurposes of our audit;ii) In our opinion, proper books of account as required by the lawhave been kept by the Company so far as it appears from ourexamination of those books;iii) The Balance Sheet, Profit & Loss Account and Cash FlowStatement dealt with by this report are in agreement with thebooks of account;iv) In our opinion, the Balance Sheet, Profit & Loss Account andCash Flow Statement dealt with by this report, comply with theAccounting Standards referred to in sub-section (3C) of section211 of the Companies Act, 1956.v) On the basis of written representations received from thestdirectors, as on <strong>31</strong> <strong>March</strong>, <strong>2008</strong> and taken on record by theBoard of Directors, we report that none of these directors of thestcompany is disqualified as on <strong>31</strong> <strong>March</strong>, <strong>2008</strong> from beingappointed as a director under clause (g) of sub-section (1) ofsection 274 of the Companies Act, 1956.vi) In our opinion and to the best of our information and accordingto explanations given to us, the said accounts, read togetherwith other notes appearing in schedule “W”and their impact onProfit & Loss Account, Cash Flow Statement and BalanceSheet give the information required by the Companies Act,1956, in the manner so required to give a true & fair view inconformity with the accounting principles generally accepted inIndia:a) in the case of the Balance Sheet, of the State of Affairs of thestcompany as at <strong>31</strong> <strong>March</strong> <strong>2008</strong>.b) in the case of the Profit & Loss account, of the profit for theyear ended on that date.c) in the case of the Cash Flow Statement, of the Cash Flowsfor the year ended on that date.Place: PuneDate: June 28, <strong>2008</strong>22Auditors' Report On AccountsFor D. R. Barve & CompanyChartered AccountantsCA D. R. Barve(Proprietor)Membership No.17661Annexure To Auditors' ReportAnnexure referred to in paragraph 3 of our report of even dateRe: <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> Limitedi) (a) The company is in the process of maintaining properrecords showing full particulars, including quantitativedetails and situation of fixed assets.(b) We have been informed that the fixed assets of thecompany have been physically verified by the managementa t r e a s o n a b l e i n t e r v a l s a n d n o m a t e r i a ldiscrepancies were noticed on such verification.(c) In terms of the information and explanations given to us andthe books and records examined by us in the normalcourse of audit and to the best of our knowledge and belief,we state that no substantial part of fixed assets have beendisposed off during the year and hence our commentsregarding the effect on going concern principle are notrequired.ii) (a) As informed to us, physical verification of inventory of thecompany has been conducted by the management atreasonable intervals. In our opinion, the frequency ofverification is reasonable.(b) In our opinion and according to the explanations given to us,the procedures of physical verification of inventoryfollowed by the management are reasonable andadequate in relation to the size of the company and thenature of its business.(c) In our opinion and according to the explanations given to us,the company is maintaining proper records ofinventory. We have been informed that no materialdiscrepancies have been noticed on physicalverification of inventory as compared to book records.iii) (a) According to the information and explanations given to us,the company has granted unsecured loan to one companycovered in the register maintained under section 301 of theCompanies Act, 1956. The maximum amount involvedduring the year was Rs. 1,245.00 Lacs and the year-endbalance of the said loan was Rs. 1,085.53 Lacs.(b) According to the information and explanations given to us,the said loan is interest free. However, the other terms andconditions of loan given are not prima facie prejudicial to theinterest of the Company.(c) Since there is no stipulation as to the time period forrecovery of principal amount of unsecured loans given, weiv)(d)are unable to comment on the regularity of the same.Further, as there is no stipulation as to the time period forrecovery of principal amount of unsecured loans given, weare also unable to comment on the overdue amount inrespect of the said loan.(e) According to the information and explanations given to us,the company has taken unsecured loans, from four partiescovered in the register maintained under section 301 ofthe Companies Act, 1956. The maximum amount involvedduring the year was Rs. 162.90 Lacs and the year-endbalance of the loans taken from such parties was Rs. 111.40Lacs.(f)(g)According to the information and explanations given to us,the rate of interest and other terms and conditions ofunsecured loans taken by the company are not prima facieprejudicial to the interest of the companyAccording to the information and explanations given to us,the company is generally regular in repayment of principalamount and interest thereon according to the terms andconditions of the loan agreement.In our opinion and according to the explanations given to us, thereare adequate internal control procedures commensurate with thesize of the company and the nature of its business, for thepurchase of inventory and fixed assets and for the sale of goods &
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.services. During the course of our audit, no major weakness hasbeen noticed in the internal control system in respect of theseareas.v) (a) According to the information and explanations given to us,we are of the opinion that the particulars of contracts orarrangements referred to in section 301 of the of theCompanies Act, 1956 have been so entered in the registerrequired to be maintained under that section; andxii) As informed to us, the company has not granted loans andadvances on the basis of security by way of pledge of shares,debentures or other securities.xiii) In our opinion the company is not a chit-fund, nidhi or mutualbenefit fund / society. Therefore, the provisions of clause 4(xiii) ofthe Companies (Auditor's Report) Order, 2003 (as amended) arenot applicable to the company.vi)(b)According to the information and explanations given to us,the transactions made in pursuance of such contracts orarrangements have been made at prices which arereasonable having regard to the prevailing market prices atthe relevant time.According to the information and explanations given to us, thecompany has not accepted deposits from the public during theyear under report.xiv) In our opinion, the company is not dealing or trading in shares,securities, debentures and other investments. Accordingly, theprovisions of clause 4(xiv) of the Companies (Auditor's Report)Order, 2003 (as amended) are not applicable to the company.xv) As informed to us, the company has not given any guarantee forloans taken by others from bank or financial institutions, theterms and conditions whereof are prima facie prejudicial to theinterest of the company.vii) In our opinion, internal audit system of the company iscommensurate with its size and nature of its business.viii) We have broadly reviewed the books of account maintained bythe company pursuant to the rules made by the CentralGovernment for the maintenance of cost records under section209(1) (d) of the Companies Act, 1956 and are of the opinion thatprima facie, the prescribed accounts and records have beenmaintained. However, we have not made detailed examination ofthe records with a view to determine whether they are accurate orcomplete.ix) (a) According to the information and explanations given to us,the company is generally regular in depositing undisputedstatutory dues including provident fund, investors'education & protection fund, employees' state insurance,income tax, wealth tax, sales tax, service tax, custom duty,excise duty, cess or any other statutory dues with theappropriate authorities during the year.(b) According to the information and explanations given to us,no undisputed amounts payable in respect of providentfund, investors' education and protection fund, employees'state insurance, income tax, wealth tax, service tax, salestax, customs duty, excise duty and cess and any otherundisputed statutory dues were outstanding at the yearend, for a period of more than six months from the date theybecame payable.c) According to the information and explanations given to us,there are no disputed amounts payable in respect ofprovident fund, investors' education and protection fund,employees' state insurance, income tax, wealth tax, servicetax, sales tax, customs duty, excise duty or cess, by thecompany except following:xvi) As informed to us, the proceeds of the loans taken by thecompany are applied for the purpose for which the loans wereobtained.xvii) In our opinion and according to the explanations given to us, thefunds raised by the company on short term basis have not beenused for long-term investment.xviii) The company has not made any preferential allotment of sharesto parties and companies covered in the register maintainedunder section 301 of the Companies Act, 1956.xix) The company did not have any outstanding debentures at theend of the year.xx)The management has disclosed the end use of the money raisedby public issue and the same has been verified by us. (Refer NoteNo. 12 of schedule “W”)xxi) Based on the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and asper the information and explanations given by the management,we report that no fraud on or by the company has been noticed orreported during the course of our audit.Place: PuneDate: June 28, <strong>2008</strong>For D. R. Barve & CompanyChartered AccountantsCA D. R. Barve(Proprietor)Membership No.- 17661Name of thestatueIncome TaxAct, 1961Nature ofduesAmount(Rs. in Lacs)Period towhichamountrelatesForum wheredispute ispendingIncome Tax 00.40 F.Y. 2001 -02 Income TaxAppellateTribunalx) The company has no accumulated losses at the end of thefinancial year and it has not incurred cash losses in the currentand immediately preceding financial year.xi)As informed to us, the company has not defaulted in repayment ofdues to financial institutions, banks or debenture holders.23
Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSOURCES OF FUNDSScheduleAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.2007Own FundsShare Capital A 116,<strong>31</strong>5,410 116,<strong>31</strong>5,410Reserves & Surplus B 267,405,598 265,239,158383,721,008 381,554,568Loan FundsSecured Loans C 129,942,484 79,084,022Unsecured Loans D 23,189,960 21,660,748153,132,444 100,744,770Deferred Tax Liability E 24,092,000 21,570,300Grand Total 560,945,452 503,869,638APPLICATION OF FUNDSFixed AssetsFGross Block 388,660,992 374,134,158Less :Depreciation 96,773,665 77,754,910Net Block 291,887,327 296,379,248Capital Work In Progress 66,784,173 15,688,576358,671,500 <strong>31</strong>2,067,824Investments G 26,670,720 12,723,220Current Assets, Loans & AdvancesInventories H 152,253,155 105,759,261Sundry Debtors I 215,616,680 215,690,182Cash and Bank balance J 50,641,536 56,433,374Loans & Advances K 163,938,456 156,924,6<strong>31</strong>582,449,827 534,807,448Less : Current Liabilities & ProvisionsCurrent Liabilities L 383,076,688 333,974,728Provisions M 23,769,906 22,562,255406,846,594 356,536,983Net Current Assets 175,603,232 178,270,465Miscellaneous ExpenditureN - 808,129[To the extent not written off or adjusted]Grand Total 560,945,452 503,869,638Notes To Accounts W - -The Schedules referred to above form an integral part of the Balance Sheet.As per our report of even dateFor D. R. Barve & CompanyChartered AccountantsFor and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661Place : GurgaonDate : June 28, <strong>2008</strong>24D. K. JainChairmanAshish DubeyHead FinanceUsha JainManaging DirectorMilita BharCompany Secretary
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Profit & Loss Account for the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.2007INCOMEGross Sales O 1,981,685,742 1,891,471,229Less : Excise Duty 209,759,590 287,952,803Net Sales 1,771,926,152 1,603,518,426Other Income P 6,540,851 2,253,608Total 1,778,467,003 1,605,772,034EXPENDITUREPurchases of Traded goods 684,853,715 191,745,672Material Consumed Q 730,881,274 1,159,950,395Decrease/(Increase) In Inventory R (17,378,406) (36,537,185)Manufacturing Cost S 132,942,293 139,786,450Employee Cost T 95,174,466 54,852,236Administrative Cost U 74,108,664 <strong>31</strong>,708,102Interest Cost V 13,385,651 5,489,211Depreciation 20,996,918 15,220,744Total 1,734,964,575 1,562,215,625PROFIT BEFORE TAX 43,502,428 43,556,409Less: Provision for TaxationFor Earlier <strong>Year</strong>s 415,512 561,760For Current <strong>Year</strong> 12,135,000 8,650,000Deferred Tax 2,521,700 6,359,700Fringe Benefit Tax 738,000 500,000PROFIT AFTER TAX 27,692,216 27,484,949Balance brought forward from earlier year 22,592,748 17,059,742Prior period adjustments (5,000,935) -Add: Adjustments made during the year - 1,210,540Balance available for Appropriation 45,284,029 45,755,2<strong>31</strong>Less :Provision for Dividend 17,447,<strong>31</strong>2 17,447,<strong>31</strong>2Provision for Tax on Dividend 2,965,170 2,965,171Transferred to General Reserve 2,700,000 2,750,000Balance carried to Balance Sheet 22,171,547 22,592,748Earnings Per ShareOutstanding No. Of Shares ( F.V. Rs. 10/-)11,6<strong>31</strong>,541 11,6<strong>31</strong>,541Basic 2.38 3.09Diluted 2.38 2.96Notes of AccountsWThe Schedules referred to above form an integral part of the Profit and Loss Account.As per our report of even dateFor D. R. Barve & CompanyChartered AccountantsFor and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661Place : GurgaonDate : June 28, <strong>2008</strong>D. K. JainChairmanAshish DubeyHead FinanceUsha JainManaging DirectorMilita BharCompany Secretary25
Cash Flow Statement for the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsA. CASH FLOW FROM OPERATING ACTIVITIES :Profit Before Tax 43,502,428 43,556,409Adjustments For :Depreciation 21,357,716 15,220,744Loss/(Profit) on Sale of Fixed Assets (159,300) (35,042)Interest Income (1,373,934) (409,373)Interest Expense 13,385,651 5,489,211Voluntary Retirement Compensation &Deferred Expenditure Written Off 808,128 808,128Operating Profit Before Working Capital Changes 77,520,689 64,630,077Adjustments For :Inventories (46,493,894) (66,945,553)Trade & Other Receivables 73,502 (99,668,915)Trade & Other Payables 44,049,232 146,780,480Other Loans & Advances (Net) (7,013,824) (118,178,547)Cash Generated From Operations 68,135,705 (73,382,458)Direct Taxes Paid (11,954,512) (11,413,772)Net Cash from Operating Activities 56,181,193 (84,796,230)B. CASH FLOW FROM INVESTING ACTIVITIES :<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.2007Purchase of Fixed Assets (20,109,336) (133,004,820)Proceeds from Sale of Fixed Assets 3,328,288 627,059Purchase of Investment (13,947,500) -Interest Received 1,373,934 409,373Decrease / (Increase) In Capital W.I.P. (51,095,597) (4,044,113)Net Cash from Investing Activities (80,450,211) (136,012,501)C. CASH FLOW FROM FINANCING ACTIVITIES :Issue of Shares & Debentures - 208,485,950Increase/(Decrease) in Borrowings 52,387,674 46,120,934Interest Paid (13,385,651) (5,489,211)Dividend Paid (17,447,<strong>31</strong>2) (11,994,307)Expended During the year(112,360)-Tax on Distributed Profits(2,965,171) (1,682,202)Net Cash from Financing Activities 18,477,180 235,441,164Net Increase/(Decrease) in Cash & Cash Equivalents (5,791,838) 14,632,433Cash & Cash Equivalents at the beginning of the year 56,433,374 41,800,941Cash & Cash Equivalents at the end of the year 50,641,536 56,433,374As per our report of even dateFor D. R. Barve & CompanyChartered AccountantsFor and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661Place : GurgaonDate : June 28, <strong>2008</strong>D. K. JainChairmanAshish DubeyHead FinanceUsha JainManaging DirectorMilita BharCompany Secretary26
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Schedules attached to and forming part of Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "A" Share CapitalAuthorised Share CapitalAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.20071,50,00,000 Equity Shares of Rs.10/- each150,000,000 150,000,000Issued,Subscribed, Called Up & Paid Up ShareCapital :1,16,<strong>31</strong>,541 Equity Shares of Rs. 10/- eachfully paid - up.Out of abovei)ii)iii)3,19,297 Equity Shares were issued as fully paid-up shares by capitalising the reserves.12,72,222 Equity Shares have been issued for consideration received otherwise than in Cash.14,00,170 Equity Shares were issued by way of conversion of Debentures116,<strong>31</strong>5,410 116,<strong>31</strong>5,410116,<strong>31</strong>5,410 116,<strong>31</strong>5,410Schedule "B" Reserves & SurplusSecurities Premium AccountBalance as per last Balance SheetAdd: Received during the yearLess: Expended during the yearGeneral ReserveBalance as per last Balance Sheet234,564,410 8,007,500- 247,418,335112,360 20,861,425234,452,050 234,564,4108,082,000 5,332,000Add : Additions during the year2,700,000 2,750,00010,782,000 8,082,000Profit And Loss AccountTransferred from Profit & Loss A/C 22,171,548 22,592,74822,171,548 22,592,748267,405,598 265,239,15827
Schedules attached to and forming part of Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "C" Secured LoansAs at<strong>31</strong>.03.<strong>2008</strong>(Amount In Rs.)As at<strong>31</strong>.03.2007Working Capital Advances - 42,747,960From State Bank of India - I.F. Branch, Pimpri(Secured against Hypothecation of Inventories &Book debts & Guaranteed by the directors).Working Capital Advances 16,682,257 -From ABN AMRO Branch, Delhi (Secured againstHypothecation of Inventories & Book debts).Term Loan - II - 20,541,667From State Bank of India - I.F. Branch, Pimpri(Secured against mortgage of Land, BuildingHypothecation of Plant and Machinery andGuaranteed by the directors) amount due withinone year Rs.- (Previous <strong>Year</strong> Rs.96,00,000 /-)Term Loan - III - 15,160,359From State Bank of India - I.F. Branch, Pimpri(Secured against mortgage of Land, BuildingHypothecation of Plant and Machinery andGuaranteed by the directors) amount due withinone year Rs.- (Previous <strong>Year</strong> Rs. 60,00,000/-)Term Loan - I 10,000,000 -From ABN AMRO Branch, Delhi (Securedagainst mortgage of Land, BuildingHypothecation of Plant and Machinery) Amountdue within one year Rs.60,00,000/-Term Loan - II 12,100,000 -From ABN AMRO Branch, Delhi (Securedagainst mortgage of Land, BuildingHypothecation of Plant and Machinery) Amountdue within one year Rs.96,00,000/-Term Loan - III 40,000,000 -From ABN AMRO - Branch, Delhi (Securedagainst mortgage of Land, BuildingHypothecation of Plant and Machinery) Amountdue within one year Rs.84,00,000/-Stand line of credit from ABN AMRO Delhi 50,000,000 -From ABN AMRO Branch, Delhi (Securedagainst mortgage of Land, BuildingHypothecation of Plant and Machinery) Amountdue within one year Rs.5,00,00,000/-Cholamandalam Investment & Finance - 60,863(Secured against Hypothecation of City RideBus) amount due within one year Rs./- ( previousyear Rs. 60,862/-)I C I C I Bank <strong>Ltd</strong>. 207,897 573,173(Secured against Hypothecation of MarutiCar) amount due with one year Rs. 84,474 /-(Previous year Rs.3,65,276)H D F C Bank <strong>Ltd</strong>.(Secured against Hypothecation of LoganCar) amount due with in one year Rs.2,99,180 /-Maruti Suzuki India Limited(Secured against Hypothecation of MarutiCar) Amount due with in one year Rs.1,29,649/-385,330 -567,000 -129,942,484 79,084,02228
