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Accounting Policies of Gujarat Ambuja Exports Ltd. Company

Mar 31, 2015

1. Significant Accounting Policies:

A. BASIS OF ACCOUNTING:

The financial statements of Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under section 133 of Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

B. USE OF ESTIMATES:

Preparation of financial statements are in conformity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

Difference between the actual result and estimates, are recognized in the period in which the results are known/materialized.

C. CURRENT / NON-CURRENT CLASSIFICATION:

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

D. NON CURRENT ASSETS

D1.TANGIBLE AND INTANGIBLE FIXED ASSETS & DEPRECIATION:

i) Fixed assets except Freehold Land are stated at cost of acquisition & installation, net of CENVAT and VAT credits availed if any, less accumulated depreciation and impairment loss, if any. The cost of fixed assets comprises of its purchase price, import duties and any directly attributable cost of bringing the asset to its working condition for its intended use. Expenses directly attributable to new manufacturing facilities during its construction period are capitalized. Profit or Loss on disposal of tangible assets is recognized in the Statement of Profit and Loss.

Tangible assets not ready for the intended use on the date of Balance Sheet are disclosed as Capital Work in Progress. Advances given towards acquisition of fixed assets outstanding at each Balance Sheet date are disclosed as Capital Advances under Non-Current Loans and Advances.

ii) Borrowing costs incurred during the period of construction/acquisition of assets is added to the cost of Fixed Assets. Major expenses on modification /alterations increasing efficiency/capacity of the qualifying fixed assets are also capitalized.

iii) a) Hitherto depreciation on fixed assets was provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956, (as amended). Consequent to the enactment of the Companies Act, 2013 (The Act) and its applicability for accounting periods commencing after 01-04-2014, the company reviewed its policy of providing depreciation with reference to the estimated useful lives of Fixed Assets as prescribed by Schedule II of the Act.

In respect of Power Plant, the Company based on technical evaluation, identified the assets and components and reassessed the remaining useful lives of tangible fixed assets and reworked the depreciation accordingly. Further, the company evaluated the useful life of certain components of Plant and Machinery, the impact of which is not material.

Assets costing ' 5,000 or less are fully depreciated in the year of purchase.

Leasehold land and Leasehold improvements are amortized over a period of lease.

b) In respect of major alterations/modifications forming an integral part of existing assets, depreciation is provided at the rate arrived on the basis of useful life of such assets after such alterations/modifications as prescribed under Schedule II. Useful life of components of Plant and Machinery are identified and evaluated for providing depreciation.

iv) IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each Balance Sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of fixed assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

v) INTANGIBLE FIXED ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any. Intangible assets are amortized on straight line basis over the useful life of the asset not exceeding ten years.

D2. INVESTMENTS:

Investments are classified into current and non-current investments. Non-current investments are carried at cost. A provision for diminution in value of non-current investments is made for each investment individually, if such decline is other than temporary. Current investments are stated at the lower of cost and fair value, computed category-wise.

E. INVENTORIES: Inventories are valued as under:

i) RAW MATERIALS, PACKING Valued at lower of cost or net realizable value and for this purpose cost is determined

MATERIALS AND STORES & SPARES on weighted average basis. Due provision for obsolescence is made.

ii) FINISHED GOODS & At cost or net realizable value, whichever is lower. Cost is determined on absorption

WORK IN PROGRESS basis. Due provision for obsolescence is made.

iii) BY- PRODUCTS At net realizable value

F. TRADE RECEIVABLES AND LOANS AND ADVANCES

Trade Receivables and Loans and Advances are stated after making adequate provisions for doubtful balances.

G. REVENUE RECOGNITION:

i) SALES:

a) Revenue is recognized when it is reliably measured and no significant uncertainty exists as to its realization or collection. Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied , the property in the goods is transferred for a price , significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

b) Sales (net off trade and cash discounts) is inclusive of excise, but excludes export incentives/licenses, VAT/sales tax.

c) Excise duty paid for captive consumption of goods, where CENVAT credit is not available, is shown as excise expense.

ii) EXPORT BENEFITS/INCENTIVES:

The benefits are accounted on the accrual basis.

iii) DIVIDEND INCOME:

Dividend income from Investment is accounted for when the right to receive is established.

iv) INTEREST INCOME:

Interest income is recognized on the time proportion basis.

