Summary of Material Accounting Policies
a. Statement of Compliance
The Financial statement of the company
comprise the balance sheet as of March
31, 2026 and March 31, 2026, the related
statement of profit and loss (including other
comprehensive income) for the year ended,
the statement of changes in equity and the
statement of cash flows for the year ended
March 31, 2026 and March 31, 2025 and
the Material accounting policies, and other
explanatory information (together referred to
as 'financial statements').
The Financial statement has been prepared on
a going-concern basis.
The financial statements comply in all material
aspects with Indian Accounting Standards
(Ind AS) notified under Section 133 of the
Companies Act, 2013 (the Act), Companies
(Indian Accounting Standards) Rules, 2015 and
other relevant provisions of the Act and other
accounting principles generally accepted in
India.
These Financial statements do not reflect
the effects of events that occurred after the
respective dates of the board meeting held
for the approval of the financial statements as
at and for the year ended March 31, 2026, as
mentioned above.
The accounting policies are applied consistently
and presented in the financial statement except
where a newly issued standard is initially
adopted or a revision to an existing standard
requires a change in accounting policy hitherto
in use.
This note provides a list of the material
accounting policies adopted in the preparation
of the financial statement. These policies
have been consistently applied to all the year
presented unless otherwise stated.
The Financial statement has been prepared
on an accrual basis under the historical cost
convention except where the Ind AS requires a
different accounting treatment.
b. Functional and presentation currency
These Financial statements are presented
in ', which is also functional currency of the
Company. All amounts disclosed in the financial
statement and notes have been rounded off to
the nearest "million" with two decimals, unless
otherwise stated.
c. Historical cost convention
These financial statements are prepared in
accordance with Indian Accounting Standards
(Ind AS) under the historical cost convention
on the accrual basis, except for the following:
• certain financial assets and liabilities
which are measured at fair value or
amortised cost;
• defined benefit plans and
• share-based payments
d. Current / non-current classification
The Company presents assets and liabilities
in the balance sheet based on current / non¬
current classification.
An asset is classified as current when it is
expected to be realized in, or is intended for
sale or consumption in, the Company's normal
operating cycle, held primarily for the purpose
of being traded, expected to be realized within
12 months after the reporting date; cash or
cash equivalent unless it is restricted from
being exchanged or used to settle a liability for
at least 12 months after the reporting date.
All other assets are classified as non-current.
A liability is classified as current it is expected
to be settled in the Company's normal
operating cycle, it is held primarily for the
purpose of being traded, it is due to be settled
within 12 months after the reporting date, or
the Company does not have an unconditional
right to defer settlement of the liability for at
least 12 months after the reporting date. Terms
of a liability that could, at the option of the
counterparty, result in its settlement by the
issue of equity instruments do not affect its
classification.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified
as non-current only.
The company has ascertained its operating
cycle as twelve months for current and non¬
current classification of assets and liabilities.
e. Use of estimates
The preparation of financial statement in
conformitywithIndASrequirestheManagement
to make estimates and assumptions that affect
the reported amount of assets and liabilities as
at the Balance Sheet date, reported amount of
revenue and expenditure for the period and
disclosures of contingent liabilities as at the
Balance Sheet date. Actual results could differ
from those estimates.
Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the
period in which the estimates are revised and
in any future periods affected.
This note provides an overview of the areas
where there is a higher degree of judgment or
complexity. Detailed information about each of
these estimates and judgments is included in
relevant notes together with information about
the basis of calculation.
Critical accounting estimates:
(a) Useful lives of Property, plant and
equipment
The Company reviews the useful life
of property, plant and equipment at
the end of each reporting period. This
reassessment may result in change in
depreciation expense in future periods
(b) Income Taxes
Significant judgments are involved in
determining the provision for income
taxes including judgment on whether tax
positions are probable of being sustained
in tax assessments. A tax assessment can
involve complex issues, which can only be
resolved over extended time periods.
(c) Deferred Taxes
Deferred tax is recorded on temporary
differences between the tax bases of
assets and liabilities and their carrying
amounts, at the rates that have been
enacted or substantively enacted at the
reporting date. The ultimate realization of
deferred tax assets is dependent upon the
generation of future taxable profits during
the periods in which those temporary
differences and tax loss carry forwards
become deductible. The Company
considers the expected reversal of
deferred tax liabilities and projected future
taxable income in making this assessment.
The amount of the deferred tax assets
considered realizable, however, could be
reduced in the near term if estimates of
future taxable income during the carry¬
forward period is reduced.
