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AstraZeneca Pharma

BSE: 506820|NSE: ASTRAZEN|ISIN: INE203A01020|SECTOR: Pharmaceuticals
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Notes to Accounts Year End : Mar '18

1. Segment reporting

The Company is engaged in the business of manufacture, distribution and marketing of pharmaceutical products and provides clinical trial services to an overseas group company. The Board of Directors have been identified as the Chief Operating Decision Maker (CODM). CODM reviews the Company level data for resource allocation and assessment of the Company’s performance. As the Company’s activities fall within single business segment, separate segment wise disclosures are not applicable. The additional disclosures as required by IND AS 108 are as below:

(b) Geographic information

Revenues generated from operations are from sales to customers both within and outside of India. Details of the same are stated below. The information below is based on the locations of the customers.

(c) Information about major customers

Revenue from sale of tablets of Rs 688.6 (2017: Rs 488.1) are derived from a customer operating in the pharma industry.

(d) Location of non-current assets

Non-current operating assets including property, plant and equipment and capital work-in-progress are all located in India.

* The Company has received a service tax demand of Rs 25.6 for the period April 2006 to March 2012 vide OIO 62/2014-15 dated July 31, 2014 on the expenditure incurred in foreign currency for various expenses such as registration fee, transportation, accommodation for attending conferences/seminars, meetings and trainings. The order has been passed by Commissioner confirming the demand along with interest and penalties, against which the Company has paid Rs 1.8 under protest as

on date and filed an appeal with Customs Excise and Service Tax Appellate Tribunal (“CESTAT”) on January 8, 2015 which is currently pending. Out of the above balance, the Company has provided Rs 12.8 and the balance amount of Rs 12.8 is considered as a contingent liability.

* The Company has received a service tax demand of Rs 4.9 for the period April 2012 to March 2013 vide OIO 92/ 2014-15 dated October 20, 2014 on the expenditure incurred in foreign currency for various expenses such as registration fee, transportation, accommodation for attending conferences/seminars, meetings and trainings. The order has been passed by Commissioner confirming the demand along with interest and penalties, against which the Company has paid Rs 0.2 under protest as

on date and filed an appeal with Customs Excise and Service Tax Appellate Tribunal (“CESTAT”) on March 17, 2015 which is currently pending. Out of the above balance, the Company has provided Rs 3.3 and the balance amount of Rs 1.6 is considered as a contingent liability.

* The Company has received a service tax demand of Rs 5.8 for the period April 2010 to November 2012 vide OIO 138/2015 dated December 17, 2015 disallowing input tax credit on services such as sponsorship, insurance, event management, waste disposal services. The order has been passed by Commissioner confirming the demand along with interest and penalties, against which the Company has paid Rs 0.4 under protest as on date and has filed an appeal with Commissioner of Central Excise (Appeals) on February 18, 2016 which is currently pending. Out of the above demand, the Company has provided Rs 2.9 and the balance amount of Rs 2.9 is considered as a contingent liability.

* The Company has received a service tax demand of Rs 3.4 for the period April 2013 to March 2016 vide OIO 3/2018 dated February 15, 2018 where in the Commissioner has held that Company is liable to pay service tax on notice period recovery from the resigned employees. The order has been passed by Assistant Commissioner (Central Tax) confirming the demand along with interest and penalties against which the Company has filed an appeal with Commissioner of Central Excise (Appeals) on April 20, 2018 which is currently pending. Out of the above demand, the Company has provided Rs 1.9 and the balance amount of Rs 1.5 is considered as a contingent liability.

* The Company has received a service tax demand of Rs 1.9 for the period April 2013 to March 2016 vide OIO 5/2018 dated February 15, 2018 where in the Commissioner has held that the Company has availed cenvat input credit beyond stipulated period of six months/one year. The order has been passed

by Assistant Commissioner (Central Tax) confirming the demand along with interest and penalties, against which the Company has reversed the cenvat input credit of Rs 1.0 under protest and has filed an appeal with Commissioner of Central Excise (Appeals) on May 1, 2018. The said demand of Rs 1.9 is considered as a contingent liability.

