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You can view the entire text of Notes to accounts of the company for the latest year

BSE: 500825ISIN: INE216A01030INDUSTRY: Food Processing - Bakery/Dairy/Fruits/Others

BSE   ` 3195.25   Open: 3249.00   Today's Range 3184.95
3255.75
-36.75 ( -1.15 %) Prev Close: 3232.00 52 Week Range 1151.00
3443.90
Year End :2019-03 

1 Reporting entity

Britannia Industries Limited (the 'Company') is a company domiciled in India, with its registered office situated at 5/1A, Hungerford Street, Kolkata, West Bengal - 700017. The Company has been incorporated under the provisions of Indian Companies Act and its equity shares are listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in India. The Company is primarily involved in manufacturing and sale of various food products.

2 Basis of preparation

A. Statement of compliance

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules 2015, as amended, notified under Section 133 of Companies Act, 2013, (the 'Act') and other relevant provisions of the Act.

The standalone financial statements were authorised for issue by the Company's Board of Directors on 1 May 2019. Details of the Company's accounting policies are included in Note 3.

B. Functional and presentation currency

These standalone financial statements are presented in Indian Rupees (Rs.), which is also the Company's functional currency. All amounts have been rounded-off to two decimal places to the nearest crores, unless otherwise indicated.

C. Basis of measurement

The standalone financial statements have been prepared on the historical cost basis except for the following items:

D. Use of estimates and judgements

In preparing these standalone financial statements, the Company has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Judgements

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the standalone financial statements is included in the following notes:

- Note 36 - leases: whether an arrangement contains a lease and lease classification.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 31 March 2019 is included in the following notes:

- Note 45 - measurement of defined benefit obligations: key actuarial assumptions;

- Note 40 - recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources;

- Note 4 - useful life of property, plant and equipment;

- Notes 7 to 9 and Notes 12,13,15 and 16 - impairment of financial assets.

E. Measurement of fair values

Certain accounting policies and disclosures of the Company require the measurement of fair values, for both financial and non financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values.

The valuation team regularly reviews significant unobservable inputs and valuation adjustments.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

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

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

Further information about the assumptions made in the measuring fair values is included in the following notes: Note 5 - investment property Note 18 (d) - share-based payments Note 54 - financial instruments.

The fair value of investment property is Rs. 46.37 (31 March 2018: Rs. 20.44) and the same has been determined by an external independent property valuer having appropriate recognised professional qualifications. The fair value measurement for investment property has been categorised as Level 2 fair value based on the inputs to the valuation technique used. The valuation techniques used for determining the fair value of the property was based on the prevailing market price of similar property in the same locality.

The write down of inventories to net realisable value amounted to Rs. 2.33 (31 March 2018: Rs.1.38). The write down are included in cost of materials consumed or changes in inventories of finished goods ,work-in-progress and stock- in-trade.

The Company's exposure to credit and currency risks, and loss allowances related to trade receivables are disclosed in note 54.

* Includes receivable from related parties [Refer note 44].

(d) Share based payments

During the financial year 2008-09, the Company introduced Britannia Industries Limited Employee Stock Option Scheme ('the Scheme'). As per the Scheme, the Remuneration / Compensation Committee grants options to the employees and Executive Directors of the Company. The vesting period of the option is one to three years from the date of grant. Options granted under the Scheme can be exercised within a period of three years from the date of vesting.

