Good Company (India) Limited, An Illustrative Set of Indian GAAP Financial Statements For The Year Ending 31 March 2012

Good Company (India) Limited
Indian GAAP
Illustrative financial statements for the year
ended 31 March 2012
Based on accounting standards and the

revised Schedule VI applicable for the
financial year ending 31 March 2012
Foreword
Dear reader,
I am delighted to share with you our new publication Good Company (India) Limited, an
illustrative set of Indian GAAP financial statements for the year ending 31 March 2012.
The revised Schedule VI, applicable for financial years beginning on or after 1 April 2011,
is likely to have significant impact on financial statements of most companies. It introduces
many new concepts regarding presentation and disclosure of financial statements; the most
significant being the classification of asset and liabilities into current and non-current. Though
these financial statements prepared under Indian GAAP and revised Schedule VI will not be IFRS
compliant, they will more closely resemble IFRS financial statements in terms of the presentation and the styling.
This is a good first step, in the process of converging to IFRS.
Our publication, Good Company (India) Limited, contains an illustrative set of financial statements for a
fictitious company prepared in accordance with revised Schedule VI and accounting standards notified under the
Companies (Accounting Standards) Rules, 2006 (as amended). This publication is updated for all developments
till 14 February 2012. I trust that these illustrative financial statements will act as a practical working model to
help you in preparing your own annual financial statements prepared in accordance with Indian GAAP and revised
Schedule VI. You can also download a soft copy at www.ey.com/india.
I hope you will find this publication useful. I would be eager to receive your feedback.
Best regards,
Dolphy D’Souza
Partner, Head of Technical Directorate and
National Leader, IFRS Services
Ernst & Young Pvt. Ltd., India
Contents
Abbreviation ........................................................................................................................................................ 3
Introduction......................................................................................................................................................... 4
Independent auditors’ report................................................................................................................................. 6
Balance sheet.....................................................................................................................................................10
Statement of profit & loss...................................................................................................................................12
Cash flow statement...........................................................................................................................................14
Notes to financial statements..............................................................................................................................16
1. Corporation information.................................................................................................................16
2. Basis of preparation........................................................................................................................16
2.1 Summary of significant accounting policies......................................................................................16
3. Share capital..................................................................................................................................28
4. Reserves and surplus......................................................................................................................30
5. Long-term borrowings....................................................................................................................31
6. Other long term liabilities................................................................................................................33
7. Provisions......................................................................................................................................33
8. Short-term borrowings...................................................................................................................34
9. Other current liabilities...................................................................................................................35
10. Tangible assets...............................................................................................................................35
11. Intangible assets.............................................................................................................................37
12. Non-current investments................................................................................................................38
13. Deferred tax assets (net).................................................................................................................39
14. Loans and advances.......................................................................................................................40
15. Trade receivables and other assets..................................................................................................41
15.1 Trade receivables...........................................................................................................................41
15.2 Other assets...................................................................................................................................42
16. Current investments.......................................................................................................................43
17. Inventories.....................................................................................................................................44
18. Cash and bank balances..................................................................................................................44
19. Revenue from operations................................................................................................................45
20. Other income.................................................................................................................................46
21. Cost of raw material and components consumed..............................................................................46
22. (Increase)/decrease in inventories...................................................................................................47
23. Employee benefit expense..............................................................................................................48
24. Other expenses..............................................................................................................................48
Good Company (India) Limited 1

25. Exceptional items...........................................................................................................................50
26. Depreciation and amortization expense...........................................................................................50
27. Finance costs.................................................................................................................................50
28. Discontinuing operation..................................................................................................................50
29. Earnings per share (EPS)................................................................................................................51
30. Gratuity and other post-employment benefit plans...........................................................................52
31. Employee stock option plans...........................................................................................................55
32. Leases...........................................................................................................................................57
33. Capitalization of expenditure...........................................................................................................58
34. Interest in a joint venture................................................................................................................58
35. Accounting for amalgamation.........................................................................................................59
36. Segment information......................................................................................................................59
37. Related party disclosures................................................................................................................62
38. Capital and other commitments.......................................................................................................65
39. Contingent liabilities.......................................................................................................................65
40. Utilization of money raised through public issue...............................................................................66
41. Derivative instruments and unhedged foreign currency exposure.....................................................66
42. Deferral/capitalization of exchange differences................................................................................66
43. Subsequent events.........................................................................................................................67
44. Loans and advances in the nature of loans given to subsidiaries and associates and firms/
companies in which directors are interested.....................................................................................67
45. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006......................67
46. Value of imports calculated on CIF basis..........................................................................................68
47. Expenditure in foreign currency (accrual basis)................................................................................68
48. Imported and indigenous raw materials, components and spare parts consumed...............................68
49. Net dividend remitted in foreign exchange.......................................................................................69
50. Earnings in foreign currency (accrual basis).....................................................................................69
51. Previous year figures......................................................................................................................69
Appendix 1: Exemptions/relaxations for SMCs.....................................................................................................73
2 Indian GAAP Illustrative financial statements for the year ended 31 March 2012
Abbreviations
The following styles of abbreviation are used in this set of illustrative financial statements:
AS Accounting standards or notified AS

AS 19.20 Accounting standard 19, paragraph 20
Notified AS Accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended)
CA Companies Act, 1956
CA 211 Section 211 of the Companies Act, 1956
ICAI Institute of Chartered Accountants of India
ICAI Ann Announcement on accounting aspect issued by the ICAI
NACAS National Advisory Committee on Accounting Standards
MCA Ministry of Corporate Affairs
MSMED Micro, Small and Medium Enterprises Development Act, 2006
LA Listing Agreement
SMC Small and medium sized company
Non-SMC Company which is not a small and medium sized company
RVI Revised Schedule VI notified under the Companies Act, 1956 and applicable from financial years
commencing on or after 1 April 2011
SVI Pre-revised Schedule VI
GN Guidance Note issued by the ICAI
GN.Dep. Guidance Note on Accounting for Depreciation in Companies.
GN.ESOP Guidance Note on Accounting for Employee Share-based Payments
GN.MAT Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under Income Tax
Act, 1961
GN.RVI Guidance Note on the revised Schedule VI to the Companies Act, 1956
GIBS General Instructions for preparation of balance sheet prescribed in the revised Schedule VI
GIPL General Instructions for preparation of statement of profit and loss prescribed in the revised Schedule VI
ICAI Ann.Der ICAI Announcement on “Accounting for Derivatives”
ICAI Ann.DerD ICAI Announcement on “Disclosures regarding Derivative Instruments”
ICAI Ann.DT ICAI Announcement on “Tax effect of expenses/income adjusted directly against the reserves and/or
Securities Premium Account”
RVI.BS Form of balance sheet prescribed in the revised Schedule VI
RVI. PL Form of statement of profit and loss prescribed in the revised Schedule VI
SEBI.ESOP SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999

Introduction
This publication contains an illustrative set of standalone financial statements for Good Company (India) Limited (the
company), as of and for the year ended 31 March 2012. These illustrative financial statements have been prepared in
accordance with Indian GAAP, particularly notified AS and revised Schedule VI, applicable for financial years ended 31 March
2012. The company is a fictitious public company incorporated under the Companies Act, 1956. Its shares are listed on two
stock exchanges in India. The company is engaged in the manufacturing and selling a reputed brand of refrigerators, washing
machines, air conditioners, microwave ovens and other small electronic appliances. The company caters to both domestic
and international markets. The company operates electronic stores in India wherein all major brands of fast moving consumer
goods (FMCG) are available. The company also provides annual maintenance service for FMCG products.
Objective
This set of illustrative financial statements is prepared by Ernst & Young to assist you in preparing your own financial
statements. The illustration intends to reflect transactions and disclosures that we consider to be most common and most
likely for a broad range of companies. Users of this publication are encouraged to select disclosures relevant to their
circumstances and adjust appropriately. Users should also keep in mind that other transactions are likely to require
additional disclosures.
This set of illustrative financial statements should not be relied upon as a substitute for either detailed professional advice
concerning specific individual situations or for reference to the relevant standards, particularly when uncertainty exists. A
company should also complete updated accounting standards, revised Schedule VI and other disclosure checklists. This set of
illustrative financial statements is intended as an illustrative guide rather than a definitive statement, and should be used in
conjunction with the relevant statutory and stock exchange requirements.
Applicable Indian GAAP

This set of illustrative financial statements is prepared in accordance with Indian GAAP, including notified AS and the revised
Schedule VI, existing as on 14 February 2012 and expected to be applicable for financial years ended 31 March 2012.
Companies may note the following key assumptions used in preparation of illustrative financial statements:
1. This set of illustrative financial statements does not deal with the following notified AS:
• AS 7 Construction Contracts
• AS 21 Consolidated Financial Statements
• AS 23 Accounting for Investments in Associates in Consolidated Financial Statements
• AS 25 Interim Financial Reporting
• AS 27 Financial Reporting of Interests in Joint Ventures (to the extent relevant for consolidated financial statements)
2. This set of illustrative financial statements is prepared based on the requirements of notified AS applicable to non-SMC.
Notified AS contain exemptions/relaxations for SMCs. The criteria for identifying SMC and key exemptions/ relaxations
available to them are listed in Appendix 1.
3. The ICAI has issued AS 30 Financial Instruments: Recognition and Measurement, AS 31 Financial Instruments: Presentation
and AS 32 Financial Instruments: Disclosures, which are not notified under the Companies Act. In accordance with the ICAI
clarification, the applicability of these standards is as below:
a. To the extent of accounting treatments covered by the notified AS, e.g., AS 11 and AS 13, the notified AS will
continue to prevail over AS 30.
b. In cases where a regulatory authority, e.g., RBI for NBFCs, has prescribed specific regulatory requirements, the
prescribed requirements will prevail over AS 30.
c. Subject to (a) and (b) above, a company is encouraged to follow AS 30, AS 31 and AS 32.
Good Company (India) Limited has not adopted AS 30, AS 31 and AS 32.
4. The requirements of pronouncements issued by specific regulatory bodies, e.g., RBI for NBFCs, are not considered in this
set of illustrative financial statements.
5. To a company having turnover of less than `1,000 million (`100 crores), the revised Schedule VI allows rounding to the
nearest hundreds, thousands, lakhs or millions, or decimals thereof. To a company having turnover of more than `1,000
million (`100 crores), the revised Schedule VI allows rounding off to the nearest lakhs, millions or crores, or decimals
thereof. The company has opted to round off its financial information to the nearest millions.
Indian GAAP
Illustrative financial statements for the
year ended 31 March 2012

Independent auditors’ report to the members of Good Company (India) Limited
Report on the financial statements

We have audited the accompanying financial statements of Good Company (India) Limited (the company), which comprise the
balance sheet as at 31 March 2012, and the statement of profit and loss and cash flow statement for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the company in accordance with the accounting principles generally accepted
in India, including accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”).
This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of
the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the company’s preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give
the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
a. In the case of the balance sheet, of the state of affairs of the company as at 31 March 2012
b. In the case of the statement of profit and loss, of the profit/loss for the year ended on that date, and
c. In the case of the cash flow statement, of the cash flows for the year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”) issued by the Central Government of India
in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for
the purpose of our audit.
b. In our opinion proper books of account as required by law have been kept by the company so far as appears from our
examination of those books.
c. The balance sheet, statement of profit and loss and cash flow statement dealt with by this report are in agreement with
the books of account.
d. In our opinion, the balance sheet, statement of profit and loss, and cash flow statement comply with the accounting
standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956.
e. On the basis of written representations received from the directors as on 31 March 2012, and taken on record by the
Board of Directors, none of the directors is disqualified as on 31 March 2012, from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
For Professional Accountants & Associates

Firm registration number: ABCXYZ
Chartered Accountants
per DST Singh

Partner
Membership no.: AMNO1234
Place: Mumbai
Date: 28 April 2012

Annexure referred to in paragraph 1 under the heading “Report on other legal and regulatory
requirements” of our report of even date
Re: Good Company (India) Limited (the company)
i. a. The company has maintained proper records showing full particulars, including quantitative details and situation of
fixed assets.
b. All fixed assets have not been physically verified by the management during the year but there is a regular programme
of verification which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets.
No material discrepancies were noticed on such verification.
c. There was no disposal of a substantial part of fixed assets during the year.
ii. a. The management has conducted physical verification of inventory at reasonable intervals during the year.
b. The procedures of physical verification of inventory followed by the management are reasonable and adequate in
relation to the size of the company and the nature of its business.
c. The company is maintaining proper records of inventory. Discrepancies noted on physical verification of inventories
were not material and have been properly dealt with in the books of account.
iii. a. According to the information and explanations given to us, the company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly, the provisions of clause 4(iii)(a) to (d) of the Order are not applicable to the company and hence
not commented upon.
b. According to information and explanations given to us, the company has not taken any loans, secured or unsecured,
from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act,
1956. Accordingly, the provisions of clause 4(iii)(e) to (g) of the Order are not applicable to the company and hence not
commented upon.
iv. In our opinion and according to the information and explanations given to us, there is an adequate internal control system
commensurate with the size of the company and the nature of its business, for the purchase of inventory and fixed assets
and for the sale of goods and services. During the course of our audit, we have not observed any major weakness or
continuing failure to correct any major weakness in the internal control system of the company in respect of these areas.
v. a. According to the information and explanations provided by the management, we are of the opinion that the particulars
of contracts or arrangements referred to in section 301 of the Companies Act, 1956 that need to be entered into the
register maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations given to us, the transactions made in pursuance of
such contracts or arrangements and exceeding the value of `500,000 have been entered into during the financial year
at prices which are reasonable having regard to the prevailing market prices at the relevant time.
vi. In respect of deposits accepted, in our opinion and according to the information and explanations given to us, directives
issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any other relevant provisions of the
Companies Act, 1956, and the rules framed there under, to the extent applicable, have been complied with. We are informed
by the management that no order has been passed by the Company Law Board, National Company Law Tribunal or Reserve
Bank of India or any Court or any other Tribunal.
vii. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the Central
Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, and are of the
opinion that prima facie, the prescribed accounts and records have been made and maintained.
ix. a. The company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund,
investor education and protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax, service tax,
customs duty, excise duty, cess and other material statutory dues applicable to it.
b. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund,
investor education and protection fund, employees’ state insurance, income-tax, wealth-tax, service tax, sales-tax,
customs duty, excise duty, cess and other material statutory dues were outstanding, at the year end, for a period of
more than six months from the date they became payable.
c. According to the records of the company, the dues outstanding of income-tax, sales-tax, wealth-tax, service tax,
customs duty, excise duty and cess on account of any dispute, are as follows:
Name of the Nature of dues Amount Period to which the Forum where dispute is
statute (` million) amount relate pending
The Central Excise Demand toward 250 2006-07 Mumbai High Court
Act, 1944 differential excise duty on
valuation of products
The Income-tax Additional tax demand 1,500 2005-06 and Commissioner of Income tax
Act, 1961 2006- 07 (Appeals)
x. The company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current
and immediately preceding financial year.
xi. Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion
that the company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.
xii. According to the information and explanations given to us and based on the documents and records produced before us,
the company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.
xiii. In our opinion, the company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditor’s Report) Order, 2003 (as amended) are not applicable to the company.
xiv. In our opinion, the company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly,
the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order, 2003 (as amended) are not applicable to the
company.
xv. According to the information and explanations given to us, the company has not given any guarantee for loans taken by
others from bank or financial institutions.
xvi. Based on the information and explanations given to us by the management, term loans were applied for the purpose for
which the loans were obtained.
xvii. According to the information and explanations given to us and on an overall examination of the balance sheet of the
company, we report that no funds raised on short-term basis have been used for long-term investment.
xviii. The company has not made any preferential allotment of shares to parties or companies covered in the register maintained
under section 301 of the Companies Act, 1956.
xix. In respect of secured bonds issued by the company and outstanding during the year, the company has duly created security
or charge. The company also has unsecured debentures outstanding during the year. In respect of these unsecured
debentures, no security or charge is required to be created.
xx. We have verified that the end use of money raised by public issue is as disclosed in the notes to the financial statements.
xxi. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements
and as per the information and explanations given by the management, we report that no fraud on or by the company has
been noticed or reported during the year.

per DST Singh

Partner
Place: Mumbai
Date: 28 April 2012

Balance sheet as at 31 March 2012
Notes 31 March 2012 31 March 2011
` millions ` millions
Equity and liabilities RVI.BS.I
Shareholders’ funds RVI.BS.I(1)
Share capital 3 6,200 5,700
Reserves and surplus 4 16,230 10,978
22,430 16,678
Non-current liabilities RVI.BS.I(3)
Long-term borrowings 5 5,336 4,691
Trade payables 6 1,565 1,623
Other long-term liabilities 6 326 308
Long-term provisions 7 2,524 1,843
9,751 8,465
Current liabilities RVI.BS.I(4)
Short-term borrowings 8 2,115 2,690
Trade payables 9 6,756 6,542
Other current liabilities 9 1,761 1,549
Short-term provisions 7 2,052 1,758
12,684 12,539
TOTAL 44,865 37,682
Assets RVI.BS.II
Non-current assets RVI.BS.II(1)
Fixed assets
Tangible assets 10 7,661 7,675
Intangible assets 11 315 332
Capital work-in-progress 535 1,012
Intangible assets under development 12 19
Fixed assets pertaining to discontinuing operations and
283 353
held for sale
Non-current investments 12 564 627
Deferred tax assets (net) 13 10 351 AS 22.30
Long-term loans and advances 14 4,747 3,894
Trade receivables 15.1 1,037 757
Other non-current assets 15.2 321 322
15,485 15,342
Current assets RVI.BS.II(2)
Current investments 16 432 181
Inventories 17 13,198 10,772
Trade receivables 15.1 12,788 7,846
Cash and bank balances 18 2,125 2,591
Short-term loans and advances 14 800 895
Other current assets 15.2 37 55
29,380 22,340
Total 44,865 37,682
Summary of significant accounting policies 2.1
The accompanying notes are an integral part of the financial statements.

