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Notes to Accounts of Grindwell Norton Ltd.

Mar 31, 2017

The following table sets out the funded status of the gratuity plan and the amounts recognized in the Company''s financial statements as at March 31, 2017:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of forward foreign exchange contracts is determined using forward exchange rate at the balance sheet date

- the fair value of employee stock option plans are determined using Black and Scholes valuation model

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

All of the resulting fair value estimates are included in level 1 or 2 except for unlisted equity securities where the fair values have been determined based on present values and the discount rates used were adjusted for counter party or own credit risk.

(iii) Fair value measurements using significant unobservable inputs (level 3)

The following table represents the changes in level 3 items for the period ended March 31, 2017 & March 31, 2016.

(v) Valuation processes

The Company has outsourced the valuation process of unquoted equity instruments for financial reporting purposes.

The main level 3 inputs for unlisted equity securities used by the Company are derived and evaluated as follows:

Discount rates are determined using a capital asset pricing model to calculate a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the asset.

Earnings growth factor for unlisted equity securities are estimated based on market information for similar types of companies.

Changes in level 2 and 3 fair values are analyzed at the end of each reporting period during the quarterly valuation discussion between the Chief Financial Officer (CFO), Audit Committee (AC) and the valuation team. As part of this discussion the team presents a report that explains the reason for the fair value movements.

The carrying amounts of trade receivables, electricity deposit, employee advances, cash and cash equivalents and other short term receivables, trade payables, unclaimed dividend, borrowings, capital creditors and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

The fair values for loans, security deposits and investment in government securities were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 in the fair value hierarchy since significant inputs required to fair value an instrument are observable.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

4 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to market risk, liquidity risk and credit risk.

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

The Company''s risk management is carried out by a central Treasury department as per the policies of the Company. The Treasury department identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The Board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(A) Credit risk

Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments. Credit risk arises mainly from outstanding receivables from free market dealers, cash and cash equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment and delivery terms and conditions are offered.

(i) Credit risk management

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortized cost. For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument, which requires expected lifetime losses to be recognized from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and relevant information that is available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment and including forward looking information.

We have evaluated percentage of allowance for doubtful debts with the trade receivables over the years:

(B) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company ensures sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic nature of the underlying businesses, the Treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

* The undrawn bank overdraft value is taken based on the actual overdraft value as per the Bank book i.e. Rs, 2,99.61 lakhs

- which includes cheques issued but not presented. The Overdraft as per bank statement is Rs, 1,60 lakhs.

Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time.

(ii) Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market risk

(i) Foreign currency risk

Currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency sales and purchases, primarily with respect to EUR, USD, GBP, AUD and JPY Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

The risk is measured through a forecast of foreign currency for the Company''s operations. The Company uses foreign exchange forward contracts to manage its exposure in foreign currency risk.

5 CAPITAL MANAGEMENT (a) Risk management

The Company''s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

Currently, there are negligible borrowings and operations are being funded through internal accruals.

6 The segment information is presented under the Notes forming part of the Consolidated Financial Statements as required under the Ind AS - 108 on “Operating Segment”.

7 SHARE BASED PAYMENTS (a) Performance Share Plan

Certain employees of the Company in India are allotted Performance shares of the Ultimate Holding Company. These plans are subject to eligibility criteria based on the employee''s period of service (service conditions) with the Group as well as performance criteria (performance conditions). The Ultimate Holding Company does not charge any cost for this benefit, the cost of this benefit has been arrived at using Black and Scholes method.

* For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407(E), dated the November 8, 2016.

8 RELATED PARTY TRANSACTIONS

1. Relationships

(i) HOLDING COMPANY Compagnie de Saint-Gobain

(ii) FELLOW SUBSIDIARIES

Saint-Gobain Abrasives Inc; USA Societe Europeenne des Produits Refractaires, France

Societe de Participations Financieres et Industrielles Saint-Gobain Isover GHAG, Germany

ABC Superabrasives, USA Saint-Gobain ICASA S.A., Spain

Certainteed Corporation, USA Saint-Gobain Industrial Ceramics Pty Ltd.

L.M.Van Moppes Diamond Tools India Pvt. Ltd. Saint-Gobain Industrial Ceramics, UK

Norton Abrasives Pty. Ltd. Saint-Gobain IndustrieKeramik Dusseldorf GmbH, Germany

PT Saint-Gobain Norton Hamplas, Indonesia Saint-Gobain Materials Ceramicos Ltda., Brazil

PT Saint-Gobain Winter Diamas, Indonesia Saint-Gobain Materials Ceramicos, Venezuela

PT Saint-Gobain Abrasives Indonesia Saint-Gobain Materiaux Ceramics, Belgium

Placopatre SA, France Saint-Gobain PAM, France

Point.P Development, France Saint-Gobain Performance Plastics, USA

Saint-Gobain Ceramics & Plastics Inc., USA Saint-Gobain PPL Shanghai, China

Saint-Gobain Abrasives, Poland Saint-Gobain PPL Korean Co, Ltd, South Korea

Saint-Gobain Ceramiques Informatique Et Organisation, Saint-Gobain Produtos Industriais E Para Construcao Ltd. France

Saint-Gobain DSI Groupe Saint-Gobain Sekurit India Ltd

Saint-Gobain IndustrieKeramik Rodental GmbH, Germany Saint-Gobain Sekurit, Thailand

Saint-Gobain Abrasifs, Dubai Saint-Gobain Sekurit, France

Saint-Gobain Abrasifs, Morocco Saint-Gobain Tech Fab Hongfa (Changzhou) Ltd.

