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Notes to Accounts of Nestle India Ltd.

Dec 31, 2014

1. NET PROVISION FOR CONTINGENCIES

The Company has created a contingency provision of Rs. 734.8 millions (Previous year Rs. 736.4 millions) for various contingencies resulting mainly from matters, which are under litigation / related disputes and other uncertainties requiring management judgement. The Company has also reversed, utilised/settled contingency provision of Rs. 121.0 millions (Previous year Rs. 115.9 millions) due to the satisfactory settlement of certain litigations and settlement of obligations under free replacement warranty for which provision is no longer required.

Notes:

(a) Litigations and related disputes - represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Income Tax, Excise Duty, Service Tax, Entry tax, Sales and Purchase Tax, etc.). The probability and the timing of the outflow with regard to these matters depend on the ultimate settlement /conclusion with the relevant authorities.

(b) Others - include estimates made for products sold by the Company which are covered under free replacement warranty on becoming unfit for human consumption during the prescribed shelf life. The timing and probability of outflow with regard to these matters will depend on the external environment and the consequent decision/ conclusion by the Management.

2. CONTINGENT LIABILITIES AND COMMITMENTS

Contingent liabilities

Claims against the Company not acknowledged as debts: (Rs. in (Rs. in millions) millions)

Indirect Taxes 195.4 127.6

Capital Commitments

Capital expenditure commitments remaining to be executed and not 201.3 599.2

provided for [net of advances Rs. 19.3 millions (Previous year Rs. 25.6 millions)]

Corporate social responsibility expense commitments 38.6 -

The Company also has other commitments for purchase /sales of goods and services for which orders are issued after considering requirements as per the operating cycle of the business.

3. SEGMENT REPORTING

Based on the guiding principles given in Accounting Standard 17 on ''Segment Reporting'' (AS-17), the Company''s primary business segment is Food. The food business incorporates product groups viz. Milk Products and Nutrition, Beverages, Prepared dishes and cooking aids, Chocolates and Confectionery, which mainly have similar risks and returns. As the Company''s business activity falls within a single primary business segment the disclosure requirements of AS -17 in this regard are not applicable.

4. DISCLOSURE UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

On the basis of confirmation obtained from suppliers who have registered themselves under the Micro Small Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the Company, the balance due to Micro & Small Enterprises as defined under the MSMED Act, 2006 is Rs. 24.1 millions (Previous year Rs. 51.6 millions). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

5. EMPLOYEE BENEFIT PLANS

(a) Defined contribution plans

The Company makes contributions to the Provident Fund, Employee State Insurance, National Pension System etc. for eligible employees. Under these plans, the Company is required to contribute a specified percentage of payroll costs. The Company during the year has recognised Rs. 258.2 millions (Previous year Rs. 221.3 millions) as expense in the statement of profit and loss during the year.

Out of the total contribution made for Provident Fund, Rs. 114.3 millions (Previous year Rs. 112.4 millions) is made to the Nestle India Limited Employees Provident Fund Trust while the remainder contribution is made to Provident Fund Plans operated by the Regional Provident Fund Commissioners. The members of the Provident Fund Trust are entitled to the rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The shortfall, if any, is made good by the Company in the year in which it arises.

The total plan liabilities under the Nestle India Limited Employees Provident Fund Trust as at December 31, 2014 as per the unaudited financial statements for the year then ended is Rs. 2,319.4 millions (Previous year Rs. 1,981.9 millions) as against total plan assets of Rs. 2,332.0 millions (Previous year Rs. 1,995.5 millions). The funds of the Trust have been invested under various securities as prescribed under the rules of the Trust.

(b) Defined Benefit plans

The company provides gratuity and defined benefit pension to eligible employees. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Gratuity vesting occurs upon completion of five years of service. The Company makes contributions to the Nestle India Limited Employees'' Gratuity Trust Fund. Defined benefit pension is a discretionary, unfunded plan.