As per our report of even date
Firm registration number: ABCXYZ For and on behalf of the board of directors of Good Company (India) Limited
per DST Singh ADC Sharma MNT Kumar TSL Singh

Partner [Managing Director] [Director] [Company Secretary]
Place: Mumbai
Date: 28 April 2012
Balance sheet as at 31 March 2012
Commentary
The revised Schedule VI allows line items, sub-line items and sub-totals to be presented as an addition or substitution on the
face of the financial statements when such presentation is relevant to an understanding of the company’s financial position or
performance or to cater to industry/sector-specific disclosure requirements. Accordingly, the company has elected to present
non-current trade receivables and non-current trade payables separately on the face of the balance sheet.
The revised Schedule VI requires “Share application money pending allotment” to be disclosed as a separate line-item on the
face of the balance sheet between the heads “Shareholders’ funds” and “Non-current liabilities.” Non-refundable portion of
share application money is disclosed under this line-item. Refundable portion of the share application money, i.e., the
amount in excess of subscription or if minimum subscription requirement is not met, is disclosed under the head “Other
current liabilities.” A company, which has received share application money pending allotment, whether refundable or
otherwise, needs to disclose, among other matters, its terms and conditions, the number of shares proposed to be issued, the
amount of premium ,if any, and the period before which shares will be allotted.
If a company has net deferred tax liability, i.e., after offsetting deferred tax assets in accordance with AS 22, then it will
disclose the same as “non-current asset,” after the line item “long-term borrowings.”

Statement of profit and loss for the year ended 31 March 2012
Notes 31 March 2012 31 March 2011
Continuing operations
Income
Revenue from operations (gross) 19 82,052 74,366 RVI.PL.I
Less: excise duty 4,530 4,136 AS 9.10
Revenue from operations (net) 77,522 70,230 AS 9.10
Other income 20 594 491 RVI.PL.II
Total revenue (I) 78,116 70,721 RVI.PL.III
Expenses RVI.PL.IV
Cost of raw material and components consumed 21 44,904 43,474
Purchase of traded goods 22 7,718 5,648
(Increase)/ decrease in inventories of finished goods,
22 (2,068) (2,558)
work-in-progress and traded goods
Employee benefits expense 23 12,486 10,695
Other expenses 24 8,616 7,569
Exceptional items 25 – 340 RVI.PL.VI
Share of (profit)/loss from investment in partnership firm (1) (2)
Total (II) 71,655 65,166 GN.RVI
Earnings before interest, tax, depreciation and
6,461 5,555
amortization (EBITDA) (I) – (II)
Depreciation and amortization expense 26 615 543
Less: recoupment from revaluation reserve (2) (2) GN.Dep.
Net depreciation and amortization expense 613 541
Finance costs 27 663 480
Profit/(loss) before tax 5,185 4,534 RVI.PL.IX
Tax expenses RVI.PL.X
Current tax 1,343 1,223
Deferred tax 341 266
Total tax expense 1,684 1,489
Profit/(loss) for the year from continuing 3,501 3,045 RVI.PL.XI
operations (A)
Discontinuing operations 28 AS 24.32

Profit/(loss) before tax from discontinuing operations 6 63 RVI.PL.XII
Tax expense of discontinuing operations 2 22 RVI.PL.XIII
Profit/(loss) after tax from discontinuing operations (B) 4 41 RVI.PL.XIV
Profit/(loss) for the year (A+B) 3,505 3,086 RVI.PL.XV
Earnings per equity share [nominal value of share `10 29 RVI.PL.XVI &
(31 March 2011: `10] AS 20.48
Basic AS 20.8
Computed on the basis of profit from continuing operations `6.60 `5.78
Computed on the basis of total profit for the year `6.61 `5.86
Diluted AS 20.8
Computed on the basis of profit from continuing `4.31 `3.90
operations
Computed on the basis of total profit for the year `4.32 `3.95
Statement of profit and loss for the year ended 31 March 2012
The accompanying notes are an integral part of the financial statements.
As per our report of even date For and on behalf of the board of directors of Good Company (India) Limited

Place: Mumbai
Date: 28 April 2012
Commentary
The revised Schedule VI allows line items, sub-line items and sub-totals to be presented as an addition or substitution on the
face of the financial statements when such presentation is relevant to an understanding of the company’s financial position or
performance or to cater to industry/sector-specific disclosure requirements. Accordingly, the company has elected to present
EBITDA as a separate line item on the face of the statement of profit and loss.
AS 5 requires that the nature and amount of prior period items should be separately disclosed in the statement of profit
and loss in a manner that their impact on the current profit or loss can be perceived. Accordingly, a company may disclose
prior period items, if any, as a separate line item on the face of the statement of profit and loss. Alternatively, it may include
the same in other line items of the statement of profit and loss with a relevant disclosure, e.g., employee benefit expense
(including prior period `XX).
AS 20.50 allows a company to present basic and diluted EPS computed using a reported component of net profit/ (loss),
other than the net profit/ (loss) for the year, as an additional information. The company has elected to present additional EPS
information for profit/ (loss) from continuing operations.
If a company pays current tax under Section 115JB of Income-tax Act, 1961 and recognizes MAT credit entitlement in
accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under Income Tax
Act, 1961, it makes the following disclosure in the year of MAT payment:
Current tax (MAT payable) XX
Less: MAT credit entitlement (XX)
Net current tax expense XX
MAT credit entitlement is disclosed under the head “loans and advances.”

Cash flow statement for the year ended 31 March 2012
31 March 2012 31 March 2011
Cash flow from operating activities AS 3.8
AS 3.18(b)
Profit before tax from continuing operations 5,185 4,534
Profit before tax from discontinuing operations 6 63
Profit before tax 5,191 4,597
Non-cash adjustment to reconcile profit before tax to net cash flows AS 3.20(b)
Share of (profit)/loss from investment in partnership firm (1) (2)
Depreciation/amortization on continuing operation 613 541
Depreciation/amortization on discontinuing operation 20 20
Impairment/other write off on tangible/intangible assets pertaining
to continuing operation 350 —
Impairment/other write off on tangible/intangible assets pertaining
to discontinuing operation 50 —
Loss/(profit) on sale of fixed assets 2 1
Provision for diminution in value of investments in subsidiary
company 15 —
Provision for diminution in value of investments (current plus
other long term) 17 9
Employee stock compensation expense 2,369 1,907
Unrealized foreign exchange loss 38 29
Premium on forward exchange contract amortized 4 4
Amortization of ancillary cost 2 2
Net gain on sale of current investments (250) (121)
Interest expense 589 411 AS 3.20(c)
Interest income (113) (104) AS 3.20(c)
Dividend income (86) (90) AS 3.20(c)
Operating profit before working capital changes 8,810 7,204
Movements in working capital : AS 3.20(a)
Increase/(decrease) in trade payables 96 160
Increase / (decrease) in long-term provisions 681 906
Increase / (decrease) in short-term provisions 182 342
Increase/(decrease) in other current liabilities 112 616
Increase/ (decrease) in other long-term liabilities 18 25
Decrease/(increase) in trade receivables (5,155) (4,688)
Decrease/(increase) in inventories (2,426) (2,248)
Decrease / (increase) in long-term loans and advances (906) (1,072)
Decrease / (increase) in short-term loans and advances 84 185
Decrease/(increase) in other current assets 19 180
Decrease / (increase) in other non-current assets 2 4
Cash generated from /(used in) operations 1,517 1,614
Direct taxes paid (net of refunds) (1,334) (1,163) AS 3.34
Net cash flow from/ (used in) operating activities (A) 183 451
Cash flows from investing activities AS 3.8

Purchase of fixed assets, including intangible assets, CWIP and
capital advances (96) (159) AS 3.15(a)
Proceeds from sale of fixed assets 4 9 AS 3.15(b)
Proceeds of non-current investments — 6 AS 3.15(c)
Purchase of non-current investments (3) —
Purchase of current investments (377) (6) AS 3.15(c)
Proceeds from sale/maturity of current investments 410 366 AS 3.15(d)
Investments in bank deposits (having original maturity of more than
(832) (537) AS 3.15(c)
three months)
Cash flow statement for the year ended 31 March 2012
31 March 2012 31 March 2011
Redemption/maturity of bank deposits (having original maturity of more
AS 3.15(d)
than three months) 767 565
Purchase consideration for amalgamation (note 35) (267) — AS 3.38
Interest received 71 104 AS 3.30
Dividends received from subsidiary company 20 — AS 3.30
Dividends received 86 90 AS 3.30
Net cash flow from/(used in) investing activities (B) (217) 438
Cash flows from financing activities AS 3.8

Proceeds from issuance of share capital 1,250 — AS 3.17(a)
Proceeds from issuance of preference share capital — 2,500 AS 3.17(a)
Proceeds from long-term borrowings 1,025 35 AS 3.17(b)
Repayment of long-term borrowings (311) (186) AS 3.17(c)
Proceeds from short-term borrowings 658 718 AS 3.17(b)
Repayment of short-term borrowings (1,233) (620) AS 3.17(c)
Interest paid (640) (494) AS 3.30
Dividends paid on equity shares (1,040) (940) AS 3.30
Dividends paid on preference shares (35) — AS 3.30
Tax on equity dividend paid (177) (160) AS 3.30
Tax on preference dividend paid (6) — AS 3.30
Net cash flow from/(used in) in financing activities (C) (509) 853
Net increase/(decrease) in cash and cash equivalents (A + B + C) (543) 1,742

Effect of exchange differences on cash & cash equivalents held in foreign (2) — AS 3.25
currency
Cash and cash equivalents at the beginning of the year 2,362 620
Cash and cash equivalents at the end of the year 1,817 2,362
Components of cash and cash equivalents AS 3.42

Cash on hand 29 1
Cheques/ drafts on hand 3 2
With banks- on current account 1,424 2,174
−− on deposit account 350 174
−− unpaid dividend accounts* 7 6
−− unpaid matured deposits* 4 3
−− unpaid matured debentures* — 2
Total cash and cash equivalents (note 18) 1,817 2,362
* The company can utilize these balances only toward settlement of the respective unpaid dividend, unpaid AS 3.45
matured deposits and unpaid matured debenture liabilities.
As per our report of even date For and on behalf of the board of directors of Good Company (India) Limited

Place: Mumbai
Date: 28 April 2012

Notes to financial statements for the year ended 31 March 2012
1. Corporate information
Good Company (India) Limited (the company) is a public company domiciled in India and incorporated under the
provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is
engaged in the manufacturing and selling a reputed brand of refrigerators, washing machines, air conditioners,
microwave ovens and other small electronic appliances. The company caters to both domestic and international
markets. The company also operates electronic stores in India wherein all major brands of fast moving consumer
goods (FMCG) are available. The company also provides annual maintenance service for FMCG products.
2. Basis of preparation CA 211
The financial statements of the company have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material
respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as
amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared
on an accrual basis and under the historical cost convention, except for land and building acquired before 1 April
2007 which are carried at revalued amounts.
The accounting policies adopted in the preparation of financial statements are consistent with those of previous
year, except for the change in accounting policy explained below.
2.1 Summary of significant accounting policies AS 1.24
a. Change in accounting policy

Presentation and disclosure of financial statements AS 1.26
AS 5.32
During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has
become applicable to the company, for preparation and presentation of its financial statements. Except accounting
for dividend on investments in subsidiary companies (see below), the adoption of revised Schedule VI does not
impact recognition and measurement principles followed for preparation of financial statements. However, it
has significant impact on presentation and disclosures made in the financial statements. The company has also
reclassified the previous year figures in accordance with the requirements applicable in the current year. For
further details, refer note 51.
Dividend on investment in subsidiary companies

Till the year ended 31 March 2011, the company, in accordance with the pre-revised Schedule VI requirement,
was recognizing dividend declared by subsidiary companies after the reporting date in the current year’s
statement of profit and loss if such dividend pertained to the period ending on or before the reporting date. The
revised Schedule VI, applicable for financial years commencing on or after 1 April 2011, does not contain this
requirement. Hence, to comply with AS 9 Revenue Recognition, the company has changed its accounting policy
for recognition of dividend income from subsidiary companies. In accordance with the revised policy, the company
recognizes dividend as income only when the right to receive the same is established by the reporting date.
Had the company continued to use the earlier policy of recognizing dividend, the credit to the statement of profit
and loss after tax for the current period would have been higher by `20 million and the current assets would
correspondingly have been higher by `20 million.
Accounting for amalgamation in the nature of purchase

The company accounts for all amalgamations in the nature of purchase using the purchase method as prescribed
in AS 14 Accounting for Amalgamations. Till the previous year, the company followed the policy of recognizing
assets and liabilities acquired in an amalgamation in the nature of purchase at their existing carrying amounts in
the financial statements of transferor company. In the current year, the company changed its accounting policy
from the carrying value method to the fair value method, i.e., fair value of the assets and liabilities acquired. The
management believes that such change better reflects the allocation consideration paid for the acquisition and
resultant goodwill/capital reserve. The management has decided to apply the revised accounting policy to all
acquisitions made on or after 1 April 2011.
Notes to financial statements for the year ended 31 March 2012 (cont’d.)
Had the company continued to use the earlier basis of accounting for amalgamations in the nature of purchase, its
fixed and other assets on the amalgamation date would have been lower by the following amounts:
Assets ` millions
Land 18
Buildings 4
Patents 20
Brands/trademarks 35
Technical knowhow 16
Total 93
Consequently, its goodwill arising on amalgamation would have been higher by `93 million. This change in the
value of the assets and goodwill arising on amalgamation will consequently impact depreciation/amortization
expense for the current and subsequent years.
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates
are based on the management’s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts
of assets or liabilities in future periods.
c. Tangible fixed assets

Fixed assets, except land and buildings acquired before 1 April 2007, are stated at cost, net of accumulated AS 10.19
AS 10.20
depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if
capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the
intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
On 1 April 2007, the company revalued all its land and buildings existing as on that date. These land and buildings AS 10.19
are measured at fair value less accumulated depreciation and impairment losses, if any, recognized after the date AS 10.30
of the revaluation. In case of revaluation of fixed assets, any revaluation surplus is credited to the revaluation
reserve, except to the extent that it reverses a revaluation decrease of the same asset previously recognized in
the statement of profit and loss, in which case the increase is recognized in the statement of profit and loss. A AS 10.32
revaluation deficit is recognized in the statement of profit and loss, except to the extent that it offsets an existing
surplus on the same asset recognized in the asset revaluation reserve.
Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future AS 10.23
benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on
existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are
changed to the statement of profit and loss for the period during which such expenses are incurred.
From accounting periods commencing on or after 7 December 2006, the company adjusts exchange differences AS 11.46
arising on translation/settlement of long-term foreign currency monetary items pertaining to the acquisition of a
depreciable asset to the cost of the asset and depreciates the same over the remaining life of the asset.
Gains or losses arising from derecognition of fixed assets are measured as the difference between the net disposal AS 10.26
proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the
asset is derecognized.

d. Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful AS 6.20
lives estimated by the management, or those prescribed under the Schedule XIV to the Companies Act, 1956,
whichever is higher. The company has used the following rates to provide depreciation on its fixed assets.
AS 6.29
Rates (SLM)
Factory buildings 3.34%
Other buildings 1.63%
Plant and equipment 5%
Furniture and fixtures 12.5%
Vehicles 20%
Leasehold improvements 25% or the rate based on lease
period, whcihever is higher
Leasehold land is amortized on a straight line basis over the period of lease, i.e., 80 years.
e. Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets AS 26.23
acquired in an amalgamation in the nature of purchase is their fair value as at the date of amalgamation. Following AS 26.27
initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment
losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized
and expenditure is reflected in the statement of profit and loss in the year in which the expenditure is incurred.
Intangible assets are amortized on a straight line basis over the estimated useful economic life. The company AS 26.63
uses a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date AS 26.83
when the asset is available for use. If the persuasive evidence exists to the affect that useful life of an intangible
asset exceeds ten years, the company amortizes the intangible asset over the best estimate of its useful life.
Such intangible assets and intangible assets not yet available for use are tested for impairment annually, either
individually or at the cash-generating unit level. All other intangible assets are assessed for impairment whenever
there is an indication that the intangible asset may be impaired.
The amortization period and the amortization method are reviewed at least at each financial year end. If the AS 26.78
expected useful life of the asset is significantly different from previous estimates, the amortization period is
changed accordingly. If there has been a significant change in the expected pattern of economic benefits from
the asset, the amortization method is changed to reflect the changed pattern. Such changes are accounted for in
accordance with AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net AS 26.88
disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss
when the asset is derecognized.
Research and development costs

Research costs are expensed as incurred. Development expenditure incurred on an individual project is recognized AS 26.41
AS 26.44
as an intangible asset when the company can demonstrate all the following:
• The technical feasibility of completing the intangible asset so that it will be available for use or sale
• Its intention to complete the asset
• Its ability to use or sell the asset
• How the asset will generate future economic benefits
• The availability of adequate resources to complete the development and to use or sell the asset
• The ability to measure reliably the expenditure attributable to the intangible asset during development.
Following the initial recognition of the development expenditure as an asset, the cost model is applied requiring the AS 26.90
asset to be carried at cost less any accumulated amortization and accumulated impairment losses. Amortization
of the asset begins when development is complete and the asset is available for use. It is amortized on a straight
line basis over the period of expected future benefit from the related project, i.e., the estimated useful life of ten
years. Amortization is recognized in the statement of profit and loss. During the period of development, the asset
is tested for impairment annually.
A summary of amortization policies applied to the company’s intangible assets is as below: AS 26.90
Rates (SLM)
Goodwill 20%
Brands/trademarks 10%
Patents and intellectual property rights (IPR) 10%
Technical know now 20%
Computer software 25%
f. Leases
Where the company is lessee
Finance leases, which effectively transfer to the company substantially all the risks and benefits incidental to AS 19.11
ownership of the leased item, are capitalized at the inception of the lease term at the lower of the fair value of the AS 19.16
leased property and present value of minimum lease payments. Lease payments are apportioned between the
finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are recognized as finance costs in the statement of profit and loss. Lease
management fees, legal charges and other initial direct costs of lease are capitalized.
A leased asset is depreciated on a straight-line basis over the useful life of the asset or the useful life envisaged AS 19.18
in Schedule XIV to the Companies Act, 1956, whichever is lower. However, if there is no reasonable certainty
that the company will obtain the ownership by the end of the lease term, the capitalized asset is depreciated on
a straight-line basis over the shorter of the estimated useful life of the asset, the lease term or the useful life
envisaged in Schedule XIV to the Companies Act, 1956.
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, AS 19.23
are classified as operating leases. Operating lease payments are recognized as an expense in the statement of
profit and loss on a straight-line basis over the lease term.
Where the company is the lessor