Saint-Gobain Abrasifs, France Saint-Gobain Technical Fabrics, S.A.

Saint-Gobain Abrasifs UAE Saint-Gobain Universal Superabrasives, Inc.

Saint-Gobain Abrasive International Trading (Shanghai) Saint-Gobain Vibros S.A.

Saint-Gobain Abrasives Pty. Ltd, Australia SG Isover, France

Saint-Gobain Abrasives (Pty) Ltd., South Africa Saint-Gobain Advanced Ceramics (Shanghai) Co Ltd

Saint-Gobain Abrasives (Sea) Pte. Ltd. Saint-Gobain Materiaux Ceramiques Benelux SA

Saint-Gobain Abrasives (Shanghai) Co Ltd., Shanghai Saint-Gobain Performance Plastics - Bristol

Saint-Gobain Abrasives (Suzhou) Co. Ltd. Saint-Gobain Performance Plastics Corby, UK

Saint-Gobain Abrasives BV., Netherlands Saint-Gobain Performance Plastics KK, Japan

Saint-Gobain Abrasives GmbH (CORA) Saint-Gobain Performance Plastics, Les Macon, France

Saint-Gobain Abrasives GmbH, Gerolzhofen., Germany Saint-Gobain Performance Plastics Pampus GmbH

Saint-Gobain Abrasives International Trading (HK) Ltd. Saint-Gobain Performance Plastics Verneret, France

Saint-Gobain Abrasives Inc, Worcester USA Saint-Gobain Performance Plastics, Chaineux, Belgium

Saint-Gobain Abrasives, Korea Saint-Gobain Performance Plastics, Ireland

Saint-Gobain Abrasives Ltd -Stafford-UK Saint-Gobain Performance Plastics, Kontich, Belgium

Saint-Gobain Abrasives Ltd., New Zealand Saint-Gobain Performance Plastics, Rencol., UK

Saint-Gobain Abrasives Ltda., Brazil Saint-Gobain Performance Plastics, Taiwan

Saint-Gobain Abrasives Ltda., Portugal Saint-Gobain Performance Plastics, Gembloux, Belgium

Saint-Gobain Abrasives Singapore (PTE) Ltd. Saint-Gobain Research India Ltd.

Saint-Gobain HPM Polska Sp.zo.o, Poland Saint-Gobain Technical Fabrics (Changzhou) Co. Ltd.

Saint-Gobain Abrasives; Thailand Saint-Gobain Weber Netservices

Saint-Gobain Abrasives, Indonesia Saint-Gobain Zipro

Saint-Gobain Abrasives Netherlands B.V. Universal Superabrasives, USA

Saint-Gobain Abrasivi S.P.A., Italy SAP Competence Center Verallia

Saint-Gobain Abrasivos SA, Argentina Saint-Gobain Centre De Recherches Et Detudes, European

Saint-Gobain Achats, France Saint-Gobain Construction Products, Belgium

Saint-Gobain Adfors, France SG Distribution Nordic AB, Sweden

Saint-Gobain Advanced Ceramics, Niagara Lapeyre, France

Saint-Gobain Advanced Materials (M) SDN BHD Saint-Gobain Ceramics Inc, USA

Saint-Gobain Advanced Materials (Taiwan) Co. Ltd. Saint-Gobain India Foundation

Saint-Gobain Building Distribution Deutschland GmbH, Saint-Gobain Vietnam Ltd.

Germany

Saint-Gobain Building Distribution, UK Saint-Gobain Corporation

Saint-Gobain Ceramic Materials (Zhengzhou) Co. Ltd., Saint-Gobain Tech Services-Central Europe China

Saint-Gobain Ceramic Materials,Inc, Canada Saint-Gobain Tech Services-France

Saint-Gobain Ceramic Materials A/S, Norway Saint-Gobain Technology SC

SG, Isover AB, Sweden Saint-Gobain Technology Services - UK

Saint-Gobain Construction Products, SA Saint-Gobain Technology-NA

Saint-Gobain Ceramics & Plastics,Brazil Saint-Gobain Glass France Saint-Gobain Diamantwerkzeuge GmbH & Co.,Germany Dahl Sverige AB

Saint-Gobain Distribution Denmark, Denmark Saint-Gobain Colombia S.A.S Saint-Gobain Do Brasil Produtos Ind. E Para Const Ltda Saint-Gobain Inovatif Malzemeler

Thai Gypsum Products Plc, Thailand Savoie Refractaires Saint-Gobain Gelva, BV Saint-Gobain Glass Egypt Saint-Gobain India Pvt Ltd

(iii) SUBSIDIARY COMPANY

Saint-Gobain Ceramic Materials Bhutan Pvt. Ltd.

(iv) KEY MANAGEMENT PERSONNEL

Anand Mahajan - Managing Director

There is no allowance account for impaired receivables in relation to any outstanding balances, and no expense has been recognized in respect of impaired receivables due from related parties.

(f) Terms and conditions

(i) Transactions relating to dividends, subscriptions for new equity shares were on the same terms and conditions that applied to other shareholders.

(ii) The terms and conditions of the loans to Key Managerial Personnel are as per the policy of the Company.