* The Company has received a service tax demand of Rs 3.4 for the period April 2015 to March 2016 vide OIO 4/2018 dated February 15, 2018 wherein the Commissioner has held that the foreign currency expenditure incurred by the Company towards reimbursement of salary cost is subject to service tax under reverse charge mechanism. The order has been passed by Assistant Commissioner (Central Tax) confirming the demand along with interest and penalties, against which the Company has filed an appeal with Commissioner of Central Excise (Appeals) on May 1, 2018. Out of the above demand, the Company has provided for Rs 3.2 and balance amount of Rs 0.2 is considered as a contingent liability.

* The Transfer Pricing Officer (“TPO”) vide its Order dated January 28, 2013 for the period April 2008 to March 2009 made an adjustment to the clinical trial income of the Company by determining the arm’s length margin at 43.73%. The Dispute Resolution Panel passed an unfavorable order against the Company on November 19, 2013 after which the AO confirmed the demand vide its Order dated December 30, 2013 amounting to Rs 84.3. The Company filed a submission before the Income Tax Appellate Tribunal (“ITAT”) on February 28, 2014. The ITAT has passed an order on December 27, 2016 by giving relief on adjustments made with respect to arm’s length margin for clinical trials income and Corporate Tax adjustments (Allowance for expenses in respect of sample distribution, grants, sponsorship). Based on ITAT order, the Assessing Officer (AO) on December 19, 2017 has passed the final order with a refund of '' 55.8 without considering certain tax payments/ tax adjustment already done by the Company. Accordingly, the Company has filed rectification petition on January 24, 2018 before the AO to rectify mistakes apparent from record.

# The Transfer Pricing Officer (“TPO”) vide its Order dated December 22, 2013 for the period April 2009 to March 2010 made an adjustment to the clinical trial segment of the Company. The AO also carried out adjustments relating to disallowance of expenses in respect of sample distribution, grants, sponsorship, medical donations and equipment donation amounting to '' 49.4. The Company has filed an objection before the Dispute Resolution Panel (“DRP”) on April 7, 2014 subsequent to which, the Assessing Officer (AO) on December 31, 2014 has passed the final order and has disallowed grants, sponsorship, medical donations and equipment donation and raised final demand of Rs 5.1. The Company has paid the amount of Rs 5.1 under protest and the entire amount is considered as a contingent liability.

# The Transfer Pricing Officer (“TPO”) vide its Order dated January 30, 2015 for the period April 2010 to March 2011 made an adjustment to the clinical trials income of the Company.

The AO also carried out adjustments relating to disallowance of provision for doubtful advances, difference between interest income as per books and TDS certificate and disallowance of expenses in respect of sample distribution, grants, sponsorship, medical donations and equipment donation. The Company filed an appeal with the Dispute Resolution Panel (“DRP”) on March 27, 2015, Post the hearing held with DRP during the year, the Assessing Officer (AO) on January 20, 2016 and August 29,

2016 has passed the final order confirming the liability of Rs 6.2 which has been disclosed as contingent liability. The Company has filed an appeal with Income Tax Appellate Tribunal (ITAT)

on March 17, 2016 challenging the disallowances made by the DRP which is currently pending.

# The Transfer Pricing Officer (“TPO”) vide its Order dated January 29, 2016 for the period April 2011 to March 2012 has charged a markup on the receipt of reimbursement of expenses by the Company from overseas group companies.

The Assessing Officer (“AO”) carried out adjustments relating to disallowance of expenses incurred on health care professionals, payout made to Director of Health Services against price difference, sales returns not supported by evidence, cost of samples, additional depreciation claim, SAD refund, VRS expenses and 40(a)(ia) Disallowance. The Company has filed an appeal with the DRP on March 18, 2016 and DRP passed an order on November 11, 2016. Subsequently the final order was issued by the AO dated December 13, 2016 reducing the net refund due to the Company to Rs 27.5. The Company has filed an appeal with ITAT on February 20, 2017 challenging the disallowances made by the DRP order and the entire amount of Rs 27.5 is considered as contingent liability.

(c) Other matters:

i) The Transfer Pricing Officer (“TPO”) vide its Order dated October 27, 2016 for the period April 2012 to March 2013 has made adjustments under (a) manufacturing segment, (b) trading segment due to short fall in Arms Length Margin and (c) mark up on receipt of reimbursement of expenses by the Company from overseas group companies. The Assessing Officer (“AO”) also carried out adjustments relating to disallowance of expenses incurred on health care professionals and cost of samples.

