1. The cash credit and export packing credit facility is secured by
creating a charge by way of hypothecation of the Companys current
assets, i.e. all inventories, book debts and all other movables, both
present and future and additional collateral security over the
Companys fixed assets at Village Bambhori, Tal. Erandol, Dist.
2. Contingent liabilities:
a. Claims against the Company not acknowledged as debts: TINR 11355
(Previous Year TINR 2 159)
b. i. Disputed Central Excise duty/ServiceTax:TINR36767 (Previous
YearTINR37363) ii. Disputed Income Tax assessment dues :TINR24013
3. Estimated amount of contracts remaining to be executed on capital
account and not provided for [ Net of advance of TINR 15487
(PreviousYearTINR38756) ] isTINR 27 933 (PreviousYearTINR 141029).
4. A net exchange gain of TINR 10 862 (Previous Year - net exchange
gain of TINR 11 976) has been recognised in the Profit and Loss Account
under Miscellaneous Income/Expense.
6 Segment Reporting: The Company is engaged in the business of
Automotive Brake System and Components, which as per the Accounting
Standard - AS 17 is considered as the only reportable primary business
segment. The following table provides an analysis by secondary
7 Related Party Disclosures:
A. Name of the related party and nature of relationship where control
Name of the related party Nature of relationship
Robert Bosch GmbH, Germany Ultimate Holding Company
Precision Seals Manufacturing
Limited Subsidiary Company
a. Subsidiary Company -
i Precision Seals Manufacturing Ltd.
b. Fellow Subsidiary Companies -*
i Robert Bosch Travoes Unipessoal Limitada, Portugal
ii Bosch Corporation Shibuya ku, Japan
iii Robert Bosch Sp.Z.o.o., Poland
iv Bosch Systemes De Freinage S.A.S., France
v Bosch Sistemas De Franado, S.L., Spain
vi Bosch Automotive Thailand Co. Ltd., Thailand
vii Bosch Fren Sistemleri Sanayi VeTicaret A.S., Turkey
viii Robert Bosch Limitada, Brazil
ix Robert Bosch Korea Mechanics and Electronics Ltd
x Robert Bosch (Australia)
xi Bosch Automotive Products Co. Ltd
xii BoschTecnologie Diesel e Sistemi Frenanti S.p.A.
xiii BKJC( Thailand) Co. Ltd
xiv Bosch, Italy
c. UltimateHoldingCompany -
i Robert Bosch GmbH, Germany
d. Joint Venturers -
i Robert Bosch Corporation, USA
ii Robert Bosch Investment Netherland B.V.
e. Joint Venture Entity - KBX Motorbike Products Private Limited (Upto
f. Key Management Personnel -Mr. S.Sekhri, Managing Director
* As identified by the Management
** Values are provisional as contract are under negotiation, hence not
credited to party account.
8. Packing and forwarding expenses shown under Schedule 13 is net of
recovery of freight outward amounting to TINR NIL (Previous YearTINR 9
9. At the After Market division of the Company some dealers in
collusion with certain employees made fraudulent claims of expenses.
These claims were submitted during 2007 and 2008 but were detected and
reported in 2009. Management has scrutinized these claims and has
established Rs. 5.08 Mio as fraudulent. Entire amount of expenses has
since been reversed. Management has taken adequate steps to improve the
internal control procedures to prevent such instances in future by
formulating centralised policies and by periodic audits. Management has
also initiated actions against the employees involved by terminating
their services. Management has also lodged claim against the concerned
10. The previous periods figures, wherever necessary, have been
regrouped, reclassified and recast to confirm with this years
11. Provision for Current Taxation aggregating TINR 64 207 (Previous
Year TINR 298 300) has been made on an estimated basis for the
statutory accounting year ended December 31, 2009. The actual tax
liability of the Company will be determined on the basis of taxable
income of the Company for the year April 1, 2009 to March 31, 2010.