Home  »  Company  »  Guj. Amb.Exports  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Gujarat Ambuja Exports Ltd.

Mar 31, 2023

Terms/rights attached to Equity Shares

i) The Company has only one class of equity shares carrying par value of '' 1/- per share, carrying equal rights as to dividend, voting and in all other respects. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

'' 3.09 Crores (P.Y.? 2.62 Crores) is discounted value of ''1.50 Crores ,'' 1.14 Crores , '' 0.74 Crores & '' 0.57 Crores interest free loan against VAT granted by Karnataka Government.

Three loans are repayable in one yearly installments of '' 1.50 Crores ,'' 1.14 Crores &,'' 0.74 Crores due on November 07, 2024, January 13, 2026 & December 02, 2026 respectively.

Fourth loan received in Mar-22 is repayable in 3 installments of '' 0.19 Crores each on June 16, 2028, June 16, 2029 & June 16, 2030.

(i) Working Capital, Suppliers Line of Credit from Banks in Foreign Currency and Short Term Loan from banks are secured by a hypothecation of current assets and certain tangible movable plant & machinery and joint equitable mortgage of certain Property, Plant and Equipments of the Company, and lien on certain Fixed Deposits of the Company.

(ii) All charges are registered with ROC, by ICICI as a lead bank of the consortium

(iii) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(iv) During the year, company availed working capital facilities from Union Bank of India for which standalone hypothecation documents were executed and necessary charges were created

Trade receivables are non-interest bearing and are generally on terms of 0 to 60 days, usually backed up by financials arrangements. In March 2023, '' 0.06 Crores (March 2022: '' 0.05 Crores) was recognised as provision for expected credit losses on trade receivables.

Contract liabilities include short-term advances received from customers against supply of Goods. The outstanding balances of these accounts decreased in 2022-23.

Performance obligation

Information about the Company’s performance obligations are summarised below:

Yarn, Maize products and Agro products

The performance obligation is satisfied upon delivery of the goods and payment is generally due within 0 to 60 days from delivery, usually backed up by financials arrangements.

Power gener ated from Windmills

The performance obligation from windmills is recognised on unit generation basis, in accordance with the terms of power purchase agreements.

| 33 CONTINGENCIES AND COMMITMENTS (REFER NOTE NO. 1.14) a. Contingent Liabilities not provided for in respect of:

(Amount in Crores)

Sr. No .

Particulars

As at March 31, 2023

As at March 31, 2022

(a)

Claims against the Company /disputed liabilities not acknowledged as debts

6.36

6.88

(b)

Disputed Statutory Claims

i) Excise, Customs, Service Tax and DGFT

0.14

4.42

ii) Income Tax

- Appeals preferred by Company

57.26

49.37

iii) Others

2.40

2.49

Total

59.8

56.28

Outflow in respect of 1 (a) and (b) disputes /contingencies are dependent upon final outcome of the disputes or ultimate agreement to resolve the differences.

b. Commitments

1 Commitments on account of estimated amount of contracts remaining to be executed on capital account and not provided for relating to Tangible Assets is '' 16.20 Crores [March 31,2022: '' 56.49 Crores ].

| 34 FAIR VALUE MEASUREMENT

Financial Instrument by category and hierarchy

The fair value of the financial assets and liabilities are included at the amount of which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair Value of Cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amount largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair values of such instruments is not materially different from their carrying amounts:-

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

¦ Fair value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

• Level 1:Quoted (unadjusted) prices in active markets for identical assets or liabilities.

• Level 2: Other techniques for which all inputs which have a significant effect on the recoded fair value are observable, either directly or indirectly.

• Level 3: Techniques which use inputs that have a significant effect on the recoded fair value that are not based on observable market data.

| 35 CAPITAL RISK MANAGEMENT

Equity Share capital and other equity are considered for the purpose of Company’s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The Capital structure of the Company is based on management’s judgment of its strategic and day-to-day needs with a focus on total equity to maintain investor, creditors and market confidence and to sustain future development and growth of its business.

The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

| 36 FINANCIAL RISK MANAGEMENT

The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risks. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. The Company has constituted a risk management committee, which is responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

A. Management of Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligation associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this management considers both normal and stressed conditions.

Due to dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability of under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.

The following table shows the maturity analysis of the Company’s financial liabilities based on the contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.

B. Management of Market Risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

• Foreign Currency risk

The above risks may affect the Company’s income and expenses, or the value of its financial instruments. The Company’s exposure to and management of these risks are explained below:

(i) Foreign Currency risk

Derivative Instruments and unhedged foreign currency exposure

Management Policy

The Company manages foreign currency exposures within the prescribed limits, through use of forward exchange contracts. Foreign currency exchange rate exposure is partly balanced by purchasing of goods/commodities in the respective currencies.

(ii) Price Risk

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at fair value through profit and loss. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Sensitivity Analysis

The table below summarises the impact of increases/decreases of the BSE Index on the Company’s equity and Gain/ Loss for the period. The analysis is based on the assumption that the index has increased by 5 % or decreased by 5 % with all other variables held constant, and that all the Company’s equity instruments moved in line with the index.

The above referred sensitivity pertains to quoted equity investments and equity oriented Mutual Funds. Profit for the year would increase/decrease as a result of gains/losses on equity securities as at Fair Value through Profit or Loss (FVTPL).

(iii) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimise the Company’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

Exposure to interest rate risk Interest rate sensitivity

C Management of Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Concentration of credit risk with respect to trade receivables are limited, due to the Company’s customer base being large and diverse. All trade receivables are reviewed and assessed on quarterly basis. Our historical experiences of collecting receivables indicate a low credit risk

| 37 EARNINGS PER SHARE (EPS) AS PER INDIAN ACCOUNTING STANDARD 33

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments % which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit.

(i) Leave Obligations

The leave obligations cover the Company’s liability for sick and earned leave. The amount of the provision of '' 1.96 crores [March 31,2022: '' 1.84 crores ] is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations.

(ii) Defined Contribution Plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is '' 2.80 Crores [March 31,2022: '' 2.87 Crores ]

| 43 The Scheme of Arrangement between The Company and Mohit Agro Commodities Processing Private Limited ( Wholly Owned Subsidiary) :-The Board of Directors of the Company has been approved the scheme of Amalgamations between Gujarat Ambuja Exports Limited ( the Company ) and Mohit Agro Commodities Processing Private Limited ( Wholly Owned Subsidiary) at their meeting held on October 20, 2020.Approval by the National Company Law Tribunal is awaited.

| 44 The Code on Social Security, 2020 (''Code'') has been notified in the Official Gazette of India on September 29, 2020, which could impact the contributions of the Company towards certain employment benefits. The effective date from which changes are applicable is yet to be notified and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in the period of notification of the relevant provisions.

| 45 EVENT AFTER THE REPORTING PERIOD

a The Board of Directors of the Company have recommended Final dividend of '' 0.70 per fully paid up share of '' 1/-each at it''s meeting held on May 06, 2023 for the financial year 2022-23, subject to the approval of members at the Annual General meeting of the Company.

b The Company Evaluate events and transactions date occur subsequent to the balance sheet date but prior to the approval of the financial statement to determine the necessity for recognition and reporting of any of these events and transactions in the financial statements as of May 6th ,2023, other than those disclosed and adjusted elsewhere in these financial statements, there were no subsequent event to be reported.

| 46 The Company has incurred premium expenses of '' 1.08 Crores on Keymen Insurance Policy of Managing Director and Whole-Time Director which is included in Staff welfare expenses.

| 47 ASSETS HELD FOR SALE

The Company has identified and classified plant and machinery having a carrying value of '' 3.96 Crores as on March 31, 2023 (P.Y. 1.73 Crores) as assets held for sale. During the year, the Company has identified certain buyers and disposed off assets worth '' 0.39 Crores pertaining to previous year . Further, company shall continue to put efforts to dispose off the remaining assets during the year 2023-24.

| 48 As per Ind AS"108 - Operating segment", segment information has been provided under the Notes to consolidated financial statements.

| 50 Other Statutory Information

(I) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(II) The Company do not have any transactions with companies struck off.

