Bosch

1.  As the aggregate assets and income of MICO Trading Private
 Limited(Subsidiary Company) is not material, no consolidated financial
 statements under Accounting Standard 21, as notified under section
 211(3C) of the Companies Act, 1956 has been prepared. Consequently,
 proportionate consolidation for interest in a Joint Venture company,
 MHB Filter India Private Limited, as required under Accounting Standard
 27 Financial Reporting of Interests in Joint Ventures has not been
 done.
 
 2.  The Company has made a public announcement on December 08, 2008 to
 Buy Back its fully Paid up Equity Shares of Rs.10 each, at a price not
 exceeding Rs.4,500 per share, payable in cash, up to an aggregate
 amount of TINR 6,392,000, representing the limit of 25% of the total
 paid up equity share capital and free reserves of the Company as on
 December 31, 2007. The Buy Back would be met out of the free reserves
 of the Company by open market purchases through Stock Exchange(s) in
 India, as per provisions contained in the SEBI (Buy Back of Securities)
 Regulations, 1998. The Buy Back Offer is valid for a period of 12
 months upto October 23, 2009.  However, the board may in its absolute
 discretion decide to close the Buy Back offer on such earlier date as
 may be determined by the Board, even if the maximum offer size has not
 been reached or the maximum offer shares (2,144,490 equity shares) have
 not been bought back, provided that the minimum offer shares (355,000
 equity shares) have been bought back by the Company.
 
 3.  Appropriation of profit towards proposed dividend and tax thereon
 has been made based on number of equity shares existing at the Balance
 Sheet date. However, in view of the ongoing Buy Back of shares by the
 Company, actual outflow of dividend and tax thereon would be determined
 based on the equity shares existing as at the record date i.e May 08,
 2009.
 
 4.  Disclosure on Retirement Benefits as required in Accounting
 Standard (AS) 15 on Employee Benefits are given below: 
 
 (a) Post Retirement Benefit - Defined Contribution Plans
 
 The Company has recognised an amount of TINR 301,837 (2007: TNIR
 317,436) as expense under the defined contibution plans in the Profit
 and Loss account.
 
 (b) Post Retirement Benefit - Defined Benefit Plans
 
 The Company makes annual contributions to the Mico Employees Gratuity
 Fund, a funded defined benefit plan for qualifying employees. The
 Scheme provides for lumpsum payment to vested employees at retirement,
 death while in employment or on termination of employment of an amount
 equivalent to 15 days salary payable for each completed year of service
 or part thereof in excess of six months. Vesting occurs only upon
 completion of five years of service, except in case of death or
 permanent disability. The present value of the defined benefit
 obligation and the related current service cost are measured using the
 projected unit credit method with actuarial valuation being carried out
 at each balance sheet date.
 
 5.  Segmental Reporting:
 
 The Companys operations predominantly relate to manufacturing and
 trading of automotive products. The Company is also manufacturing
 industrial equipments and consumer goods which are non-automotive
 products. The risks and rewards associated with these two businesses
 are significantly different. Therefore, the primary segment consists of
 Automotive Products and Others which are essentially non-automotive
 products. Secondary segmental reporting is organised in two
 geographical segments, namely India and Outside India.
 
 The Accounting principles and policies adopted in the preparation of
 the financial statements are also consistently applied to record
 revenue/expenditure and assets/liabilities in individual segments.
 These are as set out in the note on significant accounting policies.
 The inter-segment sales are recorded at cost.
 
 6.  Information on leases as per Accounting Standard 19 on Accounting
 for Leases:
 
 (a) Finance Lease :
 
 The company does not have any item covered under finance lease which
 needs disclosure as per Accounting Standard 19 -  Accounting for
 Leases.
 
 (b) Operating Lease Expenses :
 
 The Company has various operating leases for equipments, office
 facilities, guest houses and residential premises for employees that
 are renewable on a periodic basis. Rental expenses for operating leases
 recognised in the Profit and Loss Account for the year is TINR 129,690
 (2007: TINR 84,833).
 
                                              [Rs. in Thousands (TINR)]
 
 7.  Contingent liabilities :                     2008           2007
 
 (a)  Claims against the Company 
 not acknowledged as debts:
 
 (i)   Excise / Customs          Net of tax         232            232
 
                                      Gross         352            352
 
 (ii) Service Tax                Net of tax       3,151          3,151
 
                                      Gross       4,774          4,774
 
 (iii) Octroi                    Net of tax       1,312              -
 
                                      Gross       1,987              -
 
 (b) Guarantees given by Banks 
 on behalf of the Company                       178,765        143,809
 
 (c) Bills Discounted not matured               607,517      1,339,224
 
 (d) Certain industrial disputes are pending before various judicial
 authorities - amounts not ascertainable.
 
 8. During the year the Company has sold goods for TINR 15,016 and
 provided services for TINR 55,354 to private limited companies in which
 a director of the Company is also a director. The Company is of the
 view that having regard to their nature, these transactions are at
 prevailing market prices. Although the Company is of the opinion that
 these transactions may not be attracted by the provisions of section
 297 of the Companies Act, 1956 (the Act),as a matter of abundant
 caution the Company proposes to make an application to the Central
 Government under the Act.
 
 9. In view of Parent Company decision to sell its Car Multimedia
 Aftermarket Business (Blaupunkt) to M/s Aurelius AG worldwide, the
 Company proposes to sell its Blaupunkt business to the Indian entity of
 M/s Aurelius AG on a going concern basis at a consideration to be
 determined in due course. This has no significant impact on the
 financial results and carrying value of assets and liabilities as at
 the balance sheet date.
 
 10. Previous years figures have been regrouped/recast, wherever
 necessary, to conform to current years classifications.