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Schedules attached to and forming part of Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "D" Unsecured LoansAs at<strong>31</strong>.03.<strong>2008</strong>(Amount In Rs.)As at<strong>31</strong>.03.2007Loan from DirectorLoan from othersDeferral Payment of Sales TaxInterest on Loan Payable- 5,000,00010,339,588 4,339,58812,050,000 12,050,000800,372 271,16023,189,960 21,660,748Schedule "E" Deferred Tax LiabilityBalance as per last Balance Sheet21,570,300 15,210,600Add: Transferred from P & L Account 2,521,700 6,359,700Schedule "F" Fixed AssetsName of the AssetsAs at Additions Sales/ Adjustments As at01.04.2007 Adjustments Amortisation <strong>31</strong>.03.<strong>2008</strong>Total 24,092,000 21,570,300GROSS BLOCK DEPRECIATIONNET BLOCK(Amount in Rs.)As at For the year Sales / Upto As at As at01.04.2007 Adjustments <strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.2007Land 30,941,323 3,814,750 (608,429) (360,798) 33,786,846Building 84,205,938 2,550,059 - - 86,755,997Plant & Machinery 240,498,341 10,593,253 (4,613,276) - 246,478,<strong>31</strong>8Furniture & Fixtures 8,140,554 358,649 - - 8,499,203Office Equipments - - - - -Vehicles 5,296,088 1,332,064 - - 6,628,152Computers 5,051,914 1,460,560 - - 6,512,474Total 374,134,158 20,109,336 (5,221,705) (360,798) 388,660,992Previous <strong>Year</strong> Total 241,782,713 133,004,820 (653,376) 374,134,158Schedule "G" InvestmentsUnquoted-Long Term20 Equity shares of Rupee Co-Operative Bank<strong>Ltd</strong>. Rs.50 /- each of fully paid-up.In Subsidiary Company42,40,<strong>31</strong>3 Equity Shares of Rs. 10/- Each fullypaid up of <strong>Lumax</strong> DK <strong>Auto</strong> Industries <strong>Ltd</strong>.(Acquired in Consideration of issue of 12,72,222equity shares of 10/- each fully paid-up)In Joint Venture Company13,94,750 Equity Shares of Rs. 10/- Each fullypaid up of <strong>Lumax</strong> Cornaglia <strong>Auto</strong> <strong>Technologies</strong> Pvt. <strong>Ltd</strong>.- - - - 33,786,846 30,941,3239,653,586 2,898,449 - 12,552,035 74,203,962 74,552,35259,394,833 16,2<strong>31</strong>,890 (1,978,162) 73,648,560 172,829,758 181,103,5083,777,049 548,023 - 4,325,072 4,174,1<strong>31</strong> 4,363,505- - - - - -1,999,138 530,989 - 2,530,127 4,098,025 3,296,9502,930,304 787,567 - 3,717,871 2,794,604 2,121,61077,754,910 20,996,918 (1,978,162) 96,773,665 291,887,327 296,379,24862,595,525 15,220,744 (61,359) 77,754,910 296,379,248 179,187,1881,000 1,00012,722,220 12,722,22013,947,500 -26,670,720 12,723,22029
Schedules attached to and forming part of Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsCurrent Assets, Loans and AdvancesSchedule "H" InventoriesStock In Trade (As taken, valued &certified by the Management)Raw Material & ComponentsConsumablesPacking MaterialFinished GoodsWork In ProgressStock In TransitSchedule "I" Sundry Debtors(Unsecured, Unconfirmed & Considered Good)As at<strong>31</strong>.03.<strong>2008</strong>(Amount In Rs.)As at<strong>31</strong>.03.200791,607,749 62,742,7712,532,703 2,333,185143,901 92,90951,860,281 29,327,6275,867,990 9,940,225240,5<strong>31</strong> 1,322,544152,253,155 105,759,261Debts outstanding for a period exceeding six monthsOther debtsSchedule "J" Cash and Bank BalancesCash In HandCheque in handCash at BankAt scheduled banks:In Current AccountsIn Fixed Deposit AccountsSchedule "K" Loans And AdvancesAdvances to Subsidiary CompanyAdvances recoverable in cash or kind for value to be receivedSecurity DepositsCurrent Liabilities and ProvisionsSchedule "L" Current LiabilitiesSundry CreditorsSSI UndertakingOthersOutstanding ExpensesAdvances received from customersSchedule "M" ProvisionsProvision for TaxationFringe Benefit TaxProposed Dividend19,467,535 3,332,277196,149,145 212,357,905215,616,680 215,690,182<strong>31</strong>1,923 193,065889,744 -40,171,080 47,221,5209,268,789 9,018,78950,641,536 56,433,374108,552,688 114,500,00026,750,348 39,147,16928,635,419 3,277,462163,938,455 156,924,6<strong>31</strong>30,996,512 18,113,524295,615,954 295,302,38734,<strong>31</strong>0,022 18,423,99422,154,200 2,134,823383,076,688 333,974,7283,357,424 2,149,772- -17,447,<strong>31</strong>2 17,447,<strong>31</strong>2Provision for Corporate Dividend Tax 2,965,170 2,965,1713023,769,906 22,562,255
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Schedules attached to and forming part of Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "N" Miscellaneous Expenditure ToThe Extent Not Written off or AdjustedDeferred Revenue ExpenditureAs at<strong>31</strong>.03.<strong>2008</strong>(Amount In Rs.)As at<strong>31</strong>.03.2007Balance as per last Balance SheetLess: Written off during the yearSchedule "O" SalesGross Sales (inclusive of Excise Duty)808,129 1,616,257808,129 808,128- 808,1291,981,685,742 1,891,471,2291,981,685,742 1,891,471,229Schedule "P" Other IncomeMiscellaneous Income1,816,630 1,106,738Interest Received(T.D.S. Rs.1,13,059.42/- Previous year Rs.1,95,182 /-)1,373,934409,373Discount ReceivedProfit/(Loss) on Sale of AssetsForeign Exchange GainMiscellaneous balance written back773,455 702,455159,300 35,042663,616 -1,753,915 -6,540,850 2,253,608Schedule "Q" Material ConsumedOpening Stock of raw materialAdd : Purchases during the yearLess : Closing Stock of Raw MaterialSchedule "R" Decrease/(Increase)In InventoryOpening Inventory :Work in ProgressStock in TransitFinished GoodsClosing Inventory :62,742,891 33,469,883759,746,1<strong>31</strong> 1,189,223,283822,489,022 1,222,693,16691,607,749 62,742,771730,881,273 1,159,950,3959,940,226 3,787,89<strong>31</strong>,322,544 184,63829,327,627 80,68040,590,397 4,053,211Work in Progress5,867,990 9,940,225Stock in Transit240,5<strong>31</strong> 1,322,544Finished Goods 51,860,281 29,327,62757,968,802 40,590,396(17,378,405) (36,537,185)<strong>31</strong>
Schedules attached to and forming part of Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "S" Manufacturing CostAs at<strong>31</strong>.03.<strong>2008</strong>(Amount In Rs.)As at<strong>31</strong>.03.2007Miscellaneous manufacturing expensesPacking materialConsumablesJob-WorkLabour charges (Contract)Electricity, Light & powerFreight and cartageWater chargesRepairs & Maintenance - Plant & MachinerySchedule "T" Employee CostWages & SalaryBonusProvident Fund contributionWelfare expensesE.S.I. ContributionGratuity/Group GratuityDirectors' remunerationCommission to DirectorSchedule "U" Administrative CostRent, Rates & TaxesRepairs to buildingsRepairs othersInsurance chargesTravelling & ConveyanceSecurity chargesPrinting & StationeryPostage & TelephonesOffice expensesAdvertisementProfession Tax (Factory)Vehicle expensesLegal & Professional feesCarriage outwardExpenses to increase Authorised CapitalMiscellaneous expensesMeeting feesBreakage & Cash DismountCommission Agent2,836,464 <strong>31</strong>5,9963,979,623 3,108,01235,437,099 37,498,96241,782,323 40,367,85120,907,103 25,600,00217,450,846 18,217,9685,841,899 8,167,865430,515 296,9954,276,421 6,212,799132,942,293 139,786,45078,387,016 45,126,9723,571,263 947,8905,663,<strong>31</strong>3 3,203,4923,478,439 2,923,8081,335,617 573,356878,818 701,718960,000 480,000900,000 895,00095,174,466 54,852,2363,120,627 2,627,657242,838 836,5511,534,083 457,389904,214 1,215,8875,403,193 1,580,4092,261,363 1,978,86<strong>31</strong>,970,949 1,147,8943,135,693 1,794,136262,248 687,7281,956,336 18,5712,500 2,5001,485,794 936,4253,612,810 864,63225,176,395 14,179,651- 375,4632,075,650 1,093,35754,500 -19,795,821 1,910,9891,113,650 -74,108,664 <strong>31</strong>,708,102Schedule "V" Interest CostInterest on term loansInterest on working capital advanceInterest paid to others5,377,673 3,246,0373,594,249 295,1962,250,715 1,111,756Bank charges 2,163,014 836,22213,385,651 5,489,21132
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Schedule “W”: Notes To Accounts1. Significant Accounting Policies:A) Basis of Preparation of Financial Statements:The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accountingprinciples and the provisions of the Companies Act, 1956 as adopted consistently by the Company.The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrualbasis.B) Fixed Assets :Fixed Assets are stated at Cost Net of CENVAT, Cess, Deferred Excise Duty and VAT set-off less accumulated depreciation. Cost includespurchase cost together with inward freight, duties, taxes and incidental cost of acquisition and installation and eligible borrowing costs andalso includes pre-operative expenses incurred during the construction, trial and stabilization period, up to the period such assets are put tocommercial use.C) Depreciation:Depreciation on Fixed Assets is provided on Straight Line Method at the rates as provided under schedule XIV to the Companies Act, 1956.D) Intangible Assets and Amortisation:Intangible assets are recognised as per the criteria specified in Accounting Standard (AS) 26 “Intangible Assets” issued by the Institute ofChartered Accountants of India and are amortised as follows:(a) Leasehold land: over the period of lease(b) Specialised software: Over a period of three yearsE) Investments:a) Current Investments are valued at cost or market price whichever is lower.b) Long Term Investments are valued at cost less permanent diminution if any.F) Inventories:a) Raw Materials including components, consumables & packing material are valued at cost after making provision for obsolescencewherever necessary. Cost is determined on First-in-First-Out (FIFO) basis.b) Work in Progress is valued at estimated Cost.c) Goods purchased for resale & other finished goods are valued at lower of the cost or net realizable value.d) Scrap is valued at estimated realizable value.G) Revenue Recognition:a) Sale of goods is recorded when supply of goods takes place in accordance with the terms of Sale. It includes Excise duty but excludestrade discount and Sales Tax.b) Interest income is recognized on accrual basis.H) Employees' Retirement Benefits:a) The Company's contribution to Provident Fund is charged to Profit & Loss Account.b) The Company's contribution to Gratuity Fund of Life Insurance Corporation of India is provided on the basis of scheme subscribed bythe Company and the same is charged to Profit & Loss Account.c) Voluntary Retirement Compensation:- 20% of the amount paid to the employees towards voluntary retirement is charged toProfit & Loss Account.d) The Company provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled toaccumulate leave for future encashment subject to certain limits. The liability is provided based on the number of days of unutilisedleave at balance sheet date on the basis of an independent actuarial valuation.I) Borrowing Costs:Borrowing Costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of assets.All other borrowing costs are recognized as expense in the year in which they are incurred.J) Cash Flow Statement :Cash flow statement has been prepared following the indirect method set out in the Accounting Standard - 3 on “Cash Flow Statement”issued by the Institute of Chartered Accountants of India.K) Taxes On Income:a) Income Tax expenses for the period comprise of Current Tax, Deferred Tax & Fringe Benefit Tax.b) Current Tax & Fringe Benefit Tax are the amounts of tax payable on the taxable income/expenses for the year determined inaccordance with the provisions of the Income Tax Act, 1961.c) Deferred Tax is recognized, on the timing differences, being the difference between accounting income and taxable income, whichoriginates in one period and are capable of reversal in one or more subsequent accounting periods in accordance with provisions ofAccounting Standard 22 on “Accounting for Taxes on Income”, issued by the Institute of Chartered Accountants of India. Deferred TaxAsset in respect of brought forward losses is recognized as if there is virtual certainty that there will be sufficient future taxable incomeagainst which such asset can be realized.33
L) Translation of Foreign Currency itemsa) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. Exchange differencearising on settlement of transactions and translation of monetary items are recognised as income or expense in the year in which theyarise.b) Monetary items denominated in foreign currency are reported using the closing exchange rate on each Balance Sheet date.M) Segment ReportingThe Company has considered 'Business Segment' as the primary segment for disclosure. Further, since the company is engaged in themanufacturing of “<strong>Auto</strong>motive Parts”, in the opinion of the Management, the Company operates in one primary segment only.N) Accounting for Interests in Joint Ventures:Interests in Joint Ventures are accounted as follows:Type of Joint VentureAccounting treatmentJointly Controlled Entitiesa) Income on investments in incorporated Jointly Controlled Entities isrecognised when the right to receive the same is established.b) Investment in such Joint Ventures is carried at cost after providing for anypermanent diminution in value.O) Provisions and Contingent Liabilities:Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, ifa) the Company has a present obligation as a result of a past event,b) a probable outflow of resources is expected to settle the obligation; andc) the amount of the obligation can be reliably estimated.Contingent liability is disclosed in case ofa) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation,b) a present obligation when no reliable estimate is possible; andc) a possible obligation arising from past events where the probability of outflow of resources is not remote.2. Contingent Liabilities not provided for(Rs. In Lacs)Particulars 2007-08 2006-07i) Provision for Income Tax assessment dues (Appeal pending withTribunal for the Financial year 2001-02)0.40 0.40ii) Corporate Guarantee given for Loans taken by Subsidiary company<strong>Lumax</strong> DK <strong>Auto</strong> Industries Limited.1007.64 -iii) Capital Commitment Net of Advance 47.09 -Based on the favorable decisions in similar cases/legal opinions taken by the Company, the company believes that it has good cases inrespect of the items listed under (i) above and hence no provision there against is considered necessary.3. Details in respect of Opening Stock, Production, turnover & closing Stock of Finished Goods: As Per Annexure-A.( Certified by Management )4. Details in respect of consumption of Raw Materials and Consumables and others: As per Annexure B. ( Certified by Management )5. In terms of Paragraph-3 part-II of Schedule VI of the Companies Act 1956, quantity wise disclosure have been restricted to thoseitems/articles which individually account for 10% or more of the total Sales, Consumption as the case may be and the same is disclosed tothe extent available and considered as compiled and certified by the management.6. Micro & Small enterprises as defined under the Micro , Small and Medium Enterprises Development Act, 2006(MSMED) have beenidentified to the extent of information available with the company . This has been relied upon by the auditors. Sundry Creditors includefollowing amounts due to MSMED parties:<strong>Year</strong> <strong>Ended</strong> <strong>March</strong> <strong>31</strong>, <strong>2008</strong> (Amount In Rs.)S.No Particulars Principal Interest TotalA The outstanding dues to micro and small enterprises .BCDEPrincipal amount and Interest due thereon remaining unpaid as at end ofthe yearAmount of Interest paid in terms of Section 16 of MSMED Act alongwiththe amount of the payment made to supplier beyond appointed dayOutstanding Interest (Where principal amount has been paid off to thesupplier but interest amount is outstanding as on <strong>March</strong> <strong>31</strong>, <strong>2008</strong>)Total Interest out standing as on <strong>March</strong> <strong>31</strong>, <strong>2008</strong> (Interest in ‘b’ + interest in ‘d’above)7. The Balances of parties are subject to confirmations.174,572 1291 1,75,86<strong>31</strong>291 Nil 1291Nil Nil NilNil 1,291 1291Nil 1,291 12918. None of the employees was in receipt of remuneration more than Rs.24.00 Lacs per annum, if employed throughout the year or Rs.2.00Lacs per month if employed for part of the month.34
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.9. Subsequent to Central Government's notification on Companies (Accounting Standard Rules) ("Rules") on December 7, 2006, to complywith the revised Accounting Standard - 11 on Accounting for the Effects of Changes in Foreign Exchange Rates, the exchange differencesarising in respect of fixed assets acquired from outside India are to be charged off to the Profit and Loss Account . In the previous year, suchdifferences were adjusted in the cost of the assets. Had the previous year policy been followed, the profit after tax for the current year wouldhave been lower by Rs. 6.63 lacs and fixed assets (including Capital work in progress) would have been higher by Rs. 6.63 lacs.10. In the current year, the Company has adopted the Accounting Standard AS-15 (Revised) which is mandatory from Accounting Periodcommencing on or after December 07, 2006. The Company has provided for Employee Benefits on actuarial valuation as per ProjectedUnit Credit Method, using principles laid under Accounting Standard 15 (Revised). As a result, the valuation of accrued gratuity and leaveas at <strong>March</strong> <strong>31</strong>, 2007 is higher by Rs. 50.01 lacs (Net of tax Rs. -) and the same has been adjusted from the opening balance of Profit andLoss Account. However, this change does not have a material impact on the profit for the current year.11. Interest in Joint Venture CompaniesPursuant to Accounting Standard 27 on Financial Reporting of Interests in Joint Ventures, the relevant information relating to the JointVenture Company, is as given below:Name of the JointVenture Company<strong>Lumax</strong> Cornaglia <strong>Auto</strong><strong>Technologies</strong> PrivateLimitedCountry ofIncorporationProportion ofOwnership interestDescription of InterestIndia 50% JV is established principally for manufacture,assemble and to sell automotive componentsThe Company's share in the aggregate amounts to each of the assets, liabilities, income, expenses, capital commitments and contingentliabilities as at / for the year ended <strong>31</strong>st <strong>March</strong> <strong>2008</strong> and <strong>31</strong>st <strong>March</strong> 2007 are as under:Proportion of Company’s Interest in Joint Venture 2007-08(Amount In Rs.)2006-07Assets 13,598,924 NilLiabilities Nil NilIncome 40,197 NilExpenses 388,772 NilCapital Commitments Nil NilContingent Liabilities Nil Nil12 Statement showing the use of proceeds from Initial Public Offer up to <strong>March</strong> <strong>31</strong>,<strong>2008</strong>. During the year ended <strong>March</strong> <strong>31</strong>, 2007, theCompany had issued 30,12,539 equity shares of Rs. 10/- each by way of initial public offering at a premium of Rs.65/- per share. The netproceeds of the issue have been utilized for the objects of the issue to the extent as detailed below:(Rs. in Lacs)<strong>Year</strong> ended<strong>Year</strong> endedS.No. Description<strong>31</strong>.03.<strong>2008</strong><strong>31</strong>.03.2007a) Total Issue proceeds/ Opening Balanceb) Utilised during the year:(i) Capital expenditure incurred on project at PCNTDA, Pune,MaharashtraExpansion and modernization of existing manufacturing unit atChakan, near Pune & Waluj near Aurangabad, MaharashtraModernisation of Development centre at Chinchwad near Pune,MaharashtraTo meet the expenses of the issuePart Payment towards allotment of Industrial Land for NewProject at Rajangaon, PuneLand application money deposited with HSIIDC towards allotmentof Industrial Land for setting up new unit at Bawal, Rewari,Haryana(ii) Loan to <strong>Lumax</strong> DK <strong>Auto</strong> Industries <strong>Ltd</strong>. For new projectTotalBalance lying with Syndicat e Bank as on the Balance SheetDate13. During the <strong>Year</strong>, Pre-operative expenses upto the date of commercial production are capitalized along with the cost of assets, details ofwhich are given below:(Amount In Rs.)656.47306.58S.No. Particulars <strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>1. Material ConsumptionNil2. Manufacturing ExpensesNil3. Employee CostNil4. Administrative CostNil5. Interest CostTotal Pre-Operative Expenses (A)NilNil6. Net SalesNil7. Total Pre-Operative Income (B)Net Pre-operative Expenses Capitalised (A-B)NilNil61.589.5662.8178.0337.91100.00656.470.002,259.40717.930.000.000.000.000.00885.001,602.93656.47<strong>Year</strong> ended<strong>31</strong>.03.200726,27,12910,81,55848,44,83628,17,28712,24,4981,25,95,3089,79,5989,79,5981,16,15,71035