(d) Expected credit losses on financial
assets
The impairment provisions of financial
assets are based on assumptions about
risk of default and expected timing of
collection. The Company uses judgment in
making these assumptions and selecting
the inputs to the impairment calculation,
based on the Company's past history,
customer's creditworthiness, existing
market conditions as well as forward
looking estimates at the end of each
reporting period.
(e) Revenue Recognition
The Company's revenue is derived from
the single performance obligation to
transfer primarily Namkeen and other
Products under arrangements in which
the transfer of control of the products
and the fulfillment of the Company's
performance obligation occur at the same
time. Therefore, revenue from the sale of
goods is recognized when the Company
transfers control at the point in time the
customer takes undisputed delivery of the
goods.
(f) Defined benefit plans and compensated
absences
The cost of the defined benefit plans,
compensated absences and the present
value of the defined benefit obligation
are based on actuarial valuation using
the projected unit credit method. An
actuarial valuation involves making
various assumptions that may differ from
actual developments in the future. These
include the determination of the discount
rate, future salary increases and mortality
rates. Due to the complexities involved
in the valuation and its long-term nature,
a defined benefit obligation is highly
sensitive to changes in these assumptions.
All assumptions are reviewed at each
reporting date.
(g) Leases
The Company evaluates if an arrangement
qualifies to be a lease as per the
requirements of Ind AS 116. Identification
of a lease requires significant judgment.
The Company uses significant judgement
in assessing the lease term (including
anticipated renewals) and the applicable
discount rate.
The Company determines the lease term
as the non-cancellable period of a lease,
together with both periods covered by an
option to extend the lease if the Company
is reasonably certain to exercise that
option; and periods covered by an option
to terminate the lease if the Company is
reasonably certain not to exercise that
option. In assessing whether the Company
is reasonably certain to exercise an option
to extend a lease, or not to exercise an
option to terminate a lease, it considers
all relevant facts and circumstances that
create an economic incentive for the
Company to exercise the option to extend
the lease, or not to exercise the option to
terminate the lease. The Company revises
the lease term if there is a change in the
non-cancellable period of a lease.
The discount rate is generally based on
the incremental borrowing rate specific to
the lease being evaluated or for a portfolio
of leases with similar characteristics.
ACCOUNTING POLICIES
The accounting policies set out below have been
applied consistently to the year presented in the
financial statements.
a. Revenue recognition
1. Sale of goods
Revenue from sale of goods is recognized
when control of the products being
sold is transferred to customer and
when there are no longer any unfulfilled
obligations. The performance obligations
in our contracts are fulfilled at the time
of dispatch, delivery or upon formal
customer acceptance depending on the
customer terms.
Revenue is measured at the fair value of
the consideration received or receivable,
after the deduction of any trade discounts,
volume rebates, and any taxes or duties
collected on behalf of the government
such as goods and services tax etc.
Accumulated experience is used to
estimate the provision for such discounts
and rebates. Revenue is recognized to
the extent that, probably, a significant
reversal will not occur. In case customers
have the contractual right to return goods,
an estimate is made for goods that will
be returned, and a liability is recognized
for this amount using the best estimate
based on accumulated experience. The
Company does not generally provide a
right of return on the goods supplied to
customers.
Satisfaction of performance obligations
The Company's revenue is derived from
the single performance obligation to
transfer primarily Namkeen and other
Products under arrangements in which
the transfer of control of the products
and the fulfillment of the Company's
performance obligation occur at the same
time. Therefore, revenue from the sale of
goods is recognized when the Company
transfers control at the point in time the
customer takes undisputed delivery of the
goods.
Contract balances
Contract Assets: Any amount of income
accrued but not billed to customers in
respect of such contracts is recorded as
a contract asset. Such contract assets are
transferred to Trade receivables on actual
billing to customers.
Contract liabilities: If a customer pays
consideration before the Company
transfers goods or services to the
customer, contract liability is recognized
when the payment is received. Contract
liabilities are recognized as revenue
when the Company performs under the
contract.
Trade receivables
A receivable is recognized if an amount of
consideration is unconditional (i.e., only
the passage of time is required before
payment of the consideration is due).
2. Transport income
Transport income is usually recognized as
and when service is completed.
3. Interest income
Interest income is recognized when it is
probable that the economic benefits will
flow to the Company and the amount of
income can be measured reliably. Interest
income is accrued on a time basis, by
reference to the principal outstanding and
at the effective interest rate applicable,
which is the rate that discounts estimated
future cash receipts through the expected
life of the financial asset to that asset's
net carrying amount on initial recognition.