(iii) All other transactions were made on normal commercial terms and conditions and at market rates. The average interest rate on the other loans during the year was 10% (March 31, 2016 - 10%).

(iv) All outstanding balances are unsecured and are repayable in cash.

9 DISCLOSURE AS REQUIRED BY IND AS 101 FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARDS Transition to Ind AS

These are the Company''s first Standalone Financial Statements prepared in accordance with Ind AS.

The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 1.2 have been applied in preparing the financial statements for the year ended March 31, 2017, the comparative information presented in these financial statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 1, 2015 (The Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied by the Company in the transition from previous GAAP to Ind AS.

10 Ind AS optional exemptions

11 Deemed cost

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its PPE and intangible assets at their previous GAAP carrying value, except for the effect of Government Grants as per Ind AS 20, the value of PPE have been increased over deemed cost to that extent.

12 Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive Income (FVOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

13 Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to apply this exemption for such contracts/arrangements.

14 Investments in subsidiary

If a first time adopter measures investments in subsidiary, joint venture or associate at cost in accordance with Ind AS 27, Ind AS 101 allows the entity to measure such investments at one of the following amounts in its separate opening Ind AS Balance Sheet

(a) Cost determined in accordance with Ind AS 27; or (b) Deemed cost.

The deemed cost of such an investment shall be its:

(i) fair value at the entity''s date of transition to Ind ASs in its separate financial statements; or

(ii) previous GAAP carrying amount at that date.

The above options can be selected each investment wise. Accordingly the Company has elected to measure investment in its subsidiary at their previous GAAP carrying value.

15 Ind AS Mandatory Exceptions A.2.1 Estimates

An entity''s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI;

- Investment in mutual funds carried at Fair Value through Profit and Loss (FVPL); and

- Impairment of financial assets based on expected credit loss model.

16 De-recognition of financial assets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

17 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

18 Impairment of financial assets

Ind AS 101 provides that if at the date of transition the determination of increase in credit risk since initial recognition is difficult, loss allowance to be provided at an amount equal to lifetime expected credit losses at each reporting date until de-recognition.

C: Notes to First time adoption

19 Fair valuation of investments

Under the previous GAAP, investments in equity instruments and mutual funds were classified as long-term investments or current investments based on the intended holding period and reliability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit and loss for the year ended March 31, 2016. This increased the retained earnings by Rs, 3,24.27 Lakhs as at March 31, 2016 (April 1, 2015 - Rs, 2,33.50 Lakhs).

Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognized in FVOCI - Equity investments reserve as at the date of transition and subsequently in the Other Comprehensive Income for the year ended March 31, 2016. This increased other reserves by Rs, 94,79.54 Lakhs as at March 31, 2016 (April 1, 2015 - Rs, 47,91.54 Lakhs).

Consequent to the above, the total equity as at March 31, 2016 increased by Rs, 98,04.10 Lakhs (April 1, 2015 - Rs, 50,25.02 Lakhs) and Profit and Other Comprehensive Income for the year ended March 31, 2016 increased by Rs, 90.79 Lakhs and Rs, 46,88.30 Lakhs, respectively.

20 Bank overdrafts

Under Ind AS, bank overdrafts repayable on demand and which form an integral part of the cash management process are included in cash and cash equivalents for the purpose of presentation of statement of cash flows. Under previous GAAP, bank overdrafts were considered as part of borrowings and movements in bank overdrafts were shown as part of financing activities. Consequently, cash and cash equivalents have reduced by Rs, 2,99.61 Lakhs as at March 31, 2016 (April 1, 2015

- '' Nil) and cash flows from financing activities for the year ended March 31, 2016 have also increased by '' 2,99.61 Lakhs to the effect of the movements in bank overdrafts.

21 Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of '' NIL as at March 31, 2016 (April 1, 2015 -'' 43,31.03 Lakhs) included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

22 Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in Other Comprehensive Income instead of profit and loss. Under the previous GAAP, these remeasurements were forming part of the profit and loss for the year. As a result of this change, the profit for the year ended March 31, 2016 increased by '' 5,01.40 Lakhs. There is no impact on the total equity as at March 31, 2016. Also, the Interest cost on actuarial, amounting to '' 5.00 Lakhs has been regrouped from Employee benefit expenses to Finance cost.

23 Revenue Recognition

The Company was recognizing revenue in accordance with the company’s accounting policies, when the goods were dispatched. The Company has evaluated the principles under Ind AS 18 and made necessary changes.

24 Excise Duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the Statement of Profit and Loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2016 by Rs, 90,08.18 Lakhs. There is no impact on the total equity and profit.

25 Cash Discount

Under the previous GAAP, Cash Discount and Discounts related to Sales of Rs, 33,90.90 Lakhs was recognized as part of Other Expenses which have been adjusted against Revenue from operations, under Ind AS.As a result of this change, the Revenue for the year ended March 31, 2016 decreased by Rs, 33,90.90 Lakhs.

26 Employee stock option expense

Under the previous GAAP, the cost of equity-settled employee share-based plan were recognized using the intrinsic value method. Under Ind AS, the cost of equity settled share-based plan is recognized based on the fair value of the options as at the grant date. Consequently, the amount recognized in share compensation reserve increased by Rs, 1,65.88 Lakhs as at March 31, 2016 (April 1, 2015- Rs, 86.23 Lakhs). The profit for the year ended March 31, 2016 decreased by Rs, 79.65 Lakhs. There is no impact on total equity.