14. Subsequent to Accounting Standard 22 “Accounting for Taxes on Income”, issued by the Institute of Chartered Accountants of India,Deferred Tax expense of Rs.25,21,700.00 for the period is recognized in the Profit & Loss Account. The significant components of theDeferred Tax Liability as on <strong>31</strong>st <strong>March</strong> <strong>2008</strong> are:-S.No.Particulars <strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong><strong>Year</strong> ended<strong>31</strong>.03.20071. Deferred Tax Liability - -i) Depreciation 2,52,92,840 2,21,11,500Total Deferred Tax Liability (Total 1) 2,52,92,840 2,21,11,5002. Deferred Tax Asset(Amount in Rs.)i) Capital Loss 5,96,182 5,41,200ii) Disallowance u/s 43B 5,94,440 -iii) Disallowance u/s 40 (a) ( ia ) 10,218 -Total Deferred Tax Asset ( Total 2 ) 12,00,840 5,41,200Deferred Tax Liability(Net) ( 1 – 2 ) 2,40,92,000 2,15,70,30015. Information Regarding Capacity Etc.:S.No.1.ParticularsLicensed Capacity<strong>Year</strong> <strong>Ended</strong><strong>31</strong>.03.<strong>2008</strong>Not Applicable(Amount in Rs.)<strong>Year</strong> <strong>Ended</strong><strong>31</strong>.03.2007Not Applicable2.Installed CapacityNot ApplicableNot Applicable3.Class of Goods Manufactured<strong>Auto</strong> Parts<strong>Auto</strong> PartsTotal--16. Value of imports calculated on CIF basis by the company during the year in respect of:S.No.1.ParticularsRaw Material<strong>Year</strong> <strong>Ended</strong><strong>31</strong>.03.<strong>2008</strong>69,86,160(Amount in Rs.)<strong>Year</strong> <strong>Ended</strong><strong>31</strong>.03.200735,73,3722.Spare Parts & Consumables--3.Capital Goods & Accessories--Total69,86,16035,73,37217. Payment To Auditors:S.No.Particulars1.For Audit, Tax Audit & VAT Audit Fees2.For Other ServicesTotal<strong>Year</strong> <strong>Ended</strong><strong>31</strong>.03.<strong>2008</strong>3,30,00040,0003,70,000(Amount in Rs.)<strong>Year</strong> <strong>Ended</strong><strong>31</strong>.03.20071,12,00072,0001,84,00018. Payment To Directors: (Amount in Rs.)S.No.ParticularsMrs. Usha D. Jain, Managing Director<strong>Year</strong> <strong>Ended</strong><strong>31</strong>.03.<strong>2008</strong><strong>Year</strong> <strong>Ended</strong><strong>31</strong>.03.20071.2.RemunerationProvident Fund Contribution9,60,0001,15,2004,80,00057,6003.Commission to Managing Director (*)9,00,0008,95,0004.Others76634,785Total19,75,96614,67,38536
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.(*) Computation of Net Profit in accordance with Section 309 (5) of the Companies Act, 1956 for calculation of Commission to ManagingDirector :-Particulars 2007-08Net Profit as per Profit & Loss Account (4,35,02,428before taxation)Add:- Managerial Remuneration 19,75,966Depreciation 2,09,96,918Total 6,64,75,<strong>31</strong>2Less:- Depreciation as per section 350 of the2,09,96,918Companies Act , 1956Profit on Sale of Fixed Assets 1,59,300Net Profit for Calculation of Commission 4,53,19,094Commission @ 2% of Net Profit 9,06,382Managerial Commission Provided in Profit &9,00,000Loss Account19. Related Party Disclosures:The information about transactions with the related parties is attached herewith - As per Annexure “C”.20. Earnings Per Share:Particulars <strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)2006-074,35,56,40914,67,3851,52,20,7446,02,44,5381,52,20,74435,0424,49,88,7528,99,7758,95,000<strong>Year</strong> ended<strong>31</strong>.03.2007Profit After Tax as per Profit & Loss Account (Rs.) 2, 76, 92,216 2,74,84,949No. of Equity Shares(Face Value Rs.10/- each)For Basic Earnings per Share 1,16,<strong>31</strong>,541For Diluted Earnings Per Share 1,16,<strong>31</strong>,541Earnings Per Share:- (Rs.)Basic 2.38Diluted 2.3821. Earning / Outgo In Foreign Currency:ParticularsPayment in Foreign CurrencyTravelling – ForeignCommission to AgentsTotalEarning in Foreign Currency22. The total expenditure incurred on Research and Development:<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>1,68,98511,3271,80,<strong>31</strong>22,43,81,483<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)88,91,98692,94,775Nature of ExpensesExpenditure charged to profit and loss account 413,102 -Expenditure capitalised during the year 39,28,073 33,73,32923. Previous year's figures have been regrouped or rearranged wherever necessary to make them comparable with the currentyear's figures3.092.96<strong>Year</strong> ended<strong>31</strong>.03.2007----<strong>Year</strong> ended<strong>31</strong>.03.2007As per our report of even dateFor D. R. Barve & CompanyChartered AccountantsFor and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661Place : GurgaonDate : June 28, <strong>2008</strong>D. K. JainChairmanAshish DubeyHead FinanceUsha JainManaging DirectorMilita BharCompany Secretary37
ANNEXURE "A" ATTACHED TO NOTES TO ACCOUNTSDETAILS IN RESPECT OF OPENING STOCK, PRODUCTION, TURNOVER CLOSING STOCK OF FINISHED GOODS.A) (i) Particular pertaining to finished goodsS.No.Class of Goods /Manufactrued/ PurchasedOpening Stock Production / Purchase Turnover Closing StockQty Amount Qty Amount Qty Amount Qty Amount(Nos.) (Rs.) (Nos.) (Rs.) (Nos.) (Rs.) (Nos.) (Rs.)1 HEAD LAMP ASSEMBLY - - 9<strong>31</strong>,159 70,094,097 9<strong>31</strong>,159 70,094,097 - -(-) (-) (759,258) (64,759,483) (759,258) (64,759,483) (-) (-)2 TAIL LAMP ASSEMBLY - - 51,268 4,604,634 51,268 4,604,634 - -(-) (-) (95,775) (3,891,924) (95,775) (3,891,924) (-) (-)3 SILENCER ASSEMBLY - - 28,108 24,451,082 28,108 24,451,082 - -(-) (-) (18.619) (15,672,349) (18,619) (15,672,349) (-) (-)4 FRAME / CHASSIS - - 4<strong>31</strong>,952 342,577,791 4<strong>31</strong>,952 342,577,791 - -(-) (-) (524,070) (405,114,701) (524,070) (405,114,701) (-) (-)5 FRAME ASSEMBLY - - 65,955 226,639,308 65,955 226,639,308 - -(-) (-) (186,814) (622,638,005) (186,814) (622,638,005) (-) (-)6 WIND SHIELD CT-100/ PLATINA - - 569,726 23,893,022 569,726 23,893,022 - -(-) (-) (464,849) (20,457,400) (464,849) (20,457,400) (-) (-)7 OTHERS - 387,515,793 387,515,793 -(-) (300,232,721) (300,232,721) (-)Total - 1,079,775,727 1,079,775,727 -(-) (1,432,766,583) (1,432,766,582) (-)Note : - It is not practicable to furnish quantitative information in view of the large number of items which differ in size and nature, eachbeing less than 10% in value of the totalA(ii) Particulars Pertaining to Traded GoodsF O R T H E Y E A R E N D E D <strong>31</strong>. 03. <strong>2008</strong>S.No.OPENING STOCK PURCHASE TURNOVER CLOSING STOCKNAME OF THE ITEM QTY. AMOUNT (Rs.) QTY. AMOUNT (Rs.) QTY. AMOUNT (Rs.) QTY. AMOUNT (Rs.)1HEAD LAMP ASSEMBLY619669,910,762 2178269 <strong>31</strong>4,759,439 2193569 359,295,574 46666 7,679,866(-) (-) (265,134) (46,254,362) (203,168) (41,502,8<strong>31</strong>) (61,966) (9,910,762)2TAIL LAMP ASSEMBLY/REAR LAMP301295,421,279 456<strong>31</strong>8 90,542,713 459<strong>31</strong>7 108,710,603 27130 4,345,860(-) (-) (80,860) (16,763,826) (50,7<strong>31</strong>) (11,004,724) (30,129) (5,421,279)3OTHERS13,995,586 279,551,563 224,144,248 39,834,556(-) (128,727,483) (118,244,289) (13,995,586)Total 29,327,627 684,853,715 692,150,425 51,860,281(-) (191,745,671) (170,751,844) (29,327,627)38
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.ANNEXURES "B" ATTACHED TO NOTES TO ACCOUNTSDetails of Consumption of Raw MaterialS.No.Name of the item<strong>Year</strong> ended <strong>31</strong>.03.<strong>2008</strong> <strong>Year</strong> ended <strong>31</strong>.03.2007Qty.Amount (Rs.)Qty.Amount (Rs.)1 Steel Sheet 577479.13 18,768,072 4407724.50Kgs.Kgs.64,372,3302 Steel tube 70400 2,625,920 4196243.759Mtrs.Mtrs.110,759,95934Steel tube 3434770 196,949,712 706217Nos.Nos.Plastic powder 300037.254 32,404,023 356670.38Kgs.Kgs.17,622,51643,798,6765Others 480,133,547TOTAL 730,881,274923,396,9141,159,950,395Value and percentage of Raw Materials and Stores Consumed :S.No.ParticularRaw MaterialConsumable Stores% Amount (Rs.) % Amount (Rs.)1Indigenous 98.76 721,791,103 100 35,437,099(99.71) (1,156,554,164) (100) (37,498,962)2Imported 1.24 9,090,1710.29 (3,396,2<strong>31</strong>)-(-)Total 100730,881,274 10035,437,099100(1,159,950,395) (100)(37,498,962)Details in accordance with Accounting Standard-18 "RELATED PARTY DISCLOSURE"AS PER ANNEXURE- C(i) (A) Subsidiary: (B) Related Parties:(a) <strong>Lumax</strong> DK <strong>Auto</strong> Industries <strong>Ltd</strong>. (a) <strong>Lumax</strong> Industries <strong>Ltd</strong>.(b) Sheela Finance Pvt. <strong>Ltd</strong>.(c) Deepak <strong>Auto</strong> Pvt. <strong>Ltd</strong>.(C) Key Managerial Personnel: (d) <strong>Lumax</strong> <strong>Auto</strong>motive System <strong>Ltd</strong>.(a) D.K. Jain (e) <strong>Lumax</strong> Filter Pvt. <strong>Ltd</strong>.(b) Usha Jain (f) Deepak Jain(c) Anmol Jain(g) <strong>Lumax</strong> Investment and Finance <strong>Ltd</strong>.(h) <strong>Lumax</strong> International Pvt. <strong>Ltd</strong>.(i) Bharat Enterprises(j) D.K. Jain & Sons (HUF)(k) S.C. Jain39
(ii) Disclosure of transactions between the company and related parties and status of outstanding as on <strong>31</strong>st <strong>March</strong> <strong>2008</strong>S.No.ParticularsA(Rupees)B(Rupees)C(Rupees)A.Nature of Transaction:PURCHASES(I) Components/Finished Goods Purchased 752,945 356,110,663(-) (101,578,833)(ii) Other Raw Material Purchased -339,889(-)(1,634,460)(iii) Assets Purchased -161,862(811,519)(iv) Job Work/Others - -SALES(-) (-)(v) Components/Finished Goods Sold 60,947 24,172,181(96,778) (37,594,062)(vi) Other Raw Material Sold 99,579 37,533(-) (705,613)(vii) Assets Sold - 110,291(732,757)(viii) Job Work/Others - 782,244OTHER PAYMENTS(ix) Dividend Paid -(-) (592,012)(-) (2,474,951) (9,028,788)(x) Interest on Unsecured loan - 690,247 575,342(-) (420,000) (213,699)(xi) Managerial Remuneration - - 960,000(-) (-) (480,000)(xii) Provident Fund - - 115,200(-) (-) (57,600)(xiii) Commission Paid - - 900,000(-) (-) (895,000)(xiv) Other --97,717(34,785)(xv) Lease Rent - 540,000 -(-) (360,000) (-)(xvi) Unsecured loan - 6,000,000 -(xvii) Inter Company Deposit (5,947,<strong>31</strong>2)B.i)ii)Balances with Related Parties at the year end(94,500,000)(-) (-) (5,000,000)Unsecured loan payable -11,139,960 -(-) (4,421,026) (5,189,722)Other Current Assets 7,199 18,757,864 -(115,329,535) (5,747,894) (-)iii) Other Current Liabilities 400,462 133,<strong>31</strong>2,881-(-) (62,846,864) (924,263)(-)(-)(-)(-)-(-)-(-)-20,138,568 5,667,539(-)-(-)-(-)-(-)-(-)-(-)-(-)40
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.IBALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILERegistration Details:Registration No. U 3 1 9 0 9 M H 1 9 8 1 P L C 0 2 5 5 1 9State Code 2 5 Balance Sheet Date : 3 1 0 3 2 0 0 8IICapital Raised during the year ( Amount in Rs. Thousands)Public IssueBonus IssueRight IssueN I L N I LPrivate PlacementN I L N I LIIIPosition of Mobilisation and Deployment of Funds ( Amount in Rs. Thousands)Total LiabilitiesTotal Assets5 6 0 9 4 5 5 6 0 9 4 5Sources of Funds Paid up capital Reserves and Surplus1 1 6 3 1 5 2 6 7 4 0 6Secured LoansUnsecured Loans1 2 9 9 4 2 2 3 1 9 0Deferred Tax Liability2 4 0 9 2Application of Funds Net Fixed Assets Investments3 5 8 6 7 1 2 6 6 7 1Net Current AssetsMisc. Expenses1 7 5 6 0 3 N I LAccumulated LossesDeferred Tax AssetN I L N I LIVPerformance of Company ( Amount in Rs. Thousands)TurnoverTotal Expenditure1 7 7 8 4 6 7 1 7 3 4 9 6 5V Profit of Company Profit/(Loss) before tax Profit/(Loss) after tax4 3 5 0 2 2 7 6 9 2Earning per share ( Rs.) Dividend Rate ( % )2 . 3 8 2 . 3 8VI Generic Name of Three Principal Products / services of Company ( As per monetary terms )Item Code No. ( ITC Code) 8 5 1 2Product Description H E A D L A M P T A I L L A M PB L I N K E R SItem Code No. ( ITC Code) 8 7 1 4Product Description P A R T S A N D A C C E S S O R I E SO F M O T O R V E H I C L E SItem Code No. ( ITC Code) 8 7 0 8Product Description S I L E N C E R S A N D E X H A U S TP I P EAs per our report of even dateFor D. R. Barve & CompanyChartered AccountantsFor and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661Place : GurgaonDate : June 28, <strong>2008</strong>D. K. JainChairmanAshish DubeyHead FinanceUsha JainManaging DirectorMilita BharCompany Secretary41
Statement Pursuant to Section 212 of the Companies Act, 1956 relating to SubsidiariesS. No. Name of Subsidiary(1) (2)1 Financial <strong>Year</strong> of the Subsidiary2 Share of the Subsidiary held by the Company on the abovedate:(a) Number and face value(b) Extent of holding3 Net aggregate amount of Profits/(Losses) of the Subsidiaryfor the above financial year of the Subsidiary not dealt within the company's accounts:(a) for the financial year of the subsidiary - Profit/(Loss)(b) for the previous financial years since it became aSubsidiary - Profit/(Loss)<strong>Lumax</strong> DK <strong>Auto</strong> Industries Limited(3)01.04.2007 - <strong>31</strong>.03.<strong>2008</strong>4,240,343 Equity Shares of Rs. 10/- each fully paid up100%Rs. 9,13,67,284Rs. 4,53,97,<strong>31</strong>64 Net aggregate amount of Profits/(Losses) of the Subsidiarydealt with in the company's accounts:(a) for the financial year of the subsidiary - Profit/(Loss)(b) for the previous financial years since it become aSubsidiary - Profit/(Loss)--For and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.D. K. Jain Usha JainChairmanManaging DirectorPlace : GurgaonDate : June 28, <strong>2008</strong>Ashish DubeyHead FinanceMilita BharCompany Secretary42
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.DIRECTORS' REPORT<strong>Lumax</strong> DK <strong>Auto</strong> Industries LimitedRegd. Office : B-86, Mayapuri Industrial Area,Phase - I, New Delhi - 110064Dear Members,Your Directors have pleasure in presenting the Eleventh Annual Report together with Audited Balance Sheet and Profit & Loss Account forthe year ended <strong>31</strong>.03.<strong>2008</strong>.FINANCIAL RESULTSOPERATIONSRs (in lacs)2007-08 2006-07Sales (Net of Excise) 11395.64 5603.02Gross Profit 1698.42 676.23(-) Interest(-) Depreciation1<strong>31</strong>.02197.1774.0284.09Profit before Tax (PBT)Your Directors are pleased to report the remarkable results for the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong>. For the Financial <strong>Year</strong> 2007-08 your Company hasachieved net sales revenue of Rs. 11,395.64 lacs as against Rs.5,603.02 lacs in the previous year showing an impressive growth of 103%. TheProfit after Tax has also increased from Rs. 338.81 lacs to Rs. 913.67 lacs in the current Financial <strong>Year</strong> registering a remarkable growth of 170%over the previous year.Your Company has also commenced commercial production of its Pantnagar Unit in Uttarakhand for manufacturing <strong>Auto</strong>motive Lightings andoperations have been stabilized during the year. The Directors feel pleasure to inform that all major OEM's who have visited the unit hasappreciated the operations of the unit and rated the plant as best plant of its kind in India. Due to slow down in two wheelers industry the plantcould not achieve the projected turnover. However, the stringent control over the cost and overheads helped to maintain the profitability in the veryfirst year of operation.The Gear Shifter Division of your Company has been selected as Supplier for the Gear Shifting Systems by M/s Toyota Kirloskar Motor, for theirsmall car Project after stringent evaluation procedures.Your company has been accorded with ISO 14001 certification during the year and the Gear Shifter Division has received two prestigious awardsfrom Maruti Suzuki India <strong>Ltd</strong>. (MSIL) for excellent implementation of VA/VE activities and MPS project sponsored by the MSIL.During the year Company has also entered in to a Technical Assistance Agreement with MANNOH, Japan who are world leader in manufacturingCable type Gear Shifters.DIVIDENDIn order to augment resources for future expansion plans, your Directors do not recommend any dividend for the year.DIRECTORSMr. Anmol Jain retires by rotation at the ensuing Annual General Meeting pursuant to the provisions of the Companies Act, 1956 and Articles ofAssociation of the Company, and being, eligible, has offered himself for re-appointment.AUDITORS(-) Provision for Income TaxDeferred Tax and FBTProfit after Tax (PAT)(+) Balance in P& L A/c b/fProfit available for AppropriationProposed DividendTax on Proposed DividendBalance retained in P&L a/c1370.23 518.12456.56 179.<strong>31</strong>913.67 338.81411.39 72.581325.06 411.39- ---1325.06 411.39J.C. Bhalla & Co., Chartered Accountants retire as Auditors at the conclusion of the ensuing Annual General Meeting and being eligible offerthemselves for re-appointment at a remuneration to be fixed by the Board.The Auditors have not made any adverse remark in their report except about slight delay in remitting some statutory dues in few cases, whichhave since been paid.43
DEPOSITSThe Company has not accepted any Fixed Deposit during the year. Also there are no Fixed Deposits outstanding at the year end.EMPLOYEESNo Employee of the Company is covered under the provisions of Section 217(2A) of the Companies Act,1956 read with Companies (Particularsof Employees) Rules ,1975.OTHER INFORMATIONENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGOParticulars relating to Energy Conservation, Technology Absorption And Foreign Exchange Earnings and Outgo as required under section 217(1)(e) of the Companies Act, 1956 are annexed as part of the report.DIRECTORS RESPONSIBILITY STATEMENTPursuant to Section 217 (2AA) of the Companies (Amendment) Act, 2000 the Directors confirm:(i)(ii)(iii)(iv)that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanationrelating to material departures;that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that arereasonable and prudent so as to give a true and fair view of the State of Affairs of the Company at the end of financial year and of Profit orLoss of the Company for that period ;that the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with theprovisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;that the Directors had prepared the annual accounts on going concern basis.ACKNOWLEDGMENTYour Directors place on record their appreciation for the assistance and support extended by Holding Company, Government Authorities,Bankers, Customers and Vendors. Your Directors also place on record their appreciation for the efficient and loyal services rendered by theemployees at all levels to the Company.For and on behalf of the Board of Directors of <strong>Lumax</strong> DK <strong>Auto</strong> Industries <strong>Ltd</strong>.Place: GurgaonDate : June 28, <strong>2008</strong>D.K. JainCHAIRMAN44
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.ANNEXURE TO THE DIRECTORS’ REPORTA CONSERVATION OF ENERGYThough the Company does not come under the category of power intensive unit, adequate measures have been taken for theenergy conservation and thereby to reduce energy cost.BRESEARCH & DEVELOPMENT1 Specific Areas in which R & D is carried out by the CompanyContinuous improvement has been widely implemented in the plant by process re- engineering & Kizans.2 Benefits derived as a result of the above R & DIncrease in productivity, improved customer satisfaction and enhanced quality3 Future Plan of ActionTo continue development of new range of products4 Expenditure on R & D(Amount in Rs.)A Capital (CWIP) 373,810B Recurring924,064C Total1,297,874D Total R & D Expenditure Percentage to Turnover (%)0.11C TECHNOLGY ABSORPTION , ADOPTION AND INNOVATION1 Efforts in brief made towards Technology Absorption, Adaptation and InnovationContinuous efforts are made to secure and utilize the latest available technology, to keep pace with the latest manufacturingtrends, keeping in mind the quality, cost reduction and capacity utilization.2 Benefits derived as a result of the above efforts, e.g product improvement, cost reduction, product development, importsubstitution etc.The Company has been able to achieve superior quality production as per the Customer's satisfaction.3 Technology Imported during last five yearsTechnology Imported <strong>Year</strong> of Import Has technology been fully Benefit derivedabsorbedGear Shifter Assembly 2004 Yes Best products toCustomersDFOREIGN EXCHANGE EARNINGS & OUTGOParticulars 2007- 08(Rs)EarningsNilOutgo:Travelling ExpensesImport of Capital GoodsImport of Raw MaterialsRoyaltyOthers218,83014,140,63534,144,6282,059,272356,0012006 - 07(Rs)Nil55,91422,460,61711,342,573963,006284,02245
