From published accounts

• Disclosure as per AS 29 SKF India Ltd (year ended 31st December 2013)

From Notes to Financial Statements
Additional disclosures relating to other provisions (as per Accounting Standard 29)

(i) Provision for disputed statutory and other matters: This represents provisions made for probable liabilities/claims arising out of pending disputes/litigations with various regulatory authorities and those arising out of commercial transactions with vendors/others. Above provisions are affected by numerous uncertainties and the management has taken all the efforts to make a best estimate. The timing of outflow of resources will depend upon the timing of decision of cases.

(ii) Provision for warranties: A provision is estimated for expected warranty claims in respect of products sold during the year on the basis of a technical evaluation and past experience regarding failure trends of products and costs of rectification or replacement. The timing and amount of cash flows that will arise from these matters will be determined at the time of receipt of claims.

(iii)The provision for other obligations is on account of coupons given on products sold by the Company and other retailers and distributors incentive schemes. The provision for coupons is based on the historic data/estimated figures. The timing and amount of the cash flows that will arise will be determined at the time of receipt of claims from customers.

• Disclosure of foreign currency exposures and contracts
Nestle India Ltd. (year ended 31st December 2013)

From Notes to Financial Statements

(a) Category wise quantitative data*

(b) All the forward contracts are for hedging foreign exchange exposures relating to the underlying transactions and firm commitments or highly probable forecast transactions.

(c) Foreign currency exposures remaining unhedged at the year-end*

• Disclosure under AS 18 regarding dependence on Related Party Transactions

Note below AS 18 disclosures

The Company generates a large percentage of its sales and profits from its business with the Honeywell group (Honeywell), its major shareholder. Sales to Honeywell accounted for approximately 30% and 35% of our total net sales in the fiscal years 2013 and 2012 respectively. The Company’s ability to maintain or grow its business with Honeywell depends upon a number of performance factors. However, the Company cannot be assured that its level of sales and profits associated with its relationship with Honeywell will continue. Honeywell-specific business consideration (independent of its shareholding in the Company), including changes in Honeywell’s strategies regarding utilisation of alternate opportunities available to it to source products and services currently provided by the Company (including from alternate sources which Honeywell may acquire or develop within its own group), may also reduce the level and/or mix of Honeywell’s business with the Company.