27 Security deposits

Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognized as Deferred rent. Consequent to this change, the amount of security deposits decreased by Rs, 73.72 Lakhs as at March 31, 2016 (April 1, 2015 - Rs, 1,16.52 Lakhs). The deferred rent increased by Rs, 73.72 Lakhs as at March 31, 2016 (April 1, 2015 - Rs, 1,16.52 Lakhs). Further, the Deferred rent asset is bifurcated between Current and Non-current amounting to Rs, 55.64 Lakhs and Rs, 18.08 Lakhs respectively (April 1, 2015 - Rs, 99.44 and Rs, 17.08 Lakhs respectively), based on Management''s intention. The profit for the year and total equity as at March 31, 2016 decreased by Rs, 3.92 Lakhs due to amortization of the deferred rent of Rs, 18.10 Lakhs which is partially off-set by the notional interest income of Rs, 14.17 Lakhs recognized on security deposits.

28 Fair valuation of loans to employee and Director

Under the previous GAAP, loans to employees at concessional rate (that are recoverable in cash as per the loan terms) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued these loans to employees and Director under Ind AS. Difference between the fair value and transaction value of the loans has been recognized as expenses in the Statement of Profit and Loss for the year. Consequent to this change, the amount of loans decreased by Rs, 25.57 Lakhs as at March 31, 2016 (April 1, 2015 -Rs, 31.27 Lakhs). The profit for the year and total equity as at March 31, 2016 increased by Rs, 12.77 Lakhs due to notional interest income recognized on loan to employees and director.

29 Fair valuation of forward contracts

Under the previous GAAP, the Company applied the requirements of Accounting Standard 11-The effects of changes in foreign exchange rates to account for forward exchange contract for hedging foreign exchange risk related to recognized trade payables and trade receivables. At the inception of the contract, the forward premium was separated and amortized as expense over the tenure of the contract. The underlying trade payables, trade receivables and the forward contract were restated at the closing spot exchange rate.

Under Ind AS, derivatives which are not designated as hedging instruments are fair valued with resulting changes being recognized in Statement of Profit and Loss. The change transaction resulted in a net loss of Rs, 3,07.90 Lakhs as at March 31, 2016 (Net gain as on April 1, 2015 - Rs, 2,90.82 Lakhs). Consequently, other financial liabilities as at March 31, 2016 has increased by Rs, 17.21 Lakhs (financial assets as at April 1, 2015 increased by Rs, 2,90.82 Lakhs).

30 Government Grant

Under the previous GAAP, the grant received from the Government can be deducted from the carrying amount of fixed asset. Under Ind AS 20, the Company shall recognize the asset related government grants outstanding on the transition date as deferred income with the corresponding adjustment made to the carrying amount of property, plant and equipment (net of cumulative depreciation impact). The Company has imported capital goods under Export Promotion Capital Goods (EPCG) Scheme and has recognized the duty save on the same as deferred income with the corresponding impact in property, plant and equipment at the transition date amounting to Rs,3,13.25 Lakhs. During the year 2015-16, the Company has additionally imported capital goods under EPCG scheme and the duty saved recognized on it is Rs, 15.73 lakhs. This deferred income has been bifurcated into Current and Non-current Asset amounting to Rs, 2,15.28 Lakhs and Rs, 56.83 Lakhs respectively (April 1, 2015 Rs, 2,56.90 Lakhs and Rs, 56.35 Lakhs respectively). The Company has charged the depreciation and amortization of deferred income amounting to Rs,56.87 Lakhs based on useful life of the asset imported under EPCG scheme. There is no impact on the total equity as at March 31, 2016.

31 Adjustment related to Property, Plant & Equipment

The Company has elected to measure all of its PPE at their previous GAAP carrying value, hence, the revaluation reserve adjusted in retained earnings as on March 31, 2016 has been capitalized to PPE. Consequent to this change, the PPE has increased by '' 2,73.79 Lakhs. The profit for the year has decreased by Rs, 61.71 lakhs, being reversal of the depreciation previously charged to Revaluation reserve.

Under the previous GAAP, Goodwill and Trademark were amortized over the useful life. However, as per Ind AS, the same will be tested for impairment annually or more frequently if the events or changes in circumstances indicate that it might be impaired. Consequent to this change, there is an increase in the Goodwill and Trademark by Rs, 32.46 Lakhs and Rs, 20.44 Lakhs respectively, with a subsequent increase in the profit for the year.

32 Deferred tax

Deferred tax have been recognized on the adjustments made on transition to Ind AS.

33 Retained Earnings

Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS adjustments.

34 Other Comprehensive Income

Under Ind AS, all items of income and expense recognized in a period should be included in Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expenes that are not recognized in Statement of Profit and Loss but are shown in the Statement of Profit and Loss as “Other Comprehensive Income”, includes remeasurement of Employee Benefit obligation and fair valuation of Equity Instruments through OCI and Income tax relating to these items. The concept did not exist under the previous GAAP

35 Previous Year''s figures have been recast and rearranged wherever necessary.


Mar 31, 2016

Note : 1.

There is no movement in the number of shares outstanding during the year ended 31st March 2015 & year ended 31st March 2016.

Note : 2.

Rights and restrictions attached to the shares

Equity Shares: The Company has only one class of equity shares having a par value ofRs.5 per share. Each shareholder is eligible for one vote per share held. The shareholders have rights in proportion to their shareholding for dividend as well as for assets, in case of liquidation.

