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Notes to Accounts of Manaksia Ltd.

Mar 31, 2015

1. As per the Accounting Standard on Segment Reporting (AS-17), segment information has been provided in the Notes to the Consolidated Financial Statements.

2. The certified copy of the Order of Hon'ble Calcutta High Court sanctioning the Scheme of Arrangement under section 391 to 394 of the Companies Act, 1956 ("the Scheme") for demerger of the Aluminium, Steel, Packaging and Coated Metal & Mosquito Coil Undertakings of Manaksia Ltd. on a going concern basis w.e.f. the appointed date (i.e. 1st October 2013) into four wholly owned subsidiaries namely Manaksia Aluminium Company Limited, Manaksia Steels Limited, Manaksia Industries Limited and Manaksia Coated Metals & Industries Limited respectively as approved by shareholders in the court convened meeting on 7th January, 2014 with requisite majority was received on 19th November, 2014 and with fi ling of the same with the Registrar of Companies, West Bengal on 23.11.2014, the scheme has become operational.

3. Pursuant to the Scheme, the said transfer has been affected at the values appearing in the books of the Company as at 30th September, 2013 and recorded as such in book of accounts of all the four transferee Companies. The book value of assets and liabilities as on that date has been detailed out below:

4. Further in terms of the Scheme, as on record date, shareholders of the Company holding 1 equity share of nominal value of Rs 2/- each fully paid have received:

1) 1 (One) Equity Share of nominal value of Re 1/- credited as fully paid in Manaksia Aluminium Company Limited

2) 1 (One) Equity Share of nominal value of Re 1/- credited as fully paid in Manaksia Steels Limited

3) 1 (One) Equity Share of nominal value of Re 1/- credited as fully paid in Manaksia Coated Metals & Industries Limited

4) 1 (One) Equity Share of nominal value of Re 1/- credited as fully paid in Manaksia Industries Limited

5. As stipulated in the Scheme, excess of net assets so transferred, amounting to Rs. 44,439.99 lacs has been adjusted against Reserves in the financial statements in the sequence hereunder:

Firstly, against Security Premium Reserve

The balance against General Reserves

6. Pursuant to the Scheme between Manaksia Limited and Manaksia Aluminium Company Limited, Manaksia Steels Limited, Manaksia Coated Metals & Industries Limited and Manaksia Industries Limited (the Companies), the Companies got demerged from the appointed date of 01.10.2013. Investment in Equity shares of demerged Companies were cancelled simultaneously upon allotment of shares by the demerged companies to the shareholders of Manaksia Ltd and this amount was adjusted with General Reserve of Manaksia Ltd.

7. Effective from April 1, 2014, the Company has charged depreciation based on the revised remaining useful lives of the assets as per the requirement of Schedule II to the Companies Act, 2013. Due to above, depreciation charge for the year ended March 31, 2015, is higher and Profit after tax is lower by Rs. 20.39 lacs. An amount of Rs 56.49 Lacs (net of deferred tax) has been recognized in the opening balance of retained earnings for the assets where remaining useful life as per Schedule II is Nil.

8. Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary to confirm to the current year presentation.

9. Current period figures are for 12 months ended 31st March 2015 in respect of residual undertaking remaining after demerger and previous period figures include the results of entire undertaking from start of Financial year (i.e 1st April 2013) to period prior to appointed date of demerger (i.e 30th September 2013). Since the reporting period of residual undertaking are not same, these figures are not comparable


Mar 31, 2014

1 a) Details of aggregate number of shares, alloted without payment being received in cash,alloted as bonus shares and bought back, if any, for the period of five years immediately preceeding the Balance Sheet date:

4,000,000 Equity Shares of Face Value of Rs. 2/- each were bought back and extinguished in the year 2010-11.

b) The Company is not a Subsidiary Company.

c) No Shares has been reserved for issue under options and contracts/commitments for the sale of shares/disinvestment

d) Terms/rights attached to each class of shares Equity Shares:

The Company has only one class of equity shares having a par value of Rs.2/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note:

2.1 The Current part of Long Term Borrowings, as above, have been shown under Other Current Liabilities (Note No.9), as Current Maturities of long term debt, as per the requirement of Schedule VI.

