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Notes to Accounts of De Nora India Ltd.

Dec 31, 2014

1 Background

De Nora India Limited (''the Company'' or ''De Nora'') was incorporated in June 1989 as Titanor Components Limited (Titanor'') and commenced business in November 1989. The Company''s name was changed from Titanor to De Nora on 27 June 2007. The Company has its manufacturing facilities at Kundaim, Goa and is involved in the business of manufacturing and servicing of Electrolytic products.

a. Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs 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 December 2014, the amount of per share dividend recognized as distribution to equity shareholders was Rs 1.5 per share (previous year: Rs 4 per share). The dividend appropriation for the year ended December 2014 amounted to Rs 7,962,951 (previous year: Rs 21,234,536) plus corporate dividend tax of Rs 1,353,304 (previous year: Rs 3,609,871)

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.

b. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date Pursuant to the Shareholders'' approval for buyback of equity shares under section 77A of the Companies Act, 1956, the Company has bought back 135,451 during the year ended 31 December 2012, through open market transactions for an aggregate amount of Rs 13,432,195. The said shares have been subsequently extinguished. Capital redemption reserve has been created by transfer of Rs 1,354,510 during the year ended 31 December 2012. from General Reserve being the nominal value of shares bought back in terms of section 77AA of the Companies Act, 1956.

31 December, 2014 31 December, 2013 2 Contingent liabilities Claims in respect of:

Excise matters 1,467,590 1,467,590

3 Segment information

The Company''s primary (business) segment is singular viz. "Electrolytic Products". Further, the Company caters mainly to the needs of the domestic market. The export turnover is not significant in proportion to the total turnover. As such, there are no reportable geographic segments either. Therefore, segment information required by Accounting Standard No. 17 (AS-17) notified under the Companies (Accounting Standards) Rules, 2006, is not furnished.

4 Disclosure relating to provisions

Warranties/ recoating

The Company offers warranties for one of the critical parts of certain electrochlorinators and for some of its coating / recoating services for an initial period of two years followed by support contracts for a period of four years in the case of electrochlorinators and for a period of six years in the case of coating, eight years incase of recoating services during which period amounts are recoverable from the customers based on pre-defined terms. Estimated costs from warranty terms standard to the deliverable are recognised when revenue is recorded for the related deliverable. The Company estimates its warranty costs standard to the deliverable based on historical warranty claim experience and applies this estimate to the revenue stream for deliverables under warranty. Future costs for warranties applicable to revenue recognised in the current period are charged to the revenue account.

The warranty accrual is reviewed periodically to verify that it properly reflects the remaining obligation based on the anticipated expenditures over the balance of the obligation period. Adjustments are made when the actual warranty claim experience differs from estimates. Provisions include estimated costs of support maintenance contracts to the extent such estimated costs are expected to exceed the expected recovery during the obligation period. No assets are recognised in respect of the expected recovery on support contracts.

Factors that could impact the estimated claim information include the Company''s productivity, costs of materials, power and labour, and the actual recoveries on support contracts.

The movement in the provision for warranties/ recoating are summarised as under :

5 Employee benefits

a) Defined-Contribution Plans

The Company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund and family pension fund cover substantially all regular employees while the superannuation fund covers certain executives. The company makes specified monthly contributions towards employees provident fund to government administrative provident fund scheme which is a defined contribution plan. Contributions of superannuation fund are made to LIC. While both the employees and the Company pay predetermined contributions into the provident fund, contributions into the family pension fund and the superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary. The comapny does not have any obligation beyond the amounts already contributed.

b) Defined-Benefit Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme. Benefits under the defined benefit plan is typically based on years of service and the employee''s compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees. The Company contributes funds to Life Insurance Corporation of India, which is irrevocable. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the statement of profit and loss.

6 Taxation

a) The tax year for the Company being the year ending 31 March 2015, the ultimate tax liability will be determined on the basis of the results for the period 1 April 2014 to 31 March 2015.

b) The Company''s international transactions with associated enterprises are at arm''s length as per the independent accountant''s report for the year ended 31 March 2014. The Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the period subsequent to 31 March 2014. Management believes that the company''s international transactions with associated enterprises post 31 March 2014 continue to be at arm''s length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the year end.