Auditors' ReportThe Members of <strong>Lumax</strong> DK <strong>Auto</strong> Industries LimitedWe have audited the attached Balance Sheet of <strong>Lumax</strong> DK <strong>Auto</strong>Industries Limited as at <strong>31</strong>st <strong>March</strong>, <strong>2008</strong> and also the Profit and LossAccount and Cash Flow Statement for the year ended on that dateannexed thereto. These financial statements are the responsibility ofthe company's management. Our responsibility is to express anopinion on these financial statements based on our audit.We conducted our audit in accordance with auditing standardsgenerally accepted in India. Those standards require that we plan andperform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An auditincludes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimatesmade by management, as well as evaluating the overall financialstatement presentation. We believe that our audit provides areasonable basis for our opinion.As required by the Companies (Auditor's Report) Order, 2003 issuedby the Central Government in terms of Section 227(4A) of theCompanies Act, 1956, and on the basis of such checks as weconsidered appropriate and according to the information andexplanations given to us, we enclose in the Annexure a statement onthe matters specified in paragraph 4 and 5 of the said order to theextent applicable.Further to our comments in the Annexure referred to in paragraphabove, we report that;a) We have obtained all the information and explanations, w h i c hto the best of our knowledge and belief were necessary for thepurpose of our audit.b) In our opinion, proper books of account, as required by law,have been kept by the company, so far as appears from ourexamination of the books.c) The Balance Sheet, Profit & Loss Account and Cash FlowStatement dealt with by this report are in agreement with theBooks of Account.d) The Balance Sheet, Profit & Loss Account and Cash FlowStatement are in compliance with the mandatory AccountingStandards referred to in section 211 (3C) of the CompaniesAct, 1956 to the extent applicable.e) On the basis of written representations received fromDirectors, we report that none of the Directors is disqualifiedas on <strong>March</strong> <strong>31</strong>, <strong>2008</strong> from being appointed as a directorunder clause (g) of sub-section (1) of section 274 of theCompanies Act, 1956.f) In our opinion and to the best of our information and accordingto the explanations given to us, the said financial statementstogether with the notes thereon and attached thereto give inthe prescribed manner the information required by the Act andgive a true and fair view in conformity with the accountingprinciples generally accepted in India:i) in the case of Balance Sheet, of the State of Affairs of theCompany as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>;ii) in the case of Profit and Loss Account, of the profit for theyear ended on that date; andiii) in the case of Cash Flow Statement, of the Cash Flows for theyear ended on that date.Rajesh SethiPartnerMembership No. 85669For and on behalf ofPlace: GurgaonJ.C. Bhalla & Co.Date: June 28, <strong>2008</strong>Chartered AccountantsAnnexure to the Auditors' Report on the accounts of <strong>Lumax</strong> DK<strong>Auto</strong> Industries Limited for the year ended <strong>31</strong>st <strong>March</strong> <strong>2008</strong> asreferred to in our report of even date.(i)(ii)(iii)(iv)(a) The company is maintaining proper records showing fullparticulars including quantitative details and situation offixed assets.(b) The fixed assets have been physically verified by themanagement at the year-end. We are informed that nomaterial discrepancies have been noticed by themanagement on such verification as compared with therecord of fixed assets maintained by the company.(c) The company has not disposed off substantial part of fixedassets during the year.(a) The inventory (excluding stock with third parties which hasbeen substantially confirmed by them) has been physicallyverified by the management at reasonable intervals.(b) In our opinion, the procedures of physical verification ofinventory followed by the management were adequate inrelation to the size of the company and the nature of itsbusiness.(c) The company is maintaining proper records of inventory.The discrepancies noticed on physical verification of stocksas compared to book records were not material and havebeen properly dealt with in the books of account.(a) According to the information and explanations given to us,the company has not granted any loans, secured orunsecured to any company, firms or other parties covered inthe register maintained under section 301 of the CompaniesAct, 1956.(b) As the company has not granted any loans, secured orunsecured to companies, firms or other parties covered inthe register maintained under section 301 of the CompaniesAct, 1956, the provisions of para 4 (iii)(b), (iii)(c) and (iii)(d) ofthe Order are not applicable to the company.(c) According to the information and explanations given to us,the company has taken an unsecured loan from a companycovered in the register maintained under Section 301 of theCompanies Act, 1956. The maximum amount involvedduring the year was Rs. 15 Lakhs and year-end balance ofloan taken from such party was Rs. 15 Lakhs.(d) In our opinion, the rate of interest and other terms andconditions of loan taken by the company are not prima facieprejudicial to the interest of the company.(e) The company is regular in repayment of the principal andinterest as stipulated.In our opinion and according to the information and explanationsgiven to us there are adequate internal control procedurescommensurate with the size of the company and the nature of itsbusiness for the purchase of inventory and fixed assets and forthe sale of goods. The clause relating to sales of service is notapplicable to the company. Further, in our opinion, there is nocontinuing failure to correct major weaknesses in internalcontrol system.46
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.(v)(a) In our opinion and according to the information andexplanations given to us, we are of the opinion that thetransactions that need to be entered in the registermaintained under section 301 of the Companies Act, 1956have been so entered.(b) The company’s major purchases of inventory and fixedassets and major sales of components are stated to be ofproprietary/specialized nature, and hence, in such cases,the comparison of prices with the market rates or withpurchases from/sales to other parties can not be made.(xiv)(xv)(xvi)The company is not dealing or trading in shares, securities,debentures and other investments.According to the information and explanations given to us, thecompany has not given any guarantee for loans taken by othersfrom banks or financial institutions.According to the information and explanations given to us, on anoverall basis, term loans have been applied for the purpose forwhich they were obtained.(vi)(vii)(viii)(ix)In our opinion and according to the information and explanationsgiven to us, the company has not accepted deposits from thepublic during the year within the meaning of Section 58A, 58AAor any other relevant provisions of the Companies Act, 1956 andthe rules framed thereunder.The company has an in-house internal audit systemcommensurate with its size and nature of its business.On the basis of records produced, we are of the opinion that,prima facie, the cost accounting records prescribed by theCentral Government under section 209(1)(d) of the CompaniesAct, 1956 have been maintained by the company. However, weare not required to and have not carried out any detailedexamination of such records.(a) The company is generally regular in depositing undisputedstatutory dues including Provident Fund, Investor Educationand Protection Fund, Employee’s State Insurance, Incometax,Sales-tax, Service Tax, Custom Duty, Excise Duty, Cessand any other statutory dues with the appropriate authoritiesas per its records, except Income Tax (TDS) amounting toRs.10,632/- that has since been deposited.(b) According to the information and explanations given to us,there is no case where Sales Tax, Income Tax, Wealth Tax,Service Tax, Custom Duty, Excise Duty, Cess have not beendeposited on account of dispute except as statedhereunder:(xvii) According to the information and explanations given to us, onthe basis of an overall examination of the Balance Sheet of thecompany, we are of the opinion that there are no funds raised bythe company on short-term basis which have been used for longterm investment.(xviii) The company has not made any preferential allotment of sharesto parties and companies covered in the register maintainedunder section 301 of the Companies Act, 1956.(xix)(xx)(xxi)The company has not issued any debentures during the year.The company has not made any public issue during the year.According to the information and explanations given to us, nofraud on or by the company has been noticed or reported duringthe year.Place : GurgaonDate : June 28, <strong>2008</strong>Rajesh SethiPartnerMembership No. 85669For and on behalf ofJ.C. Bhalla & Co.Chartered AccountantsName of theStatuteCentral ExciseAct, 1944Employee StateInsuranceCorporation Act, 1948Nature ofthe DuesExcise dutydemandESIDemandEmployeeESIState InsuranceDemandCorporation Act, 1948AmountDisputed(Rs)AmountDeposited(Rs)Period to whichit relates88,032 88,032 F.Y. 2000 -01102,139 51,070 F.Y. 2005 -0690,247 45,123 F.Y.2007 -08Forum where thedispute is pending.Commissioner(Appeals) Excise,New DelhiAdditional SessionJudge GurgaonCourt of Civil JudgeSenior Division CumDesignated ESI Court(x)(xi)(xii)(xiii)According to the records of the company, the company does nothave accumulated losses at the end of the financial year. Thecompany has not incurred cash losses in the financial yearunder report and in the immediately preceding financial year.According to the information and explanations given to us, thecompany has not defaulted in repayment of dues to any bank.According to the information and explanations given to us, thecompany has not granted loans and advances on the basis ofsecurity by way of pledge of shares, debentures and othersecurities.In our opinion and according to the information and explanationsgiven to us, the provisions of any special statute applicable tochit fund, nidhi, mutual benefit fund, societies are not applicableto the company.47
LUMAX DK AUTO INDUSTRIES LIMITEDBALANCE SHEET AS AT <strong>31</strong>ST MARCH, <strong>2008</strong>ParticularsSOURCES OF FUNDSShareholders' FundsShare CapitalReserves and SurplusSchedulesAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.20071 42,403,130 42,403,1302 132,417,389 41,138,936Loan FundsSecured LoansUnsecured Loans<strong>31</strong>02,998,303 112,869,100110,052,688 116,000,000Deferred Tax Liability - Net(Refer Note No B-11 of Schedule -20)APPLICATION OF FUNDSFixed AssetsGross BlockLess : DepreciationNet BlockCapital Work in ProgressPre-operative Expenses Pending AllocationCurrent Assets, Loans & AdvancesInventoriesSundry DebtorsCash & Bank BalancesLoans & AdvancesLess: Current Liabilities & ProvisionsLiabilitiesProvisionsNet Current Assets29,611,092 13,740,759417,482,602 326,151,9254425,352,358 169,160,49146,203,144 26,486,164379,149,214 142,674,3272,572,258 179,986,6075 - 9,544,6606 35,598,185 18,079,1537 217,976,641 163,139,9748 10,954,213 1,379,0129 59,589,510 16,263,49410324,118,549 198,861,633239,152,639 188,458,23251,462,280 19,843,320290,614,919 33,503,630 208,301,552 (9,439,919)Miscellaneous Expenditure(To the extent not written off or adjusted)11 2,257,500 3,386,250Significant Accounting Policies &Notes to Accounts20417,482,602 326,151,925This is the Balance Sheet referredto in our report of even date.Rajesh SethiPartnerMembership No. 85669For and on behalf ofJ.C. Bhalla & Co.Chartered AccountantsPlace : GurgaonDate : June 28, <strong>2008</strong>.48For and on behalf of the Board of Directors of <strong>Lumax</strong> DK <strong>Auto</strong> Industries LimitedD.K.Jain Deepak Jain Anmol Jain Shivani JainChairman Director Director Executive DirectorSanjay MehtaAnil TyagiVice President (F)Company Secretary
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.LUMAX DK AUTO INDUSTRIES LIMITEDPROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED <strong>31</strong>ST MARCH, <strong>2008</strong>(Amount in Rs.)ParticularsSchedules <strong>Year</strong> ended <strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.2007INCOMEGross SalesLess : Excise DutyNet Sales1,269,281,429 651,447,641129,717,165 91,145,5151,139,564,264 560,302,126Other IncomeEXPENDITUREPurchase of Traded GoodsRaw Material CostManufacturing & Operating ExpensesPersonnel ExpensesAdministrative ExpensesSelling & Distribution ExpensesFinancial Expenses12 3,829,538 775,0461,143,393,802 561,077,172365,988,418 184,077,38413 504,703,826 247,198,06414 53,105,893 34,936,84615 24,494,925 11,248,97516 17,179,369 9,840,95017 9,023,920 7,524,11018 13,101,997 7,401,50119,716,980 8,408,778Depreciation/AmortisationIncrease in Inventories 19 (944,924) (1,371,636)1,006,370,404 509,264,972PROFIT BEFORE TAX137,023,398 51,812,200Less: Provision for Tax- Income Tax 29,273,300 15,450,000- Deferred Tax 15,916,073 2,215,700- Fringe Benefit Tax 466,740 45,656,113 265,362 17,9<strong>31</strong>,062PROFIT AFTER TAX91,367,285 33,881,138Add : Balance brought forward from Previous <strong>Year</strong> 41,138,936 7,257,798Amount Available for Appropriation 132,506,221 41,138,936Earnings Per Share (Basic & Diluted)21.55 7.99(Nominal value of shares Rs 10 each (Previous <strong>Year</strong> : Rs 10 each))Significant Accounting Policies & Notesto Accounts20This is the Balance Sheet referredto in our report of even date.Rajesh SethiPartnerMembership No. 85669For and on behalf ofJ.C. Bhalla & Co.Chartered AccountantsPlace : GurgaonDate : June 28, <strong>2008</strong>.For and on behalf of the Board of Directors of <strong>Lumax</strong> DK <strong>Auto</strong> Industries LimitedD.K.Jain Deepak Jain Anmol Jain Shivani JainChairman Director Director Executive DirectorSanjay MehtaAnil TyagiVice President (F)Company Secretary49
LUMAX DK AUTO INDUSTRIES LIMITEDCASH FLOW STATEMENT FOR THE PERIOD APRIL 1,2007 to MARCH <strong>31</strong>,<strong>2008</strong>A) CASH FLOW FROM OPERATING ACTIVITIESFor and on behalf of the Board of Directors of <strong>Lumax</strong> DK <strong>Auto</strong> Industries LimitedD.K.Jain Deepak Jain Anmol Jain Shivani JainChairman Director Director Executive DirectorSanjay MehtaVice President (F)(Amount in Rs)Particulars 2007- 08 2006-07Net Profit (Loss) Before Tax (after Prior Period Items) 137,023,398 51,812,200ADJUSTMENTS FOR :Depreciation charged for the year 19,716,980 8,408,778Interest Paid 13,101,997 7,401,501Adjustment on Employees Retirement benefits (134,572)-Interest Income (130,159) (8,279)Rent received (96,000) -Dividend Income - -Deferred Revenue Expenditure 1,128,750 1,128,750(Profit)/Loss on Sale of Fixed Assets - 958Operating Profit Before Working Capital Changes170,610,394 68,743,908Movements in working capitals:Inventories (17,519,032) (7,730,094)Sundry debtors (54,836,667)(104,507,796)Loans and Advances (2,636,493) 4,547,653Current Liabilities 50,694,407 94,813,199Provision for Leave encashment, Gratuity and Excise Duty 1,878,920 760,216Cash Generated From Operations 148,191,529 56,627,086Direct Taxes Paid (40,689,523) (3,429,120)Cash Flow Before Extra-ordinary ItemsExtra-Ordinary Item - -NET CASH FLOW FROM OPERATING ACTIVITIES 107,502,006 53,197,966B) CASH FLOW FROM INVESTING ACTIVITIESDividend Income - -Interest Income 130,159 8,279Rent received 96,000Sale of Fixed Assets 6,665,654 35,500Purchase of Fixed Assets (85,443,173) (182,640,112)Pre-Operative Expenses 9,544,660 (9,544,660)NET CASH FLOW FROM INVESTING ACTIVITIES (69,006,700) (192,140,993)C) CASH FLOW FROM FINANCING ACTIVITIESInterest Paid (13,101,997) (7,401,501)Dividend paid - -Dividend Tax paid - -Proceeds from Long Term BorrowingsReceipts 160,900,000 128,228,366Payments (180,478,756) -Proceeds from Short Term BorrowingsNet movement in cash credit facilities and short term loans 3,760,648 2,081,717Overdraft - 7,203,137NET CASH FLOW FROM FINANCING ACTIVITIES(28,920,105) 130,111,719(A+B+C)9,575,201 (8,8<strong>31</strong>,308)CASH AND CASH EQUIVALENTS (OPENING)Cash and Bank BalancesCASH AND CASH EQUIVALENTS (CLOSING)Cash and Bank Balances1,379,01210,954,21<strong>31</strong>0,210,3201,379,012NOTES:a) Cash Flow Statement has been prepared under the ' Indirect method ' as set out in Accounting Standard -3 on Cash Flow Statements issuedby the Institute of Chartered Accountants of India.b) Negative figures have been shown in brackets.As per out report of even dateRajesh SethiPartnerMembership No. 85669For and on behalf ofJ.C. Bhalla & Co.Chartered AccountantsPlace : GurgaonDate : June 28, <strong>2008</strong>.50Anil TyagiCompany Secretary
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.LUMAX DK AUTO INDUSTRIES LIMITEDSCHEDULES TO THE BALANCE SHEET AS AT <strong>31</strong>ST MARCH, <strong>2008</strong>ParticularsSchedule - 1Share CapitalAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.2007a) Authorised :50,00,000 (Previous year 50,00,000) Equity Shares of Rs.10 /- eachb) Issued, Subscribed and Paid up :42,40,<strong>31</strong>3 (Previous <strong>Year</strong> 42,40,<strong>31</strong>3) Equity Shares of Rs.10/-each fully paid upi) Out of the above, 8,97,625 Equity Shares allotted other than Cashii) All the shares are held by the holding company M/s.<strong>Lumax</strong>50,000,000 50,000,00050,000,000 50,000,00042,403,130 42,403,130<strong>Auto</strong> <strong>Technologies</strong> Limited) 42,403,130 42,403,130Schedule - 2Reserves and SurplusBalance as per Last Balance sheetAdd : Profit during the yearLess :Adjustment of Employee Benefit Provisions (Net of Tax ofRs 45,741/-) (Refer Note No 7 (a))Schedule - 3Loan Funds41,138,936 7,257,79891,367,285 33,881,13888,832 132,417,389 - 41,138,936132,417,389 41,138,936A) SECURED LOANSa) Vehicle Loans 129,343 129,343 414,505 414,505(Secured against First Charge on Vehicles )(Due within one year Rs.92,049/- ( Previous year Rs 276,846/- )b) Term Loans 84,480,000 93,728,365(Due within one year Rs.30,440,000/-(Previous year Rs 23,466,000/- )(Secured by way of first charge against all movable fixed assets,equitable mortgage on Freehold Land , Buildings and CorporateGuarantee of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.)c) Working Capital limitsBill Discounting - 5,035,240Working Capital 16,284,186 -Overdrafts - 100,764,186 7,203,137 105,966,742(Secured by way of first charge against current assets of the companyand Corporate Guarantee of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.)d) Deferred Credit from SIDCUL 2,104,774 6,487,853(Against allotment of Land) 102,998,303 112,869,100B) UNSECURED LOANSa) From Sheela Finance Pvt. <strong>Ltd</strong>. 1,500,000 1,500,000b) From <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong> (Holding Company) 108,552,688 110,052,688 114,500,000 116,000,000110,052,688 116,000,00051
LUMAX DK AUTO INDUSTRIES LIMITEDSCHEDULES TO THE BALANCE SHEET AS AT <strong>31</strong>ST MARCH, <strong>2008</strong>Schedule - 4Fixed AssetsGROSS BLOCKDEPRECIATION(Amount in Rs.)NET BLOCKPARTICULARSTANGIBLEAs at Additions Sales/ As at Upto 01.04.2007 Adjustments01.04.2007 Adjustments <strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.2007 To<strong>31</strong>.03.<strong>2008</strong>Upto As at As at<strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.2007Free Hold Land 13,567,286 2,739,228 - 16,306,514 - -Lease Hold Land 19,200,085 19,200,085 - 193,940 -- 16,306,514 13,567,286193,940 19,006,145 -Buildings <strong>31</strong>,478,969 73,782,294 - 105,261,263 1,797,566 3,153,877 -4,951,443 100,309,820 29,681,403Plant & Machinery 112,118,082 159,590,415 6,665,654 265,042,843 18,822,416 13,512,405 -32,334,821 232,708,022 93,295,666Furniture & Fixtures 794,860 3,083,606 - 3,878,466 386,773 448,712 -835,485 3,042,981 408,087Office Equipments 765,8711,894,342-2,660,213374,330 <strong>31</strong>7,653 -691,983 1,968,230 391,541Vehicles 1,953,377 - - 1,953,377 471,978 185,571 -657,549 1,295,828 1,481,399Computers 2,855,663 2,567,551 - 5,423,214 1,910,139 779,545 -2,689,684 2,733,530 945,524INTANGIBLETechnical Know How Fee 5,626,383 - - 5,626,383 2,722,962 1,125,277 -3,848,239 1,778,144 2,903,421Total 169,160,491 262,857,521 6,665,654 425,352,358 26,486,164 19,716,980 -46,203,144 379,149,214 142,674,327Capital Work in Progress2,572,258 179,986,607Grand Total 169,160,491 262,857,521 6,665,654 425,352,358 26,486,164 19,716,980 -46,203,144 381,721,472 322,660,934Previous <strong>Year</strong> 166,543,935 2,653,506 36,950 169,160,491 18,077,878 8,408,778 49226,486,164 322,660,934Note :1) Capital work in Progress includes capital advances amounting to Rs. 1,645,000/- (Rs. 390,245/-)2) Capital work in Progress is net of Nil (Rs. 435,479/-) being profit on account of fluctuation in foreign exchange rates.3) Addition to fixed assets includes Rs. 4,663,805/- (Nil) on account of capitalization of borrowing cost.4) Capital Work in Progress includes Rs. 373,810/- (Nil) relating to Research & Development Assets.52
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.LUMAX DK AUTO INDUSTRIES LIMITEDSCHEDULES TO THE BALANCE SHEET AS AT <strong>31</strong>ST MARCH, <strong>2008</strong>ParticularsAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.2007Schedule - 5Pre- Operative Expenses Pending AllocationMATERIAL COSTMaterial ConsumedMANUFACTURING EXPENSESPower, Electricity and Water ChargesADMINISTRATIVE AND OTHER EXPENSESSalary and Wages ExpensesRates and TaxesSecurity, Housekeeping and Guest House ExpensesTravelling ExpensesConsultancy ChargesMiscellaneous Expenses- 366,249(A) - 366,249- 619,100(B) - 619,100- 2,224,966- 340,547- 392,766- 283,092- 16,850- 637,285(C) - 3,895,506FINANCE EXPENSESInterest and Finance Charges - 4,663,805(D) -4,663,805Schedule - 6InventoriesTOTAL (A+B+C+D) -9,544,660(As taken, valued and certified by the Management)Raw Material28,934,125 12,967,417Finished Goods3,210,219 4,447,006Work in Progress2,492,439 <strong>31</strong>0,728Consumable Stores625,659 140,457Packing material 335,743 213,545Schedule - 7Sundry Debtors35,598,185 18,079,153(Unsecured - considered good)-Over Six months1,978,185 3,856-Others 215,998,456 163,136,118Schedule - 8Cash And Bank Balances217,976,641 163,139,974Cash in Hand141,222 61,195Balance with Banks - Current Accounts 10,812,991 1,<strong>31</strong>7,817Schedule - 9Loans And Advances(Unsecured - considered good unless other-wise stated)a) Advances recoverable in cash or in kind or forvalue to be receivedb) Security Depositsc) Balance with Central Excise Authoritiesd) Tax Paid10,954,213 1,379,0128,035,5223,078,5862,523,98045,951,42259,589,5104,814,3853,252,3402,934,8705,261,89916,263,49453