2.2 Rupee Term Loan: The Company''s Secured Corporate Loan facilities are secured by First Charge on Fixed Asset (Movable and Immovable) of the respective units of the Company except for the following which are secured on the 2nd charge basis:- - Fixed assets of Packaging Unit at Bankura.

- Movable Plant & Machinery of Packaging Unit at Bhopal

The amount is further secured on second charge basis on the current assets of the respective units of the Company.

Note: 3.1 The Company''s Secured Working Capital facilities are secured by First Charge on the current assets of the respective units of the Company ranking pari passu with the respective Working Capital Bankers.

The amount is further secured on second charge basis on fixed assets of the respective units of the Company ranking pari passu with the respective Working Capital Bankers except for the following which are secured on the 1st charge pari passu basis:- Fixed assets of the Steel Unit at Haldia Fixed Assets of Steel & Packaging Units at Bankura Movable Plant & Machinery of Packaging Unit at Bhopal

Disclosure of payables to MSME vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company.

There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

ii) Defined benefit plan

Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The present value of obligation is determined based on actuarial valuation using projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, takes into account inflation,seniority, promotion and other relevant factors. The above information has been certified by the actuaries.

4) Contingent Liabilities & Commitments: I) Contingent Liability

A. Claims against the company/disputed liabilities not acknowledged as Debts

(Rs. In Lacs)

Sl Particulars 31st March 31st March No 2014 2013

1 Excise duty demands under appeal 788.93 738.61

2 Sales tax under appeal 257.26 101.02

3 Income tax demands under appeal 77.75 73.53

4 Excise duty liability on goods exported pending submission of proof of export 388.89 30.72

5 Lease Rent 8.66 NIL

6 Service Tax 124.89 72.48

7 Municipal Tax 111.24 111.24

8 Demand by Haldia Development Authority towards Land Premium 332.50 332.50

9 Stamp Duty for Registration of Land 49.45 49.45

B. Guarantees (Rs. In Lacs)

Particulars 31st March 31st March 2014 2013

Guarantees in favour of banks/institutions against facilities granted to NIL 2,605.44

subsidiaries

a) Name & Relationship of the Related Parties

Particulars Relationship

MINL Ltd.

Dynatech Industries Ghana Ltd.

Euroasian Ventures FZE

Jebba Paper Mills Ltd (Subsidiary of MINL Ltd)

Manaksia Aluminium Co Ltd

Manaksia Coated Metals & Industries Ltd

Manaksia Ferro Industries Ltd

Subsidiary Companies

Manaksia Overseas Ltd

Manaksia Steels Ltd.

Manaksia Industries Ltd

Mark Steels Ltd

(Subsidiary of Manaksia Ferro Industries Ltd)

Euroasian Steels LLC

(Subsidiary of Euroasian Ventures FZE)

Arena Machineries Ltd. Associates

Mr.Basant Kumar Agrawal

Mr.Suresh Kumar Agrawal

Mr.Sushil Kumar Agrawal Key Management Personanel

Mr.Sunil Kumar Agrawal

Mr.Debarata Guha

Mr M P Agrawal

Mr.B D Agrawal

Mr Aditya B Manaksia Relatives to Key Management Personnel Mr Varun Agrawal

Mr Karan Agrawal

Mr Anirudha Agrawal

Mr Vineet Agrawal

Ms Prachi Agrawal

Notes : i) Transactions have taken place on arm''s length basis.

ii) No amount in respect of debts pertaining to the related parties have been written off or written back during the year. iii) No provision for doubtful debts is required to be made for the year in respect of debt due from related parties.

5) As per the Accounting Standard on Segment Reporting (AS-17), segment information has been provided in the Notes to the Consolidated Financial Statements.

6) Due to continued volatility in the value of Rupee against the US Dollar and other foreign currencies during the quarter under review, the loss/gain arising out of foreign exchange fluctuations items has been considered as exceptional item.