7 Previous year''s figures

Certain comparative figures have been reclassified to conform to the presentation adopted in these financial statements as under.


Dec 31, 2013

1 Background

De Nora India Limited (''the Company'' or ''De Nora'') was incorporated in June 1989 as Titanor Components Limited (Titanor'') and commenced business in November 1989. The Company''s name was changed from Titanor to De Nora on 27th June, 2007. The Company has its manufacturing facilities at Kundaim, Goa and is involved in the business of manufacturing and servicing of Electrolytic products.

2. Segment information

The Company''s primary (business) segment is singular viz. "Electrolytic Products". Further, the Company caters mainly to the needs of the domestic market. The export turnover is not significant in proportion to the total turnover. As such, there are no reportable geographic segments either. Therefore, segment information required by Accounting Standard No. 17 (AS-17) notified under the Companies (Accounting Standards) Rules, 2006, is not furnished.

3. Disclosure relating to provisions

Warranties/recoating

The Company offers warranties for one of the critical parts of certain electro chlorinators and for some of its coating/ recoating services for an initial period of two years followed by support contracts for a period of four years in the case of electro chlorinators and for a period of six years in the case of coating, eight years in case of recoating services during which period amounts are recoverable from the customers based on pre-defined terms. Estimated costs from warranty terms standard to the deliverable are recognised when revenue is recorded for the related deliverable. The Company estimates its warranty costs standard to the deliverable based on historical warranty claim experience and applies this estimate to the revenue stream for deliverables under warranty. Future costs for warranties applicable to revenue recognised in the current period are charged to the revenue account.

The warranty accrual is reviewed periodically to verify that it properly reflects the remaining obligation based on the anticipated expenditures over the balance of the obligation period. Adjustments are made when the actual warranty claim experience differs from estimates. Provisions include estimated costs of support maintenance contracts to the extent such estimated costs are expected to exceed the expected recovery during the obligation period. No assets are recognised in respect of the expected recovery on support contracts.

Factors that could impact the estimated claim information include the Company''s productivity, costs of materials, power and labor, and the actual recoveries on support contracts.

4. Employee benefits

a) Defend-Contribution Plans

The Company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund and family pension fund cover substantially all regular employees while the superannuation fund covers certain executives. Contributions are paid during the year into separate funds under certain fiduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund, contributions into the family pension fund and the superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary. The Company does not have any obligation beyond the amounts already contributed.

b) Defined -Benefit Plans

The Company offers its employees defined -benefit plans in the form of a gratuity scheme. Benefits under the defined benefit plan is typically based on years of service and the employee''s compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees. The Company contributes funds to Life Insurance Corporation of India, which is irrevocable. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the statement of profit and loss.

5. Taxation

a) The tax year for the Company being the year ending 31 March, 2014, the ultimate tax liability will be determined on the basis of the results for the period 1 April, 2013 to 31 March, 2014.

b) The Company''s international transactions with associated enterprises are at arm''s length as per the independent accountant''s report for the year ended 31 March, 2013. The Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the period subsequent to 31 March, 2013. Management believes that the company''s international transactions with associated enterprises post 31 March, 2013 continue to be at arm''s length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the year end.


Dec 31, 2012

1 Background

De Nora India Limited (''the Company'' or ''De Nora'') was incorporated in June 1989 as Titanor Components Limited (''Titanor'') and commenced business in November 1989. The Company''s name was changed from Titanor to De Nora on 27th June, 2007. The Company has its manufacturing facilities at Kundaim, Goa and is involved in the business of manufacturing and servicing of Electrolytic products.

a. Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 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 December, 2012, the amount of per share dividend recognized as distribution to equity shareholders was Rs. 7 per share (previous year: Rs. 6 per share). The dividend appropriation for the year ended December 2012 amounted to Rs. 37,160,438 (previous year: Rs. 32,664,510) plus corporate dividend tax of Rs. 6,028,352 (previous year: Rs. 5,299,000)

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.

b. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

Pursuant to the Shareholders'' approval for buyback of equity shares under section 77A of the Companies Act, 1956, the Company has bought back 135,451 equity shares (previous year: 111,049) through open market transactions for an aggregate amount of Rs. 13,432,195 (previous year: Rs. 9,447,490). The said shares have been subsequently extinguished. Capital redemption reserve has been created by transfer of Rs. 1,354,510 (previous year: Rs. 1,110,490) from General Reserve being the nominal value of shares bought back in terms of Section 77AA of the Companies Act, 1956.