Note : 3.

The company has decided to follow the Accounting for Fixed asset at historical cost as per the amended Accounting Standard - 10. Accordingly, Revaluation Reserve of Rs.3,18.60 lacs is adjusted against the carrying amount of the fixed asset as on 31st March, 2016.

Note : 4.

The Company has revised the depreciation rate on certain fixed assets as per useful life specified in the Companies Act,2013. Depreciation of Rs.1,80.60 lacs (net of deferred taxRs.92.99 lacs) on account of assets whose useful life is already exhausted as on 1st April, 2014 have been adjusted to General Reserve.

Note : 5.

Excise duty deducted from turnover represents amount of excise duty collected by the Company on sale of goods manufactured by the Company. Excise duty of ?2,37.08 Lacs (Previous Year-?2,19.43 Lacs), being the difference between the opening and closing stock of finished goods is debited to Miscellaneous Expenses.

Note : 6.

(a) Amount prescribed under the Companies Act, 2013 to be spent during the year on CSR activities is Rs.2,70.10 Lacs.

(b) The amount spent on purposes other than construction / acquisition of any assets during the year is Rs.70.86 Lacs.

(c) The contribution to Saint-Gobain India Foundation ( Related Party as per AS -18 ) is Rs.70.86 Lacs.

Note : 7.

Exchange difference arising on foreign currency transactions amounting to net gain -Rs.5,94.77 Lacs (Previous Year-Rs.5,37.76 Lacs) has been accounted under respective heads.

Note : 8.

The segment information is presented under the Notes forming part of the Consolidated Financial Statements Accounts as required under the Accounting Standard – 17 on "Segment Reporting".

Note : 9.

Previous year''s figures have been recast and rearranged wherever necessary.


Mar 31, 2013

Note : 1.1

Rights and restrictions attached to the shares

Equity Shares: The Company has only one class of equity shares having a par value of Rs. 5 per share. Each shareholder is eligible for one vote per share held. The shareholders have rights in proportion to their shareholding for dividend as well as for assets, in case of liquidation.

Note : 2.1

Excise duty deducted from turnover represents amount of excise duty collected by the Company on sale of goods manufactured by the Company. Excise duty of Rs. 2,15.99 Lacs (Previous Year – Rs. 3,14.22 Lacs), being the difference between the opening and closing stock of fnished goods is debited to Miscellaneous Expenses.

Note : 3

Exchange difference arising on foreign currency transactions amounting to Rs. 62.79 Lacs (Net Loss) (Previous Year – Rs. 21.06 Lacs) has been accounted under respective heads.

Note : 4

The segment information is presented under the Notes forming part of the Consolidated Accounts as required under the Accounting Standard – 17 on "Segment Reporting".

Note : 5

RELATED PARTY DISCLOSURE :

1. Relationships :

(i) HOLDING COMPANY : Compagnie de Saint-Gobain

(ii) FELLOW SUBSIDIARIES :

Saint-Gobain Abrasives Inc., USA

Societe de Participations Financieres et Industrielles

Saint-Gobain Glass India Ltd.

ABC Superabrasives, USA

Certainteed Corporation, USA

L.M.Van Moppes Diamond Tools India Pvt. Ltd.

Norton Abrasives PTY Ltd.

PT Saint-Gobain Norton Hamplas, Indonesia

PT Saint-Gobain Winter Diamas, Indonesia

PT Saint-Gobain Abrasives Indonesia

Placopatre

Point.P Development

Saint-Gobain Ceramics & Plastics Inc.

Saint-Gobain Abrasives, France

Saint-Gobain Abrasives, Poland

Saint-Gobain Ceramiques Informatique Et Organisation

Saint-Gobain DSI Groupe

Saint-Gobain Industriekeramik Rodental GMBH

Saint-Gobain Abrasifs Dubai

Saint-Gobain Abrasifs Maroc, Morocco

Saint-Gobain Abrasifs, France

Saint-Gobain Abrasifs UAE

Saint-Gobain Abrasives International Trading (Shanghai)

Saint-Gobain Abrasives (Australia) PTY Ltd.

Saint-Gobain Abrasives (PTY) Ltd., South Africa

Saint-Gobain Abrasives (Sea) Pte. Ltd.

Saint-Gobain Abrasives (Shanghai) Co Ltd., Shanghai

Saint-Gobain Abrasives (Suzhou) Co. Ltd.

Saint-Gobain Abrasives BV., Netherlands

Saint-Gobain Abrasives GMBH (CORA)

Saint-Gobain Abrasives GMBH, Gerolzhofen., Germany

Saint-Gobain Abrasives International Trading (HK) Ltd.

Saint-Gobain Abrasives Inc, Worcester USA

Saint-Gobain Diamantwerkzeuge GMBH & Co

Saint-Gobain Distribution Denmark

Saint-Gobain Do Brasil Produtos Ind. E Para Const Ltda

Saint-Gobain Formula Thai Gypsum Product

Saint-Gobain Gelva, BV

Saint-Gobain Glass Egypt

Saint-Gobain Gyproc India Ltd.

Saint-Gobain High Performance Materials, France

Saint-Gobain HPM Polska Sp. z o.o

Saint-Gobain Isover G H AG

Saint-Gobain ICASA S.A.

Saint-Gobain Industrial Ceramics Pty Ltd.