Under the Scheme, the Company granted 15,000 options on 29 October 2008 at an exercise price of Rs. 1,125.30/-; 15.000 options on 27 May 2009 at an exercise price of Rs. 1,698.15/-; 20,000 options on 27 May 2010 at an exercise price of Rs. 1,668.55/-; 125,000 options on 27 May 2011 at an exercise price of Rs. 391.75/-; 100,000 options on 28 May 2012 at an exercise price of Rs. 528.75/-; 50,000 options on 26 May 2014 at an exercise price of Rs. 870.35/-; 75,000 options on 21 May 2015 at an exercise price of Rs. 2,332.05/-; 100,000 options on 30 June 2016 at an exercise price of Rs. 2,771.40/-; 125.000 options on 25 May 2017 at an exercise price of Rs. 3,533.30/- and 150,000 options on 15 May 2018 at an exercise price of Rs. 5,464.10/- to the Managing Director of the Company. Each option represents one equity share of Rs. 10/- each (for options granted between the years 2008 to 2010) and one equity share of Rs. 2/- each (for options granted after the year 2010). The said price was determined in accordance with the pricing formula approved by the shareholders i.e. the latest available closing price, prior to the date of the meeting of the Board of Directors or Remuneration / Compensation Committee in which options were granted, on the stock exchange having higher trading volume.

Exercise prices as stated above were adjusted downwards by Rs. 170/- per share for options granted on 29 October 2008 and 27 May 2009, being the face value of bonus debentures issued pursuant to the Scheme of Arrangement approved by the Honourable Calcutta High Court on 11 February 2010.

The number of options have been appropriately adjusted, consequent upon the sub-division of the equity shares [Refer note (e) below].

Fair Value Measurement:

The fair value at grant date is determined using the Black Scholes valuation option-pricing model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The key inputs used in Black-Scholes model for calculating fair value of options under the scheme as on the date of grant are as follows:

(e) In the Annual General Meeting held on 9 August 2010, the shareholders of the Company approved the sub-division of equity shares, where in each equity share with a face value of Rs. 10 has been subdivided into 5 equity shares with a face value of Rs. 2 each. The effective date for the sub-division was 10 September 2010. Further, the Board of Directors at their meeting held on 23 August 2018 approved the sub-division of each equity share of face value of Rs. 2 fully paid up into 2 equity shares of face value of Rs. 1 each fully paid. The same has been approved by the members on 15 October 2018 through postal ballot and e-voting. The effective date for the sub-division was 30 November 2018.

Nature and purpose of other reserves

Share options outstanding account

The share options outstanding account is used to recognise the grant date fair value of options issued under Britannia Industries Limited Employee Stock Option Scheme.

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

Capital redemption reserve

The Company had purchased its own shares and as per the provisions of the applicable laws, a sum equal to the nominal value of the shares so purchased is required to be transferred to the capital redemption reserve.

Capital reserve

Capital reserve represents subsidy received for industrial undertaking under Central Capital Investment Subsidy Scheme, 2003.

General reserve

General reserve is created from time to time by way of transfer profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Retained earnings

Retained earnings are the accumulated profits earned by the Company till date, less transfer to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.

Dividends

The following dividends were declared and paid by the Company during the year.

After the reporting dates, dividend of Rs. 15 per equity share of face value of Rs. 1 each (31 March 2018: Rs. 25 per equity share of face value of Rs. 2 each) was proposed by the directors subject to approval at the annual general meeting. The proposed dividend has not been recognised as liability. Dividend would attract dividend distribution tax when declared or paid.

Note:

There are no material dues owed by the Company to Micro and Small enterprises, which are outstanding for more than 45 days during the year and as at 31 March 2019. This information as required under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company and has been relied upon by the auditors.

The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of the year:

*Includes dues to related party (Refer note 44)

The Company's exposure to currency and liquidity risks related to trade payables is disclosed in note 54.

* The deferred revenue relates to loyalty credit points granted to the customers as part of a sales transactions and has been estimated with reference to the relative standalone selling price of the products for which they could be redeemed. Closing balance represents the estimated liability towards unredeemed points. Refer below the reconciliation:

Note 3 Contingent liabilities and commitments (to the extent not provided for) :

(i) Contingent liabilities:

(a) Claims / demands against the Company not acknowledged as debts including excise duty income tax, sales tax and trade and other demands of Rs. 41.26 (31 March 2018: Rs. 47.69)

(b) Bank guarantees and letters of credit for Rs. 70.04 (31 March 2018 : Rs. 22.68)

Notes:

(i) Contingent liabilities disclosed above represent possible obligations where possibility of cash outflow to settle the obligations is not remote.

