(a) Statement of compliance
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company
has adopted Indian Accounting Standards (referred to as "Ind AS") notified under the
Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1,2016.
These financial statements have been prepared in accordance with Ind AS as notified under
the Companies (Indian Accounting Standards) Rules, 2015 read With Section 133 of the
Companies Act, 2013 (the "Act").
(b) Basis of preparation
The financial statements have been prepared on historical cost basis except for certain
financial instruments measured at fair value at the end of each reporting period as
explained in the accounting policies below.
(c) Use of estimates and judgments
The preparation of financial statements in conformity with Ind AS requires management to
make judgments, estimates and assumptions, that affect the application of accounting
policies and the reported amounts of assets, liabilities and disclosures of contingent assets
and liabilities at the date of these financial statements and the reported amounts of
revenues and expenses for the years presented. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions
to accounting estimates are recognised in the period in which the estimate is revised and
future periods affected.
In particular, information about significant areas of estimation uncertainty and critical
judgments in applying accounting policies that have the most significant effect on the
amounts recognized in the financial statements are included in following notes:
(d) Revenue recognition
Revenue is measured at fair value of consideration received or receivable.
(i) Sale of products
The Company recognizes revenues on the sale of products, net of discounts, sales incentives,
customer bonuses and rebates granted, when products are delivered to dealers, which is
when title and risks and rewards of ownership pass to the customer.
Revenues are recognized when collectability of the resulting receivable is reasonably
assured.
(ii) Revenue from Services is recognised when the performance of agreed contractual task
has been completed. Revenue is measured at the fair value of the consideration received or
receivable, taking into account contractually defined terms of payment and excluding taxes
or duties collected on behalf of the government.
(e) Cost recognition
Costs and expenses are recognized when incurred and are classified according to their
nature. Expenditure capitalized represents employee costs, stores and other manufacturing
supplies, and other expenses incurred for construction including product
development undertaken by the Company.
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