Saint-Gobain Industrial Ceramics, UK

Saint-Gobain Industrie Keramik Dusseldorf GMBH

Saint-Gobain Materials Ceramicos Ltda. Brazil

Saint-Gobain Materials Ceramicos, Venezuela

Saint-Gobain Materiaux Ceramics, Belgium

Saint-Gobain PAM, France

Saint-Gobain Performance Plastics Portage

Saint-Gobain Performance Plastics, New Jersey, USA

Saint-Gobain Performance Plastics, Worcester, USA

Saint-Gobain Performance Plastics, Taunton, USA

Saint-Gobain PPL Corporation Mexico

Saint-Gobain PPL Shanghai

Saint-Gobain Performance Plastics, Korea

Saint-Gobain Produtos Industriais E Para Construcao Ltda

Saint-Gobain Sekurit India Ltd

Saint-Gobain Sekurit (Thailand) Co., Ltd

Saint-Gobain Seva Engineering India Limited

Saint-Gobain Seva, France

Saint-Gobain Tech Fab Hongfa (Changzhou) Ltd.

Saint-Gobain Technical Fabrics, S.A

Saint-Gobain Universal Superabrasives, Inc

Saint-Gobain Abrasives Korea

Saint-Gobain Abrasives Ltd. – Stafford-UK

Saint-Gobain Abrasives Ltd., New Zealand

Saint-Gobain Abrasives Ltda., Brazil

Saint-Gobain Abrasives Ltda., Portugal

Saint-Gobain Abrasives Singapore (PTE) Ltd.

Saint-Gobain Abrasives SP. Z.O.O

Saint-Gobain Abrasives SP.Z

Saint-Gobain Abrasives Thailand

Saint-Gobain Abrasives Indonesia

Saint-Gobain Abrasives Netherlands B.V.

Saint-Gobain Abrasivi S.P.A.(Micromold)

Saint-Gobain Abrasivi S.P.A.(Ral-Sud)

Saint-Gobain Abrasivi S.P.A., Italy

Saint-Gobain Abrasivos SA, Argentina

Saint-Gobain Achats

Saint-Gobain Advanced Ceramics, Niagara

Saint-Gobain Advanced Materials (M) SDN BHD

Saint-Gobain Advanced Materials (Taiwan) Co. Ltd.

Saint-Gobain Building Distribution

Saint-Gobain Ceramic Materials (Liyanguang) Co. Ltd., China

Saint-Gobain Ceramic Materials (Mudanjiang) Co. Ltd., China

Saint-Gobain Ceramic Materials (Zhengzhou) Co. Ltd., China

Saint-Gobain Ceramic Materials, Australia

Saint-Gobain Ceramic Materials AS., Norway

Saint-Gobain Ceramic Materials Weilerswist GMBH

Saint-Gobain Ceramic Materials, USA

Saint-Gobain Ceramicas Industrialces S.A, Spain

Saint-Gobain Ceramicas Industriales S.A.

Saint-Gobain Ceramics & Plastics,Brazil

Saint-Gobain Ceramics Inc, USA

Saint-Gobain Construction Products Vietnam Ltd.

Saint-Gobain Crystals & Detectors India Ltd.

Saint-Gobain Vibros S.A. Savoi Refractories SEPR Refractories India Ltd. SEPR, France

Saint-Gobain Advanced Ceramics (Shanghai) Co Ltd Saint-Gobain Materiaux Ceramiques Benelux SA Saint-Gobain Performance Plastics – Bristol Saint-Gobain Performance Plastics (Shanghai) Co. Ltd. Saint-Gobain Performance Plastics Corby, UK Saint-Gobain Performance Plastics KK, JAPAN Saint-Gobain Performance Plastics, Les Macon, France Saint-Gobain Performance Plastics Pampus GMBH Saint-Gobain Performance Plastics Verneret, France Saint-Gobain Performance Plastics, Akron, USA Saint-Gobain Performance Plastics, Beaverton, USA Saint-Gobain Performance Plastics, Chaineux, Belgium Saint-Gobain Performance Plastics, Florida, USA Saint-Gobain Performance Plastics, Garden Groove, USA Saint-Gobain Performance Plastics, Granville, USA Saint-Gobain Performance Plastics, Ireland Saint-Gobain Performance Plastics, Kontich, Belgium Saint-Gobain Performance Plastics, Mickleton, USA Saint-Gobain Performance Plastics, New York, USA Saint-Gobain Performance Plastics, Pittsburg, USA Saint-Gobain Performance Plastics, Poestenkill, USA Saint-Gobain Performance Plastics, Rencol., UK Saint-Gobain Performance Plastics, Taiwan Saint-Gobain Performance Plastics, Gembloux, Belgium Saint-Gobain Research India Ltd. Saint-Gobain Technical Fabrics (Changzhou) Co. Ltd. Weber Netservices Universal Superabrasives., USA

(iii) SUBSIDIARY COMPANY :

Saint-Gobain Ceramic Materials Bhutan Pvt. Ltd.

(iv) KEY MANAGEMENT PERSONNEL : A. Y. Mahajan - Managing Director J.A.J. Pereira - Executive Director - Human Resources & Corporate Services

Note : 6

Previous year''s fgures have been recast and rearranged wherever necessary.


Mar 31, 2012

Note : 1.2

There is no movement in the number of shares outstanding during the year ended 31st March 2011 & year ended 31st March 2012.