7.1) The shareholders of the Company in the Court Convened Meeting held on 7th January 2014, pursuant to the directives dated 13th November 2013 of Hon''ble High at Calcutta, have approved with requisite majority the Scheme of Arrangement (Scheme) under provisions of Sections 391 to 394 of the Companies Act, 1956 (Act) for demerger of the Aluminium, Steel, Packaging and Coated Metals & Mosquito Coil undertakings of the Company on a going-concern basis w.e.f. appointed date i.e. 1st October 2013 into four wholly owned subsidiary companies namely Manaksia Aluminium Company Ltd., Manaksia Steels Ltd., Manaksia Industries Ltd. and Manaksia Coated Metals & Industries Ltd. respectively. In terms of the requirement of the Scheme, the shareholders of the Company, pursuant to the provisions of Section 78 read with Sections 101 to 103 of the Act, in Extra Ordinary General Meeting held on 7th January 2014 have also approved by requisite majority, reduction in Securities Premium Reserve Account. In compliance with the requirements of SEBI Circular dated 4th February 2013 read with Circular dated 21st May 2013, the Scheme has also been approved by the public shareholders on 21st January 2014 through postal ballot and e-voting by majority. The Hon''ble High Court at Calcutta has vide its order dated 24.03.2014 approved the Scheme, which would become effective from the appointed date i.e. 1st October 2013 after receipt of the order of the Hon''ble High Court at Calcutta and filing of the same with Registrar of Companies, West Bengal.

7.2) The financial statements have been prepared on a going-concern basis without considering the effect of the Scheme of Arrangement (Scheme) referred herein above in Note No. 33.1. On the Scheme becoming effective the financial statements would be recasted by exclusion of the financials for the period 1st October 2013 to 31st March 2014 in respect of the undertakings being demerged pursuant to the Scheme.

8) Figures in bracket indicates Previous Year figures.

9) Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary to confirm to the current year presentation.


Mar 31, 2013

1) Contingent Liability

A. Claims against the company/disputed liabilities not acknowledged as Debts

(Rs. In Lacs)

Sl Particulars 31st March 31st March No 2013 2012

1 Excise duty demands under appeal 738.61 600.95

2 Sales tax under appeal 101.02 98.73

3 Income tax demands under appeal 73.53 73.53

4 Excise duty liability on goods exported pending submission 30.72 27.50 proof of export

5 Custom Duty NIL 15.15

6 Service Tax 72.48 51.92

7 Municipal Tax 111.24 49.99

8 Demand by Haldia Development Authority towards Land 332.50 332.50 Premium

9 Stamp Duty for Registration of Land 49.45 49.45

2) As per the Accounting Standard on Segment Reporting (AS-17), segment information has been provided in the Notes to the Consolidated Financial Statements.

3) Due to continued and unexpected depreciation in the value of Rupee against the US Dollar and other foreign currencies resulting from volatile global market during the year under review, the loss arising out of foreign exchange fluctuations items has been considered as exceptional item.

4) During the year, the Company has made pre-payment of outstanding External Commercial Borrowings and therefore in compliance with notification Dated 29 December 2011 of the Ministry of Corporate Affairs, Government of India, the amount of Rs 311 lacs in Foreign Currency Translation Account remaining unamortized loss as on 31st March 2012 has been charged to Profit & Loss Account during the current year.

5) Figures in bracket indicates Previous Year figures.

6) Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary to confirm to the current year presentation.


Mar 31, 2012

1.0 Foreign Currency Term Loans :

Foreign Currency Term Loan amounting to Rs. 4,085.14 Lacs (Prev.Yr.Rs. 3,219.84 Lacs) is secured by First Charge on all immovable assets of the Company excluding the immovable assets located at Aluminium Rolling Mill Unit, Haldia ,Assam Manufacturing unit and Land at Mehsana, Gujarat. The amount is further secured by way of creation of second charge on the moveable assets of the Company excluding the movable assets loacted at Aluminium Rolling Mill Unit, Haldia and Assam manufacturing Unit. In respect of the immovable properties at Kutch the First charge ranks pari passu with ICICI Bank for its Non Fund based Limit to the extent of Rs. 3500 lacs.

Working Capital loans amounting to Rs. 2,981.84 Lacs (Prev.Yr. Rs. 4,633.45 Lacs) are secured by way of creation of First 6.1 Charge on the movable assets of the Company ranking pari passu with other Working Capital Banks excluding moveable assets at manufacturing unit at Kutch.The amount is further secured by creation of second charge on all immovable properties ranking pari passu with Working Capital Banks excluding immovable properties situated at Aluminium Rolling Mill Haldia,Manufacturing unit at Kutch and Land at Mehsana, Gujarat. Some of the credit facilities are further secured by personal guarantee of some of the promoter directors of the Company.