H. EMPLOYEE BENEFITS:

i) Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

ii) Post-Employment Benefits:

a) Defined Contribution Plans:

State governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees renders the related services.

b) Defined Benefit Plans:

The employee's gratuity fund scheme and compensated absences is Company's defined benefit plans.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations.

Actuarial gains and losses are recognised immediately in the Profit and Loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognise the obligation on net basis.

Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight-line basis over the average period until the benefits become vested.

iii) Long term employee benefits:

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned in b) (ii) above.

I. BORROWING COSTS:

Borrowing cost includes interest, bank charges, amortization of ancillary costs incurred in connection with arrangements of borrowing. Borrowing costs whether specific or general, utilized for acquisition, construction or production of qualifying assets are capitalised as part of cost of such assets till the activities necessary for its intended use are complete. General borrowing costs are capitalised at the weighted average of such borrowings outstanding during the year. All other borrowing costs are charged in statement of Profit & Loss of the year in which incurred.

J. TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realised. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess realisation.

Deferred tax in respect of timing differences which reverse during the tax holiday period are not recognised. However, Deferred tax in respect of timing differences which reverse after the tax holiday period are recognised in the year in which the timing differences originate.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only for the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement". The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and liability on a net basis.

K. FOREIGN CURRENCY TRANSACTIONS:

i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currency at the year end are translated at the exchange rates prevailing at the Balance Sheet date.

iii) Premium or discount arising at the inception of the forward exchange contract is amortised as income or expense over the period of the contract. Any profit or loss arising in renewal or cancellation of forward exchange contracts is recognised as income or expense during the year.

iv) The Company accounts for exchange differences arising on translation/ settlement of foreign currency monetary items as below.

a) Exchange differences arising on long term foreign currency monetary items related to acquisition of fixed assets are capitalized or decapitalized from the cost of assets and are depreciated over the remaining useful life of the assets.

b) Exchange differences arising on other long term foreign currency items are accumulated in the "Foreign Currency Monetary Item Translation Difference Account" and amortized over the remaining life of the concerned monetary item.

c) All other exchange differences are recognized as income or expenses in the period in which they arise.

For the purpose of (a) and (b) referred above , the Company treats a foreign monetary item as " Long term Foreign Currency Monetary Item", if it has a term of 12 months or more at the date of origination.

L. DERIVATIVE INSTRUMENTS AND HEDGE ACCOUNTING:

The Company uses foreign currency contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecast transactions. The Company does not hold derivative financial instruments for speculative purposes. The Company has applied to such contracts the principles of recognition set out in the Accounting Standard (AS 30) on 'Financial Instruments - Recognition and Measurement'. Changes in the fair value of the contracts that are designated and effective as cash flow hedge is directly recorded in the Hedge Reserve Account and is recognized in the Statement of Profit and Loss in the same period or periods during which the hedged transaction affects profit and loss. Gains or losses on the ineffective transactions are recognized immediately in the Profit and Loss Account. The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense / income over the life of the contract.

M. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Contingent Liabilities are disclosed by way of notes to financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements. Provisions and contingent liabilities are reviewed at each Balance Sheet date.

N. CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE:

All contingencies and events occurring after the Balance Sheet date which have a material effect on the financial position of the Company are considered for preparing the financial statements.

O. RESEARCH AND DEVELOPMENT EXPENSES:

Expenditure relating to capital items is debited to Fixed Assets and depreciated at applicable rates. Revenue expenditure is charged to Profit and Loss Account of the period in which they are incurred.

P. GOVERNMENT GRANTS:-

i) The grants/subsidies received in the nature of promoters' contribution are treated as capital receipts and credited to Capital Reserve.

ii) The grants /subsidies relating to specific fixed assets are shown as deduction from the cost of the respective assets concerned in arriving at its book value.

iii) Grant in the form of revenue subsidy is treated as revenue receipt and credited to 'Other Income' in Profit and Loss Account.

Q. EXCISE DUTY:

Finished Goods lying at factories have been valued at inclusive of Excise Duty. The claim of Cenvat for Excise Duty paid on inputs is accounted on the basis of claim. The Cenvat claim for Excise paid on capital goods is accounted when the claim is allowed.

R. SEGMENT REPORTING:

i) Identification of segments

The company's operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the company operate.

ii) Inter-segment transfers

The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.

iii) Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

iv) Unallocated items

Unallocated items include general corporate income and expense items which are not allocated to any business segment.

v) Segment accounting policies

The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

S. EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share spilt, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

T. CASH AND CASH EQUIVALENTS:

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

U. MEASUREMENT OF EBIDTA:

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/(loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expenses, finance costs and tax expenses.