The Company has filed an appeal with the DRP on January 3, 2017 and DRP has passed an order on September 19, 2017. Subsequently the final order dated October 31, 2017 was issued by the AO reducing the business losses of the Company by Rs 328. The Company has filed an appeal with ITAT on December

19, 2017 challenging the disallowances and reduction of business loss made by the DRP

ii) The Transfer Pricing Officer (“TPO”) vide its draft order dated December 4, 2017 for the period April 2013 to March 2014 has made adjustments under (a) Manufacturing Segment

(b) Clinical Trial Segment due to short fall in Arms Length Margin and (c) mark up on receipt of reimbursement of expenses by the Company from overseas group companies. The TPO has also considered subvention as revenue receipt. The Assessing Officer (“AO”) also carried out adjustments relating to disallowance of expenses incurred on health care professionals and cost of samples and passed a draft assessment order dated December 29, 2017 wherein a demand of Rs 399 has been determined. The Company has filed its objections with the DRP on January 29, 2018 against this draft assessment order.

2. Related party disclosures

(i) Names of related parties and related party relationship (a) Related parties where control exists and/or where transactions have occurred:

Name_of_the_entity_Name_of_relationship_

Holding Company AstraZeneca Pharmaceuticals AB, Sweden

Holding Company of AstraZeneca Pharmaceuticals AB, Sweden AstraZeneca AB, Sweden

Holding Company of AstraZeneca AB, Sweden AstraZeneca Treasury Limited, United Kingdom

Ultimate Holding Company AstraZeneca Plc, United Kingdom

Fellow subsidiaries with whom the Company had transactions AstraZeneca Singapore Pte Ltd, Singapore

during the year AstraZeneca India Private Limited, India

AstraZeneca Pharmaceuticals LP, USA AstraZeneca UK Limited, United Kingdom IPR Pharmaceuticals Inc, Puerto Rico Employees’ Benefit Plans AstraZeneca Pharma India Limited Employees Gratuity Fund Trust

AstraZeneca Pharma India Limited Management Staff Provident Fund Trust

b) Key Management Personnel

- Managing Director Mr.Sanjay Murdeshwar (resigned w.e.f. June 30, 2017)

Mr. Gagan Singh Bedi (appointed w.e.f. July 1, 2017)

- Director and Chief Financial Officer Mr. Rajesh Marwaha (appointed w.e.f. December 2, 2016)

- Non-Executive Directors Mr. Ian Brimicombe (resigned w.e.f. May 31, 2017)

Ms. Claire-Marie O’Grady (resigned w.e.f. December 2, 2016)

Mr. Gregory David Emil Mueller (appointed w.e.f. December 2, 2016)

Mr. Ian John Parish (appointed w.e.f. August 8, 2017)

c) Independent Directors Mr. Narayan K Seshadri

Ms. Kimsuka Narsimhan Ms. Revathy Ashok

Mr. D. E. Udwadia (resigned w.e.f. December 2, 2016)

Mr. K. S. Shah (resigned w.e.f. December 2, 2016)

35. Employee benefits

(i) Defined contribution plans

The Company contributes to defined contribution plans such as provident fund, superannuation and other funds as mentioned below as required by statute or Company policy.

In respect of such contributions, the Company has recognized the following amounts in statement of profit or loss:

(ii) Post employment defined benefit plans

(A) Gratuity

Benefits payable for employees who have joined before August 1, 2014:

Employees who are in continuous service for a period of 3 years are eligible for gratuity benefit as per the terms of the Trust Deed. Terms of the benefit are as below:

Payable on voluntary exit/termination:

For Management Staff:

For Non-Management staff: One month’s salary for each year of service, subject to maximum limit specified as per the Payment of Gratuity (Amendment) Act, 2018.

For Field Staff [Professional Sales Representative (PSR)]: 15 days salary for each year of service, subject to maximum limit specified as per the Payment of Gratuity (Amendment) Act, 2018.

Payable on retirement, death or disability:

For Management staff: One month’s salary last drawn by member for each year of service, without limit.

For Non-Management staff: One month’s salary last drawn by member for each year of service, subject to maximum limit specified as per the Payment of Gratuity (Amendment) Act, 2018.

For Field Staff (PSR): 15 days salary for each year of service, subject to maximum limit specified as per the Payment of Gratuity (Amendment) Act, 2018.

Benefits payable for employees who have joined on or after August 1, 2014:

Gratuity is payable in accordance with the provisions of “The Payment of Gratuity (Amendment) Act, 2018”.