1.1 Other Loans and advances from banks include Commercial Paper of Rs. 3,000.00 Lacs (Previous Year Rs. Nil)

Balance as on 31st March 2012 31st March 2011 (Rs. in lacs) (Rs. in lacs)

2 CONTINGENT LIABILITIES AND COMMITMENTS

I) Contingent Liabilities

A) Claims against the company/disputed liabilities not acknowledged as Debts

1) Excise duty demands under appeal 600.95 540.43

2) Sales tax and Entry tax demand under appeal. 98.73 409.86

3) Income tax demands under appeal. 73.53 73.73

4) Excise duty liability on goods exported pending 27.50 35.83 submission of proof of export.

5) Custom Duty 15.15 15.15

6) Service Tax 51.92 51.92

7) Municipal Tax 49.99 67.90

8) Demand by Haldia Development Authority 332.50 332.50 towards Land Premium

9) Stamp Duty for Registration of Land 49.45 49.45

3 Financial and Derivative Instruments :-

a) Derivative contracts entered into by the company and outstanding as on 31st March 2012 1) For hedging Interest rate related risk - (LIBOR Hedging) on Loan balance of USD 7.5 Million(P. Y USD7.50 Million) 2) For hedging commodity related risks in Metals - Futures 1850MT (Previous Year 625MT) b) Foreign currency loans that are not hedged USD 29.91 Million (Previous Year USD 31.50 Million)

4. As per the Accounting Standard on Segment Reporting (AS-17), segment information has been provided in the Notes to the Consolidated Financial Statements.

5.Due to unexpected depreciation in the value of Rupee against the US Dollar and other foreign currencies resulting from exceptionally volatile global market developments during the current year, the loss arising out of foreign exchange fluctuations and on restatement of foreign currency monetary items have been considered as exceptional item and disclosed separately.

6.The Ministry Of Corporate Affairs, Government of India, Vide General Circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statement.

7.The Company has exercised the option as per the notification Dated 29 December 2011 of the Ministry of Corporate Affairs, Government of India, relating to the effects of Changes in Foreign Exchange Rates. The amount remaining to be amortised in subsequent periods is Rs. 311.00 Lacs.

8.Figures in bracket indicates Previous Year figures.

9.Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary to confirm to the current year presentation.


Mar 31, 2011

I) Contingent Liabilities not provided for in respect of : Balance as on Balance as on 31st March 2011 31st March 2010

1) Guarantees in favour of 14,846.13 19,753.80 banks/institutions against facilities granted to subsidiaries

2) Excise duty demands 540.43 1,171.35 under appeal

3) Sales tax and Entry tax demand under appeal. 409.86 76.71

4) Income tax demands under appeal. 73.53 73.53

5) Excise duty liability on goods exported pending submission of proof of export. 35.83 0.38

6) Custom Duty 15.15 37.29

7) Service Tax 51.92 7.41

8) Municipal Tax 67.90 70.83

9) Demand by Haldia Development Authority towards Land Premium 332.50 332.50

10) Stamp Duty for Registration of Land 49.45 49.45

iii) Sundry Creditors include Rs. 198.59 Lacs (Previous Year Rs. 336.44 Lacs) towards Creditors for Capital Goods.

iv) Advances recoverable in kind or for value to be received include advance for capital goods amounting to Rs. 397.11 Lacs (Previous Year Rs. 263.28 Lacs).

viii) Excise duty on stocks represents differential excise duty on opening and closing stock of Finished Goods.

ix) Exchange fluctuation Rs. 58.05 lacs (Previous Year Rs. 1092.34 Lacs) represents short term exchange fluctuation loss.

x) Financial and Derivative Instruments :-

a) Derivative contracts entered into by the company and outstanding as on 31st March 2011

1) For hedging Interest rate related risk - (LIBOR Hedging)on Loan balance of USD 7.5 Million (Previous Year USD 7.50 Million)

2) For hedging commodity related risks - Forward contract (Net) USD 2.05 Million (Previous Year USD 34.00 Million)

b) Foreign currency loan that are not hedged USD 31.50 Million (Previous Year USD 19.10 Million)

xi) Information pursuant to the provisions of the Paragraph 4C, and 4D of Part II of Schedule VI to the Companies Act, 1956.