LUMAX DK AUTO INDUSTRIES LIMITEDSCHEDULES TO THE BALANCE SHEET AS AT <strong>31</strong>ST MARCH, <strong>2008</strong>ParticularsAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.2007Schedule - 10Current Liabilities And Provisionsa) Current Liabilities :Sundry Creditors - Micro,Small and Medium Enterprises @- Others 228,971,538 176,020,607Liability for Expenses 8,434,975 4,006,475Advance from Customers - 7,091,754Other Liabilities 1,746,126 2 39,152,639 1,339,396 188,458,232b) Provisions :For Income Tax 46,429,692 17,305,081For Fringe Benefit Tax 880,791 265,362For Earned Leave 1,718,408 651,065For Gratuity 2,4<strong>31</strong>,797 1,261,382For Excise Duty on Stock of Finished Goods 1,592 51,462,280 360,430 19,843,320290,614,919 208,301,552Schedule - 11Miscellaneous Expenditure(To the extent not written off or adjusted)Deferred Revenue ExpenditureOpening Balance 3,386,250 4,515,000Less : Written off during the year 1,128,750 1,128,7502,257,500 3,386,250@The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises DevelopmentAct, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act & as required bySchedule VI of Companies Act, 1956 have not been given.54
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.SCHEDULES TO THE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED <strong>31</strong>ST MARCH, <strong>2008</strong>Particulars<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.2007Schedule - 12Other IncomeSale of Scrap266,368 111,<strong>31</strong>1Interest (TDS - Rs-Nil (Previous <strong>Year</strong> TDS Rs.1,872/-)130,159 8,279Job work charges (TDS- Rs Nil (Previous <strong>Year</strong> Rs 6,665/-)- 325,137Miscellaneous Income1,254,254 204,280Rent Received96,000 -Foreign Exchange Difference2,000,550 12,095Excess Provision Written Back 82,207 113,944Schedule - 13Raw Material Cost3,829,538 775,046Raw Material ConsumedOpening StockAdd : PurchasesLess : Closing StockSchedule - 14Manufacturing & Operating Expenses12,967,417520,670,53428,934,125504,703,8266,944,961253,220,52012,967,417247,198,064WagesLight, Power and FuelConsumable StoresRepairs of MachineryJob Work ChargesTesting feeFreight InwardExcise Duty on Finished GoodsSchedule - 15Personnel Expenses17,139,21523,614,5805,385,936936,3954,756,890130,4521,501,263(358,838)53,105,89<strong>31</strong>0,299,78715,947,3722,847,241411,6654,594,267335,<strong>31</strong>7620,173(118,976)34,936,846Salaries and AllowancesContribution to ESI and PFStaff Welfare19,680,0441,746,0593,068,82224,494,9258,646,155822,2011,780,61911,248,97555
LUMAX DK AUTO INDUSTRIES LIMITEDSCHEDULES TO THE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED <strong>31</strong>ST MARCH, <strong>2008</strong>Particulars<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.2007Schedule - 16Administrative ExpensesTravelling and ConveyancePostage and TelephonesLegal and ConsultancyPrinting and StationeryRentRates and TaxesGeneral Repairs and MaintenanceBuilding Repairs and MaintenanceSecurity ExpensesInsuranceVehicle MaintenanceLoss on Sale of AssetsRoyaltyDeferred Revenue Exp. Written offDonationAmount Written offPrior Period ExpensesMiscellaneous ExpensesSchedule - 17Selling And Distribution ExpensesPacking and ForwardingRebate and DiscountsPacking Material ConsumedSchedule - 18Finance ExpensesInterest on Term LoanInterest on ICDInterest on Working capitalInterest -othersBank ChargesSchedule - 19Increase In Inventories1,570,603837,4281,356,329702,858226,625298,2372,175,0361,627,0451,638,935867,942933,084-2,059,2721,128,75028,084173,850<strong>31</strong>8,3321,236,95917,179,3694,069,8811,864,3483,089,6919,023,9209,242,730180,4132,642,817573,532462,50513,101,997a) Closing Stock :Finished Goods 3,210,219 4,447,006Work in Progress 2,492,439 5,702,658 <strong>31</strong>0,728b) Opening Stock :Finished Goods 4,447,006 2,635,947Work in Progress <strong>31</strong>0,728 4,757,734 750,151(944,924)930,134504,105375,127409,3051,541,700119,159862,000508,228934,898466,349<strong>31</strong>1,574958937,6071,128,7505,000--806,0569,840,9503,217,7511,768,4682,537,8917,524,1105,292,539180,0001,837,52791,4357,401,5014,757,7343,386,098(1,371,636)56
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.LUMAX DK AUTO INDUSTRIES LIMITEDSCHEDULE 20SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTSA. SIGNIFICANT ACCOUNTING POLICIES1. BASIS OF PREPARATION OF FINANCIAL STATEMENTSThe financial statements have been prepared under the historical cost convention on accrual basis of accounting in accordance with theGenerally Accepted Accounting Principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company.2. REVENUE RECOGNITIONSale of goods is recognised at the point of dispatch of finished goods to customers. Sales are inclusive of Excise Duty and exclusive ofSales Tax.3. FIXED ASSETS AND DEPRECIATIONi) Fixed Assets are stated at cost of acquisition (Net of CENVAT) less accumulated depreciation and subsequent improvements theretoincluding expenses relating to acquisition and installation. Pre-operative expenses incurred during the construction, trial andstabilisation period including interest on borrowing related to acquisition of fixed assets are capitalised up to the period such assets areput to commercial use.ii) Depreciation has been provided on straight-line basis in accordance with and at the rates prescribed in Schedule XIV to the CompaniesAct, 1956 read with the relevant circulars issued by the Department of Company Affairs from time to time on all the assets exceptIntangible Asset on which depreciation has been provided on Straight-Line Method to write off the cost of the Asset over its estimateduseful life. Depreciation on Assets whose actual cost does not exceed Rs.5, 000/- is provided at the rate of 100%.iii) Cost of Leasehold land is amortized over the period of lease.4. INTANGIBLE ASSETSIntangible assets comprising of technical know how are amortized over a period of their estimated useful life of five years.5. VALUATION OF INVENTORIESi) Raw Material & Consumable At cost on FIFO basis or net realisable value whichever is lower.Storesii) Work in Progress At cost or net realizable value whichever is lower.iii) Finished Goods At cost or net realizable value whichever is lower.iv) Scrap At estimated realizable value.v) Trading At cost or net realizable value whichever is lower.Cost includes Excise Duty in respect of Finished Goods.6. TRANSACTIONS IN FOREIGN CURRENCIES(i)Transactions denominated in foreign currencies are recorded at exchange rate prevailing at the date of transaction.(ii)(iii)Foreign currency monetary items (including forward contracts) are translated at year end rates. Exchange differences arising onsettlement of transactions and translation of monetary items (including forward contracts) are recognized as income or expense in theyear in which they arise.The premium or discount arising at the inception of a forward contract, which is not intended for trading purpose, is amortized asexpense or income over the life of the contract.7. DEFERRED REVENUE EXPENDITUREExpenditure incurred on know how for modification of existing products along with any future expenditure is appropriately amortized on thecommencement of commercial production of the modified products as the benefit of expenditure is expected in future years.8. EMPLOYEE BENEFITS(a)(b)Short Term Employee Benefits: Short term employee benefits are recognized in the period during which the serviceshave been rendered.Long Term Employee Benefits:(i) Defined Contribution planProvident Fund and Employees' State Insurance SchemesAll employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined contribution plan. Boththe employees and the employer make monthly contributions to the plan at a predetermined rate (presently 12%) of theemployees' basic salary and dearness allowance. These contributions are made to the fund administered and managed by theGovernment of India. In addition, some employees of the Company are covered under the Employees' State Insurance Scheme,which are also defined contribution scheme recognized and administered by the Government of India.57
The Company's contributions to both these schemes are expensed in the Profit and Loss Account. The Company has no furtherobligations under these plans beyond its monthly contributions.(ii) Defined benefit planLeave Encashment Liability on account of unavailed earned leave at the year end is provided as per the actuarial valuationaccording to Projected Unit Credit Method.Gratuity Liability on account of gratuity at the year end is provided as per the actuarial valuation according to the Projected UnitCredit Method.(iii) Actuarial gains and losses are recognized as and when incurred.9. BORROWING COSTBorrowing costs that are attributable to the acquisition of qualifying assets are capitalized as part of the cost of such Assets. A qualifyingAsset is an Asset that necessarily requires substantial period of time to get ready for its intended use. All other borrowing cost isrecognized as expenses in the period in which they are incurred.10. DEFERRED TAXTax expense comprises both current and deferred tax. Current Tax is measured at the amount expected to be paid to the tax authorities,using the applicable tax rates and tax laws. Deferred tax assets and liabilities are recognized for future tax consequences attributable tothe timing difference between taxable income and accounting income that are capable of reversal in one or more subsequent period andare measured using tax rate enacted or substantively enacted as at the balance sheet date. Deferred Tax assets are not recognizedunless, in the management judgment, there is virtual certainty that sufficient future taxable income will be available against which suchdeferred tax assets can be realized. The carrying amount of deferred tax is reviewed at each balance sheet date.11. SEGMENT REPORTINGThe Company operates in two primary business segments viz. <strong>Auto</strong>motive Parts, and Trading of Motor Adjusters.12. EARNINGS PER SHAREBasic Earnings per equity share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weightedaverage number of equity shares outstanding during the period. The Diluted Earnings per share is calculated on the same basis as BasicEarnings per share, after adjusting for the effect of potential dilutive equity shares.13. PRE-OPERATIVE EXPENDITUREThe expenditure incurred by the Company from the date of setting up of a new unit, upto the date of commencement of commercialproduction of the unit is treated as Preoperative expenditure to be capitalized as a part of the indirect cost of construction. The amount ofsuch expenditure is to be apportioned over the individual assets in an equitable manner. The amount not directly attributable to fixedassets are charged to the Profit and Loss account in the year in which such expenditure is incurred.14. PROVISIONSProvisions are recognized when the Company has a present obligation as a result of past events and it is more likely than not that anoutflow of resources will be required to settle the obligation and the amount has been reliably estimated.15. IMPAIRMENT OF ASSETSAn asset is treated as impaired when the carrying cost of assets exceeds its recoverable value . An impairment loss is charged to the profitand loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period isreversed if there has been a change in the estimate of recoverable amount.BNOTES TO ACCOUNTS1 Contingent Liabilities:Excise Duty demand - Rs. 88,032/- (Rs. 88,032/-)E.S.I Demand - Rs. 147,262/- (Rs. 102,139/-)2. Capital Commitments (net of advances) - Rs. 1,110,612/- (Rs 15,791,918/-)3. The value of stock of finished goods lying at the year-end includes excise duty amounting to Rs. 1,592 /- (Rs. 360,430/-). This has no effecton the profit for the year.4. Balances under the heads Sundry Debtors, Sundry Creditors, Advances and Deposits are subject to confirmation.5. In the opinion of Directors, Current Assets, Loans and Advances, if realised in the ordinary course of business, have the value at which theyare stated in the Balance Sheet.58
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.6. Segment ReportingInformation about Business Segment- PrimaryThe company has considered business segment as the primary segment for disclosure. The products included in each of the reportedbusiness segments are as follows:<strong>Auto</strong>motive Parts include Gear Shifter Assembly, Parking Brake, <strong>Auto</strong>motive Lights and Plastic Mouldings.Corrugated Boxes includes Paper Reel Boxes and Rubber Components.Trading Activities include Motor Adjusters.The above business segments have been identified considering:a) the nature of products and servicesb) the differing risks and returnsc) the organization structure, andd) the internal financial reporting systems.S.No. Reportable Segments <strong>Auto</strong>motive Parts Corrugated Boxes * Trading Consolidated1. Segment Revenuea) External Revenue 695,812,697 - 447,581,105 1,143,393,802(<strong>31</strong>6,653,877) (39,193,617) (205,229,678) (561,077,172)b) Inter Segment Revenue-(-)c) Total Revenue 695,812,697 - 447,581,105 1,143,393,802(<strong>31</strong>6,653,877) (39,193,617) (205,229,678) (561,077,172)2. Segment Results 71,608,071 - 78,517,324 150,125,395(Profit/Loss) (34,402,640) (1,233,643) (23,577,418 ) (59,213,701)-(-)-(-)(Amount in Rs.)-(-)Unallocated Expenses 13,101,997(7,401,501)Profit Before Tax 137,023,398(51,812,200)Income Tax 29,273,300(15,450,000)-Previous <strong>Year</strong> Tax Adjustment(-)Fringe Benefit Tax 466,740(265,362)Deferred Tax Liability 15,916,073(2,215,700)Profit after tax 91,367,285(33,881,138)3. Other InformationSegment Assets 577,063,270 - 117,822,538 694,885,808(415,941,361) (16,957,064) (98,168,802) (5<strong>31</strong>,067,227)Un-allocable Assets- - - 10,954,213(-) (-) (-) (-)Total Assets 577,063,270 - 117,822,538 705,840,021(415,941,361) (16,957,064) (98,168,802) (5<strong>31</strong>,067,227)Segment Liabilities 457,259,857 - 76,017,145 533,277,002(363,424,914) (10,390,147) (77,096,350) (450,911,411)Un-allocable Liabilities - - - -(-) (-) (-) (-)Total Liabilities 457,259,857 - 76,017,145 533,277,002(363,424,914) (10,390,147) (77,096,350) (450,911,411)Capital Expenditure 262,857,521 - - 262,857,521(2,074,853) (578,653) (-) (2,653,506)Capital Expenditure (IncludingCWIP & Pre-Operative Expenses)DepreciationNon-cash expenses other thandepreciation* Discontinued w. e. f. 01.04.2007.2,572,258(189,5<strong>31</strong>,267)19,716,980(8,271,115)1,128,750(1,128,750)-(-)-(137,663)-(-)-(-)-(-)-(-)2,572,258(189,5<strong>31</strong>,267)19,716,980(8,408,778)1,128,750(1,128,750)59
Notes:-1. Segment results represent Profit / (loss) before Tax.2. Capital Expenditure pertains to gross additions made to fixed assets during the year. Capital Expenditure (WIP) pertains to Capitalexpenditure on expansion project at Pantnagar.3. Segment Assets includes Fixed Assets, Capital WIP, Pre-Operative Expenses, Current Assets & Loans and Advances.4. Segment Liabilities includes Current Liabilities, Provisions, Secured and Unsecured Loans and deferred tax liability.5. The accounting policies used to derive reportable segment results are consistent with those described in the “Significant AccountingPolicies” in schedule to the financial statements.Information about Geographical Segment-The Company's operations are restricted to India and it does not have any exports. Therefore, the Disclosure requirement forGeographical Segment as required by AS-17 is not applicable.7. Employee Benefits(a)(b)The Company has during the year adopted Accounting Standard 15 (revised 2005) 'Employee Benefits'. Pursuant to adoption of therevised standard, as per the transitional provisions, the additional liability of Rs. 88,832/- (net of deferred tax adjustment of(Rs 45,741/-) up to <strong>March</strong> <strong>31</strong>, 2007 has been adjusted against opening reserves and surplus.During the year, the Company has recognized the following amounts in the Profit and Loss Account:Defined Contribution PlansParticularsEmployer’s Contribution to Provident Fund*Employer’s Contribution to Employee State Insurance*<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Rs.)1,422,259323,800* included in Personnel Expenses (Refer Schedule 15)Defined Benefit PlansParticularsCurrent service costInterest CostExpected Return on Plan AssetsRelating to Corrugated Box Unit which was non operationalw.e.f 1.4.07Actuarial (gain) / lossShort TermNet cost*Included in Personnel Expenses (Refer Schedule 15)Gratuity*Unfunded(Rs.)1,035,699105,663-95,2535,495-1,242,110Leave Encashment*Unfunded(Rs.)710,30651,480-20,306(176,684)517,6741,123,082(c)The assumptions used to determine the benefit obligations are as follows:ParticularsGratuity(Rs.)Leave Encashment(Rs.)Discount Rate 8.00%8.00%Expected Rate of increase in Compensation LevelsExpected Rate of Return on Plan AssetsExpected Average remaining working lives of employees(years)10.00%N.A.28.3510.00%N.A.28.3560
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.(d)Reconciliation of opening and closing balances of benefit obligations and plan assetsParticularsChange in Projected Benefit Obligation (PBO)Projected benefit obligation at beginning of year *Current service costInterest costBenefits paidActuarial (gain) / lossGratuityUnfunded(Rs.)Projected benefit obligation at year end & change in plan assets:Fair value of plan assets at year end - Long TermFair value of plan assets at year end - Short TermNet funded status of the planNet amount recognized* Includes provisions relating to Corrugated Box which wasnon operational w.e.f 01.04.071,356,6351,035,699105,663(71,695)5,495---2,4<strong>31</strong>,79795,253Leave EncashmentUnfunded(Rs.)671,371710,30651,480(55,739)(176,684)1,200,734517,6741,718,4081,718,40820,3068. Related Party DisclosuresAs per Accounting Standard (AS-18), company's related party disclosure are as under :S.No. Name of Related Party RelationshipNature ofTransactionAmount ofTransactions (Rs)Closing Balance(Rs.)61
S. No. Name of Related Party RelationshipNature ofTransactionAmount ofTransactions (Rs)Closing Balance(Rs.)During the period the company has neither made any provisions on account of doubtful debts due from related parties nor any amount iswritten off in respect of related parties.9. Earnings Per Share (EPS) - The numerators and denominators used to calculate Basic and Diluted Earnings per share are as under:Description<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong><strong>Year</strong> ended<strong>31</strong>.03.2007(Amount in Rs.)Profit attributable to the Equity Shareholders(A)91,367,28533,881,138Basic/Weighted average number of Equity shares outstandingduring the year(B)4,240,<strong>31</strong>34,240,<strong>31</strong>3Nominal Value of Equity Shares (Rs.)1010Basic/Diluted EPS (Rs.)(A/B)21.557.9910. A) Deferred Revenue ExpenditureExpenditure amounting to Rs. 11,287,500/- incurred on know how for modification of existing products during the year ended <strong>31</strong>st<strong>March</strong> 2001 was treated as Deferred Revenue Expenditure to be charged to Profit & Loss Account over a period of ten years.Accordingly, Rs. 1,128,750/- has been charged during the year.B) As per the requirement of the Companies (Accounting Standard) Rules, 2006 read in consonance with notified Accounting Standard -11which is mandatory for accounting periods commencing on or after December 7, 2006, the exchange differences in foreign currencytransactions relating to fixed assets acquired from a country outside India have been taken to revenue as against the hitherto followedpractice of adjusting the same to the carrying amount of fixed assets. Had the previous year policy been followed, the profit before taxwould have been lower by Rs. 2,409,814/- and fixed assets would have been higher by Rs. 2,409,814/-62