Interest income is included under the
head 'other income' in the Statements of
profit and loss.
4. Dividend income
Dividend income on investments is
recognized when the right to receive
dividends is established.
b. Inventories
Items of inventories are valued lower of cost or
estimated net realizable value as given below.
1. Raw materials, packing materials,
stores, and spares
Raw Materials, Stores, and Spares and
packing materials are valued at lower
of cost or net realizable value. Cost
includes purchase price, (excluding
those subsequently recoverable by the
enterprise from the concerned revenue
authorities), freight inwards and other
expenditure incurred in bringing such
inventories to their present location
and condition. In determining the cost,
the weighted average method is used.
However, materials and other items held
for use in the production of inventories
are not written down below cost if the
finished products in which they will be
incorporated are expected to be sold at or
above cost.
2. Finished goods, semi-finished goods,
and traded goods
Manufactured finished goods & semi¬
finished goods are valued at lower of
cost or net realizable value. The cost
is computed on the Weighted average
method and the cost of manufactured
finished goods comprises direct material,
direct labour, and an appropriate
proportion of variable and fixed overhead
expenditure, the latter being allocated
based on normal operating capacity.
Traded goods are valued at a lower cost
or net realizable value. Cost includes the
cost of purchase and other costs incurred
in bringing the inventories to their present
location and condition. Cost is determined
on a weighted average basis.
Net realizable value is the estimated selling
price in the ordinary course of business,
less estimated costs of completion and
estimated cost necessary to make the
sale.
c. Property, plant, and equipment
Recognition and initial measurement
Property, plant and equipment are stated
at their cost of acquisition. The cost
comprises purchase price, borrowing cost
if capitalization criteria are met and directly
attributable cost of bringing the asset
to its working condition for the intended
use. Any trade discounts and rebates
are deducted in arriving at the purchase
price. Subsequent costs are included in
the asset's carrying amount or recognized
as a separate asset, as appropriate, only
when it is probable that future economic
benefits attributable to such subsequent
cost associated with the item will flow
to the Company. All other repair and
maintenance costs are recognized in the
statement of profit or loss as incurred.
Subsequent measurement (depreciation
and useful lives)
Depreciation on property, plant and
equipment is provided on the written-
down value method on the basis of the
useful life prescribed under Schedule II of
the Companies Act, 2013. The following
useful life of assets has been taken by the
Company:
Derecognition of assets
An item of property plant & equipment and
any significant part initially recognized is
derecognized upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising
on derecognition of the asset is included
in the income statement when the asset is
derecognized.
Individual assets costing INR 5,000 or less are
fully depreciated in the year of purchase.
d. Capital work-in-progress
Property, plant, and equipment that are not
ready for intended use as of the date of the
Balance Sheet are disclosed as "Capital work-
in-progress".
e. Intangible assets
Recognition and initial measurement
Intangible assets acquired separately are
measured on initial recognition at cost.
Following initial recognition, intangible assets
are carried at cost less any accumulated
amortization and accumulated impairment
losses, if any.
Subsequent measurement (depreciation and
useful lives)
All intangible assets, including internally
developed intangible assets, are accounted
for using the cost model whereby capitalized
costs are amortized on a straight-line basis
over their estimated useful lives.
The following useful lives (as estimated by
management) are applied:
The estimated useful life of the intangible
assets and the amortization period are
reviewed at the end of the each financial year
and the amortization period is revised to reflect
the changed pattern, if any.
Subsequent costs related to intangible
assets are recognized as a separate asset,
as appropriate, only when it is probable that
future economic benefits associated with the
item will flow to the Company and the cost of
the item can be measured reliably.
Derecognition
Gains or losses arising from the derecognition
of an intangible asset are measured as the
difference between the net disposal proceeds
and the carrying amount of the asset and are
recognized in the Statement of Profit and Loss
when the asset is derecognized.
f. Intangible Assets under development
The cost of the assets not put to use before
such date are disclosed under the head
"Intangible under Development".
g. Impairment of non-financial asset
Property, plant and equipment and
Intangible assets
PPE and intangible assets with definite lives,
are reviewed for impairment, whenever events
or changes in circumstances indicate that
their carrying values may not be recoverable.
For the purpose of impairment testing, the
recoverable amount (that is, higher of the fair
value less costs to sell and the value-in-use)
is determined on an individual asset basis,
unless the asset does not generate cash flows
that are largely independent of those from
other assets, in which case the recoverable
amount is determined at the cash-generating-
unit ('CGU') level to which the said asset
belongs. If such individual assets or CGU are
considered to be impaired, the impairment to
be recognized in the statement of profit and
loss is measured by the amount by which the
carrying value of the asset / CGU exceeds their
estimated recoverable amount and allocated
on pro-rata basis. Impairment losses, if any,
are recognized in statement of profit and loss.