Notes:

a) Installed capacities have been certified by the Management and accepted as correct by the Auditors.

b) The Ministry of Corporate Affairs, Government of India vide its General Notification No.S.O.301(E) dated. 8th February, 2011 issued under Section 211(3) of the Companies Act, 1956 has exempted certain classes of companies from disclosing certain information in their Profit and Loss account. The Company being an "Export Oriented Company" is entitled to the exemption. Accordingly, disclosures mandated by paragraph 3(i)(a),3(ii)(a), 3(ii)(b) and 3(ii)(d) of Part II, Schedule VI to the Companies Act,1956 have not been provided.

c) The Ministry Of Corporate Affairs, Government of India, Vide General Circular No.2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statement.

xii) Related Parties disclosure

Subsidiary Companies Associates Key Management

MINL Ltd. Arena Mr.Basant Kumar Agrawal Machineries Ltd.

Dynatech Industries Ghana Ltd.

Euroasian Ventures FZE

Euroasian Steels LLC Mr. Suresh Kumar Agrawal (Subsidiary of Euroasian Ventures FZE)

Solex Chemicals Pvt Ltd

Crescent Ind (Nepal) Pvt Ltd *

Jebba Paper Mills Ltd Mr.Sushil Kumar Agrawal (Subsidiary of MINL Ltd)

Manaksia Aluminium Mr. Sunil Kumar Agrawal Co Ltd

Manaksia Coated Metals & Industries Ltd

Manaksia Ferro Industries Ltd

Manaksia Overseas Ltd Mr. Nadia Basak**

Manaksia Steels Limited

Manaksia Global Ltd * Mr. Debarata Guha



Subsidiary Companies Relatives Relationship

MINL Ltd. Mr Aditya B Manaksia Son

Dynatech Industries Mr Navneet Manaksia Son Ghana Ltd

Euroasian Ventures FZE

Euroasian Steels LLC Mr.B D Agrawal Brother (Subsidiary of Euroasian Ms Vishakha Agrawal Daughter Ventures FZE

Mark Steels Ltd Mr. Mahabir Pd. Brother Agrawal Solex Chemicals Pvt Ltd

Crescent Ind (Nepal) Pvt Ltd *

Jebba Paper Mills Ltd Mr Karan Agrawal Son (Subsidiary of MINL Ltd)

Manaksia Aluminium Co Ltd Mr Anirudha Agrawal Son

Manaksia Coated Metals & Industries Ltd Ms Prachi Agrawal Daughter

Manaksia Ferro Industries Ltd

Manaksia Overseas Ltd

Manaksia Steels Limited

Manaksia Global Ltd *

* The Holding -Subsidiary relationship ceased to exist as on 31st March 2011

** Resigned as Executive Director w.e.f. Close of business hours of 30th March,2011.

xiii) Segment information as on and for the Year ended 31st March 2011 are as below:

1) Primary Segment : Business segment has been identified as primary segment on the basis of the products of the company. Accordingly, the company has identified Packaging Product, Mosquito Coil, Metal Products, Engineering & Others as the business segments.

- Packaging consists of manufacture and sale of PP Cap, Crown Closures, Metal Containers, EP Liners, Washer, EP Sheets etc.

- Mosquito Coils consists of manufacture and sale of Mosquito Repellant coils.

- Metal Product consists of manufacture and sale of Aluminium and Steel galvanized sheets, coils etc.

- Engineering & others consists of manufacture and sales of Machine, Spare Parts etc.

2) Secondary Segment : Geographical segment has been identified as secondary segment. Geographical segments considered for disclosure are :

- Within India

- Outside India

xv) Change in Accounting for Insurance Claims.