6. RESTRICTED STOCK UNIT (RSU)/ PERFORMANCE SHARE UNIT (PSU) PLAN

The Company participates in the Nestle Restricted Stock Unit (RSU)/ Performance Share Unit (PSU) Plan of Nestle S.A., whereby select employees are granted non-tradable units with the right to obtain Nestle S.A. shares or cash equivalent. Restricted Stock Units (RSU)/ Performance Share Units (PSU) granted to employees vest, subject to certain conditions, after completion of three years. Upon vesting Nestle S.A. determines, whether shares, free of charge or cash equivalent to the value of shares, is to be transferred to the employees. The Company has to pay Nestle S.A. an amount equivalent to the value of Nestle S.A. shares on the date of vesting, delivered to the employees.

7. OPERATING LEASES

The Company''s significant leasing arrangements are primarily in respect of operating leases for premises (office, residential, warehouses etc.) and vehicles. The aggregate lease rentals charged to the statement of profit and loss account are Rs. 681.6 millions (Previous year Rs. 607.3 millions).

8. EXTERNAL COMMERCIAL BORROWINGS

The Company had drawn US Dollars 192 millions in the year 2011 and 2012 from Nestle S.A. for 5 years for the purpose of capital expenditure under the External Commercial Borrowings (ECB) approval from Reserve Bank of India. During the current year, Company has repaid the entire ECB of US Dollars 192 millions.

9. The Company has reviewed the General License Agreement in 2013, the Board of Directors of the Company negotiated and Nestle S.A. accepted an increase in royalty from 3.5% to 4.5% of domestic sales in a staggered manner by making an increase of 0.20% per annum over five years effective January 1, 2014. The royalty rate on exports will now be aligned to 4.5% of sales.

10. During the year, the Company has incurred Rs. 85.1 millions towards corporate social responsibility activities in accordance with section 135 of the Companies Act, 2013. The Company also has outstanding commitments of Rs. 38.6 millions as on 31st December, 2014 towards corporate social responsibility projects. This includes expenditure on projects which are relatively long term in nature and costs spread over several months.


Dec 31, 2013

1. Net provision for contingencies

The Company has created a contingency provision of Rs. 736.4 millions (Previous year Rs. 556.4 millions) for various contingencies resulting mainly from matters, which are under litigation / related disputes and other uncertainties requiring management judgment. The Company has also reversed, utilised/settled contingency provision of Rs. 115.9 millions (Previous year Rs. 298.0 millions) due to the satisfactory settlement of certain litigations for which provision is no longer required.

(a) Litigations and related disputes - represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Income Tax, Excise Duty, Service Tax, Entry tax, Sales and Purchase Tax etc.). The probability and the timing of the outflow with regard to these matters depend on the ultimate settlement /conclusion with the relevant authorities.

(b) Others - include estimates made for products sold by the Company which are covered under free replacement warranty on becoming unft for human consumption during the prescribed shelf life. The timing and probability of outflow with regard to these matters will depend on the external environment and the consequent decision/ conclusion by the Management

2. Contingent liabilities and commitments

Contingent liabilities

Claims against the Company not acknowledged as debts:

Indirect Taxes 127.6 117.0

Capital Commitments

Capital expenditure commitments remaining to be executed and not 599.2 921.6 provided for [net of advances Rs. 25.6 millions (Previous year Rs. 59.7 millions)]

3. Segment reporting

Based on the guiding principles given in Accounting Standard on ''Segment Reporting'' (AS-17), the Company''s primary business segment is Food. The food business incorporates product groups viz. Milk Products and Nutrition, Beverages, Prepared dishes and cooking aids, Chocolates and Confectionery, which mainly have similar risks and returns. As the Company''s business activity falls within a single primary business segment the disclosure requirements of AS -17 in this regard are not applicable.

4. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

On the basis of confirmation obtained from suppliers who have registered themselves under the Micro Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) and based on the information available with the Company, the balance due to Micro & Small Enterprises as defend under the MSMED Act, 2006 is Rs. 51.6 millions (Previous year Rs. 12.6 millions). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

5. Employee Plans

(a) Defned contribution plans

The Company makes contributions to the Provident Fund, Employee State Insurance, National Pension System etc. for eligible employees. Under these plans, the Company is required to contribute a specified percentage of payroll costs. The Company during the year has recognised Rs. 221.3 millions (Previous year Rs. 221.7 millions) as expense in the statement of profit and loss during the year.