(ii) The above does not include non-quantifiable industrial disputes and other legal disputes pending before various judicial authorities [Also Refer note 40 and 49].

(iii) The Supreme court of India in the month of February 2019 had passed a judgement relating to definition of wages under the Provident Fund Act, 1952. However, considering that there are numerous interpretative issues relating to this judgement and in the absence of reliable measurement of the provision for the earlier periods, the Company has made a provision for provident fund contribution pursuant to the judgement only for the current year. The Company will evaluate its position and update its provision, if required, on receiving further clarity on the subject. The Company does not expect any material impact of the same.

(ii) Commitments:

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 134.13 (31 March 2018: Rs. 139.99).

(b) The Company has furnished the following corporate guarantees:

* This is against working capital loan extended to step down subsidiaries in Middle East.

Regarding items (i) and (ii) (b) above, it is not practicable to disclose information in respect of the estimate of the financial effect, an indication of the uncertainties relating to outflow and the possibility of any reimbursement as it is determinable only on occurrence of uncertain future events / receipt of judgements pending at various forums.

Note 4 (a) Operating leases

(i) The Company has certain operating leases for office facilities and residential premises (cancellable leases). Such leases are generally with the option of renewal against increased rent and premature termination of agreement. Rental expenses of Rs. 10.53 (31 March 2018: Rs. 7.95) in respect of obligation under operating leases have been recognised in the Statement of Profit and Loss.

(ii) The Company has certain cancellable arrangements with contract packers (which conveys a right to use an asset in return for a payment or a series of payment) identified to be in the nature of lease and have been classified as operating lease arrangements.

Rental expenses of Rs. 46.04 (31 March 2018: Rs. 42.73) in respect of obligation under operating leases have been recognised in the Statement of Profit and Loss.

(b) Finance leases

The Company has taken motor vehicles on finance lease. The total minimum lease payments and present value of minimum lease payments are as follows:

The difference between minimum lease payments and the present value of minimum lease payments of Rs. 0.11 (31 March 2018: Rs. 0.08) represents interest not due. The lease liability is secured by the relevant vehicles acquired under lease.

Note 5 In accordance with Ind AS 37 - “Provisions, Contingent Liabilities and Contingent Assets”, notified under Section 133 of the Act, certain classes of liabilities have been identified as provisions which have been disclosed as under:

(a) and (b) represents estimates made for probable cash outflow arising out of pending disputes / litigations with various regulatory authorities.

(c) represents provisions made for probable liabilities / claims arising out of commercial transactions with vendors / others. Further disclosures as required in Ind AS 37 are not made since it can be prejudicial to the interests of the Company.

* Included under various heads in the Statement of Profit and Loss.

In compliance with Indian Accounting Standard 33 - 'Earnings per share', the disclosure of earnings per share for the year ended 31 March 2019 and 31 March 2018 has been arrived at after giving effect to the above sub-division. Also refer note 42.

Note 6 The Board of Directors at their Meeting held on 23 August 2018 approved the sub-division of each equity share of face value of Rs. 2 fully paid up into 2 equity shares of face value of Rs. 1 each fully paid up. The same has been approved by the Members on 15 October 2018 through postal ballot and e-voting. The effective date for the subdivision was 30 November 2018.

Note 7 Segmental information

The Chief Operating Decision Maker (CODM) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by industry classes.

The operating segment of the Company is identified to be “Foods” as the CODM reviews business performance at an overall Company level as one segment.