V. OPERATING LEASES:

Payment and receipts of lease rentals are charged or credited to the Statement of Profit and Loss on straight line basis over the period of lease.

W. PROPOSED DIVIDEND:

Dividend recommended by the Board of Directors is provided for in the accounts, pending approval at the Annual General Meeting.


Mar 31, 2014

A) BASIS OF ACCOUNTING:

The finnrcul atalamema have been prepared In accordance with the aecountstg pnntdptas generally stcapiao n India (Indian GAAP) and comply with the Companies (Accounting Standards) Rules. 2306 issued by 1ha GentrtJ Government and relevant pravisjona Of COmpaniaS Act, ] 356 and era baaed On the hislG- ca I coal convention.

B) USE ESTIMATES:

Preperation gl flrandal statements m oontormlty with ihe generally accapted aocounting pnndpias require management In make ealmatm sod assumptions that sited the reported imexrot* of tt«els end llabtfll** on th* dab* otthotinsnoisl slstemenl* and the roportod amount of revenues end oipense* during the reporting period Dtiferance between the actual result end estimstoe. are recongnised in the period In Which the results are knowimateriallsed..

C) FIXED ASSETS, DEFUECIATIONANDEXPENDITURE DURINGCONSTRUCTIONPERIOD:

TANGIBLE FIXED ASSETS

i) Fixed assets Lend ere stated the cost or acquisition imswoljon, net oTeenvat and VAT credits avtUedlfiny, lets «ojmui.med depredation end impairment lose, rf any

ii) Borrowing cost incurred during the period of constuction acquired of assets is added to the nasi of Fixed Assets. Major empansaa cm modification feltarationB increasing elfidency,fespMilyorf1he qualifying fixed Besets are also capitalised.

Depreciation on fixed assets is provided on Street Line Method at the rales and fn the manner preecritjad in Schedule XIV of Ihe Compenies Act 1956.

b) In respect of major altoratiOnsImOdificStjofls forming an integral part of existing assets, depredation is provided at the rale arrived Oh the basis d useful hfe of such assets alter such olterationsrmodiikelions or at (he rsle prescribed under Schedule XPV, whichever is hgheron the total value ofauch assets

IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at ear* Balance Sheeldaia 'nr any ingestion of impairment based on in! emci.'extamc factors An impenitent loss ig recognised wherever Ihe carrying amount of feed assets euncaeds its recoverable amoenLTha recoverable amount is measured as the higher of the net sailing price and iho value in use deiermined by the prosenl value pi estimated future cash flows

INTANGIBLE FIXED ASSETS

Intangible assets acquired separately ere measured on miuel recognition ai cost. Fqllowmg Initial recognition Intsng Me assets are carried at cast less accumulated amortization and Bccumulalad Impairment loes, iFany. Intangible assets are amtxlKBd on straight!™ basis over It* usafal life of Ihe asaal not exceeding ten years.

E) INVESTMENTS:

Investments are classified into current and long term investments. Long torm Investments ore canted el. cost. A provision lor dtinnution value of long norm Investments Is mode far each mveglmenl Individually, If such rjedlne is Other than lemponav. Current Investments the lower of COM end fOr value, com puled categmy-wlee

E) INVENTORIES:

Inventdrioa are valued ae under

l) RAW MATERIALS, PACKING

valued at lower of Cost or nor realized value and for this purpose

MATERIALS AND STORES & SPARES.

cost fo determined on welflhied average Weis Due provision for obsolescence is made.

It) FINISHED GOODS & WORK IN PROGRESS

At cost or net realisable value , whichever Is lower Cost is determined on absorption basis. Due prevision for obsoiescene is made,

iii) BY-PRODUCTS

At net reahsabie value

F) REVENUE RECOGNITION:

I) SALES

o) Revenue N recogmod when H is roimbty measured no signlfitnnl uncertainty exlsto as to its roiHiflten or collection.

Ravened from sale of goods H recognized on delivery of Ihe pod nets, when ai significant contractual obligations haw been satisfied. Ihe property In Die goods is transferred lora price, sijpilficarit risks and rewards of ownership ere transferred In the customers end no effective ownership is retained, b) Salas ffret off trade and Cash discounts) Is i ndusive of excise. butlxdirdas errort incenliveai'icenses, VAT/salos Lar

e) Excise duty pa id far captive consumption ol goods, where estival credit is not available, is shown as excise axpans*.

