Note 1:Company Information
Bosch Limited (the Company) is the flagship company of Robert Bosch
Group in India. Headquartered out of Bangalore, the Company has its
manufacturing facilities in Bangalore, Nashik, Naganathapura, Jaipur
and Goa. The Company has presence across automotive technology,
industrial technology and consumer technology. It manufactures and
trades products as diverse as diesel and gasoline fuel injection
systems, automotive aftermarket products, auto electricals, special
purpose machines, packaging machines, electric power tools, security
systems, solar energy and thermo technology. The Company''s shares are
listed on Bombay Stock Exchange (BSE) and National Stock Exchange
Note 2: Pursuant to the agreement entered into between Robert Bosch
GmbH, Germany (the holding Company) and SPX Corporation, USA in January
2012, the Company has acquired Indian unit of ''Service Solutions''
business from SPX India Private Limited with effect from December 3,
2012 on a going concern basis for an aggregate consideration of Mio INR
(a) Rights, preferences and restrictions attached to shares:
The Equity shares of the Company, having face value of Rs. 10/- per
share, rank pari passu in all respects including voting rights and
entitlement to dividend.
(a) Addition to capital reserve represents subsidy received during the
year under the Package Scheme of Incentives, 2001 from the Government
of Maharashtra Mio INR 1,056 (2011: Nil).
(a) There are no amounts due for payment to the Investor Education and
Protection Fund under Section 205C of the Companies Act, 1956 as at the
(i) Nature of the provision has not been given on the grounds that it
can be expected to prejudice the interests of the Company. Due to the
very nature of such costs, it is not possible to estimate the timing /
uncertainties relating to their outflows.
(ii) Warranty estimates are established using historical information on
the nature, frequency and average cost of warranty claims and also
management estimates regarding possible future outflow on servicing the
customers for any corrective action in respect of product failure which
is generally expected to be settled within a period of 1 to 3 years.
(iii) Figures in bracket relate to previous year.
(a) Includes excise duty on increase / (decrease) of finished goods Mio
INR 33 (2011: Mio INR 191)
Note 4: Employee Retirement Benefits:
Disclosure on Retirement Benefits as required in Accounting Standard
(AS) 15 on Employee Benefits are given below:
(a) Post Employment Benefit - Defined Contribution Plans
The Company has recognised an amount of Mio INR 233 (2011: Mio INR 223)
as expense under the defined contribution plans in the Statement of
Profit and Loss.
(b) Post Employment Benefit - Defined Benefit Plans
The Company makes annual contributions to the Mico Employees'' Gratuity
Fund and makes monthly contributions to Mico Workmen (Bangalore Works &
Sales Houses) Provident Fund Trust and Mico Workmen''s (Nashik)
Provident Fund Trust, funded defined benefit plans for qualifying
employees. The Gratuity 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 Provident Fund Scheme
provides for lumpsum payment/transfer to the member employees at
retirement, death while in employment or on termination of employment
of an amount equivalent to the credit standing in his account
maintained by the Trusts. 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.
As per Accounting Standard 15 issued by the Institute of Chartered
Accountants of India, benefits involving employer established provident
fund, which require interest short falls to be compensated are to be
considered as defined benefit plan. The Company actuary has accordingly
provided the valuation and based on the below provided assumption there
is no shortfall as at December 31, 2012.
(vii) Contribution expected to be paid to the Mico Employees'' Gratuity
Fund within next year is Mio INR 261 (2011: Mio INR 228).
Contribution expected to be paid to the Mico Workmen (Bangalore Works &
Sales Houses) Provident Fund Trust and Mico Workmen''s (Nashik)
Provident Fund Trust within the next year is Mio INR 258 (2011: Mio INR
a) The discount rate is based on the prevailing market yield on
Government Bonds as at the balance sheet date for the estimated term of
b) The expected return on plan assets is determined considering several
applicable factors mainly the composition of the plan assets held,
assessed risks of asset management, historical results of the return on
plan assets and the Company''s policy for plan asset management.
c) The estimate of future salary increases considered in actuarial
valuation takes into account inflation, seniority, promotion and other
relevant factors such as supply and demand in the employment market.
Note 5 : Segmental Reporting :
The Company''s 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
income/ expenditure and assets/liabilities in individual segments. The
inter-segment sales are recorded at cost.
Note 6 : Lease Disclosures
Information on leases as per Accounting Standard 19 on Accounting
(a) Finance Lease :
The company does not have any item covered under finance lease which
needs disclosure as per Accounting Standard 19 - Accounting for
(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 Statement of Profit and Loss for the year is Mio INR
302 (2011 : Mio INR 224).
(c) Operating Lease Income :
Rental income received during the year in respect of operating lease is
Mio INR 370 (2011: Mio INR 342). Details of assets given on operating
lease as on December 31, 2012 are as below:
NOTE 7 : RESEARCH AND DEVELOPMENT EXPENSES
Total Research and Development expenditure recognised in the Statement
of Profit and Loss (including amounts shown under Note 13 and Note 33
to the Financial Statements) amounts to Mio INR 1,377 (2011: Mio INR
Note 8 : Interest in Joint Venture
Details of Company''s share in the joint venture assets, liabilities,
revenue and expenses as required by Accounting Standard 27 Financial
Reporting of Interests in Joint Ventures is as indicated below:
Name of the Joint Venture : MHB Filter India Private Limited.
Country of Incorporation : India
Percentage of ownership interest : 25%
Note 9 : Derivative Instruments
The Company uses forward exchange contracts to hedge against its
foreign currency exposures relating to highly probable forecast
The Company does not enter into derivative instruments for trading or
Note 10 : Previous Year Figures
The Financial Statements for the year ended December 31, 2011 had been
prepared as per the then applicable, pre- revised Schedule VI to the
Companies Act, 1956. Consequent to the notification of Revised Schedule
VI under the Companies Act, 1956, the Financial Statements for the year
ended December 31, 2012 are prepared as per Revised Schedule VI.
Accordingly, the previous year''s figures have also been reclassified to
conform to current year''s classification. The adoption of Revised
Schedule VI for previous year''s figures does not impact recognition and
measurement principles followed for preparation of the Financial
Note 11 : Rounding Off
Amounts mentioned as 0 in the financial statements denote amounts
rounded off being less than Rupees one million.