1. General Information

Fiem Industries Limited (“The Company”) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The address of its registered office is D-34, DSIDC Packaging Complex, Kirti Nagar, New Delhi-110015. Its shares are listed on National Stock Exchange and Bombay Stock Exchange in India. The Company is in the business of manufacturing and supply of auto components comprising of automotive lighting & signalling equipments, rear-view mirror, prismatic mirror, plastic moulded parts and sheet metal components for motorised vehicles, and LED luminaries comprising of indoor and outdoor lighting, display panels and integrated passengers information system.

INDIAN RUPEE TERM LOANS FROM BANKS INCLUDE

a) From Citibank :- Loan outstanding as at 31.03.18 - NIL ( 31.03.17- Nil, 01.04.16 - RS.9733 Lacs ) had tenor of 5 years witRs.16 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest was payable on monthly basis . The loan carried fixed interest rate of 12% p.a. and was secured against exclusive charge on all movable assets procured out of the term loan. This loan has been fully repaid during the year fy 16-17

b) From State bank of Patiala :- Loan outstanding as on 31.03.18 - NIL ( 31.03.17- H NIL , 01.04.16- RS.400 lacs-). The loan was for 7 years witRs.24 quarterly repayment beginning from the end of 15 months from the drawdown. Interest was monthly payable. The interest rate was 10.30%.p.a. The Loan was Secured against First Pari Passu charge alongwith Axis Bank and HSBC over movable and Immovable fixed assets of Rai Unit ( Present and future) including equitable mortgage of Factory Land and Building at Rai, Sonepat and First charge on movable fixed assets of Hosur unit- III (tamilnadu) and First Charge on movable fixed assets of Mysore unit -IV Karnataka and First charge on entire fixed assets of Unit- VI Nalagarh Unit. This loan has been fully repaid during the year 16-17

c) From Axis Bank :- Loan outstanding as on 31.03.18- NIL, (31.03.17 RS.508 Lacs - 0,1.04.16- RS.1016 lacs) :- The loan was for 7 years and had quarterly repayment beginning after moratorium period of 12 months from the drawdown. Interest is monthly payable. The interest rate was 10.10% p.a.. The Loan was secured against First Pari Passu charge with State Bank of Patiala and HSBC bank on the movable and immovable fixed assets of Rai Unit including equitable mortgage of Factory Land and Building of Rai Unit and secured against First Pari Passu Charge on movable fixed assets of kundli unit and Unit -2 at Hosur with Citibank FCNR-II term loan. The loan has been fully repaid during the FY 17-18

d) HSBC Bank:- Loan -1 Outstanding as on 31.03.18- NIL ( 31.03.17 RS.312.50 lacs , 01.04.16 - RS.562.50 lacs ) The Loan was for 5 year and had quarterly equal repayment beginning after moratorium period of 1 year. Interest was monthly payable. The loan carried fixed interest rate of 10% p.a.. The Loan was Secured against First Pari Passu charge with Axis Bank on the movable and immovable fixed assets of Rai Unit including equitable mortgage of Factory Land and Building of Rai Unit. The loan has been fully repaid during FY 17-18

e) HSBC Bank:- Loan -2 Outstanding as on 31.03.18 is RS.1400 lacs, (31.03.17 RS.1800 lacs , 01.04.16- RS.2000 lacs ) The Loan is for 6 year and has 20 quarterly equal repayment beginning after moratorium period of 15 months . Interest is monthly payable. The loan carries fixed interest rate of 9.50% p.a.. The Loan is Secured against First Pari-Passu charge with HSBC -Mauritius and with CITIBANK FCNR TERM LOAN -3 by way of equitable mortgage on land and building and hypothecation of Plant and machinery at project in Gujarat( Survey no 151-153, village karsanpur, Taluka mandal, Distt Ahmedabad) and secured against first pari passu charge by way of equitable mortgage on Land and Building and hypothecation of Plant and Machinery at Tapukara Rajasthan along with ,HSBC Mauritius, CITIBANK FCNR TERM LOAN -3 and STANDARD CHARTERD BANK ECB-3 LOAN

