From Published Accounts

Section A:

Disclosures
regarding Consolidated Financial Statements (CFS) prepared (as per AS 23) for
first time to include results of an Associate

Bajaj
Electricals Ltd (31-3-2016)

From
Notes to CFS

Summary of significant
accounting policies followed by the Company

The consolidated financial statements include
results of the associate of Bajaj Electricals Limited (BEL), consolidated in
accordance with Accounting Standard 23 ‘Accounting for Investment in Associates
in Consolidated Financial Statements’. 
This being the first year Consolidated Financial Statements are drawn
up, the previous year comparative numbers have not been presented and
accordingly no consolidated cash flow statement has been prepared.

For the purpose of Section 2(6) of the Companies
Act, 2013, “associate company”, in relation to another company, means a company
in which that other company has a significant influence, but which is not a
subsidiary company of the company having such influence and includes a joint
venture company. Explanation – for the purposes of this clause, “significant
influence” means control of at least twenty per cent of total share capital
and/or the ability to significantly influence the operational and financial
policies of the company but not control them. 
The holding of Bajaj Electricals Limited in Starlite Lighting Limited
(Starlite) is less than 20%. The Starlite Lighting Limited is consolidated as
an Associate by virtue of the formers ability to influence the operational and
financial policies whereby the share of the parent in the associate’s net worth
and profit has been picked up and accounted for under an independent line item
in the “General Reserve”, “Investment” and “Statement of Profit and Loss”.  The excess of cost of Investment in the
associate and the share of net worth of the associate on the day of investing
is reflected as “Goodwill”.

In all other aspects these financial statements
have been prepared in accordance with the other generally accepted accounting
principles in India under the historical cost convention on accrual basis,
except for certain tangible assets which are being carried at revalued amounts.
Pursuant to Section 133 of the Companies Act, 2013 read with Rules 7 of
Companies (Accounts) Rules, 2014, till the standards of accounting or any
addendum thereto are prescribed by Central Government in consultation and
recommendation of the National Financial Reporting Authority, the existing
Accounting Standards notified under the Companies Act, 1956 shall continue to
apply.  Consequently, these financial statements
have been prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) of the Companies Act, 1956 [Companies
(Accounting Standards) Rules, 2006, as amended] and other relevant provisions
of the Companies Act, 2013.

All assets and liabilities have been classified as
current or non-current as per the “Company’s normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013.  Based on the nature of products and the time
between the acquisition of assets for processing and their realisation in cash
and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current or non-current classification of assets and
liabilities.

Notes to these consolidated financial statements
are intended to serve as a means of informative disclosure and a guide to
better understanding of the consolidated position of the companies.  Recognising this purpose, the Ministry of
Corporate Affairs vide its General Circular No. 39/2014 dated 14 October 2014
has clarified that only those note which are relevant to understanding the Consolidated
Financial Statements should be disclosed and not merely repeating the Notes
disclosed in the standalone financial statements to which these consolidated
financial statements are attached to.

Accordingly:

1]  The Company has disclosed only such notes from the
individual financial statements, which fairly present the needed disclosures.

2]  The accounting policies of the parent also broadly
represent the accounting policies of the consolidated entity and hence are best
viewed in its independent financial statements, Note 2.  However the accounting of derivative
instruments on the basis of the principles of hedge accounting specified in
AS-30 followed by the Associate is in contrast to accounting for the same by
parent (BEL) as a fair value to Profit and Loss account, which has been
adjusted to be consistent with the accounting policies followed by the Company
(BEL).  Other accounting policies
followed by the associate consolidated herein have been reviewed and no further
adjustments are considered necessary.

3]  
Note Nos.2, 4, 5, 6, 7, 8, 9, 10, 11, 13, 14. 16,
17, 18, 19, 20, 21, 22, 23, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 represent
the numbers and required disclosures of the Parent and accordingly are best
viewed in BEL’s independent financial statements.

GENESYS INTERNATIONAL
CORPORATION LTD
(31-3-2016)

From
Notes to CFS

Summary of significant
accounting policies followed by the Company

The
consolidated financial statements include results of the associates of Genesys
International Corporation Limited, consolidated in accordance with Accounting
Standard 23 ‘Accounting for Investment in Associates in Consolidated Financial
Statements’, as below:

For
the purpose of Section 2(6) of the Companies Act, 2013, “associate company”, in
relation to another company, means a company in which that other company has a
significant influence, but which is not a subsidiary company of the company
having such influence and includes a joint venture company. Explanation – For
the purposes of this clause, “significant influence” means control of at least
twenty per cent of total share capital and/or the ability to significantly
influence the operational and financial policies of the company but not control
them. The equity holding of Genesys International Corporation Limited in A.N.
Virtual World Tech Limited is 45.01%. The A.N. Virtual World Tech Limited is
consolidated as an Associate by virtue of the formers ability to influence the
operational and financial policies whereby the share of the parent in the
associate’s net worth and profit / loss has been picked up and accounted for
under an independent line item in the “General Reserve”,
“Investment” and “Statement of Profit and Loss”. The excess
of cost of Investment in the associate and the share of net worth of the
associate on the day of investing is reflected as “Goodwill”.

In
all other aspects these financial statements have been prepared in accordance
with the other generally accepted accounting principles in India under the
historical cost convention on accrual basis. Pursuant to Section 133 of the
Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014, till
the standards of accounting or any addendum thereto are prescribed by Central
Government in consultation and recommendation of the National Financial
Reporting Authority, the existing Accounting Standards notified under the
Companies Act, 1956 shall continue to apply. Consequently, these financial
statements have been prepared to comply in all material aspects with the
accounting standards notified under Section 211(3C) of the Companies Act, 1956
[Companies (Accounting Standards) Rules, 2006, as amended] and other relevant
provisions of the Companies Act, 2013.

All
assets and liabilities have been classified as current or non-current as per
the Company’s normal operating cycle and other criteria set out in the Schedule
III to the Companies Act, 2013. Based on the nature of products and the time
between the acquisition of assets for processing and their realisation in cash
and cash equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current or non-current classification of assets and
liabilities.

Notes
to these consolidated financial statements are intended to serve as a means of
informative disclosure and a guide to better understanding of the consolidated
position of the companies. Recognising this purpose, the Ministry of Corporate
Affairs vide its General Circular No. 39/2014 dated 14 October 2014 has
clarified that only those note which are relevant to understanding the
Consolidated Financial Statements should be disclosed and not merely repeating
the Notes disclosed in the standalone financial statements to which these
consolidated financial statements are attached to.

Accordingly:

1] 
The Company has disclosed only such notes which fairly present the
needed disclosures.

2] The accounting policies of the
parent also broadly represent the accounting policies of the consolidated
entity and hence are best viewed in its independent financial statements, Note
2. However, the useful life of intangible assets for the purpose of its
depreciation is considered as 20 years by the associate, which is in contrast
to the accounting policy of the parent.

3]  Note Nos.
2,3, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25,
26, 27, 28, 29, 30, 31, 32, 34, 35, 36, 37, 38, 39, 40, 41 represent the
numbers and required disclosures of the Parent and accordingly are best viewed
in Genesys International Corporation Limited independent financial statements.