Out of the total contribution made for Provident Fund, Rs. 112.4 millions (Previous year Rs. 104.2 millions) is made to the Nestli India Limited Employees Provident Fund Trust while the remainder contribution is made to Provident Fund Plans operated by the Regional Provident Fund Commissioners. The members of the Provident Fund Trust are entitled to the rate of interest declared by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The shortfall, if any, is made good by the Company in the year in which it arises.

The total plan liabilities under the Nestli India Limited Employees Provident Fund Trust as at December 31, 2013 as per the unaudited financial statements for the year then ended is Rs. 1,981.9 millions (Previous year Rs. 1,658.2 millions) as against total plan assets of Rs. 1,995.5 millions (Previous year Rs. 1,667.4 millions). The funds of the Trust have been invested under various securities as prescribed under the rules of the Trust.

(b) Defend Benefit plans

The company provides gratuity and defend benefit pension to eligible employees. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Gratuity vesting occurs upon completion of five years of service. The Company makes contributions to the Nestli India Limited Employees'' Gratuity Trust Fund. Defend benefit pension is a discretionary, unfunded plan.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, performance, promotion and other relevant factors such as demand and supply in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of assets management, historical results of return on plan assets and the policy for plan assets management.

6. Restricted Stock Unit ( RSU ) Plan

The Company participates in the Nestli Restricted Stock Unit ( RSU ) Plan of Nestli S.A., whereby select employees are granted non-tradable Restricted Stock Units with the right to obtain Nestli S.A. shares or cash equivalent. Restricted Stock Units granted to employees vest, subject to certain conditions, after completion of three years. Upon vesting Nestli S.A. determines, whether shares, free of charge or cash equivalent to the value of shares, is to be transferred to the employee. The Company has to pay Nestli S.A. an amount equivalent to the value of Nestli S.A. shares on the date of vesting, delivered to the employee.

7. Operating Leases

The Company''s significant leasing arrangements are primarily in respect of operating leases for premises (office, residential, warehouses etc.) and vehicles. The aggregate lease rentals charged to the statement of profit and loss are Rs. 607.3 millions (Previous year Rs. 512.8 millions).

8. External Commercial Borrowings

The Company had drawn US Dollars 192 millions in the year 2011 and 2012 from Nestli S.A. for 5 years for the purpose of capital expenditure under the External Commercial Borrowings (ECB) approval from Reserve Bank of India. Total loan outstanding as at 31st December 2013 stood at Rs. 11,871.4 millions (Previous year Rs. 10,499.5 millions).


Dec 31, 2012

1. Net provision for contingencies

The Company has created a contingency provision of Rs. 481.4 millions (Previous year Rs. 492.6 millions) for various contingencies resulting mainly from matters, which are under litigation / related disputes and other uncertainties requiring management judgment. The Company has also reversed contingency provision of Rs. 223.0 millions (Previous year Rs. 23.6 millions) due to the satisfactory settlement of certain litigations for which provision is no longer required.

Provisions for Contingencies for the year ended 31.12.2012 is not comparable with the same period of 2011 due to timing difference of certain provisions arising from change in regulatory procedures.

Notes:

(a) Litigations and related disputes - represents estimates made mainly for probable claims arising out of litigations / disputes pending with authorities under various statutes (i.e. Income Tax, Excise Duty, Service Tax, Sales and Purchase Tax etc.). The probability and the timing of the outflow with regard to these matters depend on the ultimate settlement /conclusion with the relevant authorities.

(b) Others - include estimates made for products sold by the Company which are covered under free replacement warranty on becoming unfit for human consumption during the prescribed shelf life. The timing and probability of outflow with regard to these matters will depend on the external environment and the consequent decision/ conclusion by the Management.