Note 8 Related parties Relationships

1. Ultimate Flolding Company The Bombay Burmah Trading Corporation Limited

FIolding Company Associated Biscuits International Limited (ABIL), UK

2. Subsidiary companies Al Sallan Food Industries Co. SAOC

Boribunder Finance and Investments Private Limited

Britannia and Associates (Dubai) Private Company Limited, Dubai

Britannia and Associates (Mauritius) Private Limited, Mauritius

Britannia Dairy Holdings Private Limited, Mauritius

Britannia Dairy Private Limited

Britchip Foods Limited

Britannia Nepal Private Limited#

Daily Bread Gourmet Foods (India) Private Limited

Flora Investments Company Private Limited

Ganges Vally Foods Private Limited

Gilt Edge Finance and Investments Private Limited

International Bakery Products Limited

J B Mangharam Foods Private Limited

Manna Foods Private Limited

Strategic Brands Holding Company Limited, Dubai Strategic Food International Co. LLC, Dubai Sunrise Biscuit Company Private Limited

3. Fellow subsidiary companies Bannatyne Enterprises Pte Limited, Singapore

Dowbiggin Enterprises Pte Limited, Singapore Nacupa Enterprises Pte Limited, Singapore Spargo Enterprises Pte Limited, Singapore Valletort Enterprises Pte Limited, Singapore

4. Associates Klassik Foods Private Limited

Nalanda Biscuits Company Limited Sunandaram Foods Private Limited

5. Other related party Bombay Dyeing & Manufacturing Co. Ltd.

Go Airlines (India) Limited

6. Post employment-benefit plan entities Britannia Industries Limited Management Staff Provident Fund

Britannia Industries Limited Covenanted Staff Gratuity Fund Britannia Industries Limited Non Covenanted Staff Gratuity Fund Britannia Industries Limited Covenanted Staff Pension Fund Britannia Industries Limited Officers Pension Fund

7. Key Management Personnel (KMP)

Managing Director Mr. Varun Berry

Chief Financial Officer Mr. N. Venkataraman

Company Secretary Mr. T.V Thulsidass*

Mr. Jairaj Bham**

Mr. Rajesh Arora***

Non-Executive Directors Mr. Nusli N Wadia

Mr. A K Flirjee

Mr. Keki Elavia A

Mr. Nimesh N Kampani

Mr. Avijit Deb

Mr. Jeh N Wadia

Mr. Keki Dadiseth

Dr. Ajai Puri

Mr. Ness N Wadia

Mrs. Ranjana Kumar

Dr. Y.S.P Thorat

Dr. Ajay Shah

Mrs. Tanya Arvind Dubash$

Mr. S S Kelkar@

Mr. Nasser Munjee @@

# On 22 December 2017, the Company formed the wholly owned subsidiary.

* Mr. T.V Thulsidass was appointed as Company Secretary and Compliance Officer of the Company w.e.f 15 October 2018.

**Mr. Jairaj Bham was appointed as Company Secretary and Compliance Officer of the Company on 15 May 2018 and relinquished office on 12 October 2018.

*** Mr. Rajesh Arora relinquished office on 30 June 2017.

A Mr. Keki Elavia was appointed as additional director of the Company on 7 August 2017.

$ Mrs. Tanya Arvind Dubash was appointed as additional and independent director of the Company on 7 February 2019.

@ Mr. S S Kelkar resigned as director on 23 August 2018.

@@ Mr. Nasser Munjee resigned as director on 25 May 2017.

Note 9 Employee benefits

(a) Post retirement benefit - Defined contribution plans

(i) The Company has recognised an amount of Rs. 5.92 (31 March 2018: Rs. 3.59) as expenses under the defined contribution plans in the Statement of Profit and Loss for the year:

(b) Post retirement benefit - Defined benefit plans

I. Provident fund - Contribution made by the Company during the year to the self administered Trust fund is Rs. 6.32 (31 March 2018: Rs. 4.74). With regard to the assets of the fund and the return on the investments, the Company does not expect any significant deficiency in the foreseeable future.

II. The Company has two funds: Britannia Industries Limited Covenanted Staff Gratuity Fund and Britannia Industries Limited Non Covenanted Staff Gratuity Fund, which are funded defined benefit plans for qualifying employees.