(B) Provident fund (Defined benefit plan):

The Company operates a defined benefit plan for Provident fund for management staff. The minimum statutory rate at which the annual rate of interest is payable to the beneficiaries of such plan is administered by the Central Government. The Company is obligated to make good the shortfall in statutory rate prescribed by the Government and rate of interest declared by the trust. The Company also has an obligation to fund any shortfall in the fair value of plan assets as compared with the defined benefit obligation.

i) Actuarial risk and sensitivity

These plans typically expose the Company to actuarial risks such as: interest rate risk, longevity risk and salary risk.

Investment risk The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on Government bonds. If the plan assets underperform this yield, this will create a deficit. The Company maintains plan asset for Gratuity through insurance company and for Provident fund is managed through trust.

Interest risk A decrease in the bond interest rate will increase the plan liability.

Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of

plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The Company ensures that the investment positions are managed within the asset-liability matching framework that has been developed to achieve long-term investments that are in line with the obligations under employee benefit plans. Within this framework, the Company’s asset-liability matching objective is to match assets to the defined benefit obligations by investing in plan asset managed by an insurance company and through the Provident Fund trust.

Sensitivities due to mortality and withdrawals are not material and hence impact of change is not disclosed.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

3. Employees Restricted Stock Plan

The Ultimate Holding Company, AstraZeneca Plc. United Kingdom (AZUK), listed on London Stock Exchange had introduced a Long Term Incentive Stock Compensation Plan in the form of Restricted Stock Units (RSUs) to attract and retain the employees. As per the plan, the awards are granted to qualifying management employees of the Company. One restricted stock unit represents one AZUK share. When the stock units vests after three years, restricted stock units are automatically exchanged for the same number of AZUK shares. Moreover, the RSUs do not expire. There is no performance criteria. After the vesting period, the employees are free to either hold or sell the shares.

Fair value of RSUs granted

The fair values were determined using a modified version of the binomial model. This method incorporated expected dividends but no other features into the measurements of fair value. The grant date fair values of share awards does not take into account service and non-market related performance conditions.

4. Financial instruments - accounting classification and fair value measurement

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The management assessed that carrying amount of cash and cash equivalents, trade receivables, trade payables and other current liabilities approximate their fair values largely due to the short-term maturities of these instruments.

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

5. Financial risk management objectives and policies

The Company’s principal financial liabilities comprise trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, cash and cash equivalents and other financial assets that derive directly from its operations.

i. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices such as currency risk.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

* Amount below rounding off norms adopted by the Company.

Foreign currency sensitivity

The following table demonstrates the sensitivity to a reasonable possible change in USD exchange rates, with all other variables held constant. The Company’s exposure to foreign currency changes for all other currencies is not material.

The Company is not subject to any other market risk

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily with respect to trade receivables, including balances with banks and other financial assets.

a. Trade Receivables

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on credit rating scorecard and individual credit limits are defined in accordance with this assessment. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of account receivable.

An impairment analysis is performed at each reporting date on an individual basis for third party receivables. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables, refer Note 11.

The ageing analysis of the receivables (gross of provision) has been considered from the date the invoice falls due.

6. Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves. The primary objective of the Company’s capital management is to maximize the shareholder value. The Company has not availed any borrowings and mainly funded through equity. The Company is subsidiary of AstraZeneca Pharmaceuticals AB, Sweden (Holding Company), the existing surplus funds along with the cash generated by the Company are sufficient to meet its current/non-current obligation and working capital requirements.

7. Corporate Social Responsibility

(a) Gross amount required to be spent by the Company during the year: '' 0.7 (2017: '' Nil)

8. The Company cash flow statement does not have any liabilities which have been classified under financing activities in the statement of cash flows. Accordingly, requirements of paragraphs 44 (A) to 44 (E) of Ind AS 7, Statement of Cash Flows relating to presentation of ‘Net Debt reconciliation’ is not applicable to the Company.

9. As previously disclosed, by way of a letter dated March 1,

2014, AstraZeneca Pharmaceuticals AB, the promoter of the Company had proposed a voluntary delisting of the Company’s equity shares from the National Stock Exchange and the Bombay Stock Exchange. Such proposed delisting is subject to an on-going inquiry with SEBI and that inquiry has not yet been resolved. In any event, based on the passage of time, any potential future proposal for voluntary delisting of the Company would need to be conducted de novo.