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.11. The composition of Deferred Tax Liability (Net) at the period end is as follows:S.No.Particulars<strong>31</strong>.03.<strong>2008</strong><strong>31</strong>.03.2007(Amount in Rs.)Deferred Tax Assetsi) Expenditure deferred u/s 43B of Income Tax Acta) Leave Encashment398,922b) Bonus193,117c) Provision for Gratuity 640,472221,29772,070428,744Deferred Tax Liabilityi) Difference between carrying amount of fixed assets in the financialstatements and Income Tax ActTotal (A) 1,232,511 722,11130,122,020 13,<strong>31</strong>1,884ii) Deferred Revenue Expenditure 767,324 1,150,986Total (B) 30,889,344 14,462,870Deferred Tax Liability (Net) [(B) – (A)] 29,656,833 13,740,759Less: Adjustment on account of transitional provisions ofAccounting Standard 15 (Revised)45,741 -Deferred Tax Liability (Net) 29,611,092 13,740,75912. Auditors Remuneration:S. No.Particulars<strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.2007(Amount in Rs.)1.2.3.4.Audit Fee402,000Tax Audit Fee72,000Tax Matters18,000Service Tax60,811Total 552,811308,00060,00015,00046,879429,87913. Details of Research and Development Expenses are as follows:S. No.Particulars<strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.2007(Amount in Rs.)1.Salaries, Allowances and Bonus880,265798,2112.Contribution to Provident Fund43,79938,1173.Testing Charges (CWIP - R&D Asset)373,810284,022Total1,297,8741,120,35063
14. Additional information pursuant to the provisions of Part II of Schedule VI to the Companies Act, 1956.(A) (i) Particulars in respect of goods manufactured:S. No.Class of Goodsmanufactured(<strong>Auto</strong>motive Parts)Qty.(Nos.)Opening Stock Sales Closing StockAmount(Rs.)Qty.(Nos.)Amount(Rs.)Qty.(Nos.)Amount(Rs.)1 Gear Shifter Assembly2,178(1,207)470,641(437,161)724,336(521,160)187,155,588(142,358,721)-(2,178)-(470,641)2 Moulding 66,689(70,646)1,444,997(1,969,349)5,414,529( 5,025,603)168,097,783(153,691,641)1,823( 66,689)12,629(1,444,997)3 Parking Brake183(283)26,405(49,408)208,095(107,872)32,449,708(18,703,852)-(183)-(26,405)4 Head Lamp Assembly- - 277,663(-)(-)(-)193,872,092(-)1,176(-)916,073(-)5 Tail Lamp Assembly- - 283,158(-)(-)(-)96,856,679(-)1,888(-)525,453(-)6 Corrugated Boxes -(18,042)-(180,029)-(2,798,847)-(<strong>31</strong>,088,028)-(-)-(-)7 Rubber Components-(-)-(-)-(1,569,980)-(5,970,177)-(-)-(-)8 Others-(-)-(-)-(-)13,551,309(3,260,030)-(-) (-)Total-(-)1,942,043(2,635,947)-(-)691,983,159(355,072,449)-(-)1,454,155(1,942,043)(A) (ii) Particulars in respect of Traded goods :S.No.Class ofGoodsOpening Stock Purchase Sales Closing StockQty.(Nos.)Amount(Rs.)Qty.(Nos.)Amount(Rs.)Qty.(Nos.)Amount(Rs.)Qty.(Nos.)Amount(Rs.)1 MotorAdjusters11,<strong>31</strong>2(-)2,504,963(-)1,928,977(9<strong>31</strong>,385)365,988,418(184,077,384)1,933,889 447, 581,105 6, 400 1, 756,064(920,073) ( 205,229,678) (11,<strong>31</strong>2) (2,504,963)64
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.B) Particulars of Licensed and installed capacity and production (As certified by the Management):(Quantity in Nos.)S. No. Class of Goods ManufacturedLicensedCapacity1 Gear Shifter Assembly N A2 Moulding N A3 Parking Brake N A4 Corrugated Boxes N AInstalledCapacity750,000(525,000)7,200,000(7,200,000)250,000(110,000)-(4,000,000)5 Rubber Components N A N A6 Head Lamp Assembly N A7 Tail Lamp Assembly N A1,000,000(-)1,000,000(-)ActualProduction722,158(522,1<strong>31</strong>)5,349,663(5,021,646)207,912(107,772)-(2,780,805)-(1,569,980)278,839(-)285,046(-)C) Details of Raw Material Consumed:S. No. Name of the Item Quantity1 Housing Assembly (Nos) 240,430(173,779)2 Knob (Nos) 497,966(400,648)3 Outer Boot (Nos) 536,732(565,192)4 Plastic Powder (Kg) 1,228,444(1,083,322)5 Sheet Metal (Nos) 2,938,101(3,471,280)6 Rotula (Nos) 1<strong>31</strong> ,002(60,264)7 Paper Reels (Kgs) -(1,234,180)8 Rubber Components (Kgs) -(22,802)9 Plastic Dana (Kg) 308,693(-)10 Bulbs (Nos.) 1,570,445(-)11 Cowl (Nos.) 291,673(-)12 Fender (Nos.) 278,347(-)13 Speedometer (Nos.) 12,822(-)14 Head Lamp (Nos.) 12,7<strong>31</strong>(-)15 Lacquer (Kg) 2,338(-)16 PCB Assy. (Nos.) 18,927(-)17 Stay CP B/L(Nos.) 1,066,266(-)18 OthersTotalAmount(Rs.)16,962,216(9,641,643)14,281,438(11,409,844)6,634,334(6,515,035)104,4<strong>31</strong>,515(96,944,181)32,489,182(67,077,180)26,855,410(13,060,414)-(22,127,605)-(3,143,244)45,214,176(-)<strong>31</strong>,283,808(-)46,302,044(-)23,265,420(-)5,703,934(-)4,617,507(-)7,7<strong>31</strong>,992(-)2,042,669(-)11,204,607(-)125,683,574(17,278,918)504,703,826(247,198,064)65
D) Value and percentage of Raw Materials and Stores consumed:S.No.1.Particulars Raw Material Stores Consumed%Indigenous 93.94(94.18)Amount(Rs.)474,115,<strong>31</strong>4(232,777,572)%100(100)Amount(Rs.)5,385,936(2,847,241)2.Imported 6.06(5.82)30,588,512(14,420,492)-(-)-(-)Total100(100)504,703,826(247,198,064)100(100)5,385,936(2,847,241)E) Expenditure/Payments in Foreign Currency (Accrual Basis):S.No. Particulars <strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.20071 CIF Value of Importsa) Raw Material34,144,62811,342,573b) Capital Goods14,140,63522,460,6172 Travelling 218,830 55,9143 Testing Fee 356,001 284,0224 Royalty 2,059,272 963 006 ,15. Prior Period Expenses include:S.No. Particulars <strong>31</strong>.03.<strong>2008</strong>1 Travelling & Conveyance 7,8022 Salaries & Allowances 197,0573 Postage & Telephones Expenses 9,8564 Light, Power & Fuel 68,7545 Freight Inward 16,3716 Miscellaneous Expenses 18,492Total <strong>31</strong>8,33216. Schedules 1 to 20 referred to above form an integral part of the accounts.<strong>31</strong>.03.2007-------17. Figures have been rounded off to the nearest rupee and figures of the previous year are given in brackets and have beenregrouped wherever necessary.For and on behalf of the Board of Directors of <strong>Lumax</strong> DK <strong>Auto</strong> Industries LimitedD.K.Jain Deepak Jain Anmol Jain Shivani JainChairman Director Director Executive DirectorPlace : GurgaonDate : June 28, <strong>2008</strong>Sanjay MehtaVice President (F)Anil TyagiCompany Secretary66
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE(Pursuant to the Provisions of Part-IV of Section VI of the Companies Act, 1956)1 REGISTRATION DETAILSRegistration No. U34300DL1997PLC087110State Code 55Balance Sheet Date<strong>31</strong>.03.<strong>2008</strong>IICAPITAL RAISED DURING THE YEAR (Amount in Rs. Thousands)Public Issue - Rights Issue-Bonus Issue- Private Placement -III POSITION OF MOBILISATION & DEPLOYMENT OF FUNDS (Amount in Rs. ,000)Total Liabilities 708,098 Total AssetsSource of FundsPaid up Capital 42,403 Reserves & SurplusSecured Loans 102,998 Unsecured LoansDeferred Tax Liability 29,611Application of FundsNet Fixed Assets * 381,721 Net Current AssetsAccumulated Losses Misc. Expenditure(*) includes Capital WIP Rs. 2,572 thousand708,098132,417110,05333,5042,257IV PERFORMANCE OF COMPANY (Amount in Rs. Thousands) (+) for Profit/(-) for LossTurnover(*) 1,143,394 Total Expenditure 1,006,371Profit/Loss before Tax 137,023 Profit/Loss after Tax 91,367Earnings per Share in Rs. 21.55 Dividend -(*) includes other income of Rs. 3,830 thousands.VGENERIC NAMES OF THREE PRINCIPAL PRODUCTS SERVICES OF COMPANYItem Code No. (ITC Code) 87084000Product DescriptionGear Shifter Assembly.Item Code No. (ITC Code) 85122010Product DescriptionHead Lamp ,Tail Lamp, BlinkersItem Code No. (ITC Code) 85129000Product DescriptionMotor Adjuster AssemblyFor and on behalf of the Board of Directors of <strong>Lumax</strong> DK <strong>Auto</strong> Industries LimitedD.K.Jain Deepak Jain Anmol Jain Shivani JainChairman Director Director Executive DirectorPlace : GurgaonDate : June 28, <strong>2008</strong>.Sanjay MehtaVice President (F)Anil TyagiCompany Secretary67
AUDITORS' REPORTTo,The Board of Directors of<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> Limited,1. We have examined the attached consolidated balance sheet of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> Limited, and its subsidiary viz., <strong>Lumax</strong> Dk <strong>Auto</strong>Industries Limited, New Delhi as at <strong>31</strong>st <strong>March</strong>, <strong>2008</strong>, the consolidated profit & loss account and the consolidated cash flow statement forthe year ended on that date, annexed thereto.2. These financial statements are the responsibility of the management of the company. Our responsibility is to express an opinion on thesefinancial statements based on our audit.3. We conducted our audit in accordance with the auditing standards generally accepted in India. These standards require that we plan andperform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financialstatement presentation. We believe that our audit provides a reasonable basis for our opinion.4. We did not audit the financial statements of the subsidiary company. These financial statements have been audited by other auditors whosereport has been furnished to us, and our opinion, in so far as it relates to the amounts included in respect of this subsidiary is based solely onthe report of other auditors.5. We report that the consolidated financial statements have been prepared by the company in accordance with the requirements ofAccounting Standard – 21 “Consolidated Financial Statement” issued by the Institute of Chartered Accountants of India and on the basis ofseparate audited financial statements of the company and its subsidiary included in the consolidated financial statements.6. On the basis of the information and explanations given to us and on the consideration of the separate audit reports on individual auditedfinancial statements of the company and its subsidiary, we are of the opinion that the said consolidated financial statements, and readtogether with other notes appearing in schedule “W” and their impact on balance sheet, profit & loss account & cash flow statement give atrue and fair view in conformity with the accounting principles generally accepted in India:[i] in case of the consolidated balance sheet, of the consolidated state of affairs of the Company and its subsidiary as on <strong>31</strong>st <strong>March</strong>,<strong>2008</strong>;[ii] in case of the consolidated profit & loss account, of the consolidated results of operations of the company and its subsidiary for theyear ended on <strong>31</strong>st <strong>March</strong>, <strong>2008</strong>.[iii] in case of the consolidated cash flow statement, of the cash flows of the company and its subsidiary for the year ended on <strong>31</strong>st<strong>March</strong>, <strong>2008</strong>.For D. R. Barve & CompanyChartered AccountantsCA D. R. Barve[Proprietor]Membership No. 17661Place : PuneDate : June 28, <strong>2008</strong>68
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Consolidated Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSOURCES OF FUNDSScheduleAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.2007Own FundsShare CapitalReserves & SurplusLoan FundsSecured LoansUnsecured LoansDeferred Tax LialibityGrand TotalA 116,<strong>31</strong>5,410 116,<strong>31</strong>5,410B 429,503,896 336,059,004545,819,306 452,374,414C 230,836,013 185,465,269D 26,794,734 29,648,601257,630,747 215,113,870E 53,703,092 35,<strong>31</strong>1,05953,703,092 35,<strong>31</strong>1,059857,153,145 702,799,343APPLICATION OF FUNDSFixed AssetsGross BlockLess :DepreciationNet BlockCapital Work In ProgressF814,013,350 543,294,649142,976,809 104,241,074671,036,541 439,053,57569,356,4<strong>31</strong> 205,219,843InvestmentsG 13,948,500 1,000Current Assets, Loans & AdvancesInventoriesSundry DebtorsCash and Bank balanceLoans & AdvancesLess : Current Liabilities & ProvisionCurrent LiabilitiesProvisionsNet Current AssetsMiscellaneous Expenditure[To the extent not written off or adjusted]Grand TotalH 187,851,339 123,838,414I 433,593,321 378,830,155J 61,595,749 57,812,386K 114,975,277 65,688,354798,015,686 626,169,309L 622,229,327 522,432,961M 75,232,186 49,405,802697,461,513 571,838,76<strong>31</strong>00,554,173 54,330,546N 2,257,500 4,194,379857,153,145 702,799,343Notes To AccountsWAs per our report of even dateFor D. R. Barve & CompanyChartered AccountantFor and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661Place : GurgaonDate : June 28, <strong>2008</strong>D. K. JainChairmanAshish DubeyHead FinanceUsha JainManaging DirectorMilita BharCompany Secretary69
Consolidated Profit & Loss account for the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsINCOMEGross SalesLess : Excise DutyNet SalesOther IncomeEXPENDITUREPurchase of Traded goodsMaterial ConsumedDecrease/(Increase) In InventoryManufacturing CostEmployee CostAdministrative CostInterest CostDepreciation<strong>Year</strong> endedSchedule <strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.2007O 3,250,967,171 2,543,355,<strong>31</strong>8339,476,755 379,098,<strong>31</strong>82,911,490,416 2,164,257,000P 10,370,389 2,591,2482,921,860,805 2,166,848,2481,050,842,133 375,823,056Q 1,235,585,101 1,407,148,459R (18,323,330) (37,908,821)S 171,868,210 168,868,465T 136,808,606 74,493,933U 97,352,713 46,534,<strong>31</strong>3V 26,487,648 12,890,71240,713,898 23,629,5222,741,334,979 2,071,479,639PROFIT BEFORE TAXLess: Provision for TaxationFor Earlier <strong>Year</strong>sFor Current <strong>Year</strong>Deferred TaxFringe Benefit TaxPROFIT AFTER TAXBalance brought forward from earlier yearPrior period adjustmentsAdd: Adjustments made during the yearBalance available for appropriationLess :Provision for DividendProvision for Tax On DividendTransferred to General ReserveBalance carried to Balance Sheet180,525,826 95,368,609415,512 561,76041,408,300 24,100,00018,437,774 8,575,4001,204,740 765,362119,059,500 61,366,08759,711,486 20,297,342(5,000,935) -- 1,210,540173,770,051 82,873,96917,447,<strong>31</strong>2 17,447,<strong>31</strong>22,965,170 2,965,1712,700,000 2,750,000150,657,569 59,711,486Outstanding No. of Shares (F.V. Rs. 10/-)11,6<strong>31</strong>,541 11,6<strong>31</strong>,541Earnings Per ShareBasicDiluted(Face Value Per Share Rs. 10/-)10.24 6.9010.24 6.60Notes of AccountsWAs per our report of even dateFor D. R. Barve & CompanyChartered AccountantFor and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661Place : GurgaonDate : June 28, <strong>2008</strong>70D. K. JainChairmanAshish DubeyHead FinanceUsha JainManaging DirectorMilita BharCompany Secretary
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.(Amount in Rs.)Particulars <strong>Year</strong> ended <strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.2007ACASH FLOW FROM OPERATING ACTIVITIES :Profit Before TaxAdjustments for :DepreciationLoss/(Profit) on Sale of Fixed AssetsInterest IncomeInterest ExpenseVoluntary Retirement Compensation &Deferred Expenditure Written OffOperating Profit Before Working Capital ChangesAdjustments for :InventoriesTrade & Other ReceivablesTrade & Other PayablesOther Loans & Advances (Net)Provision for Leave Encashment, Gratuity & Excise DutyCash Generated from OperationsDirect Taxes PaidNet Cash from Operating Activities180,525,826 95,368,60941,074,696 23,629,522969,450 (34,084)(1,243,775) (417,652)26,487,648 12,890,712673,557 1,936,878248,487,402 133,373,985(64,012,926) (74,675,647)(54,763,165) (204,176,711)94,743,639 241,593,679(9,650,<strong>31</strong>8) (113,630,894)1,878,920 760,216216,683,552 (16,755,372)(52,644,035) (14,842,892)164,039,517 (<strong>31</strong>,598,264)BCASH FLOW FROM INVESTING ACTIVITIES :Purchase of Fixed Assets(105,552,509) (<strong>31</strong>5,644,932)Proceeds from Sale of Fixed Assets9,993,942 662,559Purchase of Investment(13,947,500) -Interest Received1,243,775 417,652Decrease / (Increase) in Capital W.I.P.(51,095,597) (4,044,113)Preoperative Expenses 9,544,660(9,544,660)Net Cash from Investing Activities (149,813,229) (328,153,494)CCASH FLOW FROM FINANCING ACTIVITIES :Issue of Shares & Debentures - 208,485,950Increase/(Decrease) in Borrowings 36,569,566 183,634,154Interest PaidDividend Paid(26,487,648)(17,447,<strong>31</strong>2)(12,890,712)(11,994,307)Expended During the <strong>Year</strong> (112,360) -Tax on Distributed Profits (2,965,171) (1,682,202)Net Cash from Financing ActivitiesNet Increase /(Decrease) in Cash & Cash EquivalentsCash & Cash Equivalents at the beginning of the yearCash & Cash Equivalents at the end of the yearAs per our report of even dateFor D. R. Barve & CompanyChartered Accountant(10,442,925) (365,552,883)3,783,36357,812,38661,595,7495,801,12652,011,26057,812,386For and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661Place : GurgaonDate : June 28, <strong>2008</strong>D. K. JainChairmanAshish DubeyHead FinanceUsha JainManaging DirectorMilita BharCompany Secretary71
Schedules attached to and forming part of Consolidated Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "A" Share CapitalAuthorised Share CapitalAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.20071,50,00,000 Equity Shares of Rs.10/-150,000,000 150,000,000Issued,Subscribed, Called Up & Paid Up Share Capital :1,16,<strong>31</strong>,541 Equity Shares of Rs. 10/- each fully paid - up.Out of abovei) 3,19,297 Equity Shares were issued as fully paid-up shares by capitalising the reservesii) 12,72,222 Equity Shares have been issued for consideration received otherwise than in Cash.iii) Out of above 14,00,170 Equity Shares were issued by way of convertion of DebenturesSchedule "B" Reserves & SurplusCapital ReserveBalance as per last Balance SheetSecurities Premium AccountBalance as per last Balance SheetAdd: Received during the yearLess: Expended during the yearGeneral ReserveBalance as per last Balance SheetAdd : Additions during the year116,<strong>31</strong>5,410 116,<strong>31</strong>5,410116,<strong>31</strong>5,410 116,<strong>31</strong>5,41033,701,108 33,701,10833,701,108 33,701,108234,564,410 8,007,500- 247,418,335112,360 20,861,425234,452,050 234,564,4108,082,000 5,332,0002,700,000 2,750,00010,782,000 8,082,000Profit And Loss AccountBalance as per last Balance SheetTransferred from Profit & Loss A/C150,657,569 59,711,486Less: Adjustments made during the year 88,8<strong>31</strong> -150,568,738 59,711,486429,503,896 336,059,004Schedule "C" Secured LoansWorking Capital AdvancesFrom State Bank of India - Industrial Finance BranchPimpri (Secured against Hypothecation of Inventories &Book debts & Guaranteed by the directors).Working Capital AdvancesFrom ABN AMRO BANK DELHI (Secured againstHypothecation of Inventories & Book debts).Term Loan - IIIFrom State Bank of India - I. F. B. Pimpri ( Securedagainst mortgage of Land, Building Hypothecation of Plantand Machinery and Guaranteed by the directors) Amountdue within one year Rs.- (Previous <strong>Year</strong> Rs. 60,00,000/-)- 42,747,96032,966,443 -- 15,160,35972
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Schedules attached to and forming part of Consolidated Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsTerm Loan - IIFrom State Bank of India - I. F. B. Pimpri ( Securedagainst mortgage of Land, Building Hypothecation ofPlant and Machinery and Guaranteed by the directors)Amount due within one year Rs.- (Previous <strong>Year</strong> Rs.96,00,000/-)As at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.2007- 20,541,667Term Loan - IFrom ABN AMRO Delhi ( Secured against mortgage ofLand, Building Hypothecation of Plant and Machinery)Amount due within one year Rs.60,00,000/-Term Loan - IIFrom ABN AMRO Delhi ( Secured against mortgage ofLand, Building Hypothecation of Plant and Machinery)Amount due within one year Rs.96,00,000/-Term Loan - IIIFrom ABN AMRO Delhi ( Secured against mortgage ofLand, Building Hypothecation of Plant and Machinery)Amount due within one year Rs.84,00,000/-Stand line of credit from ABN AMRO DelhiFrom ABN AMRO Delhi ( Secured against mortgage ofLand, Building Hypothecation of Plant and Machinery)Amount due within one year Rs.50,000,000/-10,000,000 -12,100,000 -40,000,000 -50,000,000 -Term Loan -I(Secured by way of first charge against all movable fixedassets, equitable mortgage on Freehold Land , Building andCorporate Guarantee of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.) duewith in one year 3,04,40,000 (previous year Rs.2,34,66,000)Bill Discounting from Standard Chartered Bank(These loans are secured against stock, book debt & fixedassets of the company and personal gaurantee of thePromoter Directors)Cholamandalam Investment & Finance(Secured against Hypothecation of City Ride Bus)Amount due within one year Rs.- ( previous year Rs.60,862/-)HDFC Bank(Secured against Hypothecation of Logan Car)Amount due with one year Rs.2,99,180/-I C I C I Bank <strong>Ltd</strong>.(Secured against Hypothecation of Maruti Car)Amount due with one year Rs.1,76,523/- (Previous yearRs.6,50,438 /-)Maruti Udyog Limited(Secured against Hypothecation of Maruti Car)Amount due with one year Rs1,29,649./-)84,480,000 93,728,365- 12,238,377- 60,863385,330 -337,240 987,678567,000 -230,836,013 185,465,269Schedule "D" Unsecured LoansLoan from DirectorLoan from othersDeferral Payment of Sales Tax /SIDCUL- 5,000,00011,839,588 5,839,58814,154,774 18,537,853Interest on Loan Payable 800,372 271,16026,794,734 29,648,60173