Leases in which the company transfers substantially all the risks and benefits of ownership of the asset are AS 19.26
classified as finance leases. Assets given under finance lease are recognized as a receivable at an amount equal AS 19.31
to the net investment in the lease. After initial recognition, the company apportions lease rentals between the
principal repayment and interest income so as to achieve a constant periodic rate of return on the net investment
outstanding in respect of the finance lease. The interest income is recognized in the statement of profit and loss.
Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit
and loss.
Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are AS 19.39
classified as operating leases. Assets subject to operating leases are included in fixed assets. Lease income on an AS 19.40
AS.19.41
operating lease is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs,
AS.19.42
including depreciation, are recognized as an expense in the statement of profit and loss. Initial direct costs such as
legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
g. Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as
an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily AS 16.6
takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the
respective asset. All other borrowing costs are expensed in the period they occur.

h. Impairment of tangible and intangible assets
The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any AS 28.4
indication exists, or when annual impairment testing for an asset is required, the company estimates the asset’s AS 28.6
AS 28.25
recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) net
AS 28.47
selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset AS 28.57
does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where AS 28.64
the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining net selling price, recent market transactions are taken
into account, if available. If no such transactions can be identified, an appropriate valuation model is used.
The company bases its impairment calculation on detailed budgets and forecast calculations which are prepared
separately for each of the company’s cash-generating units to which the individual assets are allocated. These
budgets and forecast calculations are generally covering a period of five years. For longer periods, a long term
growth rate is calculated and applied to project future cash flows after the fifth year.
Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement
of profit and loss, except for previously revalued tangible fixed assets, where the revaluation was taken to
revaluation reserve. In this case, the impairment is also recognized in the revaluation reserve up to the amount of
any previous revaluation.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining AS 28.61
useful life.
An assessment is made at each reporting date as to whether there is any indication that previously recognized AS 28.98
impairment losses may no longer exist or may have decreased. If such indication exists, the company estimates AS 28.101
the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only
if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last
impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation,
had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement
of profit and loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a
revaluation increase.
i. Government grants and subsidies

Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the company AS 12.13
will comply with the conditions attached to them, and (ii) the grant/subsidy will be received.
When the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement AS 12.14
of profit and loss over the periods necessary to match them with the related costs, which they are intended to
compensate. Where the grant relates to an asset, it is recognized as deferred income and released to income in
equal amounts over the expected useful life of the related asset.
Where the company receives non-monetary grants, the asset is accounted for on the basis of its acquisition cost. In AS 12.17
case a non-monetary asset is given free of cost, it is recognized at a nominal value.
Government grants of the nature of promoters’ contribution are credited to capital reserve and treated as a part of AS 12.16
the shareholders’ funds.
j. Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date on AS 13.3
which such investments are made, are classified as current investments. All other investments are classified as
long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly AS 13.28
attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly AS.13.29
acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued.
If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair
value of the asset given up or by reference to the fair value of the investment acquired, whichever is more
clearly evident.
Current investments are carried in the financial statements at lower of cost and fair value determined on an AS 13.31
AS.13.32
individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value
is made to recognize a decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or AS 13.34
credited to the statement of profit and loss.
Investment property
AS 13.3
An investment in land or buildings, which is not intended to be occupied substantially for use by, or in the
operations of, the company, is classified as investment property. Investment properties are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any.
The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost
of bringing the investment property to its working condition for the intended use. Any trade discounts and rebates
are deducted in arriving at the purchase price.
Depreciation on building component of investment property is calculated on a straight-line basis using the rate
arrived at based on the useful life estimated by the management, or that prescribed under the Schedule XIV to the
Companies Act, 1956, whichever is higher. The company has used the depreciation rate of 2.5%.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or
credited to the statement of profit and loss.
k. Inventories
Raw materials, components, stores and spares are valued at lower of cost and net realizable value. However, AS 2.5
AS 2.16
materials and other items held for use in the production of inventories are not written down below cost if the AS 2.24
finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials,
components and stores and spares is determined on a weighted average basis.
Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct AS 2.5
materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of
finished goods includes excise duty and is determined on a weighted average basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of AS 2.3
completion and estimated costs necessary to make the sale.
l. Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and
the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue
is recognized:
Sale of goods
Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods AS 9.11
have been passed to the buyer, usually on delivery of the goods. The company collects sales taxes and value added
taxes (VAT) on behalf of the government and, therefore, these are not economic benefits flowing to the company.
Hence, they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that is included
in the revenue (gross) and not the entire amount of liability arising during the year.
Income from services
Revenues from maintenance contracts are recognized pro-rata over the period of the contract as and when AS 9.12
services are rendered. The company collects service tax on behalf of the government and, therefore, it is not an
economic benefit flowing to the company. Hence, it is excluded from revenue.

Interest
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the AS 9.13
applicable interest rate. Interest income is included under the head “other income” in the statement of profit
and loss.
Dividends
Dividend income is recognized when the company’s right to receive dividend is established by the reporting date. AS 9.13
m. Foreign currency translation

Foreign currency transactions and balances
Initial recognition AS 11.9
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount
the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
Conversion AS 11.11
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date.
Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are
reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair
value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the
date when such value was determined.
Exchange differences AS 11.15

From accounting periods commencing on or after 7 December 2006, the company accounts for exchange AS 11.46
differences arising on translation/settlement of foreign currency monetary items as below:
1. Exchange differences arising on a monetary item that, in substance, forms part of the company’s net AS 11.13
investment in a non-integral foreign operation is accumulated in the foreign currency translation reserve until
the disposal of the net investment. On the disposal of such net investment, the cumulative amount of the AS 11.36
AS 11.38
exchange differences which have been deferred and which relate to that investment is recognized as income
or as expenses in the same period in which the gain or loss on disposal is recognized.
2. Exchange differences arising on long-term foreign currency monetary items related to acquisition of a
fixed asset are capitalized and depreciated over the remaining useful life of the asset. For this purpose, the
company treats a foreign monetary item as “long-term foreign currency monetary item”, if it has a term of 12
months or more at the date of its origination.
3. Exchange differences arising on other long-term foreign currency monetary items are accumulated in the
“Foreign Currency Monetary Item Translation Difference Account” and amortized over the remaining life of
the concerned monetary item.
4. All other exchange differences are recognized as income or as expenses in the period in which they arise.
Forward exchange contracts entered into to hedge foreign currency risk of an existing asset/liability
The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an
expense/income over the life of the contract. Exchange differences on such contracts, except the contracts which
are long-term foreign currency monetary items, are recognized in the statement of profit and loss in the period in
which the exchange rates change. Any profit or loss arising on cancellation or renewal of such forward exchange
contract is also recognized as income or as expense for the period. Any gain/ loss arising on forward contracts
which are long-term foreign currency monetary items is recognized in accordance with paragraph 2 and 3.
Translation of integral and non-integral foreign operation
The company classifies all its foreign operations as either “integral foreign operations” or “non-integral foreign
operations.”
The financial statements of an integral foreign operation are translated as if the transactions of the foreign AS 11.21
operation have been those of the company itself.
The assets and liabilities of a non-integral foreign operation are translated into the reporting currency at the AS 11.24
exchange rate prevailing at the reporting date and their statement of profit and loss are translated at exchange
rates prevailing at the dates of transactions or weighted average weekly rates, where such rates approximate the
exchange rate at the date of transaction. The exchange differences arising on translation are accumulated in the
foreign currency translation reserve. On disposal of a non-integral foreign operation, the accumulated foreign
currency translation reserve relating to that foreign operation is recognized in the statement of profit and loss. AS 11.31
When there is a change in the classification of a foreign operation, the translation procedures applicable to the AS 11.33
revised classification are applied from the date of the change in the classification.
n. Retirement and other employee benefits

Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the
provident fund are charged to the statement of profit and loss for the year when the contributions are due. The
company has no obligation, other than the contribution payable to the provident fund.
The company operates two defined benefit plans for its employees, viz., gratuity and post employment medical AS 15.120(a)
benefit liability. The costs of providing benefits under these plans are determined on the basis of actuarial
valuation at each year-end. Separate actuarial valuation is carried out for each plan using the projected unit credit
method. Actuarial gains and losses for both defined benefit plans are recognized in full in the period in which they
occur in the statement of profit and loss.
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee
benefit. The company measures the expected cost of such absences as the additional amount that it expects to pay
as a result of the unused entitlement that has accumulated at the reporting date.
The company treats accumulated leave expected to be carried forward beyond twelve months, as long-term
employee benefit for measurement purposes. Such long-term compensated absences are provided for based
on the actuarial valuation using the projected unit credit method at the year-end. Actuarial gains/losses are
immediately taken to the statement of profit and loss and are not deferred. The company presents the entire leave
as a current liability in the balance sheet, since it does not have an unconditional right to defer its settlement for
12 months after the reporting date.
Expenses incurred towards voluntary retirement scheme are charged to the statement of profit and
loss immediately.
o. Income taxes
Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be AS 22.9
AS 22.20
paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing
in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the ICAI Ann DT
amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to
items recognized directly in equity is recognized in equity and not in the statement of profit and loss.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income AS 22.9
originating during the current year and reversal of timing differences for the earlier years. Deferred tax is AS 22.21
measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred
ICAI Ann DT
income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit
and loss.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for AS 22.15
deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable AS 22.17
income will be available against which such deferred tax assets can be realized. In situations where the company

has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is
virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
In the situations where the company is entitled to a tax holiday under the Income-tax Act, 1961 enacted in India AS 22.13
or tax laws prevailing in the respective tax jurisdictions where it operates, no deferred tax (asset or liability)
is recognized in respect of timing differences which reverse during the tax holiday period, to the extent the
company’s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect
of timing differences which reverse after the tax holiday period is recognized in the year in which the timing
differences originate. However, the company restricts recognition of deferred tax assets to the extent that it has
become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized. For recognition of deferred taxes, the timing
differences which originate first are considered to reverse first.
At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized AS 17.19
deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the AS 22.26
carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be available
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current AS 22.29
tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable
entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The GN.MAT
company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the
company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed
to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the
Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax
Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT Credit
Entitlement.” The company reviews the “MAT credit entitlement” asset at each reporting date and writes down
the asset to the extent the company does not have convincing evidence that it will pay normal tax during the
specified period.
p. Employee stock compensation cost

Employees (including senior executives) of the company receive remuneration in the form of share based SEBI.ESOP
payment transactions, whereby employees render services as consideration for equity instruments (equity- GN.ESOP
settled transactions).
In accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999 and the Guidance Note on Accounting for Employee Share-based Payments, the cost of equity-settled
transactions is measured using the intrinsic value method and recognized, together with a corresponding
increase in the “Stock options outstanding account” in reserves. The cumulative expense recognized for equity-
settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period
has expired and the company’s best estimate of the number of equity instruments that will ultimately vest.
The expense or credit recognized in the statement of profit and loss for a period represents the movement in
cumulative expense recognized as at the beginning and end of that period and is recognized in employee
benefits expense.
Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the
expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is
recognized for any modification that increases the total intrinsic value of the share-based payment transaction, or
is otherwise beneficial to the employee as measured at the date of modification.
q. Segment reporting
Identification of segments
The company’s operating businesses are organized and managed separately according to the nature of products AS 17.19
and services provided, with each segment representing a strategic business unit that offers different products and
serves different markets. The analysis of geographical segments is based on the areas in which major operating
divisions of the company operate.
Inter-segment transfers
The company generally accounts for intersegment sales and transfers at cost plus appropriate margins. AS 17.53
Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to AS 17.37
the total common costs.
Unallocated items
Unallocated items include general corporate income and expense items which are not allocated to any business AS 17.37
segment.
Segment accounting policies

The company prepares its segment information in conformity with the accounting policies adopted for preparing
and presenting the financial statements of the company as a whole.
r. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity AS 20.11
shareholders (after deducting preference dividends and attributable taxes) by the weighted average number AS 20.19
AS 20.22
of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity AS 20.23
share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the AS 20.26
reporting period. The weighted average number of equity shares outstanding during the period is adjusted for
events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of
shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity AS 20.10
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.
s. Provisions
A provision is recognized when the company has a present obligation as a result of past event, it is probable AS 29.14
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable AS 29.35
AS 29.52
estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are
determined based on the best estimate required to settle the obligation at the reporting date. These estimates are
reviewed at each reporting date and adjusted to reflect the current best estimates.
Where the company expects some or all of a provision to be reimbursed, for example under an insurance contract,
the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The
expense relating to any provision is presented in the statement of profit and loss net of any reimbursement.
Warranty provisions
Provisions for warranty-related costs are recognized when the product is sold or service provided. Provision is
based on historical experience. The estimate of such warranty-related costs is revised annually.

t. Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the AS 29.10
occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but
discloses its existence in the financial statements.
u. Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and AS 3.5
short-term investments with an original maturity of three months or less. AS 3.6
v. Derivative instruments
In accordance with the ICAI announcement, derivative contracts, other than foreign currency forward contracts ICAI Ann.Der
covered under AS 11, are marked to market on a portfolio basis, and the net loss, if any, after considering the
offsetting effect of gain on the underlying hedged item, is charged to the statement of profit and loss. Net gain, if
any, after considering the offsetting effect of loss on the underlying hedged item, is ignored.
w. Amalgamation accounting
The company treats an amalgamation in the nature of merger if it satisfies all the following criteria: AS 14.29
i. All the assets and liabilities of the transferor company become, after amalgamation, the assets and liabilities of
the transferee company.
ii. Shareholders holding not less than 90% of the face value of the equity shares of the transferor company (other
than the equity shares already held therein, immediately before the amalgamation, by the transferee company
or its subsidiaries or their nominees) become equity shareholders of the transferee company.
iii. The consideration for amalgamation receivable by those equity shareholders of the transferor company who
agree to become shareholders of the transferee company is discharged by the transferee company wholly by the
issue of equity shares, except that cash may be paid in respect of any fractional shares.
iv. The business of the transferor company is intended to be carried on, after the amalgamation, by the
transferee company.
v. The transferee company does not intend to make any adjustment to the book values of the assets and liabilities
of the transferor company, except to ensure uniformity of accounting policies.
All other amalgamations are in the nature of purchase. AS 14.12
The company accounts for all amalgamations in the nature of merger using the pooling of interest method. The
application of this method requires the company to recognize any non-cash element of the consideration at fair
value. The company recognizes assets, liabilities and reserves, whether capital or revenue, of the transferor
company at their existing carrying amounts and in the same form as at the date of the amalgamation. The balance
in the statement of profit and loss of the transferor company is transferred to the general reserve. The difference
between the amount recorded as share capital issued, plus any additional consideration in the form of cash or
other assets, and the amount of share capital of the transferor company is adjusted in reserves.
An amalgamation in the nature of purchase is accounted for using the purchase method. The cost of an
acquisition/ amalgamation is measured as the aggregate of the consideration transferred, measured at fair value.
Other aspects of accounting are as below:
i. The assets and liabilities of the transferor company are recognized at their fair values at the date of AS 14.36
amalgamation. The reserves, whether capital or revenue, of the transferor company, except statutory reserves,
are not recognized.
ii. Any excess consideration over the value of the net assets of the transferor company acquired is recognized as AS 14.37
goodwill. If the amount of the consideration is lower than the value of the net assets acquired, the difference is
treated as capital reserve.
iii. The goodwill arising on amalgamation is amortized to the statement of profit and loss on a systematic basis AS 14.38
over its useful life not exceeding five years.
x. Measurement of EBITDA
As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the company has GN.RVI
elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item
on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/ (loss) from
continuing operations. In its measurement, the company does not include depreciation and amortization expense,
finance costs and tax expense.