31 December, 2012 31 December, 2011

2. Contingent liabilities

Claims in respect of Excise matters 1,467,590 1,467,590

3. Segment information

The Company''s primary (business) segment is singular viz. "Electrolytic Products". Further, the Company caters mainly to the needs of the domestic market. The export turnover is not significant in proportion to the total turnover. As such, there are no reportable geographic segments either. Therefore, segment information required by Accounting Standard No. 17 (AS-17) notified under the Companies (Accounting Standards) Rules, 2006, in respect thereof is not furnished.

4. Disclosure relating to provisions Warranties/recoating

The Company offers warranties for one of the critical parts of certain electrochlorinators and for some of its coating / recoating services for an initial period of two years followed by support contracts for a period of four years in the case of electrochlorinators and for a period of six years in the case of coating, eight years in case of recoating services during which period amounts are recoverable from the customers based on pre-defined terms. Estimated costs from warranty terms standard to the deliverable are recognised when revenue is recorded for the related deliverable. The Company estimates its warranty costs standard to the deliverable based on historical warranty claim experience and applies this estimate to the revenue stream for deliverables under warranty. Future costs for warranties applicable to revenue recognised in the current period are charged to the revenue account.

The warranty accrual is reviewed periodically to verify that it properly reflects the remaining obligation based on the anticipated expenditures over the balance of the obligation period. Adjustments are made when the actual warranty claim experience differs from estimates. Provisions include estimated costs of support maintenance contracts to the extent such estimated costs are expected to exceed the expected recovery during the obligation period. No assets are recognised in respect of the expected recovery on support contracts.

Factors that could impact the estimated claim information include the Company''s productivity, costs of materials, power and labour, and the actual recoveries on support contracts.

5. Employee benefits

a) Defined-Contribution Plans

The Company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund and family pension fund cover substantially all regular employees while the superannuation fund covers certain executives. Contributions are paid during the year into separate funds under certain fiduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund, contributions into the family pension fund and the superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary.

b) Defined-Benefit Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme. Benefits under the defined benefit plan is typically based on years of service and the employee''s compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees. The Company contributes funds to Life Insurance Corporation of India, which is irrevocable. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the statement of profit and loss.

6. Transfer pricing

The Company''s international transactions with associated enterprises are at arm''s length as per the independent accountant''s report for the year ended 31 March, 2012. The Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the period subsequent to 31 March, 2012. Management believes that the company''s international transactions with associated enterprises post 31 March, 2012 continue to be at arm''s length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the year end.

7. Previous year''s figures

The financial statements for the year ended 31 December, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Act. Consequent to the notification of Revised Schedule VI under the Act the financial statements for the year ended 31 December, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year''s classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed in preparation of financial statements.


Dec 31, 2011

1 Background

De Nora India Limited ('the Company' or 'De Nora') was incorporated in June 1989 as Titanor Components Limited ('Titanor') and commenced business in November 1989. The Company's name was changed from Titanor to De Nora on 27th June 2007. The Company has its manufacturing facilities at Kundaim, Goa and is involved in the business of manufacturing and servicing of Electrolytic products.

2.1 Disclosure relating to provisions

Warranties/ recoating

The Company offers warranties for one of the critical parts of certain electrochlorinators and for some of its coating / recoating services for an initial period of two years followed by support contracts for a period of four years in the case of electrochlorinators and for a period of six years in the case of coating, eight years incase of recoating services during which period amounts are recoverable from the customers based on pre-defined terms. Estimated costs from warranty terms standard to the deliverable are recognised when revenue is recorded for the related deliverable. The Company estimates its warranty costs standard to the deliverable based on historical warranty claim experience and applies this estimate to the revenue stream for deliverables under warranty. Future costs for warranties applicable to revenue recognised in the current period are charged to the revenue account.