2012 2011 (Rs. in millions) (Rs. in millions)

2. Contingent liabilities and commitments. Contingent liabilities

Claims against the company not acknoledged as debts:

VAT matters 117.0 -

Capital commitments

Capital expenditure commitments remaining to be executed and not provided for (net of advance Rs. 59.7 millions (Previous year Rs. 468.6 millions) 921.6 4,618.7

3. Segment reporting

Based on the guiding principles given in Accounting Standard on Segment Reporting'' (AS-17), the Company''s primary business segment is Food. The food business incorporates product groups viz. Milk Products and Nutrition, Beverages, Prepared dishes and cooking aids, Chocolates and Confectionery, which mainly have similar risks and returns. As the Company''s business activity falls within a single primary business segment the disclosure requirements of AS -17 in this regard are not applicable.

iii) Key Management Personnel

Antonio Helio Waszyk - Chairman & Managing Director

Shobinder Duggal, Director - Finance & Control Christian Schmid, Director - Technical

iv) Employees benefit trusts where control exists Nestlé India Limited Employees'' Provident Fund Trust Nestlé India Limited Employees'' Gratuity Trust Fund

4. Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006

On the basis of confirmation obtained from suppliers who have registered themselves under the Micro Small Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the Company, the balance due to Micro & Small Enterprises as defined under the MSMED Act, 2006 is Rs. 12.6 millions (Previous year Rs. 44.8 millions). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

5. Employee Plans

a) The Company makes contribution towards employees'' provident fund and employees'' state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognised Rs. 221.7 millions (Previous year Rs. 193.0 millions) as expense towards contributions to these plans.

Out of the total contribution made for Employees'' Provident Fund, Rs. 104.2 millions (Previous year Rs. 89.2 millions) is made to the Nestle India Limited Employees Provident Fund Trust while the remainder contribution is made to Provident Fund Plan operated by the Regional Provident Fund Commissioner.

The total plan liabilities under the Nestle India Limited Employees Provident Fund Trust as at December 31, 2012 as per the unaudited financial statements for the year then ended is Rs. 1,658.2 millions (Previous year Rs. 1,426.4 millions) as against total plan assets of Rs. 1,667.4 millions (Previous year Rs. 1,416.2 millions). The funds of the Trust have been invested under various securities as prescribed under the rules of the Trust.

b) Gratuity scheme - This is a funded defined benefit plan for qualifying employees. The Company makes contributions to the Nestle India Limited Employees'' Gratuity Trust Fund. The scheme provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

c) Pension scheme - The Company has a discretionary unfunded defined pension benefit scheme for its qualifying employees.

6. Restricted Stock Unit ( RSU ) Plan

The Company participates in the Nestlé Restricted Stock Unit ( RSU ) Plan of Nestlé S.A., whereby select employees are granted non- tradable Restricted Stock Units with the right to obtain Nestlé S.A. shares or cash equivalent. Restricted Stock Units granted to employees vest, subject to certain conditions, after completion of three years. Upon vesting Nestlé S.A. determines, whether shares, free of charge or cash equivalent to the value of shares, is to be transferred to the employee. The Company has to pay Nestlé S.A. an amount equivalent to the value of Nestlé S.A. shares on the date of vesting, delivered to the employee.

7. Operating Leases

The Company''s significant leasing arrangements are primarily in respect of operating leases for premises (office, residential, warehouses etc.) and vehicles. The aggregate lease rentals charged to the statement of profit and loss account are Rs. 512.8 millions (Previous year Rs. 440.6 millions).