3. Share capital
31 March 2012 31 March 2011
Authorized shares (No. millions) GIBS.6A.a
2,000 (31 March 2011: 2,000) equity shares of `10/- each 20,000 20,000
100 (31 March 2011: 100) 7% cumulative convertible preference shares 1,000 1,000
(CCPS) of `10/- each
Issued, subscribed and fully paid-up shares (No. millions)

570 (31 March 2011: 520) equity shares of `10/- each 5,700 5,200 GIBS.6A.b
50 (31 March 2011: 50) 7% CCPS of `10/- each 500 500
Total issued, subscribed and fully paid-up share capital 6,200 5,700
a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period GIBS.6A.d
Eqity shares
31 March 2012 31 March 2011
No. millions ` millions No. millions ` millions
At the beginning of the period 520 5,200 470 4,700
Issued during the period – Bonus issue — — 50 500
Issued during the period – ESOP 50 500 — —
Outstanding at the end of the period 570 5,700 520 5,200
Preference shares
31 March 2012 31 March 2011

No. millions ` millions No. millions ` millions
At the beginning of the period 50 500 — —
Issued during the period — — 50 500
Outstanding at the end of the period 50 500 50 500 GIBS.6A.e
b. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of `10 per share. Each holder of equity
shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting.
During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to equity
shareholders was `2 (31 March 2011: `2).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets
of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number
of equity shares held by the shareholders.
c. Terms of conversion/redemption of CCPS GIBS.6A.j
During the year ended 31 March 2011, the company issued 50 million CCPS of `10 each fully paid-up at a
premium of `40 per share. CCPS carry cumulative dividend @ 7% p.a. The company declares and pays dividends in
Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing Annual General Meeting. Each holder of CCPS is entitled to one vote per share only on resolutions placed
before the company which directly affect the rights attached to CCPS.
Each holder of CCPS can opt to convert its preference shares into equity share after the end of 3rd year from the
date of Issue, viz., 3 April 2010, till the end of 7th year from the date of issue. If the holder exercises its conversion
option, the company will issue 1 equity shares for each preference share held.
If CCPS holders do not exercise conversion option, all preference shares are redeemable at par at the end of 7th
year from the date of issue. In the event of liquidation of the company before conversion/ redemption of CCPS, the
holders of CCPS will have priority over equity shares in the payment of dividend and repayment of capital.
d. Shares held by holding/ultimate holding company and/or their subsidiaries/associates

Out of equity and preference shares issued by the company, shares held by its holding company, ultimate GIBS.6A.f
holding company and their subsidiaries/ associates are as below:
31 March 2012 31 March 2011

All nos. in millions
Holding Limited, the holding company
310 (31 March 2011: 310) equity shares of `10 each fully paid 3,100 3,100
35 (31 March 2011: 35) 7% CCPS of `10 each fully paid 350 350
Father Limited, the ultimate holding company
50 (31 March 2011: 50) equity shares of `10 each fully paid 500 500
15 (31 March 2011: 15) 7% CCPS of `10 each fully paid
150 150
DEF Private Limited, associate of Father Limited
10 (31 March 2011: 10) equity shares of `10 each fully paid 100 100
Commentary
In accordance with the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the terms, such GIBS.6A.h
as, subsidiary, holding company and associate, will have the same meaning as defined under AS 21 Consolidated
Financial Statements and AS 18 Related Party Disclosures. Based on these definitions, shares held by the entire
chain of subsidiaries and associates starting from the holding company and ending right up to the ultimate holding
company needs to be disclosed. This disclosure needs to be made separately for each class of shares, both within
equity and preference shares. However, a company may aggregate shares held under each class by category of
relationship, such as holding company, ultimate holding company, subsidiaries of holding company, subsidiaries of
ultimate holding company, associates of holding company and associates of ultimate holding company.
e. Aggregate number of bonus shares issued, share issued for consideration other than cash and shares GIBS.6A.i
bought back during the period of five years immediately preceding the reporting date:
31 March 2012 31 March 2011

No. millions No. millions
Equity shares allotted as fully paid bonus shares by capitalization of 50 50
securities premium
Equity shares allotted as fully paid-up pursuant to contracts for 10 10
consideration other than cash.
Equity shares bought back by the company 50 50
In addition, the company has issued total 50 shares (31 March 2011: nil) during the period of five years
immediately preceding the reporting date on exercise of options granted under the employee stock option plan
(ESOP) wherein part consideration was received in form of employee services.
f. Details of shareholders holding more than 5% shares in the company

GIBS.6A.g
31 March 2012 31 March 2011

No. millions % holding in No. millions % holding in
the class the class
Equity shares of `10 each fully paid
Holding Limited, holding company 310 54.39% 310 59.62%
Father Limited, ultimate holding 50 8.77% 50 9.61%
company
ABC Limited 40 7.01% 40 7.69%

31 March 2012 31 March 2011
No. millions % holding in No. millions % holding in
the class the class
CCPS of `10 each fully paid
Holding Limited, holding company 35 70.00% 35 70.00%
Father Limited, ultimate holding 15 30.00% 15 30.00%
company
As per records of the company, including its register of shareholders/members and other declarations received
from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial
ownerships of shares.
g. Shares reserved for issue under options

For details of shares reserved for issue under the employee stock option (ESOP) plan of the company, please GIBS.6A.h
refer note 31.
For details of shares reserved for issue on conversion of CCPS, please refer note 3(c) regarding terms of
conversion/redemption of preference shares.
For details of shares reserved for issue on conversion of bonds/debentures, please refer note 5.1 regarding terms GIBS.6.B
of conversion/redemption of bonds/debentures.
4. Reserves and surplus

31 March 2012 31 March 2011
Capital reserve 11 11
Capital redemption reserve 50 50
Securities premium account

Balance as per the last financial statements 2,052 552
Add: premium on Issue of CCPS — 2,000
Add: additions on ESOPs exercised 750 —
Add: transferred from stock options outstanding 650 —
Less: amounts utilized toward issue of fully paid bonus shares — (500)
Closing Balance 3,452 2,052
Debenture redemption reserve

Balance as per the last financial statements 250 125
Add: amount transferred from surplus balance in the statement of 125 125
profit and loss
Closing Balance 375 250
Revaluation reserve
Balance as per the last financial statements 104 106
Less: amount transferred to the statement of profit and loss as reduction (2) (2)
from depreciation
Closing Balance 102 104
Employee stock options outstanding

Gross employee stock compensation for options granted in earlier years 5,720 5,720
Add: gross compensation for options granted during the year 2,240 —
Less: deferred employee stock compensation (1,618) (1,747)
Less: transferred to securities premium on exercise of stock options (650) —
General reserve
Balance as per the last financial statements 1,188 482
31 March 2012 31 March 2011
Add: amount transferred from surplus balance in the statement of 1,107 706
profit and loss
Surplus/(deficit) in the statement of profit and loss

Balance as per last financial statements 3,350 2,353
Profit for the year 3,505 3,086
Less: Appropriations
Proposed final equity dividend (amount per share `2 (31 March (1,140) (1,040) GIBS.6.U
2011: `2))
Tax on proposed equity dividend (189) (177)
Dividend on preference shares (amount per share ` 0.7 (March 2011: (35) (35)
` 0.7))
Tax on preference dividend (6) (6) GIBS.6.U
Transfer to debenture redemption reserve (125) (125)
Transfer to general reserve (1,107) (706)
Total appropriations (2,602) (2,089)
Net surplus in the statement of profit and loss 4,253 3,350
Total reserves and surplus 16,230 10,978
Commentary
GIBS.6.B.iii
The revised Schedule VI requires that debit balance in the statement of profit and loss, if any, will be
shown as a negative figure under the head “reserves and surplus.” Similarly, any negative balance of
total “reserves and surplus,” after adjusting negative balance of the surplus, will be shown under the head
“reserves and surplus,” and not on the asset side.
The adjustment due to ESOP cancelled during the year is nil (31 March 2011: nil), since actual forfeitures
are in line with the expected forfeitures estimated at the grant date. However, if the actual forfeitures are
not in line with the expected forfeitures, “compensation on ESOP cancelled during the year” will be disclosed
as a separate line item under the head “Employee stock option outstandings.”
5. Long-term borrowings GIBS.6.C
Non-current portion Current maturities

31 March 2012 31 March 2011 31 March 2012 31 March 2011
` millions ` millions ` millions ` millions
Bonds/ debentures
0.25 million (31 March 2011: 250 250 — —
0.25 million) 8% Optionally
convertible bonds (OCB) of
`1,000 each (secured)
75 million (31 March 2011: 750 750 — —
75 million) 10% redeemable
debentures of `10 each
(unsecured)
40 million (31 March 2011: 300 400 100 —
40 million), 9% redeemable bonds
of `10 each (secured)
Term loans
Indian rupee loan from banks 1,250 1,375 125 125
(secured)
Foreign currency loan from banks 475 445 — —
(secured)

Non-current portion Current maturities

From financial institutions 700 800 100 100
(secured)
Other loans and advances

Finance lease obligation (secured) 31 41 10 11
Deferred sales tax loan 450 525 75 75
(unsecured)
Deposits (unsecured)
Deposits from shareholders 130 105 — —
Deposits from public 1,000 — — —
5,336 4,691 410 311
The above amount includes
Secured borrowings 3,006 3,311 335 236
Unsecured borrowings 2,330 1,380 75 75
Amount disclosed under the head (410) (311)
“other current liabilities” (note 9)
Net amount 5,336 4,691 — —
a. The OCB holders have an option to convert their bonds into equity shares within ten years from the date of GIBS.6.C.iv
allotment viz., 1 June 2009. The holder can also opt to convert these bonds into equity shares earlier; however,
no conversion will take place before the end of fifth year from the date of allotment. Each bond is convertible
into 20 equity shares of `10 each fully paid. The bonds not converted by the end of tenth year will be redeemed
at par. These bonds are secured by mortgage/charge on the machinery at Tarapore plant, except the machinery
acquired under finance lease on which the bondholders have the second charge.
b. 10% Debentures are redeemable at par at the end of nine years from the date of allotment, viz., 1 June 2008. GIBS.6.C.iv
The company has an option to redeem these debentures earlier; however, no redemption will take place before
the end of 5th year from the date of allotment.
c. 9% bonds are redeemable at par in four installments of 25% each beginning the end of fourth year from GIBS.6.C.iv
the date of allotment, viz., 1 June 2008. These bonds are secured by mortgage/ charge on the plant and
machinery at Hazira plant, except the machinery acquired under finance lease on which the bondholders have
the second charge.
d. Indian rupee loan from bank carries interest @ 9% p.a. The loan is repayable in 12 yearly installments of GIBS.6.C.vi
`125 million each along with interest, from the date of loan, viz., 1 February 2011. The loan is secured by
hypothecation of inventory and trade receivables of the company pertaining to manufacturing division. Further,
the loan has been guaranteed by the personal guarantee of the managing director of the company.
e. Foreign currency loan carries interest @ LIBOR plus 1%. The loan is repayable after 6 years from the date of its GIBS.6.C.vi
origination, viz., 1 April 2009. The loan is secured against the plant and machinery at Golkunda plant, except
the machinery acquired under finance lease on which the lender has the second charge. Further, the loan
has been guaranteed by the personal guarantee of non-executive director of Father Limited, the ultimate
holding company.
f. Term loan from financial institutions was taken during the financial year 2009–10 and carries interest @ 8% to GIBS.6.C.vi
10% p.a. The loan is repayable in 20 half yearly installments of `50 million each along with interest, from the
date of loan. The loan is secured by hypothecation of inventory and trade receivables of the company pertaining
to trading business. Further, the loan has been guaranteed by the corporate guarantee of Father Limited, the
ultimate holding company.
g. Finance lease obligation is secured by hypothecation of plant and machinery taken on lease. GIBS.6.C.vi
h. Deferred sales tax loan is interest free and payable in 48 quarterly installments of `18.75 million each, starting GIBS.6.C.vi
from 30 June 2007.
i. Deposits from shareholders carry interest @10% p.a. and are repayable after 3 years from the respective dates GIBS.6.C.vi
of deposit.
j. Deposits from public carry interest @ 10% p.a. and are repayable after 3 years from the date of deposit, viz., 1 GIBS.6.C.vi
September 2010.
Commentary
The revised Schedule VI, among other matters, requires that borrowings will be further sub-classified as GIBS.6.C.(iv)
secured and unsecured. It also requires that bond / debentures will be stated in the descending order of GIBS.6.C.(iv)
maturity or conversion starting from the furthest date of redemption or conversion date, as the case
may be.
GIBS.6.C.(vii)
The revised Schedule VI requires that the period and amount of continuing default as on the balance sheet
date in repayment of loans and interest will be specified separately in each case. The company does not
have any continuing defaults in repayment of loans and interest as at the reporting date. GN.RVI
The Guidance Note on the Revised Schedule VI to the Companies Act, 1956 clarifies that the nature of
security will be specified separately in each case. A blanket disclosure of different securities covering all
loans classified under the same head such as “all term loans from banks” is not sufficient compliance with
the disclosure requirements of the revised Schedule VI. However, where one security is given for multiple
loans, the same may be clubbed together for disclosure purposes with adequate details or cross referencing.
The company has only one loan in each line item. Hence, security disclosure made is in compliance with the
revised Schedule VI.
6. Other long-term liabilities GIBS.6.D
31 March 2012 31 March 2011

Trade payables (including acceptances) (refer note 45 for details of dues 1,565 1,623
to micro and small enterprises)
Others
Advance from customers 228 208
Unearned revenue 98 100
326 308
1,891 1,931
7. Provisions GIBS.6.E
GIBS.6.H
Long-term Short-term
Provision for employee benefits
Provision for post-employment 339 197 — —
medical benefits (note 30)
Provision for gratuity (note 30) 1,919 1,433 — —
Provision for leave benefits — — 93 89
2,258 1,630 93 89
Other provisions
Provision for warranties 266 213 341 310
Provision for litigations — — 175
Provision for mark-to-market — — 73 101
losses on derivative contracts
Proposed equity dividend — — 1,140 1,040
Provision for tax on proposed — — 189 177
equity dividend
Proposed preference dividend — — 35 35
Provision for tax on proposed — — 6 6
preference dividend
266 213 1,959 1,669
2,524 1,843 2,052 1,758

Provision for warranties
A provision is recognized for expected warranty claims on products sold during the last two years, based on past AS 29.67
experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred
in the next financial year and all will have been incurred within two years after the reporting date. Assumptions
used to calculate the provision for warranties were based on current sales levels and current information available
about returns based on the two-year warranty period for all products sold. The table below gives information about
movement in warranty provisions.
31 March 2012 31 March 2011 AS 29.66

At the beginning of the year 523 522
Arising during the year 393 341
Utilized during the year (287) (325)
Unused amounts reversed (22) (15)
At the end of the year 607 523
Current portion 341 310
Non-current portion 266 213
Provision for litigations

During the year ended 31 March 2011, the Central Excise Department raised a demand for `250 million toward AS 29.67
differential excise duty on valuation of products from the Tarapore plant. The company has been contesting AS 29.66
this claim and was of the view that the demand raised by the excise department was not tenable. To support its
view, the company had also obtained legal opinion. Hence, it had not created provision toward this liability in the
year ended 31 March 2011. The Excise Tribunal heard the matter during the current year and decided the case
against the company. Although the company continues to contest the case in the high court, the management now
believes that outflow of resources embodying economic benefits is probable and the estimated amount of outflow
is `175 million. Hence, the company has created a provision of `175 million toward the obligation.
GBIS.6.F
8. Short-term borrowings
31 March 2012 31 March 2011

Cash credit from banks (secured) 1,495 1,890
10% loan from ABZ Finance Private Limited repayable on demand 250 300
(unsecured)
Interest free loan and advances from related parties repayable on 220 350
demand (unsecured) (refer note 37)
Deposits (unsecured)
10% Inter-corporate deposit repayable on demand 150 150
2,115 2,690
The above amount includes
Secured borrowings 1,495 1,890
Unsecured borrowings 620 800
Cash credit from banks is secured against margin money deposits, investment property, intangible assets except GBIS.6.F.ii
goodwill and second charge on all trade receivables. The cash credit is repayable on demand and carries interest
@9% to 11% p.a.
9. Other current liabilities GIBS.6.G
31 March 2012 31 March 2011

Trade payables (including acceptances) (refer note 44 for details of dues 6,756 6,542
to micro and small enterprises)
Other liabilities
Current maturities of long-term borrowings (note 5) (Includes current 410 311
maturity of finance lease obligation `10 million (31 March 2011:
`11 million))
Interest accrued but not due on borrowings 8 7
Interest accrued and due on borrowings 1 1
Unearned revenue on AMC services 176 164
Investor Education and Protection Fund will be credited by following
amounts (as and when due)
Unpaid dividend 7 6
Unpaid matured deposits 4 3
Unpaid matured debentures — 2
Others
Interest free deposits from customers* 96 103
Service tax payable 73 62
TDS payable 986 890
1,761 1,549
8,517 8,091
* Customer deposits are repayable within 6 – 9 months from the reporting date on completion of
supply contracts.
10. Tangible assets (` millions) GIBS.6.I

AS 10.37
Land Buildings Plant and Furniture Vehicles Leasehold Total

equipment and improvements
fixtures
Cost or valuation
At 1 April 2010 2,318 1,944 4,690 614 71 175 9,812
Additions 80 280 564 86 — 27 1,037
Disposals — — — — (50) — (50)
Transfer to assets held — — (534) (75) — — (609)
for sale (discontinuing
operation)
Other adjustments
−− Exchange differences — — 4 — — — 4
−− Borrowing costs — 40 33 — — — 73
At 31 March 2011 2,398 2,264 4,757 625 21 202 10,267
Additions — — 550 20 45 2 617
Acquisitions through 42 28 58 5 — — 133
amalgamation (note35)
Disposals — — (36) — — — (36)
Other adjustments
−− Exchange differences — — 6 — — — 6
−− Borrowing costs — — 60 — — — 60
At 31 March 2012 2,440 2,292 5,395 650 66 204 11,047

Land Buildings Plant and Furniture Vehicles Leasehold Total
equipment and improvements
fixtures
Depreciation
At 1 April 2010 20 434 1,819 100 37 42 2,452
Charge for the year 1 53 242 79 14 47 436
Disposals — — — — (40) — (40)
Transfer to assets held — — (214) (42) — — (256)
for sale (discontinuing
operation)
At 31 March 2011 21 487 1,847 137 11 89 2,592
Charge for the year 1 57 271 81 13 51 474
Disposals — — (30) — — — (30)
At 31 March 2012 22 544 2,088 218 24 140 3,036
Impairment loss
At 1 April 2010 — — — — — — —
At 31 March 2011 — — — — — — —
Charge for the year — — 350 — — — 350
At 31 March 2012 — — 350 — — — 350
Net Block
At 31 March 2011 2,377 1,777 2,910 488 10 113 7,675
At 31 March 2012 2,418 1,748 2,957 432 42 64 7,661
(` millions)
a. Building includes `150 (31 March 2011: `150) representing cost of unquoted fully paid shares held in various
co-operative housing societies.
b. Revaluations
The company has revalued all its land and buildings on 1 April 2007, at the fair values determined by an As 10.37(iii)
independent external valuer. The valuer determined the fair value by reference to market-based evidence.
This means that valuations performed by the valuer were based on active market prices, adjusted for any
difference in the nature, location or condition of the specific property.
The historical cost of freehold land and building fair valued by the company was `800 and `1,100 respectively GIBS.6.I.iv
and their fair value were `852 and `1,160 respectively. Hence, the revaluation resulted in an increase in the
value of freehold land and building by `52 and `60, respectively. The revaluation of the building results an
additional depreciation charge of `2 every year. In accordance with the option given in the Guidance Note
on Accounting for Depreciation in Companies, the company recoups such additional depreciation out of
revaluation reserve.
c. Capitalized borrowing costs
The borrowing cost capitalized during the year ended 31 March 2012 was `52 (31 March 2011: `81). The As 16.23
company capitalized this borrowing cost in the capital work-in-progress (CWIP). The amount of borrowing cost
shown as other adjustments in the above note reflects the amount of borrowing cost transferred from CWIP.
d. Land includes land held on leasehold basis: As 19.22