(i) The Scheme in relation to Britannia Industries Limited Non Covenanted Staff Gratuity Fund provides for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months subject to the maximum amount payable as per the Payment of Gratuity Act, 1972.

(ii) The Scheme in relation to Britannia Industries Limited Covenanted Staff Gratuity Fund provides for lumpsum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months subject to the higher of maximum amount payable as per the Payment of Gratuity Act, 1972 and twenty months salary.

Vesting (for both the funds mentioned above) occurs only upon completion of five years of service, except in case of death or permanent disability. The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method with actuarial valuation being carried out at balance sheet date.

Notes:

(i) The discount rate is based on the prevailing market yield on Government Securities as at the balance sheet date for the estimated term of obligations.

(ii) The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the Company's policy for plan asset management.

(iii) The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

(iv) The disclosure above includes amounts for both Britannia Industries Limited Covenanted Staff Gratuity Fund and Britannia Industries Limited Non Covenanted Staff Gratuity Fund.

Sensitivity analysis

The sensitivity analysis of significant actuarial assumption as at end of reporting period is shown below.

Note 10 Government grant

During the year ended 31 March 2013, an amount of Rs. 5 was received towards capital subsidy for the Hajipur Factory, Bihar in accordance with the State Industrial Policy of Bihar. Out of this, an amount of Rs. 0.71 (31 March 2018: Rs. 0.71) has been credited to the Statement of Profit and Loss (by reducing the depreciation charge for the year) and the outstanding amount of Rs. 0.71 (31 March 2018: Rs. 1.43) has been classified as government grant in the balance sheet [Refer note 3 (k)[.

Note 11 Corporate Social Responsibility

During the year, the amount required to be spent on corporate social responsibility activities amounted to Rs. 24.73 (31 March 2018: Rs. 20.14) in accordance with Section 135 of the Act. The following amounts were spent during the current and previous years:

Note 12 During the year ended 31 March 2016, based on queries received from Securities Exchange Board of India (‘SEBI’), the Company conducted a preliminary internal investigation and discovered certain irregularities by M/s Sharepro Services (India) Private Limited (‘Sharepro’), the Company’s erstwhile Registrar and Share Transfer Agent. Subsequently, the Company filed a criminal complaint against Sharepro and its employees. Pursuant to the directions issued by SEBI in its interim order dated 22 March 2016, the Company appointed an independent external agency to conduct an audit of the records and systems of Sharepro with respect to past transactions. The report of the external agency was submitted with SEBI by the Company vide its letter dated 12 July 2016. The Company will evaluate additional steps, if any, based on the directions of SEBI or any other regulatory authorities. Based on consultations with its legal counsel, the Company has been advised that the liability will not devolve on the Company and thus no provision is considered necessary. Further, the Company has a right to claim losses, if any, from Sharepro and accordingly the Company does not plan to make good the losses on its own account.

Note 13 Capital management

The Company’s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. In order to maintain the capital structure, the Company monitors the return on capital, as well as the level of dividends to equity shareholders. The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves and debt includes maturities of finance lease obligations and bank overdraft.

The Company monitors capital on the basis of the following gearing ratio.

Note 14 Consequent to the initiation of the liquidation process of Daily Bread Gourmet Foods (India) Private Limited (subsidiary of the Company), the provision for diminution in the value of investment of Rs. 26.69 has been reversed and the investment in equity shares amounting to Rs. 26.69 has been written off. Further, the reduction in the carrying value of investments due to business combination amounting to Rs. 2.98 has been adjusted with the carrying value of the investment.