(III) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(IV) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(V) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(VI) The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(VII) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(VIII) The quarterly returns or statements of Receivables, inventories and creditors for goods filed by the Company with banks or financial institutions are in agreement with the books of accounts.

| 51 Figures of previous year have been regrouped ,wherever considered necessary to make them comparable to current year figures.


Mar 31, 2022

(i) Working Capital, Suppliers Line of Credit from Banks in Foreign Currency and Short Term Loan from banks are secured by a hypothecation of current assets and certain tangible movable plant & machinery and joint equitable mortgage of certain Property, Plant and Equipments of the Company, and lien on certain Fixed Deposits of the Company.

(ii) "All charges are registered with ROC except for Charge ID 10086124. Bank of India has issued the NoC for release of their charge to the extent of '' 171 Crores on July 19, 2021, which was also the lead bank under consortium. While filing the Form CHG 1 for registering such charge modification, it is mandatory to attach the relevant supporting docs. executed for modification of charge. ICICI was made lead bank since much early period in place of Bank of India, However no documents are executed as on date. Hence the charge is not modified so far to the extent of share of BOI under consortium. "

(iii) The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

Performance obligation

Information about the Company''s performance obligations are summarised below:

Cotton, Maize and Agro

The performance obligation is satisfied upon delivery of the goods and payment is generally due within 0 to 60 days from delivery, usually backed up by financials arrangements.

Power generated from Windmills

The performance obligation from windmills is recognised on unit generation basis, in accordance with the terms of power purchase agreements.

b. Commitments

Commitments on account of estimated amount of contracts remaining to be executed on capital account and not provided for relating to Tangible Assets is '' 56.49 Crores

[March 31,21: '' 157.00 Crores].

|36.| FAIR VALUE MEASUREMENT

Financial Instrument by category and hierarchy

The fair value of the financial assets and liabilities are included at the amount of which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair Value of Cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amount largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair values of such instruments is not materially different from their carrying amounts:-

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

Fair value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs which have a significant effect on the recoded fair value are observable, either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recoded fair value that are not based on observable market data.

|37.| CAPITAL RISK MANAGEMENT

Equity Share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The Capital structure of the Company is based on management''s judgment of its strategic and day-to-day needs with a focus on total equity to maintain investor, creditors and market confidence and to sustain future development and growth of its business.

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risks. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company has constituted a risk management committee, which is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

A. MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligation associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this management considers both normal and stressed conditions.

Due to dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability of under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.

The following table shows the maturity analysis of the Company''s financial liabilities based on the contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:


Management Policy

The Company manages foreign currency exposures within the prescribed limits, through use of forward exchange contracts. Foreign currency exchange rate exposure is partly balanced by purchasing of goods/commodities in the respective currencies.

(ii) Price Risk

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at fair value through profit and loss. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

(iii) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

C. MANAGEMENT OF CREDIT RISK

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Concentration of credit risk with respect to Trade Receivables are limited, due to the company''s customer base being large and diverse. All Trade Receivable are reviewed and assessed for default on a quarterly basis. Our historical experiences of collecting receivables indicate a low credit risk.

|39.| EARNINGS PER SHARE (EPS) AS PER INDIAN ACCOUNTING STANDARD 33

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments % which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit.

(i) Leave Obligations

The leave obligations cover the Company''s liability for sick and earned leave. The amount of the provision of '' 1.84 Crores [March 31,21: '' 2.79 Crores] is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations.

(ii) Defined Contribution Plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is '' 2.87 Crores [March 31,21: '' 2.81 Crores].

P5I The Scheme of Arrangement between The Company and Mohit Agro Commodities Processing Private Limited ( Wholly Owned Subsidiary) : The Board of Directors of the Company has been approved the scheme of Amalgamations between Gujarat Ambuja Exports Limited ( the Company ) and Mohit Agro Commodities Processing Private Limited ( Wholly Owned Subsidiary) at their meeting held on October 20,2020.The Scheme has been subject to approval by the Shareholders & Creditors of the Company and National Company Law Tribunal.

P6I The Code on Social Security, 2020 (''Code'') has been notified in the Official Gazette of India on September 29, 2020, which could impact the contributions of the Company towards certain employment benefits. The effective date from which changes are applicable is yet to be notified and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in the period of notification of the relevant provisions.

|47.| EVENT AFTER THE REPORTING PERIOD

a The Board of Directors of the Company have recommended Final dividend of '' 0.65 per fully paid up share of '' 1/- each at it''s meeting held on May 28 ,2022 for the financial year 2021-22, subject to the approval of members at the Annual General meeting of the Company.

b The Company evaluates events and transactions date occur subsequent to the balance sheet date but prior to the approval of the financial statement to determine the necessity for recognition and reporting of any of these events and transactions in the financial statements as of May 28, 2022, other than those disclosed and adjusted elsewhere in these financial statements, there were no subsequent event to be reported.

The Company has incurred premium expenses of '' 1.08 Crores on Keymen Insurance Policy of Managing Director and Whole-Time Director which is included in Staff welfare expenses.

1E1 ASSETS HELD FOR SALE

The Company has decided to sell plant and machinery having a carrying value of '' 1.76 Crores as on 1 st April, 2021. During the year, the Company identified certain buyers and disposed off assets worth '' 0.02 Crores. Also, company has already disposed off assets worth '' 0.29 Crores in 2022-23. Further, company shall continue to put efforts to dispose off the remaining assets during the year 2022-23.

*The Company does not have any repayment of borrowings. Debt Service coverage ratio has been computed basis lease liabilities repayment schedule as per Guidance note on Schedule III issued by the Institute of Chartered Accountants of India.

Note : The calculation for above ratios (including restatement of prior year ratios, wherever necessary) is in accordance with formula prescribed by Guidance note on Schedule III issued by the Institute of Chartered Accountants of India.

|52.| OTHER STATUTORY INFORMATION

(I) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(II) The Company do not have any transactions with companies struck off.

(III) The Company have not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(IV) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(V) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(VI) The Company have no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(VII) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

1531 Figures of previous year have been regrouped .wherever considered necessary to make them comparable to current year figures.