Gross block `80 (31 March 2011: `80) GIBS.6.I.ii
Depreciation charge for the year `1 (31 March 2011: `1)
Accumulated depreciation `22 (31 March 2011: `21)
Net book value `58 (31 March 2011: `59)
Building includes those constructed on leasehold land:
Gross block `30 (31 March 2011: `30)
Depreciation charge for the year `0.5 (31 March 2011: `0.5)
Accumulated depreciation `11 (31 March 2011: `10.5)
Net book value `19 (31 March 2011: `19.5)
e. Plant and equipment includes plant taken on finance lease: AS 19.22
Gross block `226 (31 March 2011: `226) GIBS.6.I.ii
Depreciation charge for the year `11.3 (31 March 2011: `11.3)
Accumulated depreciation `50.7 (31 March 2011: `39.4)
Net book value `175.3 (31 March 2011: `186.6)
AS 19.46
f. Plant and equipment includes plant given on operating lease:
GIBS.6.I.ii
Gross block `40 (31 March 2011: `40)
Depreciation charge for the year `2 (31 March 2011: `2)
Accumulated depreciation `9 (31 March 2011: `7)
Net book value `31 (31 March 2011: `33)
g. In the current year, the impairment loss of `350 represents the write-down of certain plant and equipment AS 28.117 AS
28.121
in the home appliance segment to the recoverable amount. The availability of modern technology triggered
this impairment loss. The loss has been recognized in the statement of profit and loss under the head “other
expenses.” The recoverable amount was based on value in use and was determined at the level of the cash-
generating unit. The cash-generating unit consisted of the refrigerator manufacturing unit at Hazira. In
determining value in use for the cash-generating unit, the cash flows were discounted at a rate of 15.4% on a
pre-tax basis.
GIBS.6.J
11. Intangible assets (` millions)
AS 26.90
Goodwill Brands/ Patents Technical Computer Total

trademarks and IPR know now software
Gross block
At 1 April 2010 248 — — 90 38 376
Purchase — — — — 134 134
Internal development — — — — 40 40
At 31 March 2011 248 — — 90 212 550
Purchase — — — — 8 8
Acquisitions through 44 35 20 16 — 115
amalgamation
(note35)
At 31 March 2012 292 35 20 106 220 673
Amortization
At 1 April 2010 75 — — 18 19 112
Charge for the year 50 — — 18 38 106
At 31 March 2011 125 — — 36 57 218
Charge for the year 58 4 2 21 55 140
At 31 March 2012 183 4 2 57 112 358
Net block
At 31 March 2011 123 — — 54 155 332
At 31 March 2012 109 31 18 49 108 315
Intangible assets given as security

Intangible assets, except goodwill, with a carrying amount of `206 million (31 March 2011: `209 million) are AS 26.94(c)
subject to first charge to secure the company’s cash credit loans.

12. Non-current investments
31 March 2012 31 March 2011
Investment property (at cost less accumulated depreciation) GIBS.6.K
Cost of land and building given on operating lease 90 90
Less: accumulated depreciation (12) (11)
Net block 78 79
Trade investments (valued at cost unless stated otherwise)

Unquoted equity instruments
Investment in subsidiaries
1 million (31 March 2011: 1 million) Equity shares of `100 each fully 100 100
paid-up in C Limited
7.5 million (31 March 2011: 7.5 million) equity shares of `10 each 60 75
fully paid-up in Rofil Investments Limited
(At cost less provision for other than temporary diminution in value
`15million (31 March 2011: nil))
Investment in joint ventures

35 million (31 March 2011: 3.5 million) equity shares of `10 each 35 35
fully paid-up in E-age Ltd
Investment in associates
45 million (31 March 2011: 45 million) shares of `2 each partly paid- 45 45
up @ `1per share in Brother Ltd
25% (31 March 2011: 25%) share in the partnership firm ASQ 11 10
[Includes accumulated share of profit `6 million (31 March 2011:
`5 million)]
251 265
Non-trade investments (valued at cost unless stated otherwise)

Investment in equity instruments (quoted)
2 million (31 March 2011: 2 million) equity shares of `5 each fully 7 8
paid-up in Rox Limited
(At cost less provision for other than temporary diminution

`3 million (31 March 2011:`2 million))
Preference shares (unquoted) — 50

Nil (31 March 2011: 4 million) 13.5% Preference shares of
` 10 each fully paid-up in Mark Capital Limited.
These shares are redeemable on 1 June 2012 at a premium of

`2.5 per share.
Government and trust securities (unquoted)

Investment in government securities 28 25
31 March 2012 31 March 2011
Debentures (quoted)
2 million (31 March 2011: 2 million) 12% Secured redeemable 200 200
non-convertible debentures of `100 each partly paid-up in
Amol Limited.
235 283
564 627
Aggregate amount of quoted investments (Market value: `212 million 207 208 GIBS.6.K.iii
(31 March 2011: `220 million)) AS13.35(e)
Aggregate amount of unquoted investments 279 340

Value of investment property 78 79
Aggregate provision for diminution in value of investments 18 2
Investment property given as security AS 13.35(d)
Investment property with a carrying amount of `78 million (31 March 2011: `79 million) are subject to first
charge to secure the company’s cash credit loans.
Details of investments in partnership firm GIBS 6.K.i

Investment in ASQ
Name of the partner and share in profits (%) 31 March 2012 31 March 2011
Good Company (India) Limited 25 25
Mr. Q 50 50
Mr. R 25 25
Total capital of the firm ( ` million) 44 40
13. Deferred tax assets (net)

31 March 2012 31 March 2011
Deferred tax liability
Fixed assets: Impact of difference between tax depreciation and 1,284 832
depreciation/ amortization charged for the financial reporting
Others 149 156
Gross deferred tax liability 1,433 988
Deferred tax asset

Impact of expenditure charged to the statement of profit and loss in the 234 218
current year but allowed for tax purposes on payment basis
Provision for diminution in the value of investments 11 3
Provision for doubtful debts and advances 620 534
Provision for warranties 196 169
Provision for litigations 52 —
Others 330 415
Gross deferred tax asset 1,443 1,339
Net deferred tax asset 10 351

14. Loans and advances GIBS.6.L

GIBS.6.R
Non-current Current
Capital advances
Secured, considered good 81 125 — — GIBS.6.L.ii
Unsecured, considered good 30 39 — —
(A) 111 164 — —
Security deposit
Secured, considered good 49 117 20 22
Unsecured, considered good 237 334 25 73
Doubtful 5 6 — —
291 457 45 95
Provision for doubtful security (5) (6) — — GIBS.6.L.iii
deposit
(B) 286 451 45 95
Loan and advances to related GIBS.6.L.i.c

parties (note 37(b)) GIBS.6.R.i.a
Unsecured, considered good — — 107 102

(C) — — 107 102
Advances recoverable in cash

or kind
Secured considered good 2,403 1,412 212 293
Unsecured considered good 1,680 1,628 150 107
Doubtful 20 19 3 4
4,103 3,059 365 404
Provision for doubtful advances (20) (19) (3) (4)
(D) 4,083 3,040 362 400
Other loans and advances GIBS.6.L.i.d

GIBS.6.R.i.b
Advance income-tax (net of — — 228 239
provision for taxation)
Prepaid expenses — — 1 14
Loans to employees 38 28 57 45
Balances with statutory/ 229 211 — —
government authorities
(E) 267 239 286 298
Total (A+ B + C + D + E) 4,747 3,894 800 895
Loans and advances due by directors or other officers, etc. GIBS.6.L.iv
GIBS.6.R.iv
Non-current Current
Loans to employees include
Dues from non-executive directors 16 12 23 19
Dues from officers 9 4 5 6
Dues from non-executive and 6 4 6 5
officers jointly with other persons
Loans and advances to related
parties include
Dues from the partnership firm — — 18 29
(ADC) in which the company’s
executive director is a partner
Dues from AXD Pvt. Ltd. in which — — 33 39
the company’s managing director
is a member
Advances recoverable in cash or
kind include
Dues from the partnership firm — — 8 9
(RST) in which the company’s non-
15. Trade receivables and other assets GIBS.6.M

GIBS.6.S
15.1 Trade receivables
Non-current Current GIBS.6P

Unsecured, considered good
unless stated otherwise
Outstanding for a period
exceeding six months from the
date they are due for payment
Secured, considered good 12 23 242 765
Unsecured, considered good 65 73 723 932
Doubtful 442 364 233 342
519 460 1,198 2,039
Provision for doubtful (442) (364) (233) (342)
receivables
(A) 77 96 965 1,697
Other receivables
Secured, considered good 362 327 3,725 1,322
Unsecured, considered good 598 334 8,098 4,827
Doubtful 1,167 918 50 2
2,127 1,579 11,873 6,151
Provision for doubtful (1,167) (918) (50) (2)
receivables
(B) 960 661 11,823 6,149
Total (A + B) 1,037 757 12,788 7,846

Trade receivables include: GIBS.6.M.iii.iii
Non-current Current GIBS.6.P.iv

Due from non-executive directors 2 2 5 5
Due from officers 1 1 3 4
Due from non-executive directors 4 2 8 5
and officers jointly with other
persons
Dues from partnership firm (PQR) 8 6 20 15
in which the company’s non-
Dues from XYZ Pvt. Ltd. in which 12 11 21 16
the company’s non-executive
director is a director
15.2 Other assets
Non-current Current
Unsecured, considered good
unless stated otherwise
Non-current bank balances 169 183 — — GIBS.6.M.ii
(note18)
(A) 169 183 — —
Unamortized expenditure
Unamortized premium on forward 8 12 4 4
contract
Ancillary cost of arranging the 7 8 2 3
borrowings
(B) 15 20 6 7
Others GIBS.6.M.ii
Interest accrued on fixed deposits 34 16 10 5

Interest accrued on investments 40 21 — —
Dividend receivable on investment — — — 20
in subsidiaries - long term
Others 63 82 21 23
(C) 137 119 31 48
Total (A + B + C) 321 322 37 55
16. Current investments GIBS.6.N
31 March 2012 31 March 2011

Current portion of long-term investments (valued at cost) GIBS.6.N.i
Preference shares (unquoted)
4 million (31 March 2011: nil) 13.5% preference shares of `10 each 50
fully paid in Mark Capital Limited
These shares are redeemable on 1 June 2012 at a premium of

`2.5 per share. **
Current investments (valued at lower of cost and fair value, GIBS.6.N.i

unless stated otherwise)
Quoted equity instruments
2 million (31 March 2011: 3 million) shares of `10 each fully 27 37
paid-up in KFC Investments Limited
Unquoted government or trust securities

7.25% 6 months government securities 225 —
Unquoted bonds
Nil (31 March 2011: 12 million) short-term bonds — 126
of `10 each fully paid #
13 million (31 March 2011: Nil) short-term infra bonds 110 —
of `10 each fully paid ##
Unquoted mutual funds

2 million (31 March 2011: 1.8 million) units of `10 each fully 20 18
paid-up of AXZ Mutual Fund
432 181
GIBS.6.N.ii
AS 13.35(e)
Aggregate amount of quoted investments (Market value 27 37
`44 million (31 March 2011: `42 million))
Aggregate amount of unquoted investments 405 144
# Aggregate provision for diminution in value of investments — 8
## Aggregate provision for diminution in value of investments 16 —
** in earlier years, the company had invested in 40 million preference shares of Mark Capital Limited with an
intention of holding the same for more than one year from the date on which such investments was made.
Accordingly, it classified the same as long-term investment under AS 13 Accounting for Investments. Since the
shares are redeemable on 1 June 2012, the company does not have an intention to hold the investment for
more than 12 months as at 31 March 2012. Hence, the company has presented its investment in preference
shares as “current investment” in the financial statements for the year ended 31 March 2012. However, for
measurement purposes, the investment continues to be treated as long-term investment.

17. Inventories (valued at lower of cost and net realizable value) GIBS.6.O
31 March 2012 31 March 2011

Raw materials and components (includes in transit `450 millions 2,660 2,318
(31 March 2011: `472 millions)) (refer note 21)
Work-in-progress (refer note 22) 1,550 1,108
Finished goods (refer note 22) 6,890 6,126
Traded goods (including stock-in-transit `252 millions 1,854 992
(31 March 2011: `128 millions)) (refer note 22)
Stores and spares 202 196
Loose tools 42 32
13,198 10,772
18. Cash and bank balances GIBS.6.Q
Non-current Current
Cash and cash equivalents GIBS.6.Q.i
Balances with banks:
On current accounts 1,424 2,174
Deposits with original maturity 350 174
of less than
three months
On unpaid dividend account 7 6 GIBS.6.Q.ii
Cheques/drafts on hand 3 2
Unpaid matured deposits 4 3
Unpaid matured debentures - 2
Cash on hand 29 1
1,817 2,362
Other bank balances GIBS.6.Q.i.d

Deposits with original maturity 37 29 5 8 GIBS.6.Q.v
for more than 12 months
Deposits with original maturity — — 303 221
for more than 3 months but
less than 12 months
Margin money deposit 132 154 — — GIBS.6.Q.iii
169 183 308 229
Amount disclosed under (169) (183) — —
non-current assets (note 15.2)
— — 2,125 2,591
Margin money deposits given as security

Margin money deposits with a carrying amount of `132 million (31 March 2011: `154 million) are subject to GIBS.6.Q.iii
first charge to secure the company’s cash credit loans. AS 3.45
19. Revenue from operations GIPL.2.A
31 March 2012 31 March 2011

Revenue from operations
Sale of products
Finished goods 68,524 61,223
Traded goods 9,522 8,703
Sale of services 3,774 4,236
Other operating revenue
Scrap sales 96 77
Other 136 127
Revenue from operations (gross) 82,052 74,366 AS 9.10
Less: Excise duty # 4,530 4,136 AS 9.10
Revenue from operations (net) 77,522 70,230 AS 9.10
# Excise duty on sales amounting to `4,530 million (31 March 2011: `4,136 million) has been reduced from
sales in profit & loss account and excise duty on increase/decrease in stock amounting to `61 million (31 March
2011: `209 million) has been considered as (income)/expense in note 24 of financial statements.
Details of products sold GIPL.5.ii.d
31 March 2012 31 March 2011

Finished goods sold
Refrigerator 23,983 20,203
Washing machine 13,705 14,081
Air conditioner 14,390 12,857
Microwave oven 10,279 7,347
Other electronic appliances 6,167 6,735
68,524 61,223
Traded goods sold

Television 3,523 3,046
Spare parts 1,333 1,305
Other electronic appliances 1,047 783
9,522 8,703
78,046 69,926
Details of services rendered GIPL.5.ii.d
31 March 2012 31 March 2011

AMC services 3,774 4,236
3,774 4,236

Commentary
The revised Schedule VI does not define the term “other operating revenue.” In accordance with the ICAI GN.RVI
Guidance Note on revised Schedule VI, this item includes revenue arising from a company’s operating
activities, either principal or ancillary; however, which is not revenue arising from the sale of products
or rendering of services. Whether a particular income constitutes “other operating revenue” or “other
income” is decided based on the facts of each case and detailed understanding of the company’s activities.
The classification of income also depends on the purpose for which the particular asset is acquired or held.
Based on this guidance, the company has classified scrap and revenue arising from other ancillary activities
as “other operating revenue.”
20. Other income RVI.PL.II
31 March 2012 31 March 2011

Interest income on GIPL.4.a
Bank deposits 64 54
Long-term investments 26 26
Current investments 10 9
Others 13 15
Dividend income on GIPL.4.b
Investment in subsidiaries — 20
Current investments 22 31
Long-term investments 64 59
Net gain on sale of current investments 250 121 GIPL.4.c
Government grant # 12 —
Commission income 38 48 GIPL.4.d
Other non-operating income (net of expenses directly attributable to 95 108 GIPL.4.d
such income of `30 millions (31 March 2011: `70 millions))
594 491
# The company obtained and recognized as income a government grant of `12 million (31 March 2011: `nil),
for generating employment opportunities in the backward area. The company is obliged not to reduce its
average number of employees in the backward area over the next two years under the terms of this
government grant.
21. Cost of raw material and components consumed RVI.PL.IV
31 March 2012 31 March 2011

Inventory at the beginning of the year 2,318 2,255
Add: Purchases 45,246 43,537
47,564 45,792
Less: inventory at the end of the year 2,660 2,318
Cost of raw material and components consumed 44,904 43,474
Details of raw material and components consumed GIPL.5.ii.d
31 March 2012 31 March 2011

CRCA coils and steel sheets 15,718 15,652
Compressors 11,226 9,564
Fan motors 5,388 6,086
Copper 3,143 2,608
Air Handling Unit 4,041 3,478
Others 5,388 6,086
44,904 43,474
Details of inventory
31 March 2012 31 March 2011
Raw materials and components
CRCA coils and steel sheets 932 834
Compressors 665 510
Fan motors 319 325
Copper 186 139
Air Handling Unit 239 185
Others 319 325
2,660 2,318
22. (Increase)/decrease in inventories RVI.PL.IV
31 March 2012 31 March 2011 (Increase)/

` millions ` millions decrease ` millions
Inventories at the end of the year 31 March 2012
Traded goods 1,854 992 (862)
Work-in-progress 1,550 1,108 (442)
Finished goods 6,890 6,126 (764)
10,294 8,226 (2,068)
Inventories at the beginning of the year 31March2011

Traded goods 992 1,523 531
Work-in-progress 1,108 634 (474)
Finished goods 6,126 3,511 (2,615)
8,226 5,668 (2,558)
(2,068) (2,558)
Details of purchase of traded goods GIPL.5.ii.b
31 March 2012 31 March 2011

Television 2,855 1,977
Spare parts 1,081 847
Other electronic appliances 849 508
7,718 5,648