II) DIVIDEND INCOME:

Dividend Income from Investment Is acwunled far when Ihe right to recede Is established Hi) EXPORT BENEFITS!INCENTIVES:

The benefits Me accounted on the accrual basis.

G) EMPLOYEE BENEFITS:

a) Short term Employee Benefits:

All emplane benefits peyabla wholly with i twelve months Of rendering the service era classified ea short term employee benefits. .Benefits autih as salaries, wages, short tarm compensated absences etc,. and the avpeded COM of bonus, e xgrata are jecogateed in the period In which me am ptoyee renders the rata ted service

b) Post-Emptoymen Benefits:

(i) Defined Contribution Plana:

Stole governed provident fund scheme and employees state insurance sdwrna era defied contiibubon plana The contributor, paid I payable under 1he schemee is recoffiised thxing Ihe period ii which the employeea cendeia Ihe celaladeervioes.

(i) Defined BofientFiflfls:

The employee's gratuity fand sefteme and oompertsaied awencei is Company's daitned benolri plans.

The present value of the oMgation isvder such defined benefit plan is detiarmlnsd based on actuarial valuation use the Projatitod Unit Cred-1 MalixxJ, which raoogniws each pertodof service m giving nse to add rionsi unit of employee benefits entitle mem and meesuras esch tail separately to build up me firm oOHgmion. The obligation la measured at the present value of tile estimated ftAan cash flows. The dfcoourit ratos used far datormlnbtg ihe present value af the oHigaliOn under defined benefit plans, is based on ihe market yields on Government Securities ea at the Balance Shea! data, having maturity periode approximating bothotanr* of related Dbfigabiona.

Actuenei gains and teases are recognised toanedlalely m ihe Profit and Loss account.

In case rffundedpfera.ihe tor veXieoMhe plan assea isrediicad tram die grass otigslionB under the defined Penefii plane, to mooguBa Via obigelkm on net bams. Gains of tosses on the curtailment« seLtlmikKiL of any defined, benefits plans are recognised when Ihe curtaiunem of seitiemenl occurs Past service cost is recognised as expense on a straight-lire basts over the average period until *e benefits become veiled, ri) Long men employee benefits:

(c) Long term nmpioyoo benefits such as long tomt ttomperiMted absences, is recipent In thasaron manner as m Case of defend benefit plans aamentioned Inb)(l)above.

H) BORROWING COSTS-

Borrowing coat mdudes mtaresl, bank chargas, eiHntization of andBary coals incurred in corviacbon with anangamartls of bomwlng. Borrowing coats whether tpecific or general, uhfiznd far acquisition, construction nr production of qualifying assets arocapriaesedaspartof ooetof auch assets till the actnritiea necessary tor its Intendad use bib nomplala. General oo mowing costa arecapital aed be Bib weyited average af such bcrran- .a outstanding during [he year. A3 uthar banmdng amis are charged in statement o' Pro'll S Loss 01 1to veer in Which incurred

I) TAXES ON INCOME:

Current tax la delenmiriad aa the emosnt of tin payatie m reaped of taxable income ft* the year. Deferred reoogniaed. on iming difference, being tho difference between taxable income and mounting income lhel originate in one period end are capable of reutreal hone or mors subsequent periods Where there ie unebeoitted depredation « cany forward losses, deferreo tax awala wo recognised only If there » virtual certainty that sufficient future tumble Income wit be Hvgitatie against Whtit wto weetecen be realised Other deferred IB aseeh are recognised only to thB extent them is reasonable certainty of realisation El future. Sudi asaaia are reviewed at each Balance Sheet dale Id reassoES realisation.

Deferred Tax m reaped of tiling d iterances wittil mnae dining hfl to iriday panod are not rrogniisd. However Mb rad tax m imped of tiling dilirei when rave ms after he to hn'day period ere recognised h he year n wnkh Ihe It irjngdiffEtitnces cremate

Mnimum Tax(MAT] paid m a year ia charged in lbs Sslemenl of proti and bes as nnren: lax The rampan) reccgimaa HAT mdf atarahla as an asset only for Bva Extent 1/al there is convincing ovdercs dial the nxryiery w€ pay noimal heema to during tie ipedSad perioc le., the period hr wfiidi MAT erect is slnmri 6 be earned toward In Ihs yes: in toidi the company recap™ MAT aedt m to asnf n secontanoe wdh the Guidance ftots on Aapunhng far CtoS Avariahle si imped of UrtlmtEii AJOsmalrre Tax inter tie Income-tax Ad, 1551, He said asset I) imati by wvtff fledft the of pnjfirindkss J shown as HIXT Quit Eltdeme if The oynpany rwrisws Ihe *MAT tm* BiiBttonerr user d be reponhg dale end mtto down mael tope Eden the rarpany doss nd haw (mine ng evtOanos Jidltwilpsyromisl taxdL-ing theapedled ptooO.

