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

Lumax Auto Technologies Ltd.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 March 31, 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 March 31, 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 Year ended31.03.2008(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