Details of inventory
31 March 2012 31 March 2011

Traded goods
Television 556 327
Refrigerator 408 248
Washing machine 222 208
Spare parts 464 110
1,854 992
Work-in-progress
Refrigerator 512 388
Washing machine 357 222
Air conditioner 326 233
Microwave oven 186 166
1,550 1,108
Finished goods
Air conditioner 965 1,286
Microwave oven 413 674
Other electronic appliances 1,516 612
6,890 6,126
23. Employee benefit expense GIPL.5.i
31 March 2012 31 March 2011

Salaries, wages and bonus 7,231 6,626
Contribution to provident and other fund 452 435
Employee stock option scheme 2,369 1,907
Gratuity expense (note 30) 1,995 1,433
Post employment medical benefits (note 30) 194 90
Staff welfare expenses 245 204
12,486 10,695
24. Other expenses GIPL.5.vi

31 March 2012 31 March 2011
Consumption of stores and spares 1,021 923
Consumption of loose tools 77 116
Sub-contracting expenses 24 64
(Increase)/decrease of excise duty on inventory 61 209
Customer service expenditure 149 53
Power and fuel 272 239
Water charges 3 4
Freight and forwarding charges 688 598
Rent 233 213
31 March 2012 31 March 2011
Rates and taxes 372 248
Insurance 120 92
Repairs and maintenance
Plant and machinery 162 131
Buildings 91 19
Others 36 20
Advertising and sales promotion 2,170 1,792
Brokerage and discounts 129 100
Sales commission 92 59
Travelling and conveyance 272 233
Communication costs 90 92
Printing and stationery 57 63
Legal and professional fees 197 179
Directors’ sitting fees 10 6
Payment to auditor (Refer details below) 32 25
Provision for diminution in value of investment in subsidiary company 15 — GIPL.5.vii.b
Provision for other than temporary decline in the carrying amount of
other long-term investments 1 1 AS 13.35(c)
Adjustments to the carrying amount of current investments 16 8 AS 13.35(c)
Provision for warranties (net of reversals) 371 326
Provision for litigations (net of reversals) 175 —
Exchange differences (net) 94 111
Loss on derivative contracts (including provisions for
mark-to-market loss) 6 22
Bad debts/advances written off 80 175
Impairment loss on fixed assets 350 —
Provision for doubtful debts and advances 345 810
Loss on sale of fixed assets (net) 2 1
Premium on forward exchange contract amortized 4 4
Miscellaneous expenses 799 633
8,616 7,569
Above expenses include research and development expenses 160 135
Payment to auditor GIPL.5.i.j
31 March 2012 31 March 2011

As auditor:
Audit fee 22 20
Tax audit fee 2 1
Limited review 3 2
In other capacity:
Taxation matters 1 —
Company law matters — 1
Management services 1 —
Other services (certification fees) 1
Reimbursement of expenses 2 1
32 25
Commentary
The revised Schedule VI, among other matters, requires separate disclosure for item of income/expense GIPL.5
which exceed 1% of revenue from operations or `100,000, whichever is higher

25. Exceptional items GIPL.5.i.k
31 March 2012 31 March 2011

VRS expenses — 340 AS 5.12
With a view to downsize and rationalize the workforce at Hazira plant, the company had announced a voluntary
retirement scheme (VRS) on 19 May 2010 for the workmen of its Hazira plant. The scheme was open till 25
August 2010. In response to the VRS, 331 workmen opted for the same. Expenditure of `340 million on VRS is
charged to the statement profit and loss for the year ended 31 March 2011.
26. Depreciation and amortization expense GI.PL.5.i.b
31 March 2012 31 March 2011

Depreciation of tangible assets 474 436
Amortization of intangible assets 140 106
Depreciation of investment property 1 1
615 543
Less: recoupment from revaluation reserve 2 2
613 541
27. Finance costs GIPL.3
31 March 2012 31 March 2011

Interest 589 411
Bank charges 27 44
Amortization of ancillary borrowing costs 2 2
Exchange difference to the extent considered as an adjustment to
45 23
borrowing costs
663 480
28. Discontinuing operation AS 24.20
On 12 November 2011, the company publicly announced the decision of its board of directors to discontinue
the Furniture Division, which is also a separate segment as per AS 17 Segment Reporting. The proposed
discontinuation is consistent with the company’s long-term strategy to focus its activities in the areas of home
appliances and related services, and to divest unrelated activities. On 15 March 2012, the company signed a
contract to sell the Furniture Division to XYZ Limited for `60 million.
Furniture Division’s assets are written down by `50 million (31 March 2011: `nil) before income tax saving of
`16.25 million (31 March 2011: `nil) to their recoverable amount.
The company has recognized provision for termination benefits of `30 million (31 March 2011: `nil) before
income-tax saving of `9.75 million (31 March 2011: `nil) to be paid by 30 September 2012 to certain
employees of the Furniture Division whose jobs will be terminated as a result of the sale.
At 31 March 2012, the carrying amount of assets of the Furniture Division was `419 million (31 March 2011:
`491 million) and its liabilities were `389 million (31 March 2011: `470 million), including the provision for
expected termination cost. The process of selling the Furniture Division is likely to be completed by
31 May 2012.
The following statement shows the revenue and expenses of discontinuing operations:
31 March 2012 31 March 2011

Revenue 543 632
Expenses (432) (544)
Provision for employee termination (30) —
Profit/(loss) from operating activities 81 88
Finance costs (5) (5)
Depreciation/amortization (20) (20)
Impairment loss (50) —
Profit/(loss) before tax 6 63 AS 24.20(g)
Income-tax expense (2) (22) AS 24.20(g)
Profit/(loss) after tax 4 41
The carrying amounts of the total assets and liabilities to be disposed of at 31 March are as follows. Comparative AS 24.20(e)
information for Furniture Division is included in accordance with AS 24 Discontinuing Operations.
31 March 2012 31 March 2011

Total assets 419 491
Total liabilities 389 470
Net assets 30 21
Total assets include fixed assets for which binding sale agreements have been entered into as of 31 March 2012 AS 24.20(d)
and are likely to be settled on 30 June 2012. The company written-down these assets to the net realizable value
(net selling price) of `283 million and recognized an impairment loss of `50 million (31 March 2011: nil). The
company has disclosed these fixed assets separately on the face of the balance sheet.
The net cash flows attributable to the Furniture Division are as below: AS 24.20(h)
31 March 2012 31 March 2011

Operating activities 63 75
Investing activities — (6)
Financing activities (12) (25)
Net cash inflows/(outflows) 51 44
29. Earnings per share (EPS) AS 20.48(ii)
The following reflects the profit and share data used in the basic and diluted EPS computations:
31 March 2012 31 March 2011

Total operations for the year
Profit/(loss) after tax 3,505 3,086
Less : Dividends on convertible preference shares & tax thereon 41 41
Net profit/(loss) for calculation of basic EPS 3,464 3,045
Net profit as above 3,464 3,045

Add : dividends on convertible preference shares & tax thereon 41 41
Add : interest on bonds convertible into equity shares (net of tax) 13 13
Net profit/(loss) for calculation of diluted EPS 3,518 3,099

31 March 2012 31 March 2011
Profit/(loss) after tax 3,501 3,045
Less : dividends on convertible preference shares & tax thereon 41 41
Net profit for calculation of basic EPS 3,460 3,004
Net profit as above 3,460 3,004

Add : dividends on convertible preference shares & tax thereon 41 41
Add : interest on bonds convertible into equity shares (net of tax) 13 13
Net profit/(loss) for calculation of diluted EPS 3,514 3,058
No. millions No. millions

Weighted average number of equity shares in calculating basic EPS 524 520
Effect of dilution:
Convertible preference shares 50 50
Convertible bonds 5 5
Stock options granted under ESOP 236 209
Weighted average number of equity shares in calculating 815 784
diluted EPS
30. Gratuity and other post-employment benefit plans AS 15.120
The company operates two defined plans, viz., gratuity and post employment medical benefits, for its
employees. Under the gratuity plan, every employee who has completed atleast five years of service gets a
gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded
with an insurance company in the form of qualifying insurance policy.
Under the post employment medical benefit plan, the company provides medical benefit to those employees
who leave the services on the company on retirement and have completed atleast 7 years of service with the
company. The plan is not funded by the company.
The following tables summarize the components of net benefit expense recognized in the statement of profit
and loss and the funded status and amounts recognized in the balance sheet for the respective plans.
Statement of profit and loss

Net employee benefit expense recognized in the employee cost AS15.120 (g)
Gratuity Post-employment medical

benefits
Current service cost 1,778 1,499 180 86
Interest cost on benefit obligation 1,419 1,278 25 8
Expected return on plan assets (1,340) (1,266) — —
Net actuarial( gain)/loss 138 (78) (11) (4)
recognized in the year
Net benefit expense 1,995 1,433 194 90
Actual return on plan assets 1,281 1,213
Balance sheet
Benefit asset/liability AS15.120(f)

benefits
Present value of defined benefit (19,838) (17,731) (339) (197)
obligation
Fair value of plan assets 17,919 16,298 — —
Plan asset/(liability) (1,919) (1,433) (339) (197)
Changes in the present value of the defined benefit obligation are as follows: AS 15.120(c)

benefits
Opening defined benefit obligation 17,731 15,978 197 107
Current service cost 1,778 1,499 180 86
Interest cost 1,419 1,278 25 8
Benefits paid (2,419) (969) (52) —
Actuarial (gains)/losses on 1,329 (55) (11) (4)
obligation
Closing defined benefit 19,838 17,731 339 197
obligation
Changes in the fair value of plan assets are as follows: AS15.120(e)
31 March 2012 31 March 2011

Opening fair value of plan assets 16,298 14,780
Expected return 1,340 1,266
Contributions by employer 1,509 1,198
Benefits paid (2,419) (969)
Actuarial gains/(losses) 1,191 23
Closing fair value of plan assets 17,919 16,298
The company expects to contribute `1950 millions to gratuity in the next year (31 March 2011: `1550 millions). AS15.120(o)

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows: AS15.120(h)
Gratuity
31 March 2012 31 March 2011
Investments with insurer 100% 100%
The principal assumptions used in determining gratuity and post-employment medical benefit obligations for the AS15.120(l)
company’s plans are shown below:

benefits
Discount rate 8.25% 8.00% 8.25% 8.00%
Expected rate of return on assets 8.50% 8.00% — —
Employee turnover 10% at younger 10% at younger 10% at younger 10% at younger
ages and ages and ages and ages and
reducing to 1% reducing to reducing to 1% reducing to
at older age 1.25% at older at older age 1.25% at older
according to age according to according to age according
graduated scale graduated scale graduated scale to graduated
scale
Healthcare cost increase rate — — 5% 4.50%
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.
The overall expected rate of return on assets is determined based on the market prices prevailing on that date, AS15.120(j)
applicable to the period over which the obligation is to be settled. There has been significant change in expected
rate of return on assets due to change in the market scenario.
Assumed healthcare cost trend rates have a significant effect on the amounts recognized in the AS 15.120(m)
statement of profit and loss. One percentage point change in assumed healthcare cost trend rates
would have the following effects on the aggregate of the service cost and interest cost and defined
benefit obligation:
Post-employment medical
benefits
31 March 2012 31 March 2011
Increase
Effect on the aggregate of the service cost and interest cost 6 4
Effect on defined benefit obligation 12 7
Decrease
Effect on the aggregate of the service cost and interest cost (2) (2)
Effect on defined benefit obligation (8) (5)
Amounts for the current and previous four periods are as follows: AS 15.120(n)
31 Mar 2012 31 Mar 2011 31 Mar 2010 31 Mar 2009 31 Mar 2008
` millions ` millions ` millions ` millions ` millions
Gratuity
Defined benefit obligation 19,838 17,731 15,978 13,850 12,950
Plan assets 17,919 16,298 14,780 12,100 10,050
Surplus/(deficit) (1,919) (1,433) (1,198) (1,750) (2,900)
Experience adjustments on (578) (127) (80) (90) (40)
plan liabilities
Experience adjustments on 59 (21) 50 30 50
plan assets
Post employment medical

benefit
Defined benefit obligation 339 197 88 80 78
Experience adjustments on (8) (3) (22) 15 20
plan liabilities
31. Employee stock option plans GN.ESOP
The company provides share-based payment schemes to its employees. During the year ended 31 March 2012,
an employee stock option plan (ESOP) was in existence. The relevant details of the scheme and the grant are
as below.
On 1 March 2009, the board of directors approved the Equity Settled ESOP Scheme 2009 (Scheme 2009) for GN.ESOP.
issue of stock options to the key employees and directors of the company. According to the Scheme 2009, 50(a)
the employee selected by the remuneration committee from time to time will be entitled to 10 to 100 options,
subject to satisfaction of the prescribed vesting conditions, viz., continuing employment of 3 years. The
contractual life (comprising the vesting period and the exercise period) of options granted is 6 years. The other
relevant terms of the grant are as below:
Vesting period 3 years

Exercise period 3 years
Expected life 3 years
Exercise price `22 to `29
Market price at 1 March 2009 `38
The details of activity under the Scheme 2009 are summarized below: GN.ESOP.
50(b)
31 March 2012 31 March 2011

No. of options WAEP (`) No. of options WAEP (`)
Outstanding at the beginning of the year 460 25 480 25
Granted during the year 90 25 — —
Forfeited during the year 30 25 20 25
Exercised during the year 50 25 — —
Outstanding at the end of the year 470 25 460 25
Exercisable at the end of the year 380 NIL — —

For options exercised during the period, the weighted average share price at the exercise date was `59 per GN.ESOP.
share (31 March 2011: not applicable since no option exercised). 50(c)
The weighted average remaining contractual life for the stock options outstanding as at 31 March 2012 is 2.94 GN.ESOP.
years (31 March 2011: 2.60 years). The range of exercise prices for options outstanding at the end of the year 50(d)
was `22 to `29 (31 March 2011: `22 to `29).
The weighted average fair value of stock options granted during the year was `40.36 (31 March 2011: nil). The GN.ESOP.
Black Scholes valuation model has been used for computing the weighted average fair value considering the 51
following inputs:
31 March 2012 31 March 2011*

Dividend yield (%) 20% *
Expected volatility 53% *
Risk-free interest rate 7% *
Weighted average share price (`) 57 *
Exercise price (`) 25 *
Expected life of options granted in years 5 *
* Not applicable since no ESOP’s were granted during the year.
The expected life of the stock is based on historical data and current expectations and is not necessarily indicative GN.ESOP.51
of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility
over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the
actual outcome.
The company measures the cost of ESOP using the intrinsic value method. Had the company used the fair value GN.ESOP. 48
model to determine compensation, its profit after tax and earnings per share as reported would have changed to
the amounts indicated below:
31 March 2012 31 March 2011

Profit after tax as reported 3,505 3,086
Add: ESOP cost using the intrinsic value method 2,369 1,907
Less: ESOP cost using the fair value method (3,871) (3,366)
Proforma profit after tax 2,003 1,627
Earnings Per Share

Basic
−− As reported ` 6.61 ` 5.86
−− Proforma ` 3.74 ` 3.05
Diluted
−− As reported ` 4.32 ` 3.95
−− Proforma ` 2.50 ` 2.17
32. Leases
Finance lease: company as lessee
The company has finance leases and hire purchase contracts for various items of plant and machinery. These AS 19.22
leases involve significant upfront lease payment, have terms of renewal and bargain purchase option. However,
there is no escalation clause. Each renewal is at the option of lessee. Future minimum lease payments (MLP)
under finance leases together with the present value of the net MLP are as follows:
31 March 2012 31 March 2011

Minimum Present Minimum Present
payments value of MLP payments value of MLP
Within one year 11 10 13 11
After one year but not more than five 38 31 49 41
years
More than five years — — — —
Total minimum lease payments 49 41 62 52
Less: amounts representing finance (8) — (10) —
charges
Present value of minimum 41 41 52 52
lease payments
Operating lease: company as lessee AS 19.25
The company has entered into commercial leases on certain motor vehicles and items of machinery. These
leases have an average life of between three and five years with no renewal option included in the contracts.
There are no restrictions placed upon the company by entering into these leases.
Future minimum rentals payable under non-cancellable operating leases are as follows:
31 March 2012 31 March 2011

Within one year 248 233
After one year but not more than five years 412 345
More than five years — —
660 578
Operating lease commitments – Group as lessor AS 19.46
The company has entered into commercial property leases on its investment property portfolio, consisting of
the company’s surplus office and manufacturing buildings. These non-cancellable leases have remaining terms
of between five and 20 years. All leases include a clause to enable upward revision of the rental charge on an
annual basis according to prevailing market conditions.
Future minimum rentals receivable under non-cancellable operating leases are as follows:
31 March 2012 31 March 2011
Within one year 14 14
After one year but not more than five years 56 56
More than five years 63 77
133 147

33. Capitalization of expenditure
During the year, the company has capitalized the following expenses of revenue nature to the cost of fixed
asset/ capital work-in-progress (CWIP). Consequently, expenses disclosed under the respective notes are net of
amounts capitalized by the company.
31 March 2012 31 March 2011

Salaries, wages and bonus 346 616
Consumption of stores and spares 47 239
Power and fuel 54 47
Finance costs 52 81
499 983
34. Interest in a joint venture

The company holds 50% interest in E-Age & Co Limited, a joint controlled entity which is involved in manufacture AS 27.52
of television and DVD players.
The company’s share of the assets, liabilities, income and expenses of the jointly controlled entity for the year AS 27.53
ended 31 March are as follows:
31 March 2012 31 March 2011

Current assets 140 132
Non-current assets 228 216
Current liabilities (87) (70)
Non-current liabilities (126) (147)
Equity 155 131
Revenue 391 326

Cost of material consumed (301) (257)
Depreciation of plant and machinery (12) (13)
Employee benefit expense (32) (21)
Other expenses (12) (10)
Profit before tax 34 25
Income-tax expense (10) (8)
Profit after tax 24 17
Commitments and contingent liabilities of the jointly controlled entity are disclosed in note 38 and
39 respectively.
35. Accounting for amalgamation
The Honorable High Court of Delhi, on 16 August 2011, sanctioned a scheme of amalgamation (the scheme) AS 14.43
under sections 391 to 394 of the Companies Act, 1956. In accordance with the scheme, Peter Limited
(transferor company) merges with the company with effect from 1 April 2011. The transferor company was
engaged in the business of refrigerators. The amalgamation is expected to channelize synergies and lead to
better utilization of available resources and result in greater economies of scale.
The company discharged the purchase consideration for acquisition through bank payments. In terms of AS 14.43
the scheme, the company has accounted for the amalgamation under the purchase method and recognized AS 14.45
assets and liabilities acquired at fair value. The excess of purchase consideration paid by the company over the
aggregate value of the net assets acquired has been treated as goodwill, to be amortized over a period of 5
years from the date of amalgamation.
Particulars ` millions
Assets
Land 42
Buildings 28
Plant and equipment 58
Furniture and fixtures 5
Patents 20
Brands/trademarks 35
Technical knowhow 16
Trade receivables 79
Total assets 283
Liabilities
Trade payables 60
Total liabilities 60
Net assets 223

Purchase consideration 267
Goodwill 44
36. Segment information

The primary segment reporting format is determined to be business segments as the company’s risks and AS 17.19
rates of return are affected predominantly by differences in the products and services produced. Secondary
information is reported geographically. The operating businesses are organized and managed separately
according to the nature of the products and services provided, with each segment representing a strategic
business unit that offers different products and serves different markets.
The “home appliance” segment produces and sells a reputed brand of home appliances, comprising
refrigerators, washing machines, air conditioners, microwave ovens and other small electronic appliances.
The “retail” segment operates electronic stores in India wherein all major brands of fast moving consumer
goods (FMCG) are available.
The “services” segment provides annual maintenance service for the FMCG products.
The “furniture” segment producing plastic furniture for home and commercial purposes is being discontinued.
Transfer prices between business segments are set at cost plus appropriate margins.
Segment revenue, segment expense and segment result include transfers between business segments. Those
transfers are eliminated in total revenue/expense/result.