The warranty accrual is reviewed periodically to verify that it properly reflects the remaining obligation based on the anticipated expenditures over the balance of the obligation period. Adjustments are made when the actual warranty claim experience differs from estimates. Provisions include estimated costs of support maintenance contracts to the extent such estimated costs are expected to exceed the expected recovery during the obligation period. No assets are recognised in respect of the expected recovery on support contracts.

Factors that could impact the estimated claim information include the Company's productivity, costs of materials, power and labour, and the actual recoveries on support contracts.

2.2 Employee benefits

a) Defined-Contribution Plans

The Company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund and family pension fund cover substantially all regular employees while the superannuation fund covers certain executives. Contributions are paid during the year into separate funds under certain fiduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund, contributions into the family pension fund and the superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employee's salary.

b) Defined-Benefit Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme. Benefits under the defined benefit plan is typically based on years of service and the employee's compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees. The Company contributes funds to Life Insurance Corporation of India, which is irrevocable. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the profit and loss account.

@ Cathodic protection (anti corrosion) systems include diverse bought out components which are affixed to the electrolytic products manufactured by the Company. While the value corresponds to the aggregate cost of such assemblies in inventory as at the year end, the quantities reported relate to elements manufactured and held in inventory as at the year end.

@ Cathodic protection (anti corrosion) systems include diverse bought out components which are affixed to the electrolytic products manufactured by the Company. While the value corresponds to the aggregate amounts invoiced for such assemblies by the Company, the quantities reported relate to the aggregate quantities of elements manufactured and invoiced during the year.

2.3 Transfer pricing

The Company's international transactions with associated enterprises are at arm's length as per the independent accountant's report for the year ended 31 March 2011. The Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the period subsequent to 31 March 2011. Management believes that the company's international transactions with associated enterprises post 31 March 2011 continue to be at arm's length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the year end.


Dec 31, 2010

1. Background

De Nora India Limited (the Company or De Nora) was incorporated in June 1989 as Titanor Components Limited (Titanor) and commenced business in November 1989. The Companys name was changed fromTitanorto De Nora on 27th June 2007. The Company has its manufacturing facilities at Kundaim, Goa and is involved in the business of manufacturing and servicing of Electrolytic products.

Year ended Year ended 31st Dec, 2010 31st Dec, 2009

2.1 Contingent liabilities

Claims in respect of:

Excise matters 1,467,590 1,868,748

2.2 Disclosure relating to provisions

Warranties/ recoating

The Company offers warranties for one of the critical parts of certain electrochlorinators and for some of its coating / recoating services for an initial period of two years followed by support contracts for a period of four years in the case of electrochlorinators and for a period of six years in the case of coating, eight years incase of recoating services during which period amounts are recoverable from the customers based on pre-defined terms. Estimated costs from warranty terms standard to the deliverable are recognised when revenue is recorded for the related deliverable. The Company estimates its warranty costs standard to the deliverable based on historical warranty claim experience and applies this estimate to the revenue stream for deliverables under warranty. Future costs for warranties applicable to revenue recognised in the current period are charged to the revenue account.

The warranty accrual is reviewed periodically to verify that it properly refects the remaining obligation based on the anticipated expenditures over the balance of the obligation period. Adjustments are made when the actual warranty claim experience differs from estimates. Provisions include estimated costs of support maintenance contracts to the extent such estimated costs are expected to exceed the expected recovery during the obligation period. No assets are recognised in respect of the expected recovery on support contracts.

Factors that could impact the estimated claim information include the Companys productivity, costs of materials, power and labour, and the actual recoveries on support contracts.

2.3 Employee benefits

a) defined-Contribution Plans

The Company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund and family pension fund cover substantially all regular employees while the superannuation fund covers certain executives. Contributions are paid during the year into separate funds under certain fduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund, contributions into the family pension fund and the superannuation fund are made only by the Company. The contributions are normally based on a certain proportion of the employees salary.

b) defined-benefit Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme. benefits under the defined benefit plan is typically based on years of service and the employees compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees. The Company contributes funds to Life Insurance Corporation of India, which is irrevocable. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the Profit and loss account.