Mar 31, 2018

a. Terms/rights attached to Equity Shares

i) The Company has only one class of equity shares carrying par value of Rs.2/- per share, carrying equal rights as to dividend, voting and in all other respects

ii) The Company has carried out the Buyback of 2,36,84,210 equity shares of the Company at a price of Rs.95 per equity share for a total consideration of Rs.225 crores. The shares bought back have been duly extinguished as on 29th March, 2017.

a. (i) Term loan is availed from HDFC Bank Limited, which carries gross interest @ 10.30% p.a. The loan is secured by hypothecation of specific movable Plant & Machinery and maturing on 3 rd January, 2020.

ii) The loan is repayable in quarterly installments of Rs.1,81,00,000/- each along with interest starting from 1st January, 2016 till 1st January, 2020. This loan is eligible for interest subsidy of 2% p.a. under TUF scheme of Central Government and 7% p.a. by Gujarat State Government under The Textile Policy, 2012. Eligibility of Interest Subsidy by Gujarat State Government is available on loan amount upto Rs.21 crores.

Working Capital, Suppliers Line of Credit from Banks in Foreign Currency and Short Term Loan from banks are secured by a hypothecation of current assets and certain tangible movable plant & machinery and joint equitable mortgage of certain Property, Plant and Equipments of the Company, personal guarantee of two promoter directors and lien on certain Fixed Deposits of the Company.

Consequent to the introduction of Goods and Service Tax (GST) with effect from 1st July, 2017, Central Excise, Value Added Tax (VAT) etc. have been subsumed in to GST. In accordance with Indian Accounting Standard -18 on Revenue and Schedule III of the Companies Act, 2013, unlike Excie Duties, levies like GST, VAT etc. are not part of Revenue.

1 Contingencies and Commitments (Refer Note No. 1.15)

a. Contingent liabilities not provided for in respect of:

Outflow in respect of 1 (a) and (b) disputes /contingencies are dependent upon final outcome of the disputes or ultimate agreement to resolve the differences.

b. Commitments

Commitments on account of estimated amount of contracts remaining to be executed on capital account and not provided for relating to Tangible Assets is Rs.15.27 crores [31st March, 17: Rs.74.20 crores]

2 Fair Value Measurement

Financial Instrument by category and hierarchy

The fair value of the financial assets and liabilities are included at the amount of which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair Value of Cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amount largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair values of such instruments is not materially different from their carrying amounts:-

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

- Fair value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

- Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

- Level 2: Other techniques for which all inputs which have a significant effect on the recoded fair value are observable, either directly or indirectly.

- Level 3: Techniques which use inputs that have a significant effect on the recoded fair value that are not based on observable market data.

For assets which are measured at fair value as at Balance Sheet date, the classification of fair value calculations by category is summarized below:

3 Capital risk Management

Equity Share capital and other equity are considered for the purpose of Company’s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The Capital structure of the Company is based on management’s judgment of its strategic and day-to-day needs with a focus on total equity to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

4 Financial risk management

The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risks. The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

A. Management of Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligation associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this management considers both normal and stressed conditions.

Due to dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability of under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.

The following table shows the maturity analysis of the Company’s financial liabilities based on the contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

B. Management of Market Risk

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- Foreign Currency risk

- Equity risk

- Interest rate risk

The above risks may affect the Company’s income and expenses or the value of its financial instruments. The Company’s exposure to and management of these risks are explained below:

Management Policy

The Company manages foreign currency exposures within the prescribed limits, through use of forward exchange contracts. Foreign currency exchange rate exposure is partly balanced by purchasing of goods/commodities in the respective currencies.

(ii) Price Risk

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at fair value through profit and loss. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the BSE index on the Company’s equity and Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5% or decreased by 5% with all other variables held constant, and that all the Company’s equity instruments moved in line with the index.

The above referred sensitivity pertains to quoted equity investments. Profit for the year would increase/decrease as a result of gains/losses on equity securities as at Fair Value through Profit or Loss (FVTPL).

(iii) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

prepared assuming that the amount of the liability outstanding at the end of the reporting period was outstanding for the whole represents management’s assessment of the; reaso nably possible change in inte rest rates.

Note: * Key Managerial Personnel and Relatives of Promoters who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits recognised as per IND AS 19 - ‘Employee Benefits’ in the financial statements. Post-employment gratuity benefits of Key Managerial Personnel has not been included in (b) above.

5 Segment Information as per Indian Accounting Standard 108

Segment Information for the year ended 31st March, 2018

The Company had determined the following reporting segments based on the information reviewed by the Chief Operating Decision Maker (CODM):

(a) Agro: Solvent extraction, Flour Mill and Cattle feed operations.

(b) Cotton: Cotton yarn spinning

(c) Maize: Starch and its derivatives

(d) Power: Windmill, solar

(e) Other: Balance

The CODM moniters the operating results of its Business Segment separately for the purpose of making decision about resource allocation and performance assessment.

Segment revenue and results

The expenses and income which are not directly attributable to any business segment are shown : nallocable (net of allocable income).

Segment assets and liabilities

Segment assets and liabilities includes all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade receivables, inventory and other operating assets. Segment liabilities primarily include trade payables and other liabilities. Common assets and liabilities which can not be allocated to any business segment are shown as unallocable assets/liabilities.

Inter-segment transfer

Inter-segment transfer are recognised at sale-price. The same is based on market price and business risks.

(i) Unallocated Assets and Liabilities comprises of Corporate Fixed Assets, Investments, Goodwill, Fixed Deposits, Secured Loans, Provision for Taxes, Provision for Dividend, Unclaimed Dividend, Deferred Tax Liability and Provision for Mark to Market Losses on Forward Contracts.

(ii) The Company’s manufacturing facilities are located in India.

Revenue from operations has been allocated on the basis of location of customer

b) All non-current assets of the Company are located in India.

6 Operating Lease as per Indian Accounting Standard 17 (Refer Note No. 1.12)

i) The Company has taken various residential, office and godown premises under operating lease on leave and license agreements. These are generally not non-cancelable and range between 11 months and 36 months under leave and licence or longer for other lease and are renewable by mutual agreeable terms. The Company has given refundable interest free security deposits under certain agreements.

ii) Lease payments are recognized as expense in the Statement of Profit and Loss on straight line basis over the lease term under expense head ‘Rent’ amounting to Rs.6.12 crores (P.Y. Rs.6.02 crores)

iii) The future minimum estimated operating lease payments under non-cancelable operating lease:

7 Post Retirement Benefit Plans as per Indian Accounting Standard 19

As per Actuarial Valuation as on 31st March, 2018 and 31st March, 2017 and recognised in the financial statements in respect of Employee Benefit Schemes:

E. Assumptions

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans and post retirement medical benefits at their fair value on the balance sheet, assumptions under IND AS 19 are set by reference to market conditions at the valuation date

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the method (Projected Unit Credit Method) used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk derivatives to minimize risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments % which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit.

(iii) Leave obligations

The leave obligations cover the Company’s liability for sick and earned leave. The amount of the provision of Rs.2.74 crores [31st March,17: Rs.3.44 crores] is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations.

(iv) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs.2.75 crores [31st March,17: Rs.2.72 crores]

The provision relates to estimated outflow of cash expected to be paid in relation to damages payable on account of cancellation of contract for supply of raw material and on account of quality rebate claim for sale of traded goods. Due to its nature, it is not possible to estimate the timing of resulting cash flows.