J) F0REIGH CURRENCY TRANSACTIONS :

i) Transactions danominihd hregn os nances araitomtally reavdecat Its exchange rati prevailng stthe tree on the transaction.

ii) Moneastytanti denominated In nmneyai the year end erotenslatid gt The embargo rates nevai.rg at the Balance Stwetcati

iii) Pteitipn or dseotitl artsngat the timUgn of thetonmd etdtange contred a area rased as rtocme or expense Oto the period of the retold. Any pgflt or b«S tiTing h rat™ or csitotocn of IrwaicmuStango conIreels a reoog^sed as inane oratpensa Biting he tear

iv) The Company accounts lor Euhangedirerircm anungootoiutoif Htllwre-il fcmiiri niitooy itvebry tons m Oetor.

a) Ex rfrangaddietwiM anting on long tom bmi tijptoCyiitinMjy law ratted to icqu When of food Eateti ciodie(l or ttoaeiU ati ton ho nx t/ assHs and nre eoDmcalad over ha lEitttoiing utori Hi ot feasants

b) Extfiftngd ditTcfweos Wittog or. oditr tog tout tuTtoSy l»m are aKuiratelod In the 'Ecmlgr ditoiey MOnobtry l»tn TrwiSWxVi D B6w.fi) ACtcurl" and amonllod iwneewy lie of ho co neared mtiiyrtto


Mar 31, 2013

A) BASIS OF ACCOUNTING:

The financial statements have been prepared in accordance with the accounting principles generally accepted in India (Indian GAAP) and comply with the Companies (Accounting Standards) Rules, 2006 issued by the Central Government and relevant provisions of Companies Act,1956 and are based on the historical cost convention.

B) USE OF ESTIMATES:

Preparation of financial statements in conformity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates, are recognised in the period in which the results are known/materialised. C ) FIXED ASSETS, DEPRECIATION AND EXPENDITURE DURING CONSTRUCTION PERIOD: TANGIBLE FIXED ASSETS i) Fixed assets except Freehold Land are stated at cost of acquisition & installation, net of cenvat and VAT credits availed , if any, less accumulated depreciation and impairment loss, if any.

ii) Borrowing costs incurred during the period of Construction/acquisition of assets is added to the cost of Fixed Assets. Major expenses on modification /alterations increasing efficiency/capacity of the qualifying fixed assets are also capitalised. iii) a) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed inSchedule XIV of the Companies Act 1956, (as amended). b) In respect of major alterations/modifications forming an integral part of existing assets, depreciation is provided at the rate arrived on the basis of useful life of such assets after such alterations/modifications or at the rate prescribed under Schedule

XIV, whichever is higher on the total value of such assets.

iv)IMPAIRMENT OF ASSETS The carrying amount of assets is reviewed at each Balance Sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of fixed assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

INTANGIBLE FIXED ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any. Intangible assets are amortized on straightline basis over the useful life of the asset not exceeding ten years.

D) INVESTMENTS:

Investments are classified into current and long term investments. Long term investments are carried at cost. A provision for diminution in value of long term investments is made for each investment individually, if such decline is other than temporary. Current investments are stated at the lower of cost and fair value, computed category-wise.

E) INVENTORIES: Inventories are valued as under:

i) RAW MATERIALS, PACKING Valued at lower of cost or net realizable value and for this purpose

MATERIALS AND STORES& SPARES. cost is determined on weighted average basis. Due provision for obsolescence is made.

ii) FINISHED GOODS & WORK IN At cost or net realisable value, whichever is lower. Cost is

PROGRESS determined on absorption basis. Due provision for obsolescence is made.

iii) BY-PRODUCTS At net realisable value

F) REVENUE RECOGNITION: i) SALES:

a) Revenue is recognized when it is reliably measured and no significant uncertainty exists as to its realization or collection.

Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied , the property in the goods is transferred for a price , significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

b) Sales (net off trade and cash discounts) is inclusive of excise, but excludes export incentives/licenses, VAT/sales tax.

c) Excise duty paid for captive consumption of goods, where cenvat credit is not available, is shown as excise expense. ii) DIVIDEND INCOME:

Dividend income from Investment is accounted for when the right to receive is established. iii) EXPORT BENEFITS/INCENTIVES:

The benefits are accounted on the accrual basis.

G) EMPLOYEE BENEFITS:

a) Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

b) Post-Employment Benefits: (i) Defined Contribution Plans:

State governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees renders the related services. (ii) Defined Benefit Plans:

The employee’s gratuity fund scheme and compensated absences is Company’s defined benefit plans.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations.

Actuarial gains and losses are recognised immediately in the Profit and Loss account. In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognise the obligation on net basis. Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight-line basis over the average period until the benefits become vested.

c) Long term employee benefits:

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned

in b) (ii) above. H) BORROWING COSTS:

Borrowing cost includes interest, bank charges, amortization of ancillary costs incurred in connection with arrangements of borrowing. Borrowing costs whether specific or general, utilized for acquisition, construction or production of qualifying assets are capitalised as part of cost of such assets till the activities necessary for its intended use are complete. General borrowing

costs are capitalised at the weighted average of such borrowings outstanding during the year. All other borrowing costs are charged in statement of Profit & Loss of the year in which incurred.

I) TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realised. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess realisation. Deferred tax in respect of timing differences which reverse during the tax holiday period are not recognised. However Deferred tax in respect of timing differences which reverse after the tax holiday period are recognised in the year in which the timing differences originate.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only for the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement". The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

J) FOREIGN CURRENCY TRANSACTIONS:

i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currency at the year end are translated at the exchange rates prevailing at the Balance Sheet date.

iii) Premium or discount arising at the inception of the forward exchange contract is amortised as income or expense over the period of the contract. Any profit or loss arising in renewal

or cancellation of forward exchange contracts is recognised as income or expense during the year. iv) The Company accounts for exchange differences arising on translation/ settlement of foreign currency monetary items as below.

a) Exchange differences arising on long term foreign currency monetary items related to acquisition of fixed assets are capitalized or decapitalized from the cost of assets and are depreciated over the remaining useful life of the assets.

b) Exchange differences arising on other long term foreign currency items are accumulated in the "Foreign Currency Monetary Item Translation Difference Account" and amortized over the remaining life of the concerned monetary item.

c) All other exchange differences are recognized as income or expenses in the period in which they arise.

For the purpose of (a) and (b) referred above , the Company treats a foreign monetary item as " Long term Foreign Currency Monetary Item", if it has a term of 12 months or more at the date of origination.

K) DERIVATIVE INSTRUMENTS AND HEDGE ACCOUNTING:

The Company uses foreign currency contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecast transactions. The Company does not hold derivative financial instruments for speculative purposes. The Company has applied to such contracts the principles of recognition set out in the Accounting Standard (AS 30) on ‘Financial Instruments – Recognition and Measurement’. Changes in the fair value of the contracts that are designated and effective as cash flow hedge is directly recorded in the Hedge Reserve Account and is recognized in the Statement of Profit and Loss in the same period or periods during which the hedged transaction affects profit and loss. Gains or losses on the ineffective transactions are recognized immediately in the Profit and Loss Account.

L) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will

be required to settle the obligation and a reliable estimate can be ade for the amount of the obligation. Contingent Liabilities are disclosed by way of notes to financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements. Provisions and contingent liabilities are reviewed at each Balance Sheet date. M) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE:

All contingencies and events occurring after the Balance Sheet date which have a material effect on the financial position of the Company are considered for preparing the financial

statements. N) RESEARCH AND DEVELOPMENT EXPENSES:

Expenditure relating to capital items is debited to Fixed Assets and depreciated at applicable rates. Revenue expenditure is charged to Profit and Loss Account of the period in which

they are incurred. O) GOVERNMENT GRANTS:- i) The grants/subsidies received in the nature of promoters’ contribution are treated as capital receipts and credited to Capital Reserve.

ii) The grants /subsidies relating to specific fixed assets are shown as deduction from the cost of the respective assets concerned in arriving at its book value.

iii) Grant in the form of revenue subsidy is treated as revenue receipt and credited to ‘Other Income’ in Profit and Loss Account. P) EXCISE DUTY:

Finished Goods lying at factories have been valued at inclusive of Excise Duty. The claim of Cenvat for Excise Duty paid on inputs is accounted on the basis of claim. The Cenvat claim

for Excise paid on capital goods is accounted when the claim is allowed. Q) SEGMENT REPORTING:

i) Identification of segments

The company’s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the company operate.

ii) Inter-segment transfers

The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.

iii) Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

iv) Unallocated items

Unallocated items include general corporate income and expense items which are not allocated to any business segment.

v) Segment accounting policies

The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole. R) EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share spilt, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. S) CASH AND CASH EQUIVALENTS: Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

T) MEASUREMENT OF EBIDTA:

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the company has elected to present earnings before interest, tax, depreciation and amortization

(EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/(loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expenses, finance costs and tax expenses.


Mar 31, 2012

A) ACCOUNTING CONVENTION:

The financial statements have been prepared in accordance with the accounting principles generally accepted in India (Indian GAAP) and comply with the Companies (Accounting Standards) Rules,2006 issued by the Central Government and relevant provisions of Companies Act, 1956 and are based on the historical cost convention.

B) USE OF ESTIMATES:

Preparation of financial statements in conformity with the generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates, are recognised in the period in which the results are known/materialised.

C) REVENUE RECOGNITION:

i) SALES:

a) Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection. Revenue from sale of goods is recognized on delivery of the products, when all significant contractual obligations have been satisfied , the property in the goods is transferred for a price , significant risks and rewards of ownership are transferred to the customers and no effective ownership is retained.

b) Sales is inclusive of excise, and exclusive of export incentives/licenses, profit or loss on forward exchange contracts on sales and VAT/central sales tax and trade and cash discount.

c) Excise duty paid for captive consumption of goods, where cenvat credit is not available, is shown as excise expense.

ii) DIVIDEND INCOME:

Dividend income from Investment is accounted for when the right to receive is established.

iii) EXPORT BENEFITS/INCENTIVES:

The benefits are accounted on the accrual basis.

D) FIXED ASSETS, DEPRECIATION AND EXPENDITURE DURING CONSTRUCTION PERIOD:

i) Fixed assets are stated at cost of acquisition & installation, net of cenvat and VAT credits availed ,if any, less accumulated depreciation and impairment loss, if any. Borrowing costs incurred during the period of Construction/acquisition of assets is added to the cost of Fixed Assets. Major expenses on modification / alterations increasing efficiency/capacity of the plant are also capitalised.

ii) a) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956, (as amended).

b) In respect of major alterations/modifications forming an integral part of existing assets, depreciation is provided at the rate arrived on the basis of useful life of such assets after such alterations/modifications or at the rate prescribed under Schedule XIV, whichever is higher on the total value of such assets.

iii) IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each Balance Sheet date for any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of fixed assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

E) INVESTMENTS:

Investments are classified into current and long term investments. Long term investments are carried at cost. A provision for diminution in value of long term investments is made for each investment individually, if such decline is other than temporary. Current investments are stated at the lower of cost and fair value, computed category-wise.

F) INVENTORIES:

Inventories are valued as under:

i) RAW MATERIALS, PACKING Valued at lower of cost or net realizable value and for this purpose cost is MATERIALS AND STORES& SPARES. determined on weighted average basis. Due provision for obsolescence is made.

ii) FINISHED GOODS & WORK IN At cost or net realisable value, whichever is lower. Cost is PROGRESS determined on absorption basis. Due provision for obsolescence is made.

iii) BY PRODUCTS At net realisable value

G) EMPLOYEE BENEFITS:

a) Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, short term compensated absences etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

b) Post-Employment Benefits:

(i) Defined Contribution Plans:

State governed provident fund scheme and employees state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employees renders the related services.

(ii) Defined Benefit Plans:

The employee's gratuity fund scheme and compensated absences is Company's defined benefit plans.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plans, is based on the market yields on Government Securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations. Actuarial gains and losses are recognised immediately in the Profit and Loss account.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligations under the defined benefit plans, to recognise the obligation on net basis. Gains or losses on the curtailment or settlement of any defined benefits plans are recognised when the curtailment or settlement occurs. Past service cost is recognised as expense on a straight-line basis over the average period until the benefits become vested.

c) Long term employee benefits:

The obligation for long term employee benefits such as long term compensated absences, is recognised in the same manner as in case of defined benefit plans as mentioned in b) (ii) above.