Note 15 The Board of Directors at their Meeting held on 6 August 2018 approved the issue of secured non-convertible redeemable fully paid-up debentures as Bonus Debentures of Rs. 60 each out of the Accumulated Profits of the Company, in the ratio of 1 Bonus Debenture for every 1 equity share of Rs. 2 each held by the shareholders on a Record date as may be decided by the Board. Further, the Board of Directors at their Meeting held on 7 October 2018 approved the Scheme of Arrangement of Britannia Industries Limited and their Members for issue of bonus debentures in accordance with Sections 230 to 232 of the Companies Act, 2013 read with the rules made thereunder. Following the approval of sub-division of equity shares of face value of Rs. 2 each into 2 equity shares of face value of Rs. 1 each by the Members, the Bonus Debenture Committee constituted by the Board of Directors for Issue of Bonus Debentures, approved the revision in the Scheme of Arrangement to give effect to the aforementioned sub-division changing the value of Bonus Debenture to Rs. 30 per Debenture. The Company has obtained necessary approvals from BSE Limited, National Stock Exchange of India Limited, SEBI and filed an application with the National Company Law Tribunal (NCLT), Kolkata for approval of the Scheme of Arrangement. The NCLT has, by its order dated 10 April 2019 directed convening of a meeting of the Shareholders of the Company on 27 May 2019 for approval of the said Scheme, the notice for which has been issued to the Shareholders along with necessary newspaper publication. The NCLT has also appointed the Chairperson and Scrutinizer for the meeting and prescribed the procedures to be followed for obtaining approval of the Shareholders.

Financial risk management

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company's management risk policy is set by the Board. The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. A summary of the risks have been given below.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans given. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to customers, including outstanding accounts receivables. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. The Company limits its exposure to credit risk from trade receivables by establishing a maximum payment period of two months for customer. In monitoring customer credit risk, customers are grouped according to their credit characteristics, including whether they are wholesale, retail or institutional customers, their geographic location, industry, trading history with the Company and existence of previous financial difficulties. The default in collection as a percentage to total receivable is low.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, that it will always have sufficient liquidity to meet its liabilities when due. The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the senior management.

The Company aims to maintain the level of its cash and cash equivalents and other highly marketable debt investments at an amount in excess of expected cash outflows on financial liabilities (other than trade payables) over the next six months. The Company also monitors the level of expected cash inflows on trade receivables and loans together with expected cash outflows on trade payables and other financial liabilities. At 31 March 2019, the expected cash flows from trade receivables is Rs. 350.96 (31 March 2018: Rs. 230.32). This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

In addition, the Company maintains the following lines of credit, Rs. 274 (31 March 2018: Rs. 224) overdraft facility with various banks that is unsecured. Interest would be payable basis prevailing MCLR plus applicable margin (31 March 2018 : prevailing MCLR plus applicable margin)

The table below provides details regarding the contractual maturities of significant financial liabilities as at 31 March 2019 and 31 March 2018:

Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Currency risk

The Company is exposed to currency risk to the extent that there is mismatch between the currencies in which sales, purchase are denominated and the respective functional currencies of Company. The Company has export sales (3% of total sales) primarily denominated in US dollars and Euro. At any point in time, the Company hedges 95% to 100% of its estimated foreign currency exposure in respect of sales and purchases over the following 12 months. The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date.

Exposure to currency risk

The summary quantitative data about the Company's gross exposure to currency risk is as follows:

The Company uses forward exchange contracts to hedge the currency exposure and is therefore not exposed to significant currency risk at the respective reporting dates.

Sensitivity analysis

The impact of strengthening/weakening of currency on the Company is not material as Company hedges 95% to 100% of the foreign currency exposure.

Note 16 Due to the transition method chosen in applying Ind AS 115, comparative information has not been restated to reflect the new requirements.

A. Revenue streams

The Company is primarily involved in manufacturing and sale of various food products. Other sources of revenue include scrap sales and royalty income.

Note 17 The financial statements are presented in Rs. crores (rounded off to two decimal places). Those items which are required to be disclosed and which were not presented in the financial statements due to rounding off to the nearest Rs. crore are given below:

Note 18 During the year ended 31 March 2019, no material foreseeable loss (31 March 2018: Nil) was incurred for any long-term contract including derivative contracts.