2.4 Transfer pricing

The Companys international transactions with associated enterprises are at arms length as per the independent accountants report for the year ended 31 March, 2010. The Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the period subsequent to 31 March, 2010. Management believes that the companys international transactions with associated enterprises post 31 March, 2010 continue to be at arms length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the year end.

2.5 Prior year figures

Previous years figures have been regrouped / reclassified to confirm to the current years presentation.


Dec 31, 2009

1 Background

De Nora India Limited (the Company or De Nora) was incorporated in June 1989 as Titanor Components Limited (Titanor) and commenced business in November 1989. The Companys name was changed from Titanor to De Nora on 27th June 2007. The Company has its manufacturing facilities at Kundaim, Goa and is involved in the business of manufacturing and servicing of Electrolytic products.

2. Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

3 Related party transactions

a) Parties where control exists

Name of related party Relationship

Oronzio De Nora International B.V. Holding Company (holds 51.29% of the equity share capital as at 31 December 2009)

Industrie De Nora S.p.A. Ultimate Holding Company (UHC)

b) Other related parties with whom transactions have taken place during the year.

Relationship Name of related party

i. Entities under common control (EUCC) Uhdenora S.p.A. Industrie De Nora S.p.A., Singapore Branch

De Nora Elettrodi (Suzhou) Ltd.

De Nora Tech Inc. ii. Fellow Subsidiaries (FS) De Nora Deutschland GmbH

De Nora Do Brasil Ltda. iii. Key Management personnel (KMP) S .C. Jain (Managing Director)

4. Disclosure relating to provisions.

Warranties/ recoating

The Company offers warranties for one of the critical parts of certain electrochlorinators and for some of its coating / recoating services for an initial period of two years followed by support contracts for a period of four years in the case of electrochlorinators and for a period of six years in the case of coating, eight years in case of recoating services during which period amounts are recoverable from the customers based on pre-defined terms. Estimated costs from warranty terms standard to the deliverable are recognised when revenue is recorded for the related deliverable. The Company estimates its warranty costs standard to the deliverable based on historical warranty claim experience and applies this estimate to the revenue stream for deliverables under warranty. Future costs for warranties applicable to revenue recognised in the current period are charged to the revenue account.

The warranty accrual is reviewed periodically to verify that it properly reflects the remaining obligation based on the anticipated expenditures over the balance of the obligation period. Adjustments are made when the actual warranty claim experience differs from estimates. Provisions include estimated costs of support maintenance contracts to the extent such estimated costs are expected to exceed the expected recovery during the obligation period. No assets are recognised in respect of the expected recovery on support contracts.

Factors that could impact the estimated claim information include the Companys productivity, costs of materials, power and labour, and the actual recoveries on support contracts.

5. Employee benefits

a) Defined-Contribution Plans.

The Company offers its employees defined contribution plan in the form of provident fund, family pension fund and superannuation fund. Provident fund and family pension fund cover substantially all regular employees while the superannuation fund covers certain executives. Contributions are paid during the year into separate funds under certain fiduciary-type arrangements. While both the employees and the Company pay predetermined contributions into the provident fund, contributions into the family pension fund and the superannuation fund are made by only the Company. The contributions are normally based on a certain proportion of the employees salary.

b) Defined-Benefit Plans

The Company offers its employees defined-benefit plans in the form of a gratuity scheme. Benefits under the defined benefit plan is typically based on years of service and the employees compensation (generally immediately before retirement). The gratuity scheme covers substantially all regular employees. The Company contributes funds to Life Insurance Corporation of India, which is irrevocable. Commitments are actuarially determined at year-end. The actuarial valuation is done based on "Projected Unit Credit" method. Gains and losses of changed actuarial assumptions are charged to the profit and loss account.

6. Transfer pricing

The Companys international transactions with associated enterprises are at arms length as per the independent accountants report for the year ended 31 March 2009. The Company is in the process of updating the documentation for the international transactions entered into with the associated enterprises during the period subsequent to 31 March 2009. Management believes that the companys international transactions with associated enterprises post 31 March 2009 continue to be at arms length and that the transfer pricing legislation will not have any impact on the financial statements particularly on the amount of the tax expense for the year and the amount of the provision for taxation at the year end.

7. Prior year figures

Previous years figures have been regrouped / reclassified to conform to the current years presentation.

 
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