The Company has changed the accounting for Insurance claims from actual/receipt basis to accrual basis from the the current financial year. Consequent upon such change in the accounting, the profits for the year has increased by Rs.148.04 lacs.

xvi) The Company has raised Rs. 24800.00 Lacs by issue of shares, in public issue in an earlier year and has fully utilised the proceeds of the issue as approved in Annual General Meeting of Shareholders

xix) Buy Back of Equity Shares

Pursuant to the approval of the Board of Directors of the Company, for buy back of equity shares under Section 77A of the Companies Act ,1956,the Company has bought back & extinguised 4,000,000 equity shares during the year ended March 31,2011 through open market transactions for Rs.40.14 crores by utilizing the Securities Premium account & the General Reserve to the extent of Rs.39.34 crores & Rs.0.80 crores respectively. The Capital Redemption Reserve has being created out of General Reserve for Rs.0.80 crores being the nominal value of shares bought back in terms of Section 77A of the Companies Act,1956.

xx) Figures in bracket indicates Previous Year figure.

xxi)Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary


Mar 31, 2010

(Rs. in Lacs)

Balance as on Balance as on 31st March 2010 31st March 2009

i) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) 2,231.63 3,906.00

ii) Contingent Liabilities not provided for in respect of:

1) Guarantees in favour of banks/ institutions against facilities granted to subsidiaries 12,836.27 13,434.17

2) Excise duty demands under appeal 1,171.35 2,533.21

3) Sales tax and Entry tax demand under appeal. 76.71 90.45

4) Income tax demands under appeal. 73.53 73.53

5) Excise duty liability on goods exported pending submission of proof of export. 0.38 0.32

6) Custom Duty 37.29 27.29

7) Service Tax 7.41 4.60

8) Civil - 0.58

9) Municipal Tax 70.83 103.85

10) Demand by Haldia Development Authority towards Land Premium 332.50 332.50

Stamp Duty for Registration of Land 49.45 49.45

iii) Sundry Creditors include Rs. 336.44 Lacs (Previous Year Rs. 106.08 Lacs) towards Creditors for Capital Goods. iv) Advances recoverable in kind or for value to be received include advance for capital goods amounting to Rs. 263.28 Lacs (Previous Year Rs. 356.89 Lacs).

iv) Excise duty on stocks represents differential excise duty on opening and closing stock of Finished Goods.

v) In line with the notification dated 31st March, 2009 issued by the Ministry of Corporate Affairs, amending Accounting Standard (AS) 11 - Effects of Changes in Foreign Exchange Rates, the Company has chosen to exercise the option under paragraph 46 inserted in the standard by the notification.

Accordingly, with retrospective effect from 1st April, 2007 exchange differences on all long term monetary items are :

i) to the extent such items are used for financing fixed assets, added to/subtracted from the cost of those fixed assets and depreciated over the balance useful life of the asset.

ii) in other cases accumulated in the Foreign Currency Monetary Item Translation Difference Account and amortised over the balance period of such long term monetary item but not beyond 31st March, 2011. Arising from the above, in the current year the Company has : i) Debited to the Profit and Loss Account Rs. 700.44 Lacs. ii) carried forward Rs. 93.69 Lacs in the Foreign Currency Monetary Item Translation Difference Account being the amount remaining to be amortised as at 31st March, 2010.

vi) Exceptional items Rs. 1092.34 (Previous year Rs. 1126.04 lacs) represents short term exchange fluctuation loss.

vii) Financial and Derivative Instruments:-

a) Derivative contracts entered into by the company and outstanding as on 31st March 2010

1) For hedging Interest rate related risk - (LIBOR Hedging)on Loan balance of USD 7.50 Million (Previous Year USD 5.00 Million)

2) For hedging commodity related risks - Forward contract (Net) USD 34.00 Million (Previous Year USD 60.00 Million)

b) Foreign currency loan that are not hedged USD 19.10 Million (Previous Year USD 14.30 Million)

viii) Outstanding dues of micro enterprises and small enterprises The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given.

ix) The Company has raised Rs. 24800.00 Lacs by issue of shares in public issue in an earlier year . Below is the utilisation of the proceeds of the issue as approved in Annual General Meeting of Shareholders

x) Change in cost formula for valuation of inventories

Consequent upon introduction of SAP based ERP system the company has adopted weighted average cost formula for valuation of inventories as against first in first out (FIFO) method adopted during earlier year.

Due to such change in the cost formula the value of inventories have increased to the extent of Rs. 78.36 Lacs with corrosponding increase in profits during the year.

xi) Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary.

 
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