(i) Employee stock option plan
a. I,77,000 (I,77,000) options on september 30, 2006, exercisable over
a period of seven years after vesting on October 1, 2009 at an exercise
price of Rs.297 (including premium of Rs 287) per option, out of which
6,400 (6,400) options are outstanding at year end. during the year,
Nil (8,000) equity shares were issued and allotted as fully paid up
at an exercise price of Rs. 297 (including premium of Rs. 287 each)
per equity share.
b. 2,08,900 (2,08,900) options on October 22, 2007, exercisable over a
period of seven years after vesting on October 23, 20I0 at an exercise
price of Rs.462 (including premium of Rs. 452) per option, out of which
63,500 (7I,900) options are outstanding at year end. during the year,
8,400 (46,800) equity shares were issued and allotted as fully paid up
at an exercise price of Rs. 462 (including premium of Rs. 452 each) per
c. 40,000 (40,000) options on April 29, 20I0, exercisable over a
period of seven years after vesting on April 29, 20II at an exercise
price of Rs. 695 (including premium of Rs. 685) per option are
outstanding as at year end.
d. 15,400 (I5,400) options on November 8, 20I0, exercisable over a
period of seven years after vesting on November 8, 20I3 at an exercise
price of Rs.I,4II (including premium of Rs. I,40I) per option are
outstanding as at year end.
e. 1,32,200 (I,35,200) options on May 6, 20II, exercisable over a
period of seven years after vesting on May 6, 20I4 at an exercise price
of Rs. I,I62 (including premium of Rs. I,I52) per option are
outstanding as at year end. during the year, 3,000 (Nil) equity shares
f. 12,600 (Nil) options on February II, 20I2, exercisable over a
period of seven years after vesting on February II, 20I5 at an exercise
price of Rs. I,770 (including premium of Rs.I,760) per option are
outstanding as at year end.
g. Each option entitles the holders thereof to apply for and be
allotted one equity share of the face value of Rs. I0 each.
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 3I.95 crores (Rs. 26.50 crores).
The company has other commitments, for purchase/sales orders which are
issued after considering requirements per operating cycle for
purchase/sale of goods and services, employee''s benefits including
union agreement in normal course of business. The company does not have
any long term commitments or material non-cancellable contractual
commitments/ contracts, which might have material impact on the
3. Research and development expenses:
Revenue expenditure on research and development incurred and expensed
off during the year through the appropriate heads of account aggregate
Rs. I6.75 crores (Rs. I0.45 crores). The capital expenditure incurred
during the year for research and development purposes aggregate Rs.
3.95 crores (Rs. 5.55 crores). The details of capital expenditure and
revenue expenditure are as below:
4. contingent liabilities not provided for in respect of:
Rs. in crores
Particulars As at As at
31, 2012 December
a) in respect of demands contested by the
- Excise duty matters 54.99 54.99
- sales tax matters 10.43 10.38
- service tax matters 0.77 0.76
- income tax matters 8.80 14.15
b) claims against the company not
acknowledged as debts 5.00 4.59
c) Guarantees given to:
A subsidiary, for certain receivables transferred - 0.06
pursuant to Business Purchase Agreement signed
by the company with subsidiary company
All the above matters other than guarantees are subject to legal
proceedings in the ordinary course of business. The legal proceeding
when ultimately concluded will not, in the opinion of management, have
a material effect on the result of operations or the financial position
of the company.
Out of the total contribution made for employees'' provident fund, Rs.
0.69 crores (Rs. 0.34 crores) is made to Eicher Executive Provident
Fund Trust, while the remainder contribution is made to government
administered provident fund. The total plan liabilities under the
Eicher Executive Provident Fund Trust as at March 3I, 20I2 is Rs. 45.50
crores as against the total plan assets of Rs. 45.64 crores. The funds
of the trust have been invested under various securities as prescribed
under the rules of the trust.
5. Segment reporting:
As the company''s business activities falls within a single primary
business segment viz. ''Automobile products and related components
and is a single geographical segment, the disclosure requirements of
Accounting standard - I7 segment Reporting notified under the
companies (Accounting standards) Rules, 2006 are not applicable.
6. The company has taken certain premises under various operating
lease agreements. The total lease rental recognize as expense aggregate
to Rs. 6.69 crores ( Rs. 3.59 crores).
7. Hitherto in terms of Old schedule Vi to the companies Act, I956,
the company was recognising income from dividend declared by its
subsidiary company, i.e. VE commercial Vehicles Limited (VEcVL) even
after the date of the Balance sheet if they were pertaining to the
period on or before the Balance sheet date. This requirement no longer
exists in the Revised schedule Vi. Accordingly, the company as per As -
9 ''Revenue Recognition'' has decided to recognise dividend from
subsidiary companies as income only when the right to receive dividends
is established as on the Balance sheet date. Had the company
recognised dividend from VEcVL as income as per Old schedule Vi, the
profit for the year would have been higher by Rs. 40.80 crores.
8. Figures in brackets represent previous year''s figures.
9. The revised schedule Vi has become effective for the accounting
year commencing on or after I April, 20II for the preparation of
financial statements. This has significantly impacted the disclosure
and presentation made in the financial statements. Previous year''s
figure have been regrouped/reclassified wherever necessary to
correspond with the current year''s classification/disclosure.