Business segments AS 17.40
Year ended 31 March 2012 (` million)
Discontinuing
operations Total
Particulars
Home operations
Retail Services Eliminations Total Furniture
appliance
Revenue
External sales 64,226 9,522 3,774 — 77,522 543 78,065 AS 17.40 (a)
Inter segment sales 1,350 — 435 (1,785) — — — AS 17.40 (a)
Total revenue 65,576 9,522 4,209 (1,785) 77,522 543 78,065
Results
Segment results 6,018 412 31 6,461 11 6,472 AS 17.40 (b)
Unallocated expenses (1,208)
Operating profit 5,264
Finance costs (668)
Other income including 594
finance income
Share of profit 1
investment in
partnership firm
Exceptional Items —
Profit before tax 5,191
Income taxes (1,686)
Net profit 3,505
As at 31 March 2011
Segment assets 24,339 9,543 6,628 419 40,929 AS 17.46
Unallocated assets 3,936
Total assets 24,339 9,543 6,628 419 44,865
Segment liabilities 6,733 3,753 160 389 11,035 AS 17.46
Unallocated liabilities 11,400
Total liabilities 6,733 3,753 160 389 22,435
Other segment
information
Capital expenditure:
Tangible assets 308 5 26 — 339* AS 17.40(e)
Intangible assets 116 — — — 116** AS 17.40(e)
Depreciation 325 95 53 20 493 AS 17.40(f)
Amortization 85 23 32 — 140 AS 17.40(f)
Impairment losses 350 — — 50 400 AS 17.40(g)
recognized
Other non-cash 1825 395 107 42 AS 17.40(g)
expenses
* The amount includes tangible assets acquired through amalgamations, borrowing costs and exchange differences capitalized.
** The amount includes intangible assets acquired through amalgamations.
Year ended 31 March 2011 (` million)
Discontinuing
operations Total
Particulars
Home operations
Retail Services Eliminations Total Furniture
appliance
Revenue
External sales 57,291 8,703 4,236 — 70,230 632 70,862 AS 17.40 (a)
Inter segment sales 1,250 — 143 (1,393) — — — AS 17.40 (a)
Total revenue 58,541 8,703 4,379 (1,393) 70,230 632 70,862
Results
Segment results 5,093 746 28 5,867 68 5,935 AS 17.40 (b)
Unallocated expenses (1,006)
Operating profit 4,929
Finance costs (485)
Other income including 491
finance income
Share of profit 2
investment in
partnership firm
Exceptional Items (340)
Profit before tax 4,597
Income taxes (1,511)
Net profit 3,086
As at 31 March 2011
Segment assets 20,578 8,089 4,954 491 34,112 AS 17.46
Unallocated assets 3,570
Total assets 20,578 8,089 4,954 491 37,682
Segment liabilities 5,549 3,489 262 470 9,770 AS 17.46
Unallocated liabilities 11,234
Total liabilities 5,549 3,489 262 470 21,004
Other segment
information
Tangible assets 73 25 8 — 106 AS 17.40(e)
Intangible assets 134 — — — 134 AS 17.40(e)
Depreciation 311 87 37 20 455 AS 17.40(f)
Amortization 80 19 7 — 106 AS 17.40(f)
Impairment losses — — — — — AS 17.40(g)
recognized
Other non-cash 1311 387 145 64 AS 17.40(g)
expenses
* The amount includes borrowing costs and exchange differences capitalized.

Geographical segments
The company’s secondary segments are the geographic distribution of activities. Revenue and receivables are
specified by location of customers while the other geographic information is specified by location of the assets.
The following tables present revenue, expenditure and certain asset information regarding the company’s
geographical segments:
(` million)
Year ended 31 March 2012 India United States Others Total
Revenue AS 17.48(a)
Sales to external customers 67,242 7,586 3,237 78,065
Less: sales attributable to (543) — — (543)
discontinuing operations
Revenue from continuing operations 66,699 7,586 3,237 77,522
Other segment information

Segment assets 44,823 17 25 44,865 AS 17.48(b)
Unallocated assets — — — —
Total assets
Tangible fixed assets 339 — — 339 AS 17.48(c)
Intangible assets 116 — — 116 AS 17.48(c)
(` million)
Year ended 31 March 2011 India United States Others Total

Revenue AS 17.48(a)
Sales to external customers 62,886 6,280 1,696 70,862
Less: sales attributable to (632) — — (632)
discontinuing operations
Revenue from continuing operations 62,254 6,280 1,696 70,230
Other segment information
Segment assets 37,623 27 32 37,682 AS 17.48(b)
Unallocated assets — — — —
Total assets
Tangible fixed assets 106 — — 106 AS 17.48(c)
Intangible assets 134 — — 134 AS 17.48(c)
37. Related party disclosures

Names of related parties and related party relationship AS 18.21
Related parties where control exists

Holding company Holding Limited
Ultimate holding company Father Limited
Subsidiaries C Limited
Rofil Investments Limited
Related parties with whom transactions have taken place during the year
Fellow subsidiaries Beta Private Limited
Associates Brother Ltd, M/s ASQ (partnership firm)
Jointly controlled entity E-Age Ltd.
Key management personnel Mr. A.B. Managing director
Mr. X. Y. Finance director

Relatives of key management personnel Mr. C.A. brother of Mr. A.B
Enterprises owned or significantly influenced by key AXD Pvt. Ltd., M/s ADC (partnership firm),
management personnel or their relatives
Related party transactions

The following table provides the total amount of transactions that have been entered into with related parties AS 18.23
for the relevant financial year:
a. Sale/purchase of goods and services (` million)
Year ended Sale of Sale of Purchase Amount Amount

goods services of traded owed by owed to
goods related related
parties* parties*
Holding and ultimate
holding companies
Holding Limited 31 March 2012 200 65 — 48 —
31 March 2011 180 87 — 34 —
Father Limited 31 March 2012 123 — — 14 —
31 March 2011 96 12 — 6 —
Fellow subsidiaries
Beta Private Limited 31 March 2012 — — 965 — 148
31 March 2011 — — 1034 — 243
Associates and
jointly controlled
entities
Brother Limited 31 March 2012 — — 267 — 18
31 March 2011 — — 189 — 24
E-Age & Co Limited 31 March 2012 — 14 — — —
31 March 2011 — 9 — — —
* The amounts are classified as trade receivables and trade payables, respectively.
b. Loans given and repayment thereof

(` million)
Year ended Loans given Repayment Interest Amount owed by
accrued related parties
Enterprises owned or
significantly influenced
by key management
personnel or their
relatives
M/s ADC (partnership 31 March 2012 — 12 1 18
firm)
31 March 2011 20 5 2 29
AXD Pvt. Ltd 31 March 2012 10 18 2 33
31 March 2011 38 — 1 39

Relatives of key
managerial personnel
Mr. C A 31 March 2012 29 10 3 56
31 March 2011 — 2 34
Loans given to related parties are repayable on demand. These loans carry interest @ of 6% to 10% p.a.
c. Loans taken and repayment thereof (` million)

Holding company
Holding Limited 31 March 2012 20 150 — 220
31 March 2011 0 50 — 350
Loans taken from related parties are interest free and repayable on demand.
d. Remuneration to key managerial personnel

31 March 2012 31 March 2011
Mr. A.B. Managing director
Salary, bonus and contribution to PF 25 22
ESOP cost 10 10
Mr. X. Y. Finance director
Salary, bonus and contribution to PF 10 9
ESOP cost 3 3
Total 48 44
Note: The remuneration to the key managerial personnel does not include the provisions made for gratuity and
leave benefits, as they are determined on an actuarial basis for the company as a whole.
e. Other transactions
i. During the year ended 31 March 2011, the company issued 35 million and 15 million CCPS of `10 each
fully paid-up at a premium of `40 per share to Holding Limited and Father Limited, respectively. For
detailed terms of the CCPS, please refer note 3(c).
ii. During the year ended 31 March 2012, the company paid a final dividend of `2 and `0.7 (year ended
31 March 2011: `2 and `nil) per share on equity and preference shares, respectively. This includes dividend
on equity and preference shares held by holding/ ultimate holding company and/ or their subsidiaries/
associates, at the beginning of respective financial years. For detail of shares held by holding/ ultimate
holding company and/ or their subsidiaries/ associates, please refer note 3(d).
iii. The company has recognized dividend income of `nil (31 March 2011: `20 million) toward divided
proposed by its subsidiary, C Limited. For further details, please refer note 2.1(a).
iv. The company has recognized income of `1 million (31 March 2011: `2 million) toward its share of profit in
M/s ASQ (partnership firm).
v. Indian rupee loan of `1,375 million (31 March 2011: `1,500 million) from banks is guaranteed by the
personal guarantee of the managing director of the company.
vi. Term loan from of `800 million (31 March 2011: `900 million) from financial institutions is guaranteed by
the corporate guarantee of Father Limited, the ultimate holding company.
38. Capital and other commitments GIBS.6.T
a. At 31 March 2012, the company has commitments of `5 million (31 March 2011: `102 million) relating to AS 27.51
the completion of the Baramati manufacturing facility and `2 million (31 March 2011: `1 million) relating to
the company’s share in the jointly controlled entity.
b. At 31 March 2012, the company has commitments of `25 million (31 March 2011: `10 million) relating to
further investment in subsidiary Rofil Investments Ltd.
c. At 31 March 2012, the company has commitment to pay `45 million (31 March 2011: `45 million) toward
balance amount due on investments in equity share in Brother Limited.
d. At 31 March 2012, the company has commitment for non-disposal of its investment in subsidiary Rofil
Investments Ltd. Similar commitment was there in the previous year also.
e. The company has obtained and recognized a government grant of `12 million during the current year
(31 March 2011: `nil), for generating employment opportunities in the backward area. The company is
obliged not to reduce its average number of employees in the backward area over the next two years under
the terms of this government grant.
f. For commitments relating to lease arrangements, please refer note 32.
39. Contingent liabilities
31 March 2012 31 March 2011 AS 29.68

` millions ` millions GIBS.6.T
Claims against the company not acknowledged as debts * 1,560 1,700
Share of guarantees given by the jointly controlled entity 120 120 AS 27.50
(E-Age & Co Limited)
Bills of exchange discounted with banks 1,200 1,100
Income-tax demand ** 1,500 1,500
4,380 4,420
* The claims against the company comprise:
An overseas customer has commenced an action against the company in respect of equipments claimed to be
defective. The company has estimated that if the action is successful, estimate liability may be approx. `1,500
million (31 March 2011: `1,600 million). A trial date has not yet been set and therefore it is not practicable to
state the timing of any payment. The company has been advised by its legal counsel that it is possible, but not
probable, the action will succeed and accordingly no provision for liability has been recognized in the financial
statements.
`60 million (31 March 2011: `100 million) in respect of claims made by lessors for land leased under tenancy
agreements in respect of claims made by the Pollution Control Board. These claims are being contested in the
courts by the company. The management does not expect these claims to succeed. Accordingly, no provision for
the contingent liability has been recognized in the financial statements.
** Income tax demand comprise demand from the Indian tax authorities for payment of additional tax of `1,500
million (31 March 2011: `1,500 million), upon completion of their tax review for the financial years 2005-06
and 2006-07. The tax demands are mainly on account of disallowance of a portion of the tax holiday claimed by
the company under the Income tax Act. The matter is pending before the Commissioner of Income tax (Appeals).
The company is contesting the demands and the management, including its tax advisors, believe that its position
will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for
the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a
material adverse effect on the company’s financial position and results of operations.

40. Utilization of money raised through public issue

During the year ended 31 March 2010, the company has raised `250 million through public issue, specifically to GIBS.6.V
meet its share in the cost of setting-up a new manufacturing facility at Baramati. The balance amount needs to
be met out of bank finance. Given below are the details of utilization of proceeds raised through public issue.
31 March 2012 31 March 2011

Unutilized amount at the beginning of the year 75 250
Less: amount utilized during the year
Purchase of land at Baramati — 80
Purchase of plant and machinery 75 95
Unutilized amount at the end of the year — 75
Details of short-term investments made from unutilized portion of public issue raised during the year ended
31 March 2010.
31 March 2012 31 March 2011

Investment in fixed deposits of banks — 75
41. Derivative instruments and unhedged foreign currency exposure ICAI Ann.Der
a. Derivatives outstanding as at the balance sheet date (` million)

Particulars Purpose
Forward contract to sell US$
US$ 1.5 (31 March 2011: US$ .75) Hedge of highly probable foreign currency sales
(`72.15 (31 March 2011: `33.78))
Forward contract to buy US$
US$8 (31 March 2011: US$ 8) Hedge of foreign currency loan
(`368 (31 March 2011: `368))
Interest rate swaps
Notional amount US$10 Hedge against exposure to variable interest outflow on loans. Swap to
(31 March 2011: US$10) (`465 pay fixed interest @5% p.a. and receive a variable interest @ LIBOR on
(31 March 2011: `465)) the notional amount.
b. Particulars of unhedged foreign currency exposure as at the reporting date

Particulars Purpose
Import trade payable (Euro) Euro 0.5 million (31 March 2011: nil) (`34.2 million
(31 March 2011: nil))
Export trade receivable (US$) US$ 1.25 million (31 March 2011:US$0.65 million) (`59.38 million
(31 March 2011: `28.93 million))
Foreign current loan (US$) US$2 million (31 March 2011: US$2 million) (`95 million
(31 March 2011: `89 million))
42. Deferral/capitalization of exchange differences AS 11.46A
The Ministry of Corporate Affairs (MCA) has issued the amendment dated 29 December 2011 to AS 11
The Effects of Changes in Foreign Exchange Rates, to allow companies deferral/capitalization of exchange
differences arising on long-term foreign currency monetary items.
In accordance with the amendment/earlier amendment to AS 11, the company has capitalized exchange loss,
arising on long-term foreign currency loan, amounting to `30 million (31 March 2011: `20 million) to the cost
of plant and equipments. The company has also capitalized exchange gain, arising on long-term foreign forward
contract, undertaken to partially hedge the foreign current loan, amounting to `24 million (31 March 2011:
`16 million) to the cost of plant and equipments. The company does not have any other long-term foreign
currency monetary item. Hence, the amount of exchange loss deferred in the “Foreign Currency Monetary Item
Translation Difference Account” is ` nil (31 March 2011: ` nil).
43. Subsequent events AS 4.17
On 14 April 2012, there was a fire in one of the distribution warehouse in Mumbai. The loss of inventory
caused by the fire was limited; however, the company expects that the fire may cause some disturbance in the
operations for approx. 2 months. The management expects that loss of `50 million due to loss of inventory
is fully recoverable from the insurer. The financial statements have not been adjusted to give effect to this
expected loss.
44. Loans and advances in the nature of loans given to subsidiaries and LA – Clause
32
associates and firms/companies in which directors are interested
a. A & Co.
Balance as at 31 March 2012 `8 million (31 March 2011: `9 million)

Maximum amount outstanding during the year `9 million (31 March 2011: `10 million)
The repayment schedule for the above loan is of 10 years.
b. M/s ADC
Balance as at 31 March 2012 `18 million (31 March 2011: `29million)

There is no repayment schedule in respect of this loan. It is repayable on demand.
c. AXD Private Limited
Balance as at 31 March 2012 `33 million (31 March 2011: `39 million)
There is no repayment schedule in respect of this loan. It is repayable on demand.
45. Details of dues to micro and small enterprises as defined under the MSMED Sec 22
MSMED
Act, 2006
31 March 2012 31 March 2011
The principal amount and the interest due thereon remaining unpaid to
any supplier as at the end of each accounting year
Principal amount due to micro and small enterprises 40 12
Interest due on above 2 —
42 12
The amount of interest paid by the buyer in terms of section 16 of the 1 —
MSMED Act 2006 along with the amounts of the payment made to the
supplier beyond the appointed day during each accounting year
The amount of interest due and payable for the period of delay in making — —
payment (which have been paid but beyond the appointed day during the
year) but without adding the interest specified under the MSMED
Act 2006.