FOREIGN CURRENCY TERM LOAN FROM BANKS INCLUDE

a) From Citibank :- FCNR Term Loan -1 outstanding as on 31.03.18 -H NIL ( 31.03.17 RS.304.69 lacs, 01.04.16 RS.500 lacs) had tenor of 5 years witRs.16 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest was payable on monthly basis. The loan carried fully hedged interest cost of 10.60% p.a. The Loan was secured against exclusive charge on fixed assets financed out of the term loan and first charge of the movable fixed assets of Unit-V situated at Hosur, tamilnadu. The loan has been fully repaid during the FY 17-18

b) From Citibank :- FCNR Term Loan -2 outstanding as on 31.03.18 - RS.920.93 Lacs, as on 31.03.17- RS.1442.61 lacs ( as on 1.04.16 RS.1875 lacs ) has tenor of 5 years witRs.16 equal quarterly repayments beginning from the end of 12 months from drawdown. Interest is payable on monthly basis. The loan carries fully hedged interest cost of 10.25% p.a. The Loan is secured against exclusive charge on fixed assets financed out of the term loan and is secured against First pari-passu charge on the fixed assets of Kundli Unit-1 and Hosur Unit-2 with working capital Lenders viz. Citibank, Standard Chartered Bank, HDFC bank and Indusind Bank Guarantee limit and term lender Axis Bank. The Loan is also secured against exclusive charge on fixed assets financed out of the term loan and first charge of the movable fixed assets of Unit-V situated at Hosur, tamilnadu.

c) From Citibank :- FCNR Term Loan -3 outstanding as on 31.03.18- RS.2709.74 lacs , as on 31.03.17- RS.3376.47 lacs ( as on 1.04.16 - H NIL) has tenor of 6 years witRs.20 equal quarterly repayments beginning from the end of 15 months from drawdown. Interest is payable on monthly basis. The loan carries fully hedged interest cost of 9% p.a. The Loan is secured against First pari-passu charge on the fixed assets of the company including land and building and plant and machinery at Rajasthan unit with other lender viz. HSBC India, HSBC Mauritius and SCB 5.50 Million USD ECB LOAN and is secured against first pari-passu charge on all the fixed assets including land and building and plant and machinery of Gujarat unit shared with other lenders viz. HSBC India, HSBC Mauritius .

d) From Standard Chartered Bank ECB -2 :- Loan outstanding as on 31.03.18- NIL, 31.03.17 - NIL ( 01.04.16 - RS.276.19 lacs ). The loan was for 5 years witRs.16 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest was quarterly payable. The loan carried fully hedged interest cost of 8.50% p.a. The Loan was secured against Equitable mortgage on land and building and Pant and machinery at Tapukara, Rajasthan Unit with HSBC India and HSBC Mauritius. This loan has been fully repaid during the year

e) From Standard Chartered Bank ECB -3 for 5.50 Million USD :- Loan outstanding as on 31.03.18- RS.3235.94 lacs, as on 31.03.17 - RS.3566.12 lacs ( as on 1.04.16 HNIL ). The loan is for 6 years witRs.16 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest is quarterly payable. The loan carries fully hedged interest cost of 8.90% p.a. The Loan is secured on first pari passu charge basis with HSBC INDIA, HSBC Mauritius and CITIBNK FCNR TERM LOAN-3 on all assets of Tapukara plant ( Present and future)

f) From HSBC Mauritius ECB :- Loan outstanding as on 31.03.18- RS.3496.13 lacs, as on 31.03.17- RS.4457.65 lacs , as on 1.04.16 RS.4927.50 lacs . The loan is for 6 years witRs.20 equal quarterly repayment beginning from the end of 15 months from the drawdown. Interest is quarterly payable. The loan carries fully hedged interest cost of 8.99% p.a. The Loan is secured against Equitable Mortgage with CITIBANK FCNR TERM LOAN-3 (1st Pari Passu with HSBC, India) on Land and Building and Hypothecation of Plant and Machinery ( 1st pari- Passu with HSBC, India) located at Ahmedabad, Gujarat and secured against equitable mortgage on Land and Building with ( 1st pari- Passu with HSBC, India) and hypothecation of Plant and Machinery ( 1st pari- Passu with HSBC, India) along with CITIBANK FCNR TERM LOAN -3 AND STANDARD CHARTERED BANK ECB-3 at Tapukara Rajasthan

VEHICLE LOANS FROM BANKS AND OTHERS

Vehicle loan from banks and others outstanding as on 31.03.18- 396.97 lacs, as on 31.03.17 RS.340.03 lacs (as on 01.04.16- RS.518.56 lacs) secured against hypothecation of the respective vehicles acquired out of proceeds thereof. The Loans carries interest rate between 8.50% p.a.to 11.00% p.a.