Mar 31, 2017

Foot Note to the Reconciliations a Remeasurement cost of net defined liability

Both under Indian GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

b Fair valuation for Financial Assets & Financial Liabilities

Certain investments (other than investments in subsidiaries, joint ventures and associates) have been measured at fair value through profit or loss and resultant gain/(loss) has been recognized in Statement of Profit and Loss (FVTPL).

c Fair Valuation of equity instruments

Under Indian GAAP, the Company accounted for long term investments in unquoted equity shares as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has classified such investments as FVTPL investments. At the date of transition to Ind AS, difference between the instruments fair value and Indian GAAP carrying amount has been recognized as an adjustment to profit or loss net of related deferred taxes.

d Deferred Tax

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach {against profit and loss approach in the Indian GAAP) for computation of deferred taxes has resulted in charge to Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss account for the subsequent periods.

e Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

f Reclassification as per requirement of Ind AS

Reclassification have been done in respective heads as per requirement of Indian Accounting Standards (Ind AS).

g Government Grant

Grant received from the Government relating to the purchase of fixed asset and deducted from the carrying amount of corresponding fixed asset under Indian GAAP and outstanding as on transition date has been recognized as deferred income under Ind AS with the corresponding adjustment to the carrying amount of Property, plant and equipment (net of cumulative depreciation impact) and opening retained earnings.

h Excise Duty

Under Indian GAAP, revenue from sale of goods was presented net of excise duty whereas under Ind AS, the revenue from sale of goods is presented inclusive of excise duty. The excise duty is presented on the face of the Statement of Profit and Loss as part of expenses.

Note

1 The Company has applied the optional exemption to measure its Property, Plant & Equipment at the date of transitional at their previous GAAP carrying amount and used it as the deemed cost for such assets.

2 Capital work in progress of Rs.158.65 (P.Y. Rs.100.57) includes expenditure incurred during construction period of Rs.3.26 (P. Y. Rs.0.63) [including depreciation of Rs.0.05 (P.Y. Rs.0.03) on Leasehold Land]; in respect of ongoing project of Starch Plant at Chalisgaon, Maharashtra. Company has capitalized during the year interest of Rs.3.64 on assets which are procured for ongoing project.

3 During the physical verification of assets carried out during the year at certain plants, the variances on account of physical verification have been duly adjusted resulting in assets write off Rs.0.83 (WDV is Rs.0.46) is shown under head "disposals" in respective heads of Property, Plant & Equipment.

a. Terms/rights attached to Equity Shares

i) The Company has only one class of equity shares carrying par value of Rs.2/- per share, carrying equal rights as to dividend, voting and in all other respects

ii) The Company has carried out the Buyback of 2,36,84,210 equity shares of the Company at a price of Rs.95 per equity share for a total consideration of Rs.225 crores. The shares bought back have been duly extinguished as on 29th March, 2017.

b. Commitments

Commitments on account of estimated amount of contracts remaining to be executed on capital account and not provided for relating to Tangible Assets is Rs.74.20 crores [31st March,16: Rs.53.92 Crores] [1st April,15: Rs.12.75 Crores]

4. Fair Value Measurement

Financial Instrument by category and hierarchy

The fair value of the financial assets and liabilities are included at the amount of which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

5. Fair Value of Cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amount largely due to short term maturities of these instruments.

6. Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair values of such instruments is not materially different from their carrying amounts:-

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

- Fair value Hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

- Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

- Level 2: Other techniques for which all inputs which have a significant effect on the recoded fair value are observable, either directly or indirectly.

- Level 3: Techniques which use inputs that have a significant effect on the recoded fair value that are not based on observable market data.

7. Capital Risk Management

Equity Share capital and other equity are considered for the purpose of Company''s capital management.

The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the Company is based on management''s judgment of its strategic and day-to-day needs with a focus on total equity to maintain investor, creditors and market confidence and to sustain future development and growth of its business.

The management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

8. Financial Risk Management

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risks. The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework. The Company has constituted a Risk management committee, which is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company.

A. Management of Liquidity Risk

Liquidity risk is the risk that the Company will face in meeting its obligation associated with its financial liabilities. The Company''s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this management considers both normal and stressed conditions.

Due to dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability of under committed credit lines. Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows.

The following table shows the maturity analysis of the Company''s financial liabilities based on the contractually agreed undiscounted cash flows along with its carrying value as at the Balance sheet date.

B. Management of Market Risk

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- Foreign Currency risk

- Equity risk

- Interest rate risk

Management Policy

The Company manages foreign currency exposures within the prescribed limits, through use of forward exchange contracts. Foreign currency exchange rate exposure is partly balanced by purchasing of goods/commodities in the respective currencies.

(ii) Price Risk

The Company''s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet at fair value through profit and loss. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Sensitivity Analysis

The table below summarizes the impact of increases/decreases of the BSE index on the Company''s equity and Gain/Loss for the period. The analysis is based on the assumption that the index has increased by 5% or decreased by 5% with all other variables held constant, and that all the Company''s equity instruments moved in line with the index.

The above referred sensitivity pertains to quoted equity investments. Profit for the year would increase/decrease as a result of gains/losses on equity securities as at Fair Value through Profit or Loss (FVTPL).

(iii) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming that the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

Exposure to interest rate risk

Interest rate sensitivity

C. Management of Credit Risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements. The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

9. Earnings per Share (EPS) as per Indian Accounting Standard 33:

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the parent by the weighted average number of Equity shares outstanding during the year. Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the parent (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

10. Segment Information as per Indian Accounting Standard 108:

Segment Information for the year ended 31st March, 2017

The Company had determined the following reporting segments based on the information reviewed by the Chief Operating Decision Maker (CODM):

(a) Agro: Solvent extraction, Flour Mill and Cattle feed operations.

(b) Cotton: Cotton yarn spinning

(c) Maize: Starch and its derivatives

(d) Power: Windmill, solar, thermal and bio-gas

(e) Other: Balance

The Chief operating decision maker moniters the operating results of its Business Segment separately for the purpose of making decision about resource allocation and performance assessment.

Segment revenue and results

The expenses and income which are not directly attributable to any business segment are shown as unallocable (net of allocable income).

Segment assets and liabilities

Segment assets and liabilities includes all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade receivables, inventory and other operating assets. Segment liabilities primarily include trade payables and other liabilities. Common assets and liabilities which can not be allocated to any business segment are shown as unallocable assets/liabilities.

Iner-segment transfer

Inter-segment transfer are recognized at sale-price. The same is based on market price and business risks.

Notes:

(i) Unallocated Assets and Liabilities comprises of Corporate Fixed Assets, Investments, Goodwill, Fixed Deposits, Secured Loans, Provision for Taxes, Provision for Dividend, Unclaimed Dividend, Deferred Tax Liability and Provision for Mark to Market Losses on Forward Contracts.

(ii) The Company''s manufacturing facilities are located in India.