H) BORROWING COSTS:

Borrowing costs whether specific or general, utilized for acquisition, construction or production of qualifying assets are capitalised as part of cost of such assets till the activities necessary for its intended use are complete. General borrowing costs are capitalised at the weighted average of such borrowings outstanding during the year. All other borrowing costs are charged in statement of Profit & Loss of the year in which incurred.

I) TAXES ON INCOME:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty that sufficient future taxable income will be available against which such assets can be realised. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Such assets are reviewed at each Balance Sheet date to reassess realisation.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only for the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement". The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

J) FOREIGN CURRENCY TRANSACTIONS:

i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

ii) Monetary items denominated in foreign currency at the year end are translated at the exchange rates prevailing at the Balance Sheet date.

iii) Premium or discount arising at the inception of the forward exchange contract is amortised as income or expense over the period of the contract. Any profit or loss arising in renewal or cancellation of forward exchange contracts is recognised as income or expense during the year.

iv) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss Account.

v) As per the notification issued by Ministry of Corporate Affairs on 29-12-2011 relating to "The Effects of Changes in Foreign Exchange Rates", paragraph 46A of Accounting standard 11, namely, in respect of accounting periods commencing on or after the 1st April, 2011, the Company which had earlier exercised the option under paragraph 46 and such option to be irrevocable and to be applied to all such foreign currency monetary items, the exchange differences arising on reporting of long-term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, is added to or deducted from the cost of the asset and shall be depreciated over the balance life of the asset, and in other cases, is accumulated in a "Foreign Currency Monetary Item Translation Difference Account" in the financial statements and amortized over the balance period of such long term asset or liability, by recognition as income or expense in each of such periods, with the exception of exchange differences dealt with in accordance with the provisions of paragraph 15 of the said rules. This policy will be applicable till 31-03-2020.

K) DERIVATIVE INSTRUMENTS AND HEDGE ACCOUNTING:

The Company uses foreign currency contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecast transactions. The Company does not hold derivative financial instruments for speculative purposes. The Company has applied to such contracts the principles of recognition set out in the Accounting Standard (AS 30) on 'Financial Instruments - Recognition and Measurement'. Changes in the fair value of the contracts that are designated and effective as cash flow hedge is directly recorded in the Hedge Reserve Account and is recognized in the Statement of Profit and Loss in the same period or periods during which the hedged transaction affects profit and loss. Gains or losses on the ineffective transactions are recognized immediately in the Profit and Loss Account.

L) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognised when the company has present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Contingent Liabilities are disclosed by way of notes to financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements. Provisions and contingent liabilities are reviewed at each Balance Sheet date.

M) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE:

All contingencies and events occurring after the Balance Sheet date which have a material effect on the financial position of the Company are considered for preparing the financial statements.

N) RESEARCH AND DEVELOPMENT EXPENSES:

Expenditure relating to capital items is debited to Fixed Assets and depreciated at applicable rates. Revenue expenditure is charged to Profit and Loss Account of the period in which they are incurred.

O) GOVERNMENT GRANTS:-

i) The grants/subsidies received in the nature of promoters' contribution are treated as capital receipts and credited to Capital Reserve.

ii) The grants /subsidies relating to specific fixed assets are shown as deduction from the cost of the respective assets concerned in arriving at its book value.

iii) Grant in the form of revenue subsidy is treated as revenue receipt and credited to 'Other Income' in Profit and Loss Account.

P) EXCISE DUTY:

Finished Goods lying at factories have been valued at inclusive of Excise Duty. The claim of Cenvat for Excise Duty paid on inputs is accounted on the basis of claim. The Cenvat claim for Excise paid on capital goods is accounted when the claim is allowed.

Q) SEGMENT REPORTING:

i) Identification of segments - The company's operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the areas in which major operating divisions of the company operate.

ii) Inter-segment transfers - The company generally accounts for intersegment sales and transfers at cost plus appropriate margins.

iii) Allocation of common costs - Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

iv) Unallocated items - Unallocated items include general corporate income and expense items which are not allocated to any business segment.

v) Segment accounting policies - The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

R) EARNINGS PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share spilt, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

S) CASH AND CASH EQUIVALENTS:

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

T) MEASUREMENT OF EBIDTA:

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956, the company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The company measures EBITDA on the basis of profit/(loss) from continuing operations. In its measurement, the company does not include depreciation and amortization expenses, finance costs and tax expenses.

 
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