Indian Rupee Loan includes

a) From Citibank NA :- Loan outstanding as at 31.03.18- RS.1885.68 lacs, as on 31.03.17 RS.2220.20 lacs (1.04.16 - RS.104.43 lacs) Interest is payable with monthly rest on the last date of each month in each year or at such other rest as determined by the bank. The rate of interest is based on relevant circumstances, including market conditions which currently is 9.5% p.a.. The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Standard Chartered Bank Cash Credit Loan, HDFC Bank Cash Credit Loan , Indusind Bank Bank Guarantee Limit and secured against First Pari Passu charge on all the fixed assets of the company (excluding assets specifically purchased out of the term loans from Citibank and other term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Standard Chartered Bank, HDFC Bank, Indusind Bank and Citibank FCNR-2 Loan.

b) From Standard Chartered Bank :- Loan outstanding as at 31.03.18- RS.1275.75 lacs, as on 31.03.17 is RS.2717.80 lacs (01.04.16 RS.728.01 lacs) Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time which currently is 9.50% p.a.. The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, HDFC Bank Cash Credit Loan , Indusind bank Bank Guarantee Limit and secured against First Pari Passu Charge on present and future moveable fixed assets of the company with Citibank , HDFC Bank, Indusind Bank (excluding assets specifically purchased out of term loan from term loan lenders) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, HDFC Bank, Indusind bank and Citibank FCNR-2 Loan.

c) From HDFC BANK :- Loan outstanding as at 31.03.18- RS.545.39 lacs , as on 31.03.17 RS.1477.16 lacs ( as on 01.04.16 - RS.997.38 lacs ) Interest is monthly payable. Interest is payable at base rate plus margin basis which may be agreed with bank from time to time which currently is 9.00% p.a.. The loan is secured against First Pari Passu charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, Standard Chartered Bank Cash Credit Loan, Indusind bank Bank Guarantee Limit and secured against First Pari Passu Charge on all fixed assets of the company (excluding assets specifically purchased out of term loan from term loan lenders ) with Citibank, Standard Chartered Bank, Indusind Bank including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, Standard Chartered Bank, Indusind Bank and Citibank FCNR-2 Loan.

d) Indusind Bank Bank Guarantee Limit:- The loan is secured against First Pari Passu Charge on all present and future receivables, stocks/Inventories with Citibank Cash Credit Loan, Standard Chartered Bank Cash Credit Loan, HDFC bank Cash Credit Loan Limit and secured against First Pari Passu Charge on present and future moveable fixed assets of the company with Citibank, Standard Chartered Bank, HDFC bank (excluding assets specifically purchased out of term loan from term loan lenders ) including equitable mortgage charge on first pari passu basis on Land and Building situated at 32nd Milestone, GT Road, Kundli,Haryana and 219/2B,Thally Road Hosur,Tamilnadu with Citibank, Standard Chartered Bank, HDFC bank and Citibank FCNR-2 Loan. Bank Guarantee charges is 0.60% p.a. plus applicable tax.

Note :- A fire incident happened on 25.01.2018 around noon in one block of Unit-5, situated at Kelamanglam Road, Achettipalli Post, Hosur 635110,Tamilnadu. The incident resulted in substantial damage to plant and machinery and Inventory etc. in the said block. These assets were adequately insured with reinstatement clause and a claim has been made with the insurance company. Special/urgent actions to restart supplies to the customer post fire incident has temporarily resulted into additional costs during the year have been included in “Exceptional Items” above. The company has estimated net gain of RS.53724 lac in form of reversal of depreciation charged in earlier years recoverable from the insurance company.

2. SEGMENT REPORTING

(a) Identification of Segments:

Primary-Business Segments

The Company has identified two reportable business segments viz. Automotive and LED Luminaries Segment on the basis of the nature of products, the risk and return profile of individual business and the internal business reporting systems. The products included in each of the reported business segments are as follows:-

(i) Automotive comprising of automotive lighting & signalling equipment, rear view mirror, prismatic mirror, plastic moulded parts, and sheet metal components for motorised vehicles and others parts for automotive.

(ii) LED Luminaries Segment comprising of led luminaries viz. indoor and outdoor lighting, display panel, LED integrated passenger information system etc.

b) Revenue and expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and expenses which relates to enterprise as a whole and not allocable to a segment on reasonable basis have been disclosed as “unallocated”

(c) Segment assets and segment liabilities represent assets and liabilities in respective segments. Income tax related assets/liabilities, borrowings, investment in mutual funds, deferred tax liabilities (Net) and other assets and liabilities that can not be allocated to a segment on reasonable basis have been disclosed as “Unallocated”.

