Gujarat Ambuja Exports

1.  Change in Accounting Policy
 
 Upto 31st December 2008 the Company was following the accounting policy
 of recognizing loss on outstanding forward and derivative contracts by
 marking them to market basis in the Profit & Loss account and
 recognized the loss of Rs. 30.42 crores for the period ended 31st
 December 2008.
 
 Effective from 1st January 2009, the Company has changed the Accounting
 policy of recognizing the impact of fluctuation in respect of forward
 and derivative contracts by applying the principles of recognition set
 out in the International Accounting Standards as
 
 suggested by The Institute of Chartered Accountants of India, which are
 reflected in the Accounting Standard 30 - Financial instruments
 Recognition and Measurement. The impact of such mark to market loss on
 outstanding contracts as of 31 March, 2009 in respect of forward &
 short term derivative contracts amounts to Rs. 32.70 crores and long
 term derivative contracts beyond 12 months is Rs. 40.87 crores. As a
 result of this change in the policy, the impact of mark to market loss
 in respect of above mentioned outstanding contracts are carried as
 Hedge Reserve and correspondingly under Current Liabilities to be
 ultimately set off when the underlying transactions crystallize in the
 Profit & Loss Account.  8. i) Defined Contribution Plans:
 
 Amount of Rs. 1.27 crores (Previous Year Rs.1.10 crores) is recognised
 as expense and included in Employees Expenses in the Profit and Loss
 Account.
 
 2 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.0.54 crores (Previous Year Rs. 0.67 crores)
 
 3  Previous year figures have been restated wherever necessary to
 make them comparable with current years figures.
 
 4  Segment Information for the year ended 31st March 2009
 
 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.