11. Operating Lease as per Indian Accounting Standard 17: (Refer Note No. 1.12)

i) The Company has taken various residential, office and godown premises under operating lease on leave and license agreements. These are generally not non-cancelable and range between 11 months and 36 months under leave and license or longer for other lease and are renewable by mutual agreeable terms. The Company has given refundable interest free security deposits under certain agreements.

ii) Lease payments are recognized as expense in the Statement of Profit and Loss on straight line basis over the lease term under expense head ''Rent'' amounting to Rs.6.02 crores (P.Y. Rs.8.67 crores)

iii) The future minimum estimated operating lease payments under non-cancelable operating lease:

12. Post Retirement Benefit Plans as per Indian Accounting Standard 109:

As per Actuarial Valuation as on 31st March, 2017, 31st March, 2016 and 1st April, 2015 and recognized in the financial statements in respect of Employee Benefit Schemes:

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual changes. It is based on a changes in the key assumptions while holding all other assumptions constant. When calculating the sensitivity to the assumptions, the method (Projected Unit Credit Method) used to calculate the liability recognized in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Risk Exposure - Asset Volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk derivatives to minimize risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments % which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit.

(iii) Leave obligations

The leave obligations cover the Company''s liability for sick and earned leave. The amount of the provision of Rs.3.44 crores [31st March,16: Rs.2.52 crores] [1st April,15: Rs.2.07 crores] is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations.

(iv) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is Rs.2.72/-.

The provision relates to estimated outflow of cash expected to be paid in relation to damages payable on account of cancellation of contract for supply of raw material and on account of quality rebate claim for sale of traded goods. Due to its nature, it is not possible to estimate the timing of resulting cash flows.

13. Honorable Supreme Court, during the year reversed the decision of Appellate Tribunal, holding that the Company is not entitled to concessional rate of customs duty on import of crude palm oil imported during the year 2004-05 and 2005-06. Miscellaneous expenses include Rs.7.90 crores as customs duty, penalty of Rs.7.90 crores and finance cost Rs.14.16 crores (aggregating to Rs.29.96 crores) paid/provided arising out the Supreme Court Order.

14. Managerial remuneration payable to one of the Managing Directors works out to be in excess of limits requiring shareholders'' approval in terms of point (i) of second proviso of Section 197 of the Companies Act, 2013 (Act), however this is within the prescribed limits of total managerial remuneration payable to all Managing/Whole-Time Directors in aggregate u/s 197 of the Act. The Company proposes to ratify such managerial remuneration in excess of 5% being paid to Managing Director in the ensuing Annual General Meeting.

15. Disclosure in respect of specified bank notes held and transacted:

During the year, the Company had specified bank notes (SBNs) and other denomination notes as defined in the MCA notification G.S.R. 308(E) dated 30th March, 2017, on the details of Specified Bank Notes (SBNs) held and transacted during the period from 8th November, 2016 to 30th December, 2016, the denomination wise SBNs and other notes as per the notification is given below:

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


Mar 31, 2016

a. Terms/rights attached to Equity Shares

i) The Company has only one class of equity shares carrying par value ofRs, 2/- per share, carrying equal rights as to dividend,
voting and in all other respects

ii) During the year ended 31st March, 2016, the amount of per share dividend recognized as distributions to equity shareholders
was Rs, 0.80/- (31st March, 2015: Rs, 0.84/-)

a. (i) Term loan is availed from HDFC Bank Limited, which carries gross interest @ 10.30% p.a. The loan is secured by hypothecation
of specific movable Plant & Machinery

ii) The loan is repayable in quarterly installments ofRs, 1,81,00,000/- each along with interest. This loan is eligible for interest
subsidy of 2% p.a. under TUF scheme of Central Government and 7% p.a. by Gujarat State Government under The Textile
Policy, 2012


Working Capital, Suppliers Line of Credit from Banks in Foreign Currency and Short Term Loan from banks are secured by a hypothecation
of current assets and certain tangible movable plant & machinery and joint equitable mortgage of certain immovable fixed assets of the
Company, personal guarantee of three promoter directors and lien on certain Fixed Deposits of the Company.

Note :

1) Capital work in progress of Rs, 100.57 crores includes expenditure incurred during construction period of Rs, 0.63 crore (including
depreciation of Rs, 0.03 crore on Leasehold Land); in respect of ongoing project of Starch Plant at Chalisgaon, Maharashtra (Refer Note
No. 27.6 of schedule).

2) During the physical verification of assets carried out during the year at certain plants, the variances on account of physical verification
have been duly adjusted resulting in assets write off Rs, 0.04 crore.


Note :

1) Shares of Adani Enterprises Limited has been demerged and Shares of Adani Ports and SEZ Limited, Adani Power Limited and Adani
Transmission Limited were received in the ratio of 1:1.4123, 1:1.8596 and 1:1 respectively

2) Shares of Arvind Limited has been demerged and Shares of Adani Infrastructure Limited were received in the ratio of 10:1

3) Shares of IDFC Limited has been demerged and Shares of IDFC Bank Limited were received in the ratio of 1:1


ii) All derivative and financial instruments acquired by the Company are for hedging.

iii) Foreign currency exposure that are not hedged by derivative instruments as on 31st March, 2016;

Trade Credit for imports 27.73 USD Million equal toRs, 188.29 crores and EUR 1.11 Million equal toRs, 8.39 crores.

(Previous Year USD Million 10.07 equal to Rs, 62.96 crores and EUR 1.47 Million equal to Rs, 11.22 crores)

iv) Foreign currency receivables that are not hedged by derivative instruments as on 31st March, 2016; 0.89 USD Million equal to Rs, 5.94 crores and AED 0.08 Million equal to Rs, 0.15 crores. (Previous Year Nil)

v) The equivalent USD of 3.04 Million referred under B above is also unhedged for INR Rs, 20.12 crores


2. DISCLOSURES UNDER ACCOUNTING STANDARDS:

2.1 DISCLOSURE AS PER ACCOUNTING STANDARD 15 (REVISED) EMPLOYEE BENEFITS:

i) Defined Contribution Plans:

Amount ofRs, 3.22 crores (Previous Year Rs, 3.06 crores) is recognised as expense and included in Employee''s Expenses in the
Statement of Profit & Loss.


The information regarding experience adjustment on plan assets and liabilities for past years is not ascertained and hence
not furnished.

Notes:-

1) The Company provides retirement benefits in the form of Provident Fund, Gratuity and Leave Encashment. Provident
Fund contributions made to "Government Administrated Provident Fund" are treated as Defined Contribution Plan,
since the Company has no further obligations beyond its monthly contributions.

2) Gratuity and Leave Encashment is treated as Defined Benefit Plan. Gratuity Scheme is administrated by making
contributions to Group Gratuity Scheme and Leave Encashment Scheme administrated by making contributions to
Life Insurance Corporation of India except in respect of leave encashment for workmen of Cotspin Unit, provision for
which has been considered on actuarial valuation basis.

3) Sick leave is considered as defined benefit plan and remains unfunded and provided on actuarial valuation basis.

4) The Company expects to fund minimum Rs, 0.45 crores towards Gratuity plan and Rs, 3.54 crores towards Provident Fund
plan during the year 2016-17.

3. RELATED PARTY TRANSACTIONS AS PER ACCOUNTING STANDARD 18:

The disclosure in pursuance to Accounting Standard-18 on "Related Party disclosures" is as under:
(a) Name of Related Parties & Relationship

Note: No amount has been provided as doubtful debts or advances / written off or written back in respect of debts due from / to above
parties. Figures in brackets relate to previous year.