10. First-time adoption of Ind AS

These financial statement for the year end March 31, 2018 are the first financial statement prepared in accordance with Ind AS.

The accounting policies set out in Note 2 have been applied in preparing the financial statement for year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of opening Ind AS balance sheet at April 1, 2016 (the Company’s date of transition to Ind AS). The Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Ind AS 101, First-time adoption of Indian Accounting Standards allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. Set out below are the applicable Ind AS 101 optional exemptions applied in the transition from previous GAAP to Ind AS.

(All amounts in Rs million, except per share and share data)

AstraZeneca Pharma India Limited Notes to the Financial Statements

(a) Ind AS optional exemptions:

(i) Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, Intangible Assets, Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value. The previous GAAP carrying amount of intangible assets was Nil.

(ii) Share based payment

The Company has elected not to apply Ind AS 102, Share-based Payment, to Restricted Stock Units (RSU) that vested prior to the date of transition to Ind AS.

(a) Ind AS mandatory exceptions:

(i) Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with Indian GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with Indian GAAP. The Company made estimates for following items in

accordance with Ind AS at the date of transition as these were not required under Indian GAAP:

1) Impairment of financial assets based on expected credit loss model; and

2) Share-based payments. Refer Note C (i) below.

(ii) Derecognition of financial assets and liabilities:

Ind AS 101 requires a first-time adopter to apply the derecognition provisions of Ind AS 109, Financial Instruments prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

(iii) Classification and measurement of financial assets:

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B. Reconciliations between IGAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

(ii) Rent equalization reserve

As per Ind AS 17, Leases, the Company is not required to recognize lease rentals on a straight line basis, if the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases. The Company’s lease escalations are in line with the general inflation rate, as a result the rent equalization reserve created under previous GAAP is reversed. Consequently, the total equity has increased by '' 8.2 as at April 1, 2016 and '' 10.7 as at March 31, 2017. Profit for the year ended March 31, 2017 has increased by '' 2.5.

(iii) Employee stock compensation plan

The ultimate holding company has allotted RSUs to the employees of the Company to attract and retain the certain employees. The Company recorded expense based on the recharge from AZ UK Limited, United Kingdom with the credit to payables. As per Ind AS 102, the Company has recorded fair value of RSUs provided to employees by the ultimate holding company at fair value of the RSUs on grant date over the vesting period. The amount recharged by the fellow subsidiary company is debited to employee share compensation reserve. Consequently, the total equity increased by Rs 26.2 as at April 1, 2016 and Rs 30.0 as at March 31, 2017. The profit for the year ended March 31, 2017 decreased by Rs 3.8.

(iv) Reclassification of net actuarial (gain)/loss on defined benefit plan to other comprehensive income

Under Ind AS, the actuarial gains and losses, return on plan assets, excluding the amounts included in the net interest expense on the net defined benefit liability and the impact of change in asset cieling are recognized in other comprehensive income instead of profit or loss. Under previous GAAP these remeasurement gains and losses were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended March 31, 2017 increased by Rs 10.5. There is no impact in total equity as at March 31, 2017 and April 1, 2016.

(v) Deferred Tax

Under IGAAP, deferred tax assets on unabsorbed depreciation and unused business losses were recognized only to the extent that there was virtual certainty supported by convincing evidence that sufficient future taxable income would be available against which such deferred tax assets could be realized. Ind AS requires deferred tax asset to be recognized for unused tax losses, unabsorbed depreciation and unused tax credits to the extent that it is probable that future taxable profits will be available against which such items can be utilized. As a result of change in the recognition of deferred tax asset on such items, equity as at April 1, 2016 has increased by Rs 463.5 and as at March 31, 2017 is Rs 402.2. The profit for the year ended March 31, 2017 has decreased by Rs 61.3.

(vi) Others

Other mainly include adjustment on account of discounting of non-current interest free security deposits, employee loans, fair value of equity instruments etc.

Financial Statements

(vii) Excise duty

Under previous GAAP, revenue from sale of products was presented net of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty, wherever applicable. The excise duty is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in increase in total revenue and total expenses for the year ended March 31, 2017 by Rs 49.5. There is no impact on the total equity and profit.

11. Previous year’s figures have been regrouped/reclassified wherever necessary to conform with the current year classification.

Source : Dion Global Solutions Limited
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