Note : 1.2

Rights and restrictions attached to the shares

Equity Shares: The Company has only one class of equity shares having a par value of Rs 5 per share. Each shareholder is eligible for one vote per share held. The shareholders have rights in proportion to their shareholding for dividend as well as for assets, in case of liquidation.

Note : 2.1

The Company has not provided any loans and advances in the nature of loans to its subsidiary during the year (Previous Year - Rs Nil) and hence disclosure under clause 32 of the listing agreement is not made.

I. Defined Benefit Plan

Contribution to Gratuity Fund

The Company makes annual contributions to the Employees' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation/termination in terms of the provisions of the Payment of Gratuity Act or as per the Company's policy whichever is beneficial to the employees. .

Note :3.1

Excise duty deducted from turnover represents amount of excise duty collected by the Company on sale of goods manufactured by the Company. Excise duty of Rs 3,14.22 Lacs (Previous Year - Rs 2,22.42 Lacs), being the difference between the opening and closing stock of finished goods is debited to Miscellaneous Expenses.

As at As at

31st March,2012 31st March, 2011 (Rs Lacs) (Rs Lacs)

Note : 4 CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF :

(a) Excise & Custom Duty demands/show cause notices pending with the appropriate authorities and disputed by the Company 8,35.62 7,33.18

(b) Sales Tax demands pending with the Commissioner ate/High Court and disputed by the Company 2,49.42 2,90.78

(c) Claims against the Company under the Labour Laws for disputed cases 1,00.73 90.00

(d) Guarantees given by Banks, of which Rs 4,28.44 Lacs (Previous Year - Rs 2,86.37 Lacs) are counter guaranteed by the Company 4,28.44 2,86.37

(e) Guarantees given on behalf of Subsidiary Company 8,39.08 8,39.08

(f) Letters of credit issued by banks on behalf of the Company 1.89 1,18.14

(g) Non-Agricultural Land Cess 37.79 35.97

(h) Other Claims against the Company not acknowledged as debts 1,12.04 2,94.39

(i) Demand raised by A.P Transco on increase in power cost, disputed by the Company & subjudice in Honourable Supreme Court 26,27.55 24,40.22

(j)Demand raised by A.P Transco on surplus units allocated, disputed by the Company & subjudice in High Court (Net) 6,95.48 6,01.01

(k) Demand raised by A.P Transco for fuel surcharge adjustment for FY 2008-09, disputed by the Company & subjudice in Honourable Supreme Court 1,64.00 -

(I) Income Tax liability on account of disputed disallowances 91.25 20.17

Note : 5

Exchange difference arising on foreign currency transactions amounting to Rs 21.06 Lacs (Net Loss) (Previous Year - Rs 1,69.78 Lacs Net Gain) has been accounted under respective heads.

Note : 6

Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the figures of financial statements for the year ended 31st March, 2011 have been reclassified as per Revised Schedule VI, to conform to current year's classification.

NOTES : 1. The Company has undrawn borrowing facilities amounting to Rs 26,00 Lacs (Previous Year - Rs 26,00 Lacs).

2. Previous Year's figures have been regrouped to conform with the current year's presentation.


Mar 31, 2011

1. The Company has changed its accounting year from January – December to April – March with effect from the previous period. Accordingly, the current years financial statements relate to 12 months ended 31st March, 2011 and the previous periods fgures are for fifteen months from 1st January, 2009 to 31st March, 2010. Hence the current years fgures are not strictly comparable to the previous period.

2. Contingent liabilities not provided for in respect of :

As at As at 31st March, 31st March, 2011 2010 (Rs. Lacs) (Rs. Lacs)

a. Excise & Custom Duty demands/show cause notices pending with the appropriate authorities and disputed by the Company 7,33.18 3,20.60

b. Sales Tax demands pending with the Commissionerate/High Court and disputed by the Company 2,90.78 2,41.04

c. Claims against the Company under the Labour Laws for disputed cases 90.00 26.44

d. Demand raised by A.P. Transco on surplus units allocated, disputed by the Company & subjudice in High Court (Net) 6,01.01 4,84.72

e. Guarantees given by Banks, of which Rs. 286.37 Lacs (Previous Period – Rs. 223.13 Lacs) are counter guaranteed by the Company 2,86.37 2,23.13

f. Guarantees given on behalf of Subsidiary Company 8,39.08 8,39.08

g. Letters of credit issued by banks on behalf of the Company 1,18.14 19.83

h. Non-Agricultural Land Cess 35.97 35.97

i. Other Claims against the Company not acknowledged as debts 2,94.39 48.24

j. Demand raised by A.P. Transco on increase in power cost, disputed by the Company & subjudice in Honourable Supreme Court 24,40.22 21,44.32

3. The Company has Cash Credit facilities from bankers secured by first charge by way of hypothecation of inventories and book debts, both present and future, wherever situated and subservient mortgage on immovable properties situated at Mora, Bangalore and Nagpur.

4. The Company has been in possession of land at Tirupati, on which its Silicon Carbide Plant was erected, since 1978. The transfer formalities for the said land were not completed because of a dispute relating to the lease rent payable. The Company had paid lease rental (inclusive of penalty upto 1997) of Rs. 30.00 Lacs for the period 1978 to 2004. The Company has also provided for lease rent in respect of 90 acres of land for the period 2004 to date at the rates prevailing for 2004, pending the fnalisation of the lease agreement.