4. OPERATING LEASES AS PER ACCOUNTING STANDARD 19:

The disclosure in pursuance to Accounting Standard-19 on "Leases" is as under:

i) The Company has taken various residential, office and godown premises under operating lease on leave and license agreements.
These are generally not non-cancelable and range between 11 months and 36 months under leave and license or longer for
other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free
security deposits under certain agreements.

ii) Lease payments are recognized as expense in the Statement of Profit & Loss on a straight line basis over the lease term under
expense head ''Rent'' amounting to Rs, 8.65 crores (Previous Year Rs, 4.31 crores).


The provision relates to estimated outflow of cash expected to be paid in relation to damages payable on account of cancellation of
contract for supply of raw material and on account of quality rebate claim for sale of traded goods. Due to its nature, it is not possible
to estimate the timing of resulting cash flows.

5. Figures for the previous year period have been regrouped wherever necessary to make it comparable with current year figures.

6. Segment Information as per Accounting Standard 17:

As per Accounting Standard 21, the Company has presented Consolidated Financial Statements. Accordingly Segment information as
required under Accounting Standard 17 is included under the Notes to Consolidated Financial Statements.


Mar 31, 2015

1. Company Information

Gujarat Ambuja Exports Limited (GAEL) is a public limited company domiciled in India. GAEL is an Agro Processing conglomerate with various manufacturing plants at different locations in states of Gujarat, Maharashtra, Madhya Pradesh, Uttarakhand and Karnataka. The Group's product profile includes Solvent Extraction comprising of all types of Oil Seed processing, Edible Oil Refining, Cotton Yarn Spinning, Maize based Starch and its derivatives, Wheat Processing/ Cattle Feed and Power Generation through Wind Mills, Bio gas and Thermal Power Plants, mainly for internal consumption.

2. The Company's shares are listed in BSE and NSE.

The company has also setup a wholly-owned subsidiary at Singapore to focus on international trading activities.

3. Terms/rights attached to Equity Shares

i) The company has only one class of equity shares carrying par value of ' 2 per share, carrying equal rights as to dividend, voting and in all other respects.

ii) During the year ended 31st March 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 0.84 (31st March 2014: ' 0.70).

4. Commitments on account of estimated amount of contracts remaining to be executed on capital account and not provided for relating to Tangible Assets is Rs. 12.75 Crores (Previous Year Rs. 35.30 Crores).

5. In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

6. Related Party Transactions as per Accounting Standard 18:

The disclosure in pursuance to Accounting Standard-18 on "Related Party disclosures" is as under:

(a) Name of Related Parties & Relationship

Sr. Name Relationship

1. Gujarat Ambuja International Pte. Ltd. Singapore Subsidiary Company

2. Vijay Kumar Gupta Managing Director (Key than 20% voting power. Managerial Person)

3. Manish Gupta Managing Director Managerial Person)

4. Sulochana Gupta Relative of Key Managerial Person

5. Shilpa Gupta Relative of Key Managerial Person

6. Mohit Gupta Jt. Managing Director (Key Managerial Person)

7. Sandeep Agrawal Executive Director (Key Managerial Person)

8. Siddharth Agrawal Relative of Key Managerial Person

9. N. Giridhar Chief Financial Officer

10. Manan Bhavsar Company Secretary

11. Jay Infrastructure & Enterprise significantly Properties LLP influenced by Key Managerial Persons

12. SMAS Investors LLP Enterprise significantly influenced by Key Managerial Persons

Sr. Name Manner

1. Gujarat Ambuja International Pte. Ltd. Singapore 100% Holding of Equity shares of the subsidiary

2. Vijay Kumar Gupta Key Managerial Person & than 20% voting power. Person exercising more

3. Manish Gupta Key Managerial Person & Relative as Son of Mr. Vijay Kumar

Gupta & Person exercising more than 20% voting power.

4. Sulochana Gupta Relative as wife of Mr. Vijaykumar Gupta & mother of Mr. Manish Gupta and Mr. Mohit Gupta.

5. Shilpa Gupta Relative as wife of Mr. Manish Gupta

6. Mohit Gupta Key Managerial Person & Relative as son of Mr. Vijaykumar Gupta & Brother of Mr. Manish Gupta

7. Sandeep Agrawal Key Managerial Person

8. Siddharth Agrawal Relative as brother of r. Sandeep Agrawal

9. N. Giridhar Key Managerial Person

10. Manan Bhavsar Key Managerial Person

11. Jay Infrastructure & Key Managerial Persons Properties LLP sharing more than 20% in Persons profits.

12. SMAS Investors LLP Key Managerial Person and relative sharing more than 20% in profits.

7. Operating Leases as per Accounting Standard 19:

The disclosure in pursuance to Accounting Standard-19 on "Leases" is as under:

i) The Company has taken various residential, office and godown premises under operating lease on leave and license agreements. These are generally not non cancelable and range between 11 months and 36 months under leave and license or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits under certain agreements.

ii) Lease payments are recognized as expense in the Profit & Loss statement on a straight line basis over the lease term under expense head 'Rent' amounting to Rs. 4.31 Crores (Previous Year Rs. 6.05 Crores))


Mar 31, 2013

Company Information

Gujarat Ambuja Exports Limited (GAEL) is Agro Processing conglomerate with various manufacturing plants at different locations in states of Gujarat, Maharashtra, Madhya Pradesh, Uttarakhand and Karnataka. The Group’s product profile includes Solvent Extraction comprising of all types of Oil Seed processing, Edible Oil Refining, Cotton Yarn Spinning, Maize based Starch and its derivatives, Wheat Processing, Cattle Feed and Power Generation through Wind Mills, Bio gas and Thermal Power Plants.

The Company’s shares are listed with BSE and NSE.

The company has also setup a wholly-owned subsidiary at Singapore to focus on international trading activities.

1.1 Commitments on account of estimated amount of contracts remaining to be executed on capital account and not provided for relating to Tangible Assets is Rs. 14.55 Crores (Previous Year Rs. 16.99 Crores)

1.2 In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

1.3 There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

1.4 Donations include payments made to political party Bhartiya Janata Party Rs. 0.10 Crores. (P.Y Rs. 0.05 Crores)

2. Disclosures under Accounting Standards

2.1 Disclosure as per Accounting Standard 15 (Revised) Employee Benefits:

i) Defined Contribution Plans:

Amount of Rs. 2.12 Crores (Previous Year Rs.1.84 Crores) is recognised as expense and included in Employee’s Expenses in the Profit and Loss Account.

ii) Defined Benefit Plans:

2.2 Operating Leases as per Accounting Standard 19:

The disclosure in pursuance to Accounting Standard-19 on "Leases" is as under:

i) The Company has taken various residential, office and godown premises under operating lease on leave and license agreements. These are generally not non cancelable and range between 11 months and 36 months under leave and license or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits under certain agreements.

ii) Lease payments are recognized as expense in the Profit & Loss statement on a straight line basis over the lease term under expense head ‘Rent’ amounting to Rs. 6.40 Crores (Previous Year Rs. 3.03 Crores)

The provision relates to estimated outflow of cash expected to be paid in relation to damages payable on account of cancellation of contract for supply of raw material. Due to its nature it is not possible to estimate the timing of resulting cash flows.

3 Figures for the previous year period have been regrouped wherever necessary to make it comparable with current year figures.