8. External Commercial Borrowings

During first half of 2012, the Company had drawn US Dollars 56 millions (Previous year US dollars 136 millions) from Nestlé S.A. for 5 years for the purpose of capital expenditure under the External Commercial Borrowings (ECB) approval from Reserve Bank of India. Total amount of loan outstanding as at 31st December 2012 is Rs. 10,499.5 millions (Previous year Rs. 7,249.5 millions). Total cost of this borrowing, including interest (net of earnings from temporarily surplus liquidities) and exchange differences, during 2012 is Rs. 693.7 millions (Previous year Rs. 1,129.2 millions) which is either treated as capital expenditure or charged to statement of profit and loss as per the accounting policy details of which are as follow:

9. Buyer''s Credit

During January 2012, the Company had drawn US Dollars 6.7 millions (Previous year US dollars 46 millions) as Buyer''s Credit from various commercial banks for a period up to one year. Total loan amount has been paid during the year and outstanding as at 31st December 2012 is Nil (Previous year Rs. 2,450.8 millions). Total cost of this borrowing, including interest and exchange differences, during 2012 is Rs. 112.9 millions (Previous year Rs. 19.5 millions) which is either treated as capital expenditure or charged to statement of profit and loss as per the accounting policy details of which are as follow:

10. The Company''s borrowing facilities, comprising fund based and non fund based limits from various bankers, are secured by way of a first pari passu charge on all movable assets (excluding plant and machinery), finished goods (including stock-in-trade), work-in-progress, raw materials and book debts.

b) All the forward contracts are for hedging foreign exchange exposures relating to the underlying transactions and firm commitments or highly probable forecast transaction.


Dec 31, 2010

1. There is no impairment loss on fixed assets during the year ended December 31, 2010. For the previous year impairment loss on fixed assets (gross -Rs 103,168 thousands, net of deferred taxes - Rs. 68,101 thousands) relates to various items of plant and machinery that have been brought down to their recoverable values upon evaluation of future economic benefits from their use.

2. Segment reporting

Based on the guiding principles given in Accounting Standard on Segment Reporting (AS-17), the Companys primary business segment is Food. The food business incorporates product groups viz. Milk Products and Nutrition, Beverages, Prepared dishes and cooking aids, Chocolates and Confectionery, which mainly have similar risks and returns. As the Companys business activity falls within a single primary business segment the disclosure requirements of AS -17 in this regard are not applicable.

3. Related party disclosures under Accounting Standard 18

Holding companies: Nestle S.A. and Maggi Enterprises Limited

Fellow subsidiaries are disclosed to comply with para 3 (a) of Accounting Standard -18 on "Related Party Disclosures" albeit these do not control or exercise significant influence on Nestle India Limited:

Belte Schweiz AG, Nestec S.A., Nestec York Limited, Nestle (China) Limited, Nestle (PNG) Limited, Nestle (South Africa) (Pty) Limited, Nestle (Thai) Limited, Nestle Australia Limited, Nestle Bangladesh Limited, Nestle Central And West Africa Ltd., Nestle Deutschland AG, Nestle Egypt S.A.E., Nestle Hong Kong Limited, Nestle Foods Kenya Ltd., Nestle France S.A.S., Nestle Ghana Ltd., Nestle Hungaria Kft., Nestle Iran (Private Joint Stock Company), Nestle Japan Ltd., Nestle Korea Ltd., Nestle Kuban LLC, Nestle Lanka PLC, Nestle Manufacturing (Malaysia) Sdn. Bhd, Nestle Middle East FZE, Nestle Nederland B.V., Nestle Pakistan Ltd., Nestle Philippines, Inc., Nestle Product Technology Centre Lebensmittelforschung GMBH, Nestle Products Sdn. Bhd., Nestle R&D Centre (Pte) Limited, Nestle Romania S.R.L., Nestle Shanghai Limited, Nestle Singapore (PTE) Limited, Nestle Suisse S.A., Nestle Taiwan Limited, Nestle Tianjin Limited, Nestle Turkiye Gida Sanayi A.S., Nestle UK Ltd., Nestle USA Inc, Nestle Vietnam Limited, Nestrade-Nestle World Trade Corporation, Osem Food Industries Limited, Osem Uk Limited, PT Nestle Indonesia, Servcom SA, Societe des Produits Nestle S.A., Nestle R&D Centre India Private Limited, Nestle Canada Inc., Nestle Waters France S.A.S, Nestle R&D Center Shanghai Limited, Nestle Italiana S.p.A, Nestle Maroc S.A, Nestle New Zealand Limited, Nestle Shuangcheng Limited, Nestle Mexico S.A.de C.V, Nestle Business Services S.A., Nestle Equatorial Africa Region (EPZ) Limited, Nestle Cesko s.r.o., Nestle Product Technology Centre, Nestle Asean (Malaysia) Sdn. Bhd., Societe Pour LExportation Des Produits Nestle S.A., Al Manhal Water Factory Co. Ltd., Nestle Manufacturing Ltd., Nestle Waters Product Technology Centre, Nestle Polska S.A., Nestle Chile S.A., Nestle Brasil Ltda., Nestle Zimbabwe (Pvt) Ltd., Nestle Dubai Manufacturing LLC, Quality Coffee Products Ltd., Nestle Belgilux S.A., Nestle Cote dIvoire, Nestle Syria Ltd., Nestle Dongguan Limited, Nestle Capital Advisers S.A., Osem Investments Ltd., Nestle Nigeria PLC, Nestle Purina PetCare France S.A.S, Saudi Food Industries Co. Ltd., Nestle R&D Centre Beijing Ltd., Sanpellegrino S.p.A., Nestle (Ireland) Ltd., Nestle Purina Petcare Company, Nestle Nespresso S.A., Nestle Espana S.A.

