129 / 148
127
(
`
cr)
NOTE 27.1 CONTINGENT LIABILITIES
As at
March 31, 2014
As at
March 31, 2013
(i) Claims against the Company not acknowledged as debts in
respects of:
(a) Excise
7.21
5.84
(b) Income tax
28.10
35.03
(c) Sales tax
0.67
–
(d) Customs
2.78
2.78
(e) Water charges
77.03
71.92
(f) Others
14.64
13.54
Note: Future cash outflows in respect of (a) to (f) above are
determinable on receipt of judgements | decisions pending with
various forums | authorities.
(ii) Guarantees given by the Company:
Corporate guarantee to a bank on behalf of subsidiary Company for
facilities availed by it
10.73
8.85
(
`
cr)
NOTE 27.2 COMMITMENTS
As at
March 31, 2014
As at
March 31, 2013
Estimated amount of contracts remaining to be executed on capital
accounts and not provided for (net of advances)
23.57
21.18
NOTE 27.3 RESEARCH AND DEVELOPMENT
Details of expenditure incurred on in-house Research and Development facilities approved by Department of
Scientific and Industrial Research, Ministry of Science and Technology, Government of India under Section 35 (2AB)
of Income tax Act, 1961.
(
`
cr)
Particulars
2013-14
2012-13
Capital expenditure
7.23
3.80
Recurring expenditure
16.68
12.88
23.91
16.68
NOTE 27.4 FINANCIAL DERIVATIVES HEDGING TRANSACTIONS:
Pursuant to the announcement issued by The Institute of Chartered Accountants of India dated March 29, 2008
in respect of forward exchange contracts and currency and interest rate swaps, the Company has applied the
Hedge Accounting Principles set out in the Accounting Standard - 30 ‘Financial Instruments: Recognition and
Measurement’. Accordingly, range forward contracts are marked to market and the gain aggregating
`
1.54 cr
(Previous year gain
`
0.74 cr) arising consequently on contracts that were designated and effective as hedges of
future cash flows has been recognised directly in the hedging reserve account. Actual gain or loss on exercise of
these range forward contracts or any part thereof is recognised in the Consolidated Statement of Profit and Loss.
Hedge accounting will be discontinued if the hedging instrument is sold, terminated or no longer qualifies for
hedge accounting.
Notes
to the Consolidated Financial Statements