Mar 31, 2012

Company Information

Gujarat Ambuja Exports Limited (GAEL) is Agro Processing conglomerate with various manufacturing plants at different locations in states of Gujarat, Maharashtra, Madhya Pradesh, Uttarakhand and Karnataka. The Group's product profile includes Solvent Extraction comprising of all types of Oil Seed processing, Edible Oil Refining, Cotton Yarn Spinning, Maize based starch and its derivatives, Wheat Processing/ Cattle Feed and power generation through Wind Mills.

The Company's shares are listed in BSE and NSE.

The Company has also setup a wholly-owned subsidiary at Singapore to focus on international trading activities.

Presentation and disclosure of financial statements

Till the year ended 31 March 2011, the company was using pre-revised Schedule VI to the Companies Act, 1956 for preparation and presentation of its financial statements. The company has reclassified previous year figures to conform to this year's classification. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements particularly presentation of balance sheet.

a. Terms/rights attached to Equity Shares

i) The company has only one class of equity shares carrying par value of Rs. 2 per share, carrying equal rights as to dividend, voting and in all other respects.

ii) During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs. 0.60 (31 March 2011: Rs. 0.60).

c. During the period of five years from 01.04.2006 to 31.03.2012, in the year 2007-08 company bought back 9,66,615 equity shares out of 13,93,18,490 equity shares as per the Board resolution passed by the company at its Board Meeting held on 16th January 2007

a. (i) Term loan from Bank of India carries gross interest @ 12.25% p.a. The loan is secured by hypothecation of specific movable Plant & Machinery. Further, the loan has been guaranteed by the personal guarantee of three promoter directors.

The loan is repayable in quarterly installments of Rs. 0.38 Crores each along with interest, from the date of loan, viz. September 2009. This loan is eligible for interest subsidy of 4% p.a. under TUF scheme of Central Govt.

b. (i) Term loan from Indian Renewable Energy Development Agency, New Delhi carries interest @ 8% p.a. The loan is repayable in quarterly installments of Rs. 0.17 Crores along with interest from the date of June 2007.The loan is secured by hypothelcation of Wind Mill.

(ii) Outstanding Term loan from Bank of India of Rs. 0.38 Crores has been repaid during the year .

1. Additional Information to the Financial Statements

(All figures are indicated in Rs. in Crores)

1.1 Contingent liabilities not provided for in respect of

Sr. PARTICULARS As at 31st As at 31st March, 2012 March, 2011

(a) Claims against the Company /disputed liabilities not acknowledged as debts 2.16 2.21

(b) Disputed Statutory Claims

i) Excise, Customs and Service Tax 6.00 6.04

ii) Income Tax 0.00 0.00

a) Appeals preferred by Company 29.36 28.83

b) Appeals preferred by Department 26.68 0.00

iii) Sales Tax , VAT, Entry Tax and Mandi Tax 2.23 2.26

iv) Others 1.25 1.25

TOTAL 65.52 38.38

(c) Export obligation on duty free imports (Differential amount of custom duty in respect of machinery and inputs 0.38 0.08 imported under EPCG and Advance License Scheme)

(d) Corporate guarantee in favour of Bank on behalf of wholly owned subsidiary 12.72 11.15

Gujarat Ambuja International Pte Ltd. (US $ 2500000)(US $ 2500000)

(Outstanding against this as at 31st March) Nil Nil

Note: Outflow in respect of 1 (a) and (b) disputes/contingencies is dependent upon final outcome of the disputes or ultimate agreement to resolve the differences.

1.2 Commitments on account of estimated amount of contracts remaining to be executed on capital account and not provided for relating to Tangible Assets is Rs. 16.99 Crores (Previous Year Rs. 73.40 Crores)

1.3 In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

Note: 1. Managing Directors/Wholetime Directors are covered under the Company's Gratuity, Leave Encashment scheme along with the other employees of the Company. The gratuity and leave encashment liability for all employees is determined on the basis of an independent actuarial valuation and the specific amount of gratuity and leave encashment for Managing Directors and Wholetime Directors can not be ascertained separately and hence the same has not been included above.

2. The eligible Net Profits as per Section 198 of the Companies Act is Rs. 67.01 Crores and the commission on net profit is restricted to Rs. 4.85 Crores to be shared between Managing directors in the ratio as approved by the Board.

3. The total remuneration as stated above is within the maximum permissible limit under the Act.

ii) All derivative and financial instruments acquired by the Company are for hedging.

iii) Foreign currency exposure that are not hedged by derivative instruments as on 31 st March, 2012;

USD 31.01 Mn equal to Rs. 160.31 Crores , EUR 2.20 Mn equal to Rs. 13.22 Crores and CHF0.01 Mn equal to Rs. 0.58 Crores. (Previous year USD 11.17 Mn equal to Rs. . 49.49 Crores)

1.4 Donations include payments made to political party Bhartiya Janata Party Rs. 0.05 Crores. (P.Y Rs. Nil)

2. Disclosures under Accounting Standards

2.1 Disclosure as per Accounting Standard 15 (Revised) Employee Benefits:

i) Defined Contribution Plans:

Amount of Rs. 1.84 Crores (Previous Year Rs. 1.71 Crores) is recognised as expense and included in Employee's Expenses in the Profit and Loss Account.

ii) Defined Benefit Plans:

Notes:

1) The Company provides retirement benefits in the form of Provident Fund, Gratuity and Leave Encashment. Provident fund contributions made to "Government Administrated Provident Fund" are treated as Defined Contribution Plan since the Company has no further obligations beyond its monthly contributions.

2) Gratuity and Leave Encashment is treated as Defined Benefit Plan, and is administrated by making contributions to Group Gratuity Scheme of Life Insurance Corporation of India except in respect of leave encashment for workmen of Cotspin Unit, provision for which has been considered on actuarial valuation basis.

3) Sick leave is considered as defined benefit plan and remains unfunded and provided on actuarial valuation basis.

4) The Company expects to fund approximately Rs. 0.90 Crores towards Gratuity plan and Rs. 2.02 Crores towards Provident Fund plan during the year 2012-13.

2.3 Operating Leases as per Accounting Standard 19:

The disclosure in pursuance to Accounting Standard-19 on "Leases" is as under:

i) The Company has taken various residential, office and godown premises under operating lease on leave and license agreements. These are generally not non cancelable and range between 11 months and 36 months under leave and license or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits under certain agreements.

ii) Lease payments are recognized as expense in the Profit & Loss statement on a straight line basis over the lease term under expense head 'Rent' amounting to Rs. 3.03 Crores (Previous Year Rs. 2.46 Crores)

2.4. Segment Information as per Accounting Standard 17 :

As per Accounting Standard 21, the company has presented Consolidated Financial Statements. Accordingly Segment information as required under Accounting Standard 17 is included under the Notes to Consolidated Financial Statements.

2.5 During the year an amount of Rs. 0.01 Crores (P.Y. Rs. 0.02 Crores) has been incurred towards Research and Development expenditure which is of revenue in nature.

The provision relates to estimated outflow of cash expected to be paid in relation to damages payable on account of cancellation of contract for supply of raw material. Due to its nature it is not possible to estimate the timing of resulting cash flows.