Whole time directors: Antonio Helio Waszyk, Chairman & Managing Director, Martial G Rolland, Chairman & Managing Director (upto September 30, 2009), Shobinder Duggal, Director - Finance & Control, Christian Schmid, Director - Technical (From August 02, 2010).

4. On the basis of confirmation obtained from suppliers who have registered themselves under the Micro Small Medium Enterprise Development Act, 2006 (MSMED Act, 2006) and based on the information available with the company, the balance due to Micro & Small Enterprises as defined under the MSMED Act, 2006 is Rs. 52,451 thousands (previous year Rs. 16,396 thousands). Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

5. Employee Plans

a) The Company makes contribution towards employees provident fund and employees state insurance plan scheme. Under the rules of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company during the year recognised Rs. 156,180 thousands (previous year Rs. 126,811 thousands) as expense towards contributions to these plans.

Out of the total contribution, made for employees provident fund, Rs. 77,540 thousands (previous year Rs. 67,262 thousands) is made to the Nestle India Limited Employees Provident Fund Trust while the remainder contribution is made to provident fund plan operated by the Regional Provident Fund Commissioner. The outstanding balance payable as at December 31, 2010 to the Trust is Rs. 14,078 thousands (previous year Rs. 11,986 thousands) on account of companys and employees contribution for the month of December 2010. The same has since been paid on 05.01.2011.

The total plan liabilities under the Nestle India Limited Employees Provident Fund Trust as at December 31, 2010 as per the unaudited financial statements for the year then ended is Rs. 1,202,164 thousands (previous year Rs. 1,007,533 thousands) as against total plan assets of Rs. 1,198,580 thousands (previous year Rs. 1,004,449 thousands). The funds of the Trust have been invested under various securities as prescribed under the rules of the Trust.

b) Gratuity scheme - This is a funded defined benefit plan for qualifying employees. The Company makes contributions to the Nestle India Limited Employees Gratuity Trust Fund. The scheme provides for a lumpsum payment to vested employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

c) Pension scheme - The Company operates a non funded pension defined benefit scheme for its employees that qualify under the scheme. The scheme is discretionary in nature.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors such as demand and supply in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of assets management, historical results of return on plan assets and the policy for plan assets management.

6. The Companys significant leasing arrangements are primarily in respect of operating leases for premises (office, residential, warehouses etc.) and vehicles. These leasing arrangements which are not non-cancellable are usually renewable on mutually agreeable terms. The aggregate lease rentals charged to the profit and loss account are Rs 395,851 thousands (previous year Rs. 332,706 thousands).

7. The Companys borrowing facilities, comprising fund based and non fund based limits from various bankers, are secured by way of a first pari passu charge on all movable assets (excluding plant and machinery), finished goods, work in progress, raw materials and book debts.

8. Previous year figures have been regrouped/reclassified wherever necessary, to make them comparable.

 
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