5. Estimated amount of capital commitments (net of advances – Rs. 1,92.00 Lacs) not provided for Rs. 7,61.63 Lacs (Previous Period – Rs. 4,95.11 Lacs net of advances of Rs. 91.74 Lacs).

6. Exchange difference arising on foreign currency transactions amounting to Rs. 1,69.78 Lacs (Net Gain) (Previous Period – Rs. 1,82.98 Lacs Net Gain) has been accounted under respective heads.

7. Excise duty deducted from turnover represents amount of excise duty collected by the Company on sale of goods manufactured by the Company. Excise duty of Rs. 2,22.42 Lacs (Previous Period – Rs. 1,72.46 Lacs), being the difference between the opening and closing stock of fnished goods is debited to Miscellaneous Expenses under Schedule 9.


Mar 31, 2010

1. The Company has changed its accounting year from january – December to April – March with effect from the current year. Accordingly, the current period’s fnancial statements are for ffteen months from 1st January, 2009 to 31st March, 2010. The previous year’s fgures relate to 12 months ended 31st December 2008 and hence current period’s fgures are not strictly comparable to previous year.

2. Contingent liabilities not provided for in respect of :

As at As at 31st March, 31st December, 2010 2008 (Rs. Lacs) (Rs. Lacs) a. Excise Duty demands/show cause notices pending with the appropriate authorities and disputed by the Company 3,20.60 3,09.35 b. Sales Tax/VAT demands pending with the Commissionerate/high Court and disputed by the Company 2,41.04 3,56.15 c. Custom Duty demands pending with Appellate Tribunal and disputed by the Company - 10.43 d. Claims against the Company under the Labour Laws for disputed cases 26.44 5.12 e. Demand raised by A.P. Transco on surplus units allocated, disputed by the Company & subjudice in high Court (Net) 4,84.72 2,95.70 f. Guarantees given by Banks, of which Rs. 2,23.13 Lacs (Previous Year Rs. 3,39.67 Lacs) is counter guaranteed by the Company 2,23.13 18,39.67 g. Guarantees given on behalf of Subsidiary Company 8,39.08 6,29.34 h. Letters of credit issued by banks on behalf of the Company 19.83 - i. Non-Agricultural Land Cess 35.97 35.97 j. other Claims against the Company not acknowledged as debts 48.24 48.24

3. The Company has Cash Credit facilities from bankers secured by frst charge by way of hypothecation of inventories and book debts, both present and future, wherever situated and subservient mortgage on immovable properties situated at Mora, Bangalore and Nagpur.

Court and the matter is still subjudice. Based on the legal advice, the Company discontinued making further provision from january 2005. After internal review of the matter and based on the legal advice, the Company is now of the view that the earlier provision of Rs. 7,72.11 lacs is no longer required and hence the same has been reversed and disclosed under the head “Exceptional Item”.

4. The Company has been in possession of land at Tirupati, on which its Silicon Carbide Plant was erected, since 1978. The transfer formalities for the said land were not completed because of a dispute relating to the lease rent payable. The Company had paid lease rental (inclusive of penalty upto 1997) of Rs. 30 lacs for the period 1978 to 2004. The Company has also provided for lease rent in respect of 90 acres of land for the period 2004 to date at the rates prevailing for 2004, pending the fnalisation of the lease agreement.

5. Estimated amount of capital commitments (net of advances of Rs. 91.74 Lacs) not provided for Rs. 4,95.11 Lacs [Previous Year – Rs. 10,14.26 Lacs (net of advances of Rs. 5,47.31 Lacs)].

6. Exchange difference arising on foreign currency transactions amounting to Rs. 1,82.98 Lacs (Net Gain) (Previous Year – Rs. 56.16 Lacs – Net Loss) has been accounted under respective heads.

9. During the period, the Company has amended the terms and conditions of the Group Gratuity Scheme. Consequent to this, the impact of Rs. 2,76.15 Lacs has been charged under the head “Salaries, Wages, Bonus and Gratuity”.

7. Excise duty deducted from turnover represents amount of excise duty collected by the Company on sale of goods manufactured by the Company. Excise duty of Rs. 1,72.46 Lacs (Previous Year – Rs. 2,88.09 Lacs), being the difference between the opening and closing stock of finished goods is debited to Miscellaneous Expenses under Schedule 9.

8. The Company has not provided any loans and advances in the nature of loan to its subsidiary during the period (Previous Year Rs. Nil) and hence disclosure under clause 32 of the listing agreement is not made.

9. The Company uses forward contracts to hedge its risk associated with foreign currency fuctuations relating to frm commitments and forecasted transactions. The Company does not enter into forward exchange contracts which are intended for speculative purposes. Previous Year’s fgures are in brackets.

The Indian Rupee equivalent is arrived at by converting the forward contracts at the spot rate as at 31st March, 2010. Foreign currency exposure (net) not hedged by forward contracts as on 31st March, 2010 is Rs. 2,91.97 Lacs (Previous Year – Rs. 3,05.91 Lacs).

II. Defned Beneft Plan :

Contribution to Gratuity Fund :

The Company makes annual contributions to the Employees’ Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defned beneft plan for qualifying employees. Gratuity is payable to all eligible employees on superannuation, death or on separation/termination in terms of the provisions of the Payment of Gratuity Act or as per the Company’s policy whichever is benefcial to the employees.

10. Previous Years fgures have been recast and rearranged wherever necessary.

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