Mar 31, 2011

(Rs. in Crores)

1. Contingent liabilities not provided for in respect of

PARTICULARS As at 31st As at 31st

March, 2011 March, 2010

(a) Claims against the Company /disputed liabilities not acknowledged as debts 2.21 1.10

(b) Disputed Statutory Claims

i) Excise, Customs and Service Tax 6.04 4.74

ii) Income Tax 28.83 3.60

iii) Sales Tax , VAT, Entry Tax and Mandi Tax 2.26 1.76

iv) Others 1.25 1.23

TOTAL 38.38 11.33

(c) Export obligation on duty free imports 0.08 NIL (Differential amount of custom duty in respect of machinery and inputs imported under EPCG and Advance License Scheme)

(d) Corporate guarantee in favour of Bank on behalf of 11.15 11.23 wholly owned subsidiary Gujarat Ambuja International Pte Ltd. (US $ 2.5Mn) (US $ 2.5Mn) (Outstanding against this as at 31st March) Nil Nil

Note: Outflow in respect of 1 (a) and (b) disputes/contingencies is dependent upon final outcome of the disputes or ultimate agreement to resolve the differences.

2. In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

3. (a) Sales include realized gain of exchange on forward exchange contracts (Net of settlements) entered into primarily for hedging purpose Rs. 8.12 crores {P.Y. Rs. 10.64 crores (net)}.

(b) Sales also include export incentive benefits of Rs. 13.75 crores (P.Y Rs. 12.54 crores)

4. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

5. During the year an amount of Rs. 0.02 crores has been incurred towards Research and Development expenditure which is of revenue in nature.

6. Disclosure as per Accounting Standard 15 (Revised) Employee Benefits

i) Defined Contribution Plans:

Amount of Rs. 1.71 crores (Previous Year Rs.1.43 crores) is recognised as expense and included in Employee's Expenses in the Profit and Loss Account.

7. Operating Leases

The disclosure in pursuance to Accounting Standard-19 on "Leases" is as under:

i) The Company has taken various residential, office and godown premises under operating lease on leave and license agreements. These are generally not non cancelable and range between 11 months and 36 months under leave and license or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits under certain agreements.

ii) Lease payments are recognized as expense in the Profit & Loss statement on a straight line basis over the lease term under expense head ‘Rent' amounting to Rs. 2.37 crores (Previous Year Rs. 3.39 crores)

8. Additional Information pursuant to provisions of paragraph 3,4C & 4D of the part II of schedule VI to the Companies Act, 1956.

9. Previous year figures have been restated wherever necessary to make them comparable with current year's figures.

10. Segment Information for the year ended 31st March 2011

As per Accounting Standard 21, the company has presented Consolidated Financial Statements. Accordingly Segment information as required under Accounting Standard 17 is included under the Notes to Consolidated Financial Statements.


Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

(Rupees in crores)

PARTICULARS As at 31st As at 31st

March, 2010 March, 2009

(a) Claims against the Company / disputed liabilities not acknowledged as debts 1.10 1.76

(b) Disputed Excise duty, Sales Tax, Motor Spirit Tax, Income Tax Claims

i) Excise, Customs and Service Tax 4.74 7.24

ii) Income Tax 3.60 3.60

iii) Sales Tax , VAT, Entry Tax and Mandi Tax 1.76 6.02

iv) Others 1.23 1.13

TOTAL 11.33 17.99

(c) Export obligation on duty free imports

(Differential amount of custom duty in respect of machinery and inputs imported Nil 0.06 under EPCG and Advance License Scheme)

(d) Corporate guarantee in favour of Bank on behalf of wholly 11.23 12.68

owned subsidiary Gujarat Ambuja International Pte. Ltd. (US$2.5Mn) (US$2.5Mn)

Outstanding against this as at 31st March Nil Nil

Note : Outflow in respect of 1 (a) and (b) disputes/contingencies is dependent upon final outcome of the disputes or ultimate agreement to resolve the differences.

2. In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

3. Sales include realized gain of exchange on forward exchange contracts (Net of settlements) entered into primarily for hedging purpose Rs. 10.64 crores {P.Y. Loss Rs 48.59 crores (net) }.

b) The above information has been compiled in respect of parties to the extent to which they could be identified as Micro, Small and Medium Enterprises on the basis of information available with the Company.

4. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

Note: Managing Directors/Wholetime Directors are covered under the Company’s Gratuity, Leave Encashment scheme along with the other employees of the Company. The gratuity and leave encashment liability for all employees is determined on the basis of an independent actuarial valuation and the specific amount of gratuity and leave encashment for Managing Directors and Wholetime Directors can not be ascertained separately and hence the same has not been included above.

Note: The total remuneration as stated at point no 6(a) above is within the maximum permissible limit under the Act.

5. Disclosure as per Accounting Standard 15 (Revised) Employee Benefits:

i) Defined Contribution Plans:

Amount of Rs.1.43 crores (Previous Year Rs.1.27 crores) is recognised as expense and included in Employee’s Expenses in the Profit and Loss Account.

ii) Defined Benefit Plans:

Notes:

1) The Company provides retirement benefits in the form of Provident Fund, Gratuity and Leave Encashment. Provident fund contributions made to “Government Administrated Provident Fund” are treated as Defined Contribution Plan since the Company has no further obligations beyond its monthly contributions.

2) Gratuity and Leave Encashment is treated as Defined Benefit Plan, and is administrated by making contributions to Group Gratuity Scheme of Life Insurance Corporation of India except in respect of leave encashment for workmen of Cotspin Unit, provision for which has been considered on actuarial valuation basis.

3) Sick leave is considered as defined benefit plan and remains unfunded and provided on actuarial valuation basis.

4) The Company expects to fund approximately Rs. 0.26 crores towards Gratuity plan and Rs. 1.57 crores towards Provident Fund plan during the year 2010-11.

5) The information regarding experience adjustment on plan assets and liabilities are not ascertained and hence not furnished.

Note: No amount has been provided as doubtful debts or advances / written off or written back in respect of debts due from / to above parties. Figures in brackets relate to previous year.

6. Operating Leases:

i) The Company has taken various residential, office and godown premises under operating lease on leave and license agreements. These are generally not non cancelable and range between 11 months and 36 months under leave and license or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits under certain agreements.

ii) Lease payments are recognized as expense in the Profit & Loss statement on a straight line basis over the lease term under expense head Rent amounting to Rs. 3.39 crores (Previous Year Rs. 1.99 crores.)

ii) All derivative and financial instruments acquired by the Company are for hedging.

iii) Foreign currency exposure that are not hedged by derivative instruments as on 31st March, 2010;

USD 23,554,872 equal to Rs.105.78 Crores (Previous year USD 18,432,275 equal to Rs. 89.08 Crores )

Note: USD = US Dollar;

Note : (i) Licnesed Capacity not indicated due to the abolition of industrial licences as per notification NO. S.O.477CE dated 25th July, 1991 & capacity registered with SIA & DGTD not being Licence is not indicated. (ii) The above capacity is as at the last date of the Accounting Year.

Note: 1. The figures of previous year are shown in brackets. 2. Actual production includes quantities for captive consumption.

3. Agro processing Division production does not include 18572 MT (Previous year 8925 MT) processed for outsiders.

7. Previous year figures have been restated wherever necessary to make them comparable with current year’s figures.

8. Segment Information for the year ended 31st March 2010 As per Accounting Standard 21, the company has presented Consolidated Financial Statements. Accordingly Segment information as required under Accounting Standard 17 is included under the Notes to Consolidated Financial Statements.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X