Reversal of impairment losses
Impairment losses are reversed and the
carrying value is increased to its revised
recoverable amount provided that this amount
does not exceed the carrying value that would
have been determined had no impairment loss
been recognized for the said asset in previous
periods/years.
h. Leases
As a lessee
Right of use assets and lease liabilities
The determination of whether an arrangement
is (or contains) a lease is based on the
substance of the arrangement at the inception
of the lease. The arrangement is, or contains,
a lease if fulfilment of the arrangement is
dependent on the use of a specific asset or
assets and the arrangement conveys a right to
use the asset or assets, even if that right is not
explicitly specified in an arrangement.
Recognition and initial measurement
The right-of-use asset is measured at cost,
which is made up of the initial measurement of
the lease liability, any initial direct costs incurred
by the Company, an estimate of any costs to
dismantle and remove the asset at the end
of the lease (if any), and any lease payments
made in advance of the lease commencement
date (net of any incentives received).
Short-term leases
The Company applies the short-term lease
recognition exemption to its short-term leases
of the building (i.e., those leases that have
a lease term of 12 months or less from the
commencement date and do not contain a
purchase option). Lease payments of short¬
term leases are recognized as expense on a
straight-line basis over the lease term.
i. Financial instruments
A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument
of another entity.
I) Financial assets
Initial recognition and measurement:
Financial assets are classified, at initial
recognition, as subsequently measured at
amortized cost, fair value through other
comprehensive income (OCI), and fair value
through profit or loss. The classification of
financial assets at initial recognition depends
on the financial asset's contractual cash flow
characteristics and the company's business
model for managing them.
I n order for a financial asset to be classified
and measured at amortized cost or fair value
through OCI, it needs to give rise to cash
flows that are 'solely payments of principal
and interest (SPPI)' on the principal amount
outstanding. This assessment is referred to as
the SPPI test and is performed at an instrument
level. Financial assets with cash flows that are
not SPPI are classified and measured at fair
value through profit or loss, irrespective of the
business model.
Subsequent measurement
For purposes of subsequent measurement,
financial assets are classified in following
categories:
a) at amortized cost; or
b) at fair value through other comprehensive
income (FVTOCI); or
c) at fair value through profit or loss (FVTPL).
The classification depends on the entity's
business model for managing the financial
assets and the contractual terms of the cash
flows.
Amortized cost:
Assets that are held for collection of contractual
cash flows where those cash flows represent
solely payments of principal and interest are
measured at amortized cost. Interest income
from these financial assets is included in
finance income using the effective interest rate
method (EIR).
Fair value through other comprehensive
income (FVTOCI):
Assets that are held for collection of
contractual cash flows and for selling the
financial assets, where the assets' cash flows
represent solely payments of principal and
interest, are measured at fair value through
other comprehensive income (FVTOCI).
Movements in the carrying amount are taken
through OCI, except for the recognition of
impairment gains or losses, interest revenue
and foreign exchange gains and losses which
are recognized in statement of profit and loss.
When the financial asset is derecognized, the
cumulative gain or loss previously recognized
in OCI is reclassified from equity to profit or
loss and recognized in other gains/ (losses).
Interest income from these financial assets is
included in other income using the effective
interest rate method.
Fair value through profit or loss (FVTPL):
Assets that do not meet the criteria for
amortized cost or FVOCI are measured at fair
value through profit or loss. Interest income
from these financial assets is included in other
income.
All equity instruments in the scope of Ind
AS 109 are measured at fair value. For all
other equity instruments, the company may
make an irrevocable election to present in
other comprehensive income all subsequent
changes in the fair value. The company makes
such elections on an instrument-by-instrument
basis. The classification is made on initial
recognition and is irrevocable.
If the company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding
dividends, are recognized in the OCI. There is
no recycling of the amounts from OCI to profit
and loss, even on the sale of investment.
Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the statement of profit
and loss.
Impairment of financial assets
In accordance with Ind AS 109, Financial
Instruments, the company applies the expected
credit loss (ECL) model for the measurement
and recognition of impairment loss on financial
assets that are measured at amortized cost,
FVTPL, and FVTOCI and for the measurement
and recognition of credit risk exposure.
The company follows a 'simplified approach'
for recognition of impairment loss allowance
on trade receivables. The application of a
simplified approach does not require the
Company to track changes in credit risk. Rather,
it recognizes the impairment loss allowance
based on lifetime ECL at each reporting date,
right from its initial recognition.