Schedules attached to and forming part of Consolidated Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "E" Deferred Tax LiabilityBalance as per last Balance SheetAs at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.200735,<strong>31</strong>1,059 26,735,659Add: Transferred from P&L Account 18,392,033 8,575,400Schedule "F" Consolidated Fixed AssetsGROSS BLOCKAs at Additions Sales/ Adjustments As atName of Assets01.04.2007 Adjustments Amortisation <strong>31</strong>.03.<strong>2008</strong>53,703,092 35,<strong>31</strong>1,059(Amount in Rs.)DEPRECIATIONNET BLOCKAs at For the year Sales / Upto As at As at01.04.2007 Adjustments <strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.<strong>2008</strong> <strong>31</strong>.03.2007Land 44,508,609 25,754,063 (608,429) (360,798) 69,293,445- 193,940 - 193,940 69,099,505 44,508,609Building 115,684,907 76,332,353 - - 192,017,260Plant & Machinery 352,616,423 170,183,669 (11,278,930) - 511,521,162Furniture & Fixture 8,935,414 3,442,255 - - 12,377,669Office Equipment 765,871 1,894,342 - - 2,660,213Vehicle 7,249,465 1,332,064 - - 8,581,529Computer 7,907,577 4,028,111 - - 11,935,688Technical Know How Fee 5,626,383 - - - 5,626,383Total 543,294,649 282,966,858 (11,887,359) (360,798) 814,013,350Previous <strong>Year</strong> Total 408,326,649 135,658,326 (690,326) 543,294,64911,451,151 6,052,327 - 17,503,478 174,513,783 104,233,75678,217,249 29,744,295 (1,978,162) 105,983,383 405,537,780 274,399,1744,163,822 996,735 - 5,160,557 7,217,112 4,771,592374,330 <strong>31</strong>7,653 - 691,983 1,968,230 391,5412,471,116 716,560 - 3,187,675 5,393,854 4,778,3494,840,443 1,567,112 - 6,407,555 5,528,134 3,067,1342,722,962 1,125,277 - 3,848,239 1,778,144 2,903,421104,241,074 40,713,898 (1,978,162) 142,976,809 671,036,541 439,053,57580,673,404 23,629,522 (61,851) 104,241,074 439,053,576 327,653,245Schedule "G" InvestmentsUnquoted20 Equity shares of Rupee Co-Operative Bank<strong>Ltd</strong>. Rs.50 /- each of fully paid-up.In Joint Venture Company13,94,750 Equity Shares of Rs. 10/- Each fully paid up of<strong>Lumax</strong> Cornaglia Pvt. <strong>Ltd</strong>.1,000 1,00013,947,500 -13,948,500 1,000Current Assets, Loans and AdvancesSchedule "H" InventoriesStock In Trade (As taken, valued &certified by the Management)Raw Material & ComponentsConsumablePacking MaterialFinished GoodsWork In Progress120,541,873 75,710,1883,158,362 2,473,642479,644 306,45355,070,500 33,774,6338,360,429 10,250,954Stock In Transit 240,5<strong>31</strong> 1,322,544187,851,339 123,838,41474
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Schedules attached to and forming part of Consolidated Balance Sheet as at <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "I" Sundry Debtors(Unsecured, Unconfirmed & Considered Good)As at<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)As at<strong>31</strong>.03.2007Debts outstanding for a period exceeding six monthsOther debtsSchedule "J' Cash & Bank BalancesCash In HandCheque In handCash at BankAt scheduled banks:In Current AccountsIn Fixed Deposit AccountsSchedule "K" Loans And AdvancesAdvances recoverable in cash or kindSecurity Deposits21,445,720 3,336,133412,147,601 375,494,022433,593,321 378,830,155453,145 254,260889,744 -50,984,071 48,539,3379,268,789 9,018,78961,595,749 57,812,38683,261,272 59,158,552<strong>31</strong>,714,005 6,529,802114,975,277 65,688,354Current Liabilities & ProvisionsSchedule "L" Current LiabilitiesSundry CreditorsSSI UndertakingOthersOutstanding ExpensesAdvances received from customersSchedule "M" ProvisionsProvision for TaxationProvision for Corporate Dividend TaxProposed DividendFringe Benefit TaxProvision for Earn LeaveProvision for GratuityProvision for Excise Duty on Stock of Finished goods259,968,050 29,364,021304,051,035 460,072,49836,056,042 23,769,86522,154,200 9,226,577622,229,327 522,432,96149,787,116 25,955,0802,965,170 2,965,17117,447,<strong>31</strong>2 17,447,<strong>31</strong>2880,791 765,3621,718,408 651,0652,4<strong>31</strong>,797 1,261,3821,592 360,43075,232,186 49,405,802Schedule "N" MiscellaneousExpenditure To The ExtentNot Written off or AdjustedDeferred Revenue ExpenditureBalance as per last Balance SheetLess: Written off during the year4,194,379 6,1<strong>31</strong>,2571,936,879 1,936,8782,257,500 4,194,37975
Schedules attached to and forming part of Consolidated Profit & Loss account for the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong>(Amount in Rs.)Particulars<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong><strong>Year</strong> ended<strong>31</strong>.03.2007Schedule "O" SalesGross Sales (inclusive of Excise Duty)3,250,967,171 2,543,355,<strong>31</strong>8Schedule "P" Other IncomeMiscellaneous IncomeInterest Received(T.D.S. Rs.1,13,059.42/- Previous year Rs.1,97,054 /-)Discount ReceivedProfit/(Loss) on Sale of AssetsRent receivedExchange differenceExcess Provision Written Back3,250,967,171 2,543,355,<strong>31</strong>83,704,533 1,<strong>31</strong>1,0181,504,093 417,652406,174 702,455159,300 34,08496,000 -2,664,166 12,0951,836,122 113,94410,370,388 2,591,248Schedule "Q" Material ConsumedOpening Stock of raw materialAdd : Purchases during the yearLess : Closing Stock of raw material75,710,308 40,414,8441,280,416,666 1,442,443,80<strong>31</strong>,356,126,974 1,482,858,647120,541,873 75,710,1881,235,585,101 1,407,148,459Schdule "R"Decrease/(Increase) In InventoryOpening Inventory :Work In ProgressStock In TransitFinished GoodsClosing Inventory :10,250,954 4,538,0441,322,544 184,63933,774,633 2,716,62745,348,1<strong>31</strong> 7,439,<strong>31</strong>0Work In Progress8,360,429 10,250,954Stock In Transit240,5<strong>31</strong> 1,322,544Finished Goods 55,070,500 33,774,63363,671,460 45,348,1<strong>31</strong>(18,323,329) (37,908,821)Schedule "S" Manufacturing CostMiscellaneous Manufacturing Expenses 2,836,464 651,<strong>31</strong>3Packing Material 7,069,<strong>31</strong>4 5,645,903Consumables 40,823,035 40,346,203Job-Work 46,539,213 44,962,118Labour Charges (Contract) 20,907,103 25,600,002Electricity, Light & power 41,065,426 34,165,340Freight and Cartage 7,343,162 10,695,103Water Charges 430,515 296,995Excise Duty on Finished Goods (358,838) (118,976)Repairs & Maintenance - Plant & Machinery 5,212,816 6,624,464171,868,210 168,868,46576
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Schedules attached to and forming part of Consolidated Profit & Loss account for the year ended <strong>March</strong> <strong>31</strong>, <strong>2008</strong>ParticularsSchedule "T" Employee Cost<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.2007Wages & Salary 115,070,475 62,165,849Bonus 3,584,263 947,890Provident Fund contribution 7,092,406 3,203,492Welfare Expenses 6,547,261 4,704,428E.S.I. Contribution 1,659,417 1,395,557Gratuity/Group Gratuity 878,818 701,717Directors' Remuneration 1,075,966 480,000Commission to Director 900,000 895,000136,808,606 74,493,933Schedule "U" Administrative CostRent, Rates & Taxes 3,645,489 42,288,516Repairs to Buildings 1,869,883 1,698,551Repairs to Others 3,709,119 965,617Insurance Charges 1,772,156 1,682,236Travelling & Conveyance 6,973,796 2,510,543Security Charges 3,900,298 2,913,761Printing & Stationery 2,673,807 1,557,199Postage & Telephones 3,973,121 2,298,241Office Expenses 262,248 687,728Advertisement 1,956,336 18,571Profession Tax (Factory) 2,500 2,500Vehicle Expenses 2,418,878 1,247,999Legal & Professional fees 4,969,139 1,239,759Carriage Outward 29,246,276 17,397,402Expenses to increase Authorised Capital - 375,463Sales Incentives/Discount paid 22,773,819 3,679,457Amount Written off 173,850 -Prior Period Expenses <strong>31</strong>8,332 -Miscellaneous Expenses 3,471,144 1,904,413Deferred Revenue expenses written off 1,128,750 1,128,750Royalty 2,059,272 937,607Meeting fees 54,500 -97,352,713 84,534,<strong>31</strong>3Schedule "V" Interest CostInterest on Term LoansInterest on Working Capital AdvanceInterest paid to OthersBank Charges14,620,4036,237,0663,004,6602,625,51926,487,6488,538,576295,1963,129,283927,65712,890,71277
Schedule “W”:Notes To Consolidated Accounts1. Significant Accounting Policies:A) Basis of Preparation of Financial Statements:The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accountingprinciples and the provisions of the Companies Act, 1956 as adopted consistently by the Company.The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrualbasis.B) Fixed Assets :Fixed Assets are stated at cost net of CENVAT, Cess, Deferred Excise duty and VAT set-off less accumulated depreciation. Cost includespurchase cost together with inward freight, duties, taxes and incidental cost of acquisition and installation and eligible borrowing costs andalso includes pre-operative expenses incurred during the construction, trial and stabilization period, up to the period such assets are put tocommercial use.C) Depreciation:Depreciation on Fixed Assets is provided on Straight Line Method at the rates as provided under schedule XIV to the Companies Act, 1956.D) Intangible Assets and Amortisation:Intangible assets are recognised as per the criteria specified in Accounting Standard (AS) 26 “Intangible Assets” issued by the Institute ofChartered Accountants of India and are amortised as follows:(a) Leasehold land: over the period of lease(b) Specialised software: Over a period of three yearsE) Investments:a) Current Investments are valued at cost or market price whichever is lower.b) Long Term Investments are valued at cost less permanent diminution if any.F) Inventories:a) Raw Materials including components, consumables & packing material are valued at cost after making provision forobsolescence wherever necessary. Cost is determined on First-in-First-Out (FIFO) basis.b) Work in Progress is valued at estimated Cost.c) Goods purchased for resale & other finished goods are valued at lower of the cost or net realizable value.d) Scrap is valued at estimated realizable value.G) Deferred Revenue ExpenditureFor Subsidiary Company :Expenditure incurred on know how for modification of existing products along with any future expenditure is appropriately amortized on thecommencement of commercial production of the modified products as the benefit of expenditure is expected in future years.H) Revenue Recognition:a) Sale of goods is recorded when supply of goods takes place in accordance with the terms of Sale. It includes Excise duty butexcludes trade discount and Sales Tax.b) Interest income is recognized on accrual basis.I) Employees' Retirement Benefits:For holding company:a) The company's contribution to provident fund is charged to profit & loss account.b) The Company's contribution to Gratuity Fund of Life Insurance Corporation of India is charged to Profit & Loss Account on the basis ofscheme subscribed by the Company. The contribution is provided on the basis of actuarial valuation.c) Voluntary Retirement Compensation:- 20% of the amount paid to the employees towards Voluntary Retirement is chargedto Profit & Loss Account.d) Provision for accrued liability for leave encashment due to employees is not made in the accounts. The liability being of afluctuating nature from year to year, is accounted for only at the time of retirement / payment.78
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.For subsidiary company:a) Short Term Employee Benefits:Short Term employee benefits are recognized in the period during which the services have been rendered.b) Long Term Employee Benefits:i) Defined Contribution PlanProvident Fund and employees' state insurance schemes. All employees of the Company are entitled to receive benefits under theProvident Fund, which is defined contribution plan. Both the employees and the employer make monthly contributions to the plan at apredetermined rate (presently 12 %) of the employees' basic salary and dearness allowance . These contributions are made to the fundadministered and managed by the Government of India. In addition, some employees of the company are covered under the EmployeesState Insurance scheme which are also defined contribution scheme recognized and administered by the Government of India. TheCompany's contributions to both these schemes are expressed in the Profit and Loss Account. The Company has no further obligationsunder plans beyond its monthly contributions.ii)iii)Defined Benefit PlanLeave Encashment- Liability on account of unavailed Earned Leave at the year end is provided as per the actuarial valuationaccording to Projected Unit Credit Method.Gratuity- Liability on account of Gratuity at the year end is provided as per the actuarial valuation according to the Projected Unit CreditMethod.Actuarial gains and losses are recognized as and when incurred.J) Borrowing Costs:Borrowing Costs that are attributable to the acquisition or construction of qualifying fixed assets are capitalized as part of the cost of assets.All other borrowing costs are recognized as expense in the year in which they are incurred.K) Cash Flow Statement :Cash flow statement has been prepared following the indirect method set out in the Accounting Standard - 3 on “Cash Flow Statement”issued by the Institute of Chartered Accountants of India.L) Taxes On Income:a) Income Tax expenses for the period comprise of Current Tax, Deferred Tax & Fringe Benefit Tax.b) Current Tax & Fringe Benefit Tax are the amounts of tax payable on the taxable income/expenses for the year determined inaccordance with the provisions of the Income Tax Act, 1961.c) Deferred Tax is recognized, on the timing differences, being the difference between accounting income and taxable income, whichoriginates in one period and are capable of reversal in one or more subsequent accounting periods in accordance with provisions ofAccounting Standard 22 on “Accounting for Taxes on Income”, issued by the Institute of Chartered Accountants of India. Deferred TaxAsset in respect of brought forward losses is recognized as if there is virtual certainty that there will be sufficient future taxable incomeagainst which such asset can be realized.M) Translation of Foreign Currency itemsa) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction. Exchange differencearising on settlement of transactions and translation of monetary items are recognised as income or expense in the year in which theyarise.b) Monetary items denominated in foreign currency are reported using the closing exchange rate on each Balance Sheet date.N) Segment ReportingThe Company has considered 'Business Segment' as the primary segment for disclosure. Further, since the company is engaged inthe manufacturing of “<strong>Auto</strong>motive Parts”, in the opinion of the Management, the Company operates in one primary segment only.O) Accounting for Interests in Joint Ventures:Interests in Joint Ventures are accounted as follows:Type of Joint VentureJointly Controlled EntitiesAccounting treatmenta) Income on investments in incorporated Jointly Controlled Entities isrecognised when the right to receive the same is established.b) Investment in such Joint Ventures is carried at cost after providing for anypermanent diminution in value.P) Pre-Operative Expenditure:The expenditure incurred by the Company from the date of setting up of a new unit, up to the date of commencement of commercialproduction of the unit is treated as Pre-operative expenditure to be capitalized as a part of the indirect cost of construction. The amount ofsuch expenditure is to be apportioned over the individual assets in an equitable manner. The amount not directly attributable to fixed assetsare charged to the Profit and Loss account in the year in which such expenditure is incurred.79
Q) Provisions and Contingent Liabilities:Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, ifa) the Company has a present obligation as a result of a past event,b) a probable outflow of resources is expected to settle the obligation; andc) the amount of the obligation can be reliably estimated.Contingent liability is disclosed in case ofa) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle theobligation,b) a present obligation when no reliable estimate is possible; andc) a possible obligation arising from past events where the probability of outflow of resources is not remote.2. Contingent Liabilities not provided forS.No.i)ii)iii)iv)v)ParticularsProvision for Income Tax assessment dues (Appeal pending withTribunal for the Financial year 2001 - 02)Corporate Guarantee given for Loans taken by Subsidiary company<strong>Lumax</strong> DK <strong>Auto</strong> Industries Limited.Capital Commitment Net of AdvanceExcise Duty (For Subsidiary)Employee State Insurance Demand (For Subsidiary)2007-080.401007.6458.200.881.47(Amount Rs. in Lacs)2006-070.40--0.881.02Based on the favorable decisions in similar cases/legal opinions taken by the Company, the company believes that it has good cases inrespect of the items listed under (i), (iv) & (v) above and hence no provision there against is considered necessary.3. Details in respect of Opening Stock, Production, turnover & closing Stock of Finished Goods: As Per Annexure-A.( Certified by Management )4. Details in respect of consumption of Raw Materials and Consumables and others: As per Annexure –B. ( Certified by Management )5. In terms of Paragraph-3 Part-II of Schedule VI of the Companies Act 1956, quantity wise disclosure have been restricted to thoseitems/articles which individually account for 10% or more of the total Sales, Consumption as the case may be and the same is disclosed tothe extent available and considered as compiled and certified by the management.6. Micro, Small EnterprisesFor Holding CompanyMicro & Small enterprises as defined under the Micro , Small and Medium Enterprises Development Act, 2006(MSMED) have beenidentified to the extent of information available with the company . This has been relied upon by the auditors.Sundry Creditors include following amounts due to MSMED parties:<strong>Year</strong> <strong>Ended</strong> <strong>March</strong> <strong>31</strong>, <strong>2008</strong> (Amount In Rs.)S.No Particulars Principal Interest TotalA The outstanding dues to micro and small enterprises .174,572 1291 1,75,863BCDEPrincipal amount and Interest due thereon remaining unpaid as at end ofthe yearAmount of Interest paid in terms of Section 16 of MSMED Act alongwiththe amount of the payment made to supplier beyond appointed dayOutstanding Interest (Where principal amount has been paid off to thesupplier but interest amount is outstanding as on <strong>March</strong> <strong>31</strong>, <strong>2008</strong>)Total Interest out standing as on <strong>March</strong> <strong>31</strong>, <strong>2008</strong> (Interest in ‘b’ + interest in ‘d’above)For Subsidiary Company :The Company has not received information from vendors regarding their status under the Micro, Small and Medium EnterprisesDevelopment Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under thisAct and as required by Schedule VI of Companies Act, 1956 have not been given.7. The Balances of parties are subject to confirmations.1291 Nil 1291Nil Nil NilNil 1,291 1291Nil 1,291 12918. None of the Employees was in receipt of Remuneration more than Rs.24.00 Lacs per annum, if employed throughout the year or Rs.2.00Lacs per month if employed for part of the month.80
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.9. Subsequent to Central Government's Notification on Companies (Accounting Standard Rules) ("Rules") on December 7, 2006, to complywith the revised Accounting Standard - 11 on Accounting for the Effects of Changes in Foreign Exchange Rates, the exchange differencesarising in respect of fixed assets acquired from outside India are to be charged off to the Profit and Loss Account . In the previous year, suchdifferences were adjusted in the cost of the assets. Had the previous year policy been followed, the profit after tax for the current year wouldhave been lower by Rs. 30.50 lacs and fixed assets (including Capital work in progress) would have been higher by Rs. 30.50 lacs.10. In the current year, the Company has adopted the Accounting Standard AS-15 (Revised) which is mandatory from Accounting Periodcommencing on or after December 07, 2006. The Company has provided for Employee Benefits on actuarial valuation as per ProjectedUnit Credit Method, using principles laid under Accounting Standard 15 (Revised). As a result, the valuation of accrued gratuity and leaveas at <strong>March</strong> <strong>31</strong>, 2007 is higher by Rs. 50.89 lacs (Net of tax Rs. -) and the same has been adjusted from the opening balance of Profit andLoss Account. However, this change does not have a material impact on the profit for the current year.11. Employee Benefits @(a)(b)The Company has during the year adopted Accounting Standard 15 (revised 2005) 'Employee Benefits'. Pursuant to adoption of therevised standard, as per the transitional provisions, the additional liability of Rs. 88,832/- (net of deferred tax adjustment of Rs 45,741/-) upto <strong>March</strong> <strong>31</strong>, 2007 has been adjusted against opening reserves and surplus.During the year, the Company has recognized the following amounts in the Profit and Loss Account:Defined Contribution PlanParticulars <strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Rs.)Employer’s Contribution to Provident Fund*Employer’s Contribution to Employee State Insurance*1,422,259323,800* included in Personnel Expenses (Refer Schedule 15)Defined Benefit PlansParticularsGratuity*Unfunded(Rs.)Leave Encashment *Unfunded(Rs.)Current service cost1,035,699 710,306Interest Cost 105,663 51,480Expected Return on Plan Assets - -Relating to Corrugated Box Unit which was non operationalw.e.f 01.04.07 95,253 20,306Actuarial (gain) / loss 5,495 (176,684)Short Term - 517,674Net cost 1,242,110 1,123,082* included in Personnel Expenses (Refer Schedule 15).The assumptions used to determine the benefit obligations are as follows:ParticularsGratuity(Rs.)Leave Encashment(Rs.)Discount Rate 8.00% 8.00%Expected Rate of increase in Compensation Levels 10.00% 10.00%Expected Rate of Return on Plan Assets N.A. N.A.Expected Average remaining working lives of employees(years)28.35 28.3581
