Year Ended March 31, 2008 - Lumax Auto Technologies Ltd.

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 “Automotive 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 companyLumax DK Auto 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:Year Ended March 31, 2008 (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 March 31, 2008)Total Interest out standing as on March 31, 2008 (Interest in ‘b’ + interest in ‘d’above)7. The Balances of parties are subject to confirmations.174,572 1291 1,75,8631291 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