(ii) Secondary-Geographical Segments:-

The analysis of geographical segments is based on geographical location of the customers

The following is the distribution of Company’s revenue by geographical market, regardless of where the goods were produced

1. Sales Revenue by geographical market outside India has been re-stated by excluding indirect exports.

2. The segment trade receivables have been re-stated by excluding trade receivables on account of indirect exports.

3. The Company has common assets for producing goods for domestic market and overseas market. Hence, separate figures for fixed assets have not be furnished. 46 RELATED PARTY DISCLOSURES UNDER IND AS 24

Name of Related Parties, Transactions and Balances at Reporting date are as follows

Name of Related Party

(i) Key Management Personnel

Jagjeevan Kumar Jain Chairman and Managing Director

Seema Jain Whole Time Director

Aanchal Jain Whole Time Director

Rahul Jain Whole Time Director

JSS Rao Whole Time Director

Kashi Ram Yadav Whole Time Director

Ashok Kumar Sharma Independent Director (we.f. September 10, 2016)

Iqbal Singh Independent Director

Jawahar Thakur Independent Director (we.f. November 12, 2016)

Mohan Bir Sahni Independent Director

Subodh Kumar Jain Independent Director

Vinod Kumar Malhotra Independent Director

Abhishek Jain Independent Director (upto September 8, 2016)

Charoen Sachamuneewongse Independent Director (upto October 20, 2016)

OP Gupta Chief Financial Officer

Arvind Kumar Chauhan Company Secretary

(ii) Related Parties Controlled by Key Management personnel

Fiem Auto Private Limited Entity Controlled by Key Management Personnel

Jagjeevan Kumar Jain (HUF) Entity Controlled by Key Management Personnel

Fiem Auto & Electrical Industries Entity Controlled by Key Management Personnel

Fiem Foundation Entity Controlled by Key Management Personnel

(iii) Subsidiary Company

Fiem Industries Japan Co., Ltd 100% Subsidiary Company incorporated in Japan

Fiem (Thai) Design & Technology Co., Ltd 100% Subsidiary Company incorporated in Thailand

(iv) Joint Venture

Centro Ricerche Fiem Horustech SRL JV incorporated in Italy, 50% ownership interest held by the company

Fiem Kyowa (HK) Mould Company Ltd JV incorporated in Hong Kong, 50% ownership interest held by the company

Defined Benefit Plans (a) Gratuity

The Company has defined benefit gratuity plan for its employees, which requires contributions to be made to a separately administered fund. It is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The scheme is funded with Exide Life Insurance Company Limited in the form of qualifying insurance policy.

(b) Leave Encashment

The Present value obligation of Leave Encashment is determined based on actuarial valuation using projected unit credit method.

Disclosure requirement as per Indian Accounting Standard on Employee Benefits-Ind AS (19)-As per actuarial valuation as on 31.03.2018 are as follows:

(a) The discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated terms of the obligations.

(b) Salary escalation rate: The estimates of future salary increases considered taking into the account the inflation, seniority, promotion and other relevant factors.

(c) Expected return on assets is expected return on plan assets over the accounting period, based on an assumed rete of return.

(d) Attrition rate is employee turnover rate based on the Company’s past and expected employee turnover.

(e) Disclosure related to indication of effect of the defined benefit plan on the entity’s future cash flows:

(f) Weighted Average duration of defined benefit obligation for gratuity and earned leave: 19.59 years

(g) Sensitivity analysis:

Sensitivity analysis indicates the influence of a reasonable change in principal assumptions, while keeping other things constant, on the outcome of the present value of Defined Benefit Obligation. In reality, the plan is subject to multiple external experience items which may move the Defined Benefit Obligation in similar or opposite directions, while the Plan’s sensitivity to such changes can vary over time.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. In addition, the Company internally reviews valuation, including independent price validation for certain instruments.

Fair value of financial assets and liabilities is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique.

The following methods and assumptions were used to estimate fair value:

(a) Fair value of short term financial assets and liabilities significantly approximate their carrying amounts largely due to the short term maturities of these instruments.

(b) Fair value of quoted mutual funds is based on the net assets value at the reporting date.

3. FINANCIAL INSTRUMENTS AND RISK REVIEW

Financial Risk Management Framework

The Company’s financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company’s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables.

The Company is exposed to Market risk, Credit risk and Liquidity risk. The Board of Directors (‘Board’) oversee the management of these financial risks through its Risk Management Committee. The Risk Management Policy of the Company formulated by the Risk Management Committee and approved by the Board, states the Company’s approach to address uncertainties in its endeavor to achieve its stated and implicit objectives. It prescribes the roles and responsibilities of the Company’s management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate financial risks in order to minimize potential adverse effects on the Company’s financial performance.

i) Capital Management

The Company’s capital management objectives are:

The Board policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors monitors the return on capital employed.

The Company manages capital risk by maintaining sound/optimal capital structure through monitoring of financial ratios, such as debt-to-equity ratio and net borrowings-to-equity ratio on a monthly basis and implements capital structure improvement plan when necessary.