31 March 2012 31 March 2011
The amount of interest accrued and remaining unpaid at the end of each 2 —
accounting year
The amount of further interest remaining due and payable even in the — —
succeeding years, until such date when the interest dues as above are
actually paid to the small enterprise for the purpose of disallowance as a
deductible expenditure under section 23 of the MSMED Act 2006
46. Value of imports calculated on CIF basis GIPL.5.viii.a
31 March 2012 31 March 2011

Raw materials 5,882 5,660
Components and spare parts 226 244
Capital goods 14 23
6,122 5,927
47. Expenditure in foreign currency (accrual basis) GIPL.5.viii.b
31 March 2012 31 March 2011

Professional fees 34 26
Interest 29 27
Travelling and conveyance 72 62
135 115
48. Imported and indigenous raw materials, components and spare GIPL.5.viii.c
parts consumed
Year ended 31 March 2012 % of total Value % of total Value
consumption (` millions) consumption (` millions)
31 March 31 March 31 March 31 March
2012 2011 2012 2011
Raw Materials
Imported 13 5,230 13 5,343
Indigenously obtained 87 36,396 87 35,942
100 41,626 100 41,285
Components
Imported 7 237 11 245
Indigenously obtained 93 3,041 89 1,944
100 3,278 100 2,189
Spare parts
Imported 11 116 11 98
Indigenously obtained 89 905 89 825
100 1,021 100 923
49. Net dividend remitted in foreign exchange GIPL.5.viii.d
Year of remittance (ending on) 31 March 2012 31 March 2011

Period to which it relates 1 April 2010 to 1 April 2009 to
31 March 2011 31 March 2010
Number of non-resident shareholders 7 5
Number of equity shares held on which dividend was due 15,000 11,000
Amount remitted (in USD) 635 498
50. Earnings in foreign currency (accrual basis) GIPL.5.viii.e
Year of remittance (ending on) 31 March 2012 31 March 2011

Exports at F.O.B. Value 10,823 7,976
Commission Income 25 21
10,848 7,997
51. Previous year figures

Till the year ended 31 March 2011, the company was using pre-revised Schedule VI to the Companies Act 1956,
for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised
Schedule VI notified under the Companies Act 1956, has become applicable to the company. The company has
reclassified previous year figures to conform to this year’s classification. Except accounting for dividend on
investments in subsidiaries, the adoption of revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However, it significantly impacts presentation and
disclosures made in the financial statements, particularly presentation of balance sheet. The following is a
summary of the effects that revised Schedule VI had on presentation of balance sheet of the company for the
year ended 31 March 2011:
(All amounts in ` million)
Pre-revised Schedule VI Revised Schedule VI

Heading Amount Adjustment Amount Heading Nature of adjustment
Sources of funds Equity and liabilities
Shareholders’ Funds Shareholders’ Funds
Share capital 5,700 — 5,700 Share capital
ESOP outstanding 3,973 (3,973) — ESOP outstanding A/c
Reserves and surplus 7,005 3,973 10,978 disclosed as part of
reserves
16,678 — 16,678
Loan funds Non-current liabilities
(NCL)
Secured loans 5,437
Unsecured loans 1,656
7,093 (2,402) 4,691 Long-term borrowings Refer working note 1
Deferred payment 600 (600) — Refer working note 1
liabilities
1,623 1,623 Trade payables Non-current
component
— 308 308 Other long-term Refer working note 2
liabilities
— 1,843 1,843 Long-term provisions Non-current
component
7,693 772 8,465


Current liabilities and Current liabilities

provisions
— 2,690 2,690 Short-term borrowings Refer working note 1
Sundry creditors 8,165 (1,623) 6,542 Trade payables Non-current
component regrouped
as NCL
Current liabilities 1,545 4 1,549 Other current liabilities Refer working note 3
Provisions 3,601 (1,843) 1,758 Short-term provisions Non-current
component regrouped
as NCL
13,311 (772) 12,539
37,682 — 37,682
Application of funds Assets

Non-current assets
(NCA)
Fixed assets Fixed assets
Net block 7,675 — 7,675 Tangible assets
CWIP including capital 1,176 (164) 1,012 Capital work-in-progress Capital advances
advances disclosed as loan and
advances
Intangible assets 332 — 332 Intangible assets
Intangible assets 19 — 19 Intangible assets under
under development development
Fixed asset held for 353 — 353 Fixed asset held for sale
sale
Investments 808 (181) 627 Non-current investments Current investment
regrouped as CA
Deferred tax assets (net) 351 — 351 Deferred tax assets (net)
— 3,894 3,894 Long-term loans and Non-current
advances component of loans
and advances plus
capital advance
— 757 757 Trade receivables Non-current
component
— 322 322 Other non-current assets Non-current
component of bank
balances, other
debtors and interest
accrued, etc.
10,714 4,628 15,342

Current assets, loans (CA)
and advances
Interest accrued on 21 (21) — Non-current
investments component regrouped
as NCA
— 181 181 Current investments Current component
Inventories 10,772 — 10,772 Inventories
Sundry debtors 8,708 (862) 7,846 Trade receivables Refer working note 4
Cash and bank balances 2,774 (183) 2,591 Cash and bank balances Non-current
component regrouped
as NCA
Other current assets 68 (13) 55 Other current assets Non-current
component of
accrued interest and
unamortized costs
Loans and advances 4,625 (3,730) 895 Short-term loans and Refer working note 5
advances
26,968 (4,628) 22,340
37,682 — 37,682
Working notes
1 Long-term borrowings
Secured and unsecured loans as per pre-revised Schedule VI 7,093
Add: deferred payment liabilities having more than 12 months maturity 600
regrouped as long-term borrowings
Less: loans having original maturity of less than 12 months maturity regrouped (2,690)
as short-terms borrowings.
Less: current portion of long-term borrowings (311)
Less: interest accrued and due on borrowings (1) (2,402)
4,691
2 Other long-term liabilities

Amount as per pre-revised Schedule VI Nil
Add: advance from customers 208
Unearned revenue 100 308
308
3 Other current liabilities

Current liabilities as per pre-revised Schedule VI 1,545
Add: current portion of long-term borrowings 311
Add: interest accrued and due on borrowings 1
Less: non-current component of advance from customers (208)
Less: non-current component of unearned revenue (100) 4
1,549
4 Trade receivables (current)

Sundry debtors as per pre-revised Schedule VI 8,708
Less: non-current component of trade receivables (757)
Less: non-current component of other debtors (82)
Less: current component of other debtors (23) 862
7,846

5 Short-term loans and advances

Loans and advances as per pre-revised Schedule VI 4,625
Less: non-current component
Security deposit (451)
Advances recoverable in cash or kind (3,040)
Loans to employees (28)
Balances with statutory/government authorities (211) 3,730
895
Commentary
The revised Schedule VI does not mandate the company to present any reconciliation explaining the impact of its adoption.
However, the management believes that presentation of such reconciliation will help in clarifying the restatement of
previous year balances into current and non-current classification. Accordingly, the management has elected to present
this reconciliation as additional information.
As per our report of even date

Firm registration number: ABCXYZ For and on behalf of the board of directors of Good Company (India) Limited
ADC Sharma MNT Kumar TSL Singh
per DST Singh [Managing Director] [Director] [Company Secretary]
Partner
Place: Mumbai
Date: 28 April 2012
Appendix 1: Exemptions/relaxations for SMCs
Definition of small and medium-sized company (SMC)

As per the Companies (Accounting Standards) Rules, 2006 (as amended), an SMC is a company that complies with
all the following conditions:
1. Its equity or debt securities are neither listed nor are in the process of listing on any stock exchange, whether
in India or outside India.
2. It is not a bank, financial institution or an insurance company.
3. Its turnover (excluding other income) does not exceed `500 million (50 crore) in the immediately preceding
accounting year.
4. It does not have borrowings (including public deposits) in excess of `100 million (ten crore) at any time during
the immediately preceding accounting year.
5. It is not a holding or subsidiary company of a company which is not a SMC.
Explanation: A company qualifies as an SMC, if the conditions mentioned above are satisfied as at the end of the
relevant accounting period.
Instructions for providing exemptions/relaxation to SMCs

1. An SMC, which does not disclose certain information pursuant to the exemptions or relaxations given, will
disclose (by way of a note in its financial statements) the fact that it is an SMC and has complied with the
accounting standards insofar as they are applicable to an SMC on the following lines:
“The company is a small and medium-sized company (SMC) as defined in the General Instructions in respect of
Accounting Standards notified under the Companies Act, 1956. Accordingly, the company has complied with
the Accounting Standards as applicable to an SMC.”
2. Where a company, being an SMC, has qualified for any exemption or relaxation previously but no longer
qualifies for the relevant exemption or relaxation in the current accounting period, the relevant standards
or requirements become applicable from the current period and the figures for the corresponding period
of the previous accounting period need not be revised merely by reason of its having ceased to be an SMC.
However, the fact that the company was an SMC in the previous period and it had availed of the exemptions or
relaxations available to SMCs should be disclosed in the notes to the financial statements.
3. No company will be qualified for exemption or relaxation available to an SMC until the company remains an
SMC for two consecutive accounting periods.
4. If an SMC opts not to avail exemptions or relaxations available to an SMC in respect of any but not all of the
accounting standards, it will disclose the standard(s) in respect of which it has availed the exemption
or relaxation.
5. If an SMC desires to disclose the information not required to be disclosed pursuant to the exemptions or
relaxations available to the SMCs, it will disclose that information in compliance with the relevant
accounting standard.
6. The SMC may opt for availing certain relaxation and disclosure requirement prescribed in an accounting
standard provided that such a partial relaxation and disclosure will not be permitted to mislead any person
or public.
Exemptions/relaxations available
1. The following accounting standards are not applicable to an SMC since the relevant regulators require
compliance with these standards only by certain non-SMCs:
• AS 21 Consolidated Financial Statements
• AS 23 Accounting for Investments in Associates in Consolidated Financial Statements
• AS 27 Financial Reporting of Interests in Joint Ventures (to the extent of requirements relating to
consolidated financial statements)

2. An SMC is exempt from applying the following accounting standards in entirety. However, it is encouraged to
apply the same.
• AS 3 Cash Flow Statement
• AS 17 Segment Reporting
3. Accounting standards in respect of which relaxations from certain disclosure requirements have been given to
an SMC:
• AS 15 Employee Benefits
An SMC need not comply with the following requirements of AS 15:

i. An SMC is not required to apply the requirements of AS 15 regarding short-term compensated
absences to the extent they deal with accumulating compensated absences which are non-vesting
(i.e., which are not encashable).
ii. An SMC is not required to discount the amounts that fall due more than 12 months after the
reporting date.
iii. Accounting for defined benefit plans has been simplified on the following lines:
a. An SMC should determine and provide for accrued liability by using the projected unit credit
method (PUCM).
b. The discount rate used should be determined by reference to market yields at the reporting date
on government bonds.
An SMC should disclose actuarial assumptions in accordance with AS 15. The other recognition,
measurement, presentation and disclosure requirements of AS 15 concerning defined benefit
plans are not applicable to an SMC.
iv. Accounting for other long-term employee benefits has been simplified on the following lines::
a. An SMC should determine and provide for accrued liability by using the PUCM.
a. The discount rate used should be determined by reference to market yields at the reporting date
on government bonds.
The other recognition and measurement requirements of AS 15 concerning other long-term

employee benefits are not applicable.
• AS 19 Leases
Relaxations from certain disclosure requirements of AS 19 have been provided to SMCs. For example,
in the financial statements of a Lessee which is an SMC, the following disclosures are not required to be
made for finance leases:
• Reconciliation between the total of minimum lease payments at the reporting date and their present
value.
• The total of minimum lease payments at the reporting date, and their present value, for each of the
following periods:
• Not later than one year
• Later than one year and not later than five years
• Later than five years.
• Total of future minimum sublease payments expected to be received under non-cancellable subleases
at the reporting date
• General description of the lessee’s significant leasing arrangements including, but not limited to, the
following:
• The basis on which contingent rent payments are determined.
• The existence and terms of renewal or purchase options and escalation clauses.
• Restrictions imposed by lease arrangements, such as those concerning dividends, additional
debt, and further leasing.
Similar relaxations have been provided in respect of Operating Leases and to the Lessors also.
• AS 20 Earnings Per Share
The disclosure of diluted earnings per share (both including and excluding extraordinary items) is not
mandatory for SMCs. Such companies are however encouraged to make these disclosures.
• AS 28 Impairment of Assets
An SMC has been permitted to make a reasonable estimate of “value in use” for computation of
impairment instead of using the present value technique. Consequently, if an SMC chooses to measure
the “value in use” by not using the present value technique, the relevant provisions of AS 28, such as
discount rate, would not be applicable to such an SMC. Further, such an SMC need not disclose the
information regarding discount rate (s) used.
• AS 29 Provisions, Contingent Liabilities and Contingent Assets
For each class of provision, the following disclosures are not required to be made by an SMC:
i. The carrying amount at the beginning and end of the period
ii. Additional provisions made in the period, including increases to existing provisions
iii. Amounts used (i.e., incurred and charged against the provision) during the period
iv. Unused amounts reversed during the period
v. Description of the nature of the obligation and the expected timing of any resulting outflows
vi. An indication of the uncertainties about those outflows
vii. The amount of any expected reimbursement, stating the amount of any asset that has been
recognized for that expected reimbursement.

Note:
Office
Ahmedabad Kochi NCR
2nd floor, Shivalik Ishaan 9th Floor “ABAD Nucleus” Golf View Corporate
Near. C.N Vidhyalaya NH-49, Maradu PO, Tower – B
Ambawadi, Kochi – 682 304 Near DLF Golf Course,
Ahmedabad – 380 015 Tel: + 91 484 304 4000 Sector 42
Tel: + 91 79 6608 3800 Fax: + 91 484 270 5393 Gurgaon – 122 002
Fax: + 91 79 6608 3900 Tel: + 91 124 464 4000
Kolkata Fax: + 91 124 464 4050
Bengaluru 22, Camac Street
12th & 13th floor 3rd Floor, Block C” 6th floor, HT House
“U B City” Canberra Block Kolkata – 700 016 18-20 Kasturba Gandhi Marg
No.24, Vittal Mallya Road Tel: + 91 33 6615 3400 New Delhi – 110 001
Bangaluru – 560 001 Fax: + 91 33 2281 7750 Tel: + 91 11 4363 3000
Tel: + 91 80 4027 5000 Fax: + 91 11 4363 3200
+ 91 80 6727 5000 Mumbai
Fax: + 91 80 2210 6000 (12th floor) 6th Floor Express Towers 4th & 5th Floor, Plot No 2B,
Fax: + 91 80 2224 0695 (13th floor) Nariman Point Tower 2, Sector 126,
Mumbai – 400 021 Noida – 201 304
Chandigarh Tel: + 91 22 6192 0000 Gautam Budh Nagar, U.P. India
1st Floor Fax: + 91 22 6192 2000 Tel: + 91 120 671 7000
SCO: 166-167 Fax: + 91 120 671 7171
Sector 9-C, Madhya Marg 14th Floor, The Ruby
Chandigarh – 160 009 29 Senapati Bapat Marg Pune
Tel: + 91 172 671 7800 Dadar (west) C—401, 4th floor
Fax: + 91 172 671 7888 Mumbai – 400 028 Panchshil Tech Park
Tel + 91 22 6192 0000 Yerwada (Near Don Bosco School)
Chennai Fax + 91 22 6192 1000 Pune – 411 006
Tidel Park, Tel: + 91 20 6603 6000
6th & 7th Floor 5th Floor Block B-2, Fax: + 91 20 6601 5900
A Block (Module 601,701-702) Nirlon Knowledge Park
No.4, Rajiv Gandhi Salai Off. Western Express Highway
Taramani Goregaon (E)
Chennai – 600 113 Mumbai – 400 063
Tel: + 91 44 6654 8100 Tel: + 91 22 6192 0000
Fax: + 91 44 2254 0120 Fax: + 91 22 6192 3000
Hyderabad
Oval Office
18, iLabs Centre,
Hitech City, Madhapur,
Hyderabad – 500 081
Tel: + 91 40 6736 2000
Fax: + 91 40 6736 2200
Artwork by: JG
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Good Company (India) Limited

Based on accounting standards and the

Good Company (India) Limited 1

AS Accounting standards or notified AS

Good Company (India) Limited 3

Applicable Indian GAAP

Good Company (India) Limited 5

Report on the financial statements

Management’s responsibility for the financial statements

Report on other legal and regulatory requirements

2. As required by section 227(3) of the Act, we report that:

For Professional Accountants & Associates

per DST Singh

Good Company (India) Limited 7

For Professional Accountants & Associates

per DST Singh

Good Company (India) Limited 9

The accompanying notes are an integral part of the financial statements.

per DST Singh ADC Sharma MNT Kumar TSL Singh

Good Company (India) Limited 11

Discontinuing operations 28 AS 24.32

Summary of significant accounting policies 2.1

per DST Singh ADC Sharma MNT Kumar TSL Singh

Good Company (India) Limited 13

Cash flows from investing activities AS 3.8

Cash flows from financing activities AS 3.8

Net increase/(decrease) in cash and cash equivalents (A + B + C) (543) 1,742

Components of cash and cash equivalents AS 3.42

Summary of significant accounting policies 2.1

per DST Singh ADC Sharma MNT Kumar TSL Singh

Good Company (India) Limited 15

2. Basis of preparation CA 211

2.1 Summary of significant accounting policies AS 1.24

a. Change in accounting policy

Dividend on investment in subsidiary companies

Accounting for amalgamation in the nature of purchase

c. Tangible fixed assets

Good Company (India) Limited 17

Research and development costs

• Its intention to complete the asset

• Its ability to use or sell the asset

• How the asset will generate future economic benefits

Where the company is the lessor

Good Company (India) Limited 19

i. Government grants and subsidies

Income from services

Good Company (India) Limited 21

m. Foreign currency translation

Initial recognition AS 11.9

Exchange differences AS 11.15

n. Retirement and other employee benefits

Good Company (India) Limited 23

p. Employee stock compensation cost

Allocation of common costs

Segment accounting policies

r. Earnings Per Share

Good Company (India) Limited 25

u. Cash and cash equivalents

All other amalgamations are in the nature of purchase. AS 14.12

Good Company (India) Limited 27

Issued, subscribed and fully paid-up shares (No. millions)

31 March 2012 31 March 2011

b. Terms/rights attached to equity shares