C) Reconciliation of opening and closing balances of benefit obligations and plan assetsParticularsChange in Projected Benefit Obligation (PBO)GratuityUnfunded(Rs.)Leave EncashmentUnfundedProjected benefit obligation at beginning of year * 1,356,635671,371Current service cost 1,035,699710,306Interest cost 105,66351,480Benefits paid (71,695)(55,739)Actuarial (gain) / loss 5,495(176,684)Projected benefit obligation at year end & change in plan assets:Fair value of plan assets at year end - Long Term -1,200,734Fair value of plan assets at year end - Short Term -517,674Net funded status of the plan -1,718,408Net amount recognized 2,4<strong>31</strong>,7971,718,408* Includes provisions relating to Corrugated Box which wasNon - Operational w.e.f. 01-04-07@ (Related to Subsidiary Company)(Rs.)95,253 20,30612. Interest in Joint Venture CompaniesPursuant to Accounting Standard 27 on Financial Reporting of Interests in Joint Ventures, the relevant information relating to the JointVenture Company, is as given below:Name of the JointVenture Company<strong>Lumax</strong> Cornaglia <strong>Auto</strong><strong>Technologies</strong> PrivateLimitedCountry ofIncorporationProportion ofOwnershipinterestDescription of InterestIndia 50% JV is established principally for manufacture,assemble and to sell automotive componentsThe Company's share in the aggregate amounts to each of the assets, liabilities, income, expenses, capital commitments and contingentststliabilities as at / for the year ended <strong>31</strong> <strong>March</strong> <strong>2008</strong> and <strong>31</strong> <strong>March</strong> 2007 are as under:Proportion of Company’s Interest in Joint VentureAssetsLiabilitiesIncomeExpensesCapital CommitmentsContingent Liabilities2007-0813,598,924-40,197388,772--(Amount In Rs.)2006-07------82
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.13. Statement showing the use of Proceeds from Initial Public Offer up to <strong>March</strong> <strong>31</strong>,<strong>2008</strong>During the year ended <strong>March</strong> <strong>31</strong>, 2007,the Company had issued 30,12,539 equity shares of Rs. 10/- each by way of initial public offeringat a premium of Rs.65/- per share. The net proceeds of the issue have been utilized for the objects of the issue to the extent as detailedbelow:(Amount In Rs. Lacs)S.No. Description<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong><strong>Year</strong> ended<strong>31</strong>.03.2007a) Total Issue proceeds/ Opening Balance 656.47 2,259.40b) Utilised during the year:(i) Capital expenditure incurred on project at PCNTDA, Pune,Maharashtra306.58 717.93(ii)Expansion and modernization of existing manufacturing unit atChakan, near Pune & Waluj near Aurangabad, Maharashtra61.58 0.00(iii) Modernisation of Development centre at Chinchwad near Pune,Maharashtra9.56 0.00(iv) To meet the expenses of the issue 62.81 0.00(v) Part Payment towards allotment of Industrial Land for NewProject at Rajangaon, Pune78.03 0.00(vi) Land application money deposited with HSIIDC towards allotmentof Industrial Land for setting up new unit at Bawal, Rewari,37.91 0.00Haryana(vii) Loan to <strong>Lumax</strong> DK <strong>Auto</strong> Industries <strong>Ltd</strong>. for New Project 100.00 885.00Total 656.47 1,602.93Balance lying with Syndicate Bank as on the Balance SheetDate0.00 656.4714. Subsequent to Accounting Standard 22 “Accounting for Taxes on Income “, issued by the Institute of Chartered Accountants of India,Deferred Tax expense of Rs.18,391,583 for the period is recognized in the Profit & Loss Account. The significant components of thestDeferred Tax Liability as on <strong>31</strong> <strong>March</strong> <strong>2008</strong> are:-(Amount in Rs.)S.No. ParticularsAs atAs at<strong>31</strong>.03.<strong>2008</strong><strong>31</strong>.03.20071. Deferred Tax Liability--i)ii)2.i)ii)iii)iv)DepreciationDeferred Revenue ExpenditureTotal Deferred Tax LiabilityDeferred Tax AssetCapital LossDisallowance u/s 43BDisallowance u/s 40a(ia)Total Deferred Tax AssetDeferred Tax Liability(Net)5,54,14,8607,67,3245,61,82,1846,41,92<strong>31</strong>8,26,95110,21824,79,0925,37,03,0923,54,23,38411,50,9863,65,74,3705,41,2007,22,111-12,63,<strong>31</strong>13,53,11,05915. Information Regarding Capacity Etc.For Holding CompanyS.No.ParticularsAs at<strong>31</strong>.03.<strong>2008</strong>As at<strong>31</strong>.03.20071Licensed CapacityNot ApplicableNot Applicable2Installed CapacityNot ApplicableNot Applicable3Class of Goods Manufactured<strong>Auto</strong> Parts<strong>Auto</strong> PartsTotal--83
For Subsidiary Company:S. No. Class of Goods Manufactured LicensedCapacity1N A2 MouldingN A345N AN AN A6 Head Lamp AssemblyN A7Gear Shifter AssemblyParking BrakeCorrugated BoxesRubber ComponentsTail Lamp AssemblyN AInstalled Capacity750,000(525,000)7,200,000(7,200,000)250,000(110,000)-(4,000,000)N A1,000,000(-)1,000,000(-)(Quanity in Nos.)Actual Production722,158(522,1<strong>31</strong>)5,349,663(5,021,646)207,912(107,772)-(2,780,805)-(1,569,980)278,839(-)285,046(-)16.Value of Imports calculated on CIF basis by the company during the year in respect of:S. No.1234ParticularsRaw MaterialComponents, Spare Parts & ConsumablesPurchase of Finished GoodsCapital Goods & AccessoriesTotal<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>3,40,75,715-23,20,33<strong>31</strong>,41,40,6355,05,36,683(Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.20071,49,15,945-2,24,60,6173,73,76,56217.Payment to Auditors:S. No.Particulars1 For Audit & Tax Audit Fees<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>8,04,000( Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.20074,80,0002For Other Services58,00087,000Total8,62,0005,67,00018. Payment to Directors:S. No. Particulars1 Remuneration2 Provident Fund Contribution3 Commission4 OthersTotal<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>15,68,4001,58,4009,00,00076626,27,566( Amount in Rs.)<strong>Year</strong> ended<strong>31</strong>.03.20078,48,38557,6008,95,00034,78518,35,77084
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.19. Segment Reporting:The group has disclosed Business Segment as the primary segment. Segments have been identified by the Management taking intoaccount the nature of the products, manufacturing process, risk and reward parameters, Internal financial reporting systems and otherrelevant factors.<strong>Auto</strong>motive Parts include Gear Shifter Assembly, Parking Brake, <strong>Auto</strong>motive Lights and Plastic Mouldings.Corrugated Boxes include paper reel boxes and Rubber Components.Trading Activities include Motor adjusters.The above business segments have been identified considering:a) the nature of products and servicesb) the differing risks and returnsc) the organization structure, andd) the internal financial reporting systems.Reportable Segments <strong>Auto</strong>motive Parts Corrugated Boxes * Trading Consolidated(Amount in Rs)Segment Revenuea) External Revenue 2,46,39,09,<strong>31</strong>1 - 447,581,105 2,91,14,90,416(1,91,98,03,705) (3,91,93,617) (20,52,29,678) (2,16,42,57,000)b) Total Revenue 2,46,39,09,<strong>31</strong>1 - 447,581,1052,91,14,90,416(1,91,98,03,705) (3,91,93,617) (20,52,29,678) (2,16,42,57,000)Profit Before Tax 18,05,25,826(9,53,68,609)Taxation 6,14,66,326(3,40,02,522)Profit after tax 11,90,59,500(6,13,66,087)Other InformationSegment Assets 1,43,67,92,120 - 117,822,538 1,55,46,14,658(1,15,95,12,240) (16,957,064) (98,168,802) (1,27,46,38,106)Total Assets 1,43,67,92,120 - 117,822,538 1,55,46,14,658(1,15,95,12,240) (16,957,064) (98,168,802) (1,27,46,38,106)Segment Liabilities 93,27,78,207 - 76,017,145 100,87,95,352(67,90,53,654) (10,390,147) (77,096,350) (76,65,40,151)Total Liabilities 93,27,78,207 - 76,017,145 100,87,95,352(67,90,53,654) (10,390,147) (77,096,350) (76,65,40,151)Capital Expenditure 28,29,66,856 - - 28,29,66,856(32,79,64,729) (578,653) (-) (32,85,43,382)Depreciation 4,07,13,898(2,34,91,858)-(137,663)-(-)4,07,13,898(2,36,29,522)Non-cash expenses other thandepreciation* Discontinued w.e.f. 01-04-200719,36,879(19,36,878)-(-)-(-)19,36,879(19,36,878)85
20. Related Party Disclosures:The information about transactions with the related parties is attached herewith - As Per Annexure “C”21. Earnings Per Share:S.No. Particulars <strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong><strong>Year</strong> ended<strong>31</strong>.03.2007a) Profit After Tax as per Profit & Loss Account (Rs.) 11,90,59,500 6,13,66,087b)No. of Equity Shares(Face Value Rs.10/- each)For Basic Earnings per Share 1,16,<strong>31</strong>,541 88,91,986For Diluted Earnings Per Share 1,16,<strong>31</strong>,541 92,94,775c) Earnings Per Share:- (Rs.)Basic 10.24 6.90Diluted 10.24 6.6022. Earning / Outgo In Foreign Currency:Particulars<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs)<strong>Year</strong> ended<strong>31</strong>.03.2007Payment in Foreign CurrencyTesting Fee 3,56,001 2,40,970Technical Know-how 13,15,125Royalty 20,59,772 7,75,485Commission to Agents 11,327 -Traveling 3,87,815 55,914Total 28,14,915 23,87,494Earning in Foreign Currency 2,43,81,483 -23. The value of stock of finished goods of Subsidiary company lying at the year ended includes excise duty amounting toRs. 1,592/- (Rs. 360,430/-). This has no effect on the profit for the year24.The total expenditure incurred on Research and Development:<strong>Year</strong> ended<strong>31</strong>.03.<strong>2008</strong>(Amount in Rs)<strong>Year</strong> ended<strong>31</strong>.03.2007Nature of ExpensesExpenditure charged to profit and loss account (Salary allowances & Cont. of P.F. ) 1,337,166 -Expenditure capitalised during the year 4,301,883 33,73,32925. Previous year’s figures have been regrouped or rearranged wherever necessary to make them comparable with thecurrent year’s figures.As per our report of even dateFor D. R. Barve & CompanyChartered AccountantFor and on behalf of the Board of Directors of <strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.CA D. R. BarveProprietorM. No. 17661D. K. JainChairmanUsha JainManaging DirectorPlace : GurgaonDate : June 28, <strong>2008</strong>Ashish DubeyHead FinanceMilita BharCompany Secretary86
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Annexure "A" Attached to Notes to AccountsA (i) Particular pertaining to finished goodsClass of Goods /Opening Stock Production / Purchase Turnover Closing StockS.No. manufactrued/ Purchased Qty Value Qty Value Qty Value Qty Value(Nos.) (Rs.) (Nos.) (Rs.) (Nos.) (Rs.) (Nos.) (Rs.)1 Head Lamp Assembly - - 1,209,998 264,882,262 1,208,822 263,966,189 1,176 916,073(-) (-) (759,258) (64,759,483) (759,258) (64,759,483) (-) (-)2 Tail Lamp Assembly - - 336,<strong>31</strong>4 101,986,766 334,426 101,461,<strong>31</strong>3 1,888 525,453(-) (-) (95,775) (3,891,924) (95,775) (3,891,924) (-) (-)3 Silencer Assembly - - 28,108 24,451,082 28,108 24,451,082 - -(-) (-) (19,870) (16,039,637) (19,870) (16,039,637) (-) (-)4 Frame / Chassis - - 4<strong>31</strong>,952 342,577,791 4<strong>31</strong>,952 342,577,791 - -(-) (-) (524,765) (405,667,167) (524,765) (405,667,167) (-) (-)5 Frame Assembly - - 65,955 226,639,308 65,955 226,639,308 - -(-) (-) (186,814) (622,638,005) (186,814) (622,638,005) (-) (-)6 Wind Shield Ct-100/Platina- - 569,726 23,893,022 569,726 23,893,022 - -(-) (-) (464,849) (20,457,400) (464,849) (20,457,400) (-) (-)7 Corrougated Boxes - - -- - - - -(18,042) (180,029) (2,780,805) (30,907,999) (2,798,847) (<strong>31</strong>,088,028) (-) (-)8 Gear Shifter Assembly 2178 470,641 722,158 186,684,947 724,336 187,155,588 - -(1,207) (437,161) (522,1<strong>31</strong>) (142,392,201) (521,160) (142,358,721) (2,178) (470,641)9 Moulding 66689 1,444,997 5,349,663 166,665,415 5,414,529 168,097,783 1,823 12,629(70,646) (1,969,349) (5,021,646) (153,167,289) (5,025,603) (153,691,641) (66,689) (1,444,997)10 Parking Brake 183 26,405 207,912 32,423,303 208,095 32,449,708 --(283) (49,408) (107,772) (18,680,849) (107,872) (18,703,852) (183) (26,405)11 Rubber Components - - - - - - - -(-) (-) (1,569,980) (5,970,177) (1,569,980) (5,970,177) (-) (-)12 Others - <strong>31</strong>4,770,7<strong>31</strong> <strong>31</strong>4,770,7<strong>31</strong> -(-) (303,009,443) (303,009,443) (-)Total 1,942,043 1,684,974,627 1,685,462,515 1,454,155(2,635,947) (1,787,581,574) (1,788,275,478) (1,942,043)Note :It is not practicable to furnish quantitative information in view of the large number of items which differ in size and nature, each beingless than 10% in value of the total.87
A) (ii) Particulars in respect of Traded Goods :F O R T H E Y E A R E N D E D <strong>31</strong>. 03. <strong>2008</strong>OPENING STOCK PURCHASE TURNOVER CLOSING STOCKS.No. NAME OF THE ITEM QTY. AMOUNT (Rs.) QTY. AMOUNT (Rs.) QTY. AMOUNT (Rs.) QTY. AMOUNT (Rs.)1 HEAD LAMP ASSEMBLY 61,966 9,910,762 2,178,269 <strong>31</strong>4,759,439 2,193,569 359,295,574 46,666 7,679,866Annexure "B" Attached to notes to accountsDetails of Consumption of Raw MaterialName of the Item(-) (-) (265,134) (46,254,362) (203,168) (41,502,8<strong>31</strong>) (61,966) (9,910,762)2 TAIL LAMP ASSEMBLY/REAR LAMP 30,129 5,421,279 456,268 90,542,713 459,<strong>31</strong>7 108,710,603 27,080 4,345,8603 MOTOR ADJUSTERS 11,<strong>31</strong>2 2,504,963(-) (-) (80,860) (16,763,826) (50,7<strong>31</strong>) (11,004,724) (30,129) (5,421,279)(-) (-)1,928,977(9<strong>31</strong>,385)365,988,418(184,977,384)For the year ended <strong>31</strong>.03.<strong>2008</strong>1,933,889 447,581,105(920,073) (205,229,678)4 OTHERS 13,995,586 279,551,563 <strong>31</strong>0,440,619 39,834,556(-) (127,827,484) (118,244,289) (13,995,586)Total <strong>31</strong>,832,590 1,050,842,133 1,226,027,901 53,616,345(-) (375,823,056) (375,981,522) (<strong>31</strong>,832,590)For the year ended <strong>31</strong>.03.2007Units Qty. Amount (Rs.) Qty. Amount (Rs.)Steel Sheet Kgs 577479.13 18,768,072 4407724.50 64,372,330Steel Tube Nos 3434770 196,949,712 706217 17,622,5166,400(11,<strong>31</strong>2)1,756,064(2,504,963)Steel Tube Mts 70400 2,625,920 4196243.759 110,759,959Plastic Powder Kgs 1528481.254 136,835,538 1439992.38 140,742,857Housing Assembly Nos 240430 16,962,216 173779 9,641,643Knob Nos 497966 14,281,438 400648 11,409,844Outer Box Nos - - 565192 6,515,035Sheet Metal Nos 2938101 32,489,182 3471280 67,077,180Rotula Nos 1<strong>31</strong>002 26,855,410 60264 13,060,414Paper Reels Kgs - - 1234180 22,127,605Rubber Components Kgs - - 22802 3,143,244Bulbs Nos 1570445 <strong>31</strong>,283,808 - -Outer Boot Nos 536732 6,634,334 - -Cowl Nos 291673 46,302,044 - -Fender Nos 278347 23,265,420 - -Stay CP B/L Nos 1066266 11,204,607 - -Others 671,127,401 940,675,832TOTAL 1,235,585,101 1,407,148,45988
<strong>Lumax</strong> <strong>Auto</strong> <strong>Technologies</strong> <strong>Ltd</strong>.Value and percentage of Raw Materials and stores consumed:S.No. ParticularsRaw MaterialConsumable Stores% Value (Rs.) % Value (Rs.)1 Indigenous 96.82 1,196,247,768 100 40,823,035(97.73) (1,389,3<strong>31</strong>,736) (100) (40,346,203)2 Imported 3.18 39,337,333(1.27) (17,816,723)TOTAL 1,235,585,101(1,407,148,459)Details in accordance with Accounting Standard-18 "RELATED PARTY DISCLOSURE"AS PER ANNEXURE- C(i) (A) Related Parties: (B) Key Managerial Personnel:(a) <strong>Lumax</strong> Industries <strong>Ltd</strong>. (a) D K Jain(b) Sheela Finance Pvt. <strong>Ltd</strong>. (b) Usha Jain(c) Deepak <strong>Auto</strong> Pvt. <strong>Ltd</strong>. (c) Deepak Jain(d) <strong>Lumax</strong> <strong>Auto</strong>motive System <strong>Ltd</strong>. (d) Anmol Jain(e) <strong>Lumax</strong> Filter Pvt. <strong>Ltd</strong>. (e) Shivani Jain(f)(g)(h)(i)(j)(k)(l)Mahavir Udyog<strong>Lumax</strong> Investment and Finance <strong>Ltd</strong>.<strong>Lumax</strong> International Pvt. <strong>Ltd</strong>.Bharat EnterprisesS L <strong>Lumax</strong> LimitedD.K. Jain & Sons (HUF)S.C. Jain100(100)40,823,035(40,346,203)89
(ii) Disclosure of transactions between the company and related parties and status of outstanding as on <strong>31</strong>st <strong>March</strong> <strong>2008</strong>S.No.ParticularsA(Rupees)B(Rupees)Nature of Transaction:Purchase(i) Components/Finish Goods Purchased 443,203,739(xi) Managerial Remuneration - 1,568,400(-) (848,385)(xii) Provident Fund - 158,400(-) (57,600)(xiii) Commission Paid - 900,000(-) (895,000)(xiv) Other 138,500 97,717(-) (34,785)(xv) Lease Rent - 540,000(720,000) (1,152,000)(xvi) Unsecured loan 6,000,000 -(xvii) Interest on Deposit -Outstandings as on <strong>31</strong>.03.<strong>2008</strong>(122,840,668)(ii) Other Raw Material Purchased 339,889(1,634,460)(iii) Assets Purchased 6,655,139(45,842,243)(iv) Job Work/Other -Sale(v) Components/Finish Goods Sold 819,940,177(-) (5,000,000)(600,000) (213,699.00)i) Unsecured loan payable 12,639,960 -(5,921,026) (5,189,722)ii) Other Current Assets 199,085,697 -iii) Other Current Liabilities 155,355,521(-)(472,296,563)(vi) Other Raw Material Sold 137,112(705,613)(vii) Assets Sold 6,603,568(viii) Job Work/Other 782,244Other(ix) Dividend Paid(-)(592,012)18,946,590 6,859,517(439,<strong>31</strong>5) (11,064,424)(x) Interest on Unsecured loan 870,659 575,342(-) (420,000)(58,127,032) (-)(67,<strong>31</strong>6,659) (949,673)-(-)-(-)-(-)-(-)-(-)-(-)-(-)-(-)90
LUMAX AUTO TECHNOLOGIES LIMITEDRegd. Office : W-230, ‘S’ Block, M.I.D.C. Bhosari, Pune -411026P R O X Y - F O R MTwenty Seventh Annual General MeetingRegd. Folio No.________________*Demat A/c No._______________DP. ID No_____________I/We______________________________________________________of ________________________(Address)being a member of the Company here by appoint Mr./Ms._____________________ of___________________(Address)_____________or___________ failing him/her of Mr./Ms.______________ (Address) as my/our proxy to vote for me/usthon my/ our behalf at the 27 Annual General Meeting of the Company to be held at Panchshil Club 705, Club Road, Moshi,thPune-412105 at 4.00 P.M. on Wednesday the 13 day of August, <strong>2008</strong> or any adjournment 's thereof.Signed this__________ day of ______ <strong>2008</strong>.Affix oneRupeeRevenueStampNote:Signature___________________This form in order to be valid & effective, should be duly stamped, completed, and signed and must be deposited atthe Registered Office of the Company, not less than 48 hours before the commencement of the Meeting.*Those who hold shares in demat form must quote their Demat A/c no & Depository Participant (DP) ID. No.Please tear here.LUMAX AUTO TECHNOLOGIES LIMITEDRegd. Office : W-230, ‘S’ Block, M.I.D.C. Bhosari, Pune -411026A D M I S S I O N - S L I PTwenty Seventh Annual General MeetingRegd. Folio No.________________*Demat A/c No._______________No. of Shares Held :____________DP. ID No_____________I certify that, I am a member/ Proxy for the member of the company.thI hereby record my presence at the 27 Annual General Meeting of the Company being held at Panchshil Club 705, ClubRoad, Moshi, Pune-412105(M.H.) at 4.00 P.M. on Wednesday the 13th day of August, <strong>2008</strong>.Members/ Proxy's name in______________________BLOCK LettersSignature of member/ProxyNotes :Please fill this admission slip & hand over at the entrance of the meeting hall.Members are requested to bring their copy of the Annual Report at the meeting.*Those who hold shares in Demat Form must quote their Demat A/c No. and Depository Participant (DP) ID. No.