The Company uses debt ratio as a capital management index and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on the amounts stated in the financial statements.

*Net debt includes Non Current borrowing, Current borrowing, Current maturities of non current borrowing and interest accrued on borrowings net-off derivative liability on non-current borrowings.

ii) Credit Risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, other balances with banks, loans and other receivables.

The Company’s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was RS.14519.95 lakhs, RS.12938.15 lakhs and RS.12728.75 lakhs as of 31st March, 2018, 31st March, 2017 and 1st April, 2016 respectively, being the total of the carrying amount of balances with trade receivables Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date of financial statement whether a financial asset or a group of financial assets is impaired. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

Company’s exposure to customers is diversified and some customers contribute more than 10% of outstanding accounts receivable which forms 57% of total receivables as of 31st March, 2018 (49% as at 31st March, 2017 and 69% as at of 1st April, 2016), however there was no default on account of those customers in the past.

The Company performs credit assessment for customers on an annual basis and recognizes credit risk, on the basis lifetime expected losses and where receivables are due for more than six months.

iii) Liquidity Risk

a) Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

b) Maturities of financial liabilities

The following tables detail the Company’s remaining contractual maturity for its financial liabilities with agreed repayment periods. The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

c) Maturities of financial assets

The following table details the Company’s expected maturity for financial assets. The table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on such assets.

iv) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company’s exposure to market risk is primarily on account of foreign currency exchange rate risk.

a) Foreign Currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in US Dollar, Euro, Great Britain Pound and Japanese Yen against the respective functional currencies of the Company. The Company The Company, as per its risk management policy, uses derivative instruments primarily to hedge foreign exchange.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in line with its risk management policies. The information on derivative instruments is as follows.

Foreign Currency Sensitivity

The following table demonstrates the sensitivity to a reasonable possible change in USD, EURO and JPY exchange rates, with all other variables held constant, the impact on the Company’s profit before tax due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all other currencies is not material. The sensitivity analysis is prepared on the net unhedged exposure of the Company as at the reporting date. 10% represents management assessment of reasonably possible change in foreign exchange rate.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long term debt obligations with floating interest rates.

Interest rate sensitivity

The sensitivity analysis below have been determined based on exposure to interest rate. For floating rate liabilities, analysis is prepared assuming the amount of liability outstanding at the end of the reporting period was outstanding for the whole year. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

4. CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

As required by section 135 of the Companies Act, 2013, CSR committee has been formed by the company. The company has formed Fiem Foundation Trust as on dated 2nd March, 2015 with an object to undertake CSR projects, programs and activities in India as listed under Schedule VII of the Act. The company has no outstanding commitment as on 31st March, 2018 towards corporate social responsibility projects. The break-up of expenditure/contribution towards under corporate social responsibility as under-

5. JOINT VENTURE COMPANY

1. Centro Ricerche Fiem Horustech SRL

Description of Interest Jointly Controlled Entity

Country of Incorporation Italy

Proportion of Ownership Interest as at MarcRs.31, 2018 50%

2. Fiem Kyowa (HK) Mould Company Ltd

Description of Interest Jointly Controlled Entity

Country of Incorporation Hong Kong

Proportion of Ownership Interest as at MarcRs.31, 2018 50%

In respect of Jointly control entity, the Company’s share of Assets, Liabilities, Income & Expenses are as follows:

6. UTILIZATION OF QIP PROCEEDS

During the financial year 2016-17, on dated 20th September, 2016, the Company had issued and allotted 11,97,604 equity shares of RS.10 each at a premium of RS.992 per equity share by way of Qualified Institution Placement (QIP).

7. PROPOSED DIVIDEND

The Company has recommended the final dividend of RS.9 per equity share (90% of nominal value of RS.10 per share) for the financial year ended 31st March, 2018 for amounting to RS.1,184,38 lacs on equity share capital of the company. The proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting (AGM)

8. FIRE AT HOSUR-UNIT-V PLANT

There was a major fire on 25th January, 2018 at unit-5 in Hosur plant (Tamilnadu). The loss incurred by the Company is adequately covered under insurance claim. The written down value of property, plant and equipment and costs of inventories destroyed/damaged have been appropriately adjusted in the books of accounts. The break-up of assets damaged (i.e WDV ) and other expenses dut to fire as follows.

The Company has filed a claim with with its insurers and the claim is expected to settle at a total amount of RS.260718 Lakhs (based on reinstatement costs of the assets). The same has been disclosed as an ‘insurance claim receivables’ in the balance sheet.

9. Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/disclosure.