For recognition of impairment loss on other
financial assets and risk exposure, the
company determines that whether there has
been a significant increase in the credit risk
since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used
to provide for impairment loss. However, if
credit risk has increased significantly, lifetime
ECL is used. If in subsequent year, the credit
quality of the instrument improves such that
there is no longer a significant increase in
credit risk since initial recognition, then the
entity reverts to recognizing impairment loss
allowance based on 12 months ECL.
Lifetime ECLs are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument.
The 12-month ECL is a portion of the lifetime
ECL that results from default events that are
possible within 12 months after the year-end.
ECL impairment loss allowance (or reversal)
recognized during the periods/years is
recognized as income/ expense in the statement
of profit and loss. In the balance sheet, ECL for
financial assets measured at amortized cost is
presented as an allowance, i.e. as an integral
part of the measurement of those assets in the
balance sheet. The allowance reduces the net
carrying amount. Until the asset meets write¬
off criteria, the company does not reduce
impairment allowance from the gross carrying
amount
Derecognition of financial assets:
A financial asset is derecognized only when:
a) the rights to receive cash flows from the
financial asset is transferred; or
b) retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.
Where the financial asset is transferred then in
that case financial asset is derecognized only if
substantially all risks and rewards of ownership
of the financial asset are transferred. Where
the entity has not transferred substantially all
risks and rewards of ownership of the financial
asset, the financial asset is not derecognized.
Where the financial asset is neither transferred,
nor the entity retains substantially all risks and
rewards of ownership of the financial asset,
then in that case financial asset is derecognized
only if the Company has not retained control
of the financial asset. Where the Company
retains control of the financial asset, the asset
continues to be recognized to the extent of
continuing involvement in the financial asset.
II) Financial liabilities
Initial recognition and measurement:
Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss and at amortized cost,
as appropriate. All financial liabilities are
recognized initially at fair value and, in the case
of borrowings and payables, net of directly
attributable transaction costs.
Subsequent measurement:
The measurement of financial liabilities
depends on their classification, as described
below:
Financial liabilities at fair value through
profit and loss (FVTPL):
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or
loss. Gains or losses on liabilities held for
trading are recognized in the profit or loss.
(a) Loans and borrowings:
After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortized cost using the
effective interest rate ('EIR') method. Gains
and losses are recognized in statement
of profit and loss when the liabilities are
derecognized as well as through the EIR
amortization process. Amortized cost
is calculated by taking into account any
discount or premium on acquisition and
fees or costs that are an integral part of
the EIR. The EIR amortization is included
as finance costs in the statement of profit
and loss.
(b) Trade & other payables
After initial recognition, trade and other
payables maturing within one year from
the Balance sheet date, the carrying
amounts approximate fair value due to the
short maturity of these instruments.
Derecognition of financial liability:
A financial liability is derecognized when the
obligation under the liability is discharged or
canceled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognized in the statement of
profit and loss as finance costs.
j. Foreign currency transactions and
translation
The functional currency of the Company is the
'. Financial statements are presented in '.
Foreign currency transactions are translated
into functional currency using the exchange
rates at the dates of the transactions. Foreign
currency-denominated monetary assets and
liabilities are translated into the relevant
functional currency at exchange rates in effect
at the Balance Sheet date. The gains and losses
resulting from such translations are included in
net profit in the Statement of Profit and Loss.
Non-monetary assets and non-monetary
liabilities denominated in a foreign currency
and measured at fair value are translated
at the exchange rate prevalent at the date
when the fair value was determined. Non¬
monetary assets and non-monetary liabilities
denominated in a foreign currency and
measured at historical cost are translated
at the exchange rate prevalent at the date of
the transaction. The gain or loss arising on
translation of non-monetary items measured at
fair value is treated in line with the recognition
of the gain or loss on the change in fair value of
the item (i.e., translation differences on items
whose fair value gain or loss is recognized in
Other Comprehensive Income or Statement of
Profit and Loss are also recognized in Other
Comprehensive Income or Statement of Profit
and Loss, respectively).
Transaction gains or losses realized upon
settlement of foreign currency transactions
are included in determining net profit for the
periods/years in which the transaction is
settled.
k. Taxes
Current income tax
Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The Company determines the tax
as per the provisions of the Income Tax Act
1961 and other rules specified thereunder.
Current income tax relating to items recognized
outside profit or loss is recognized outside
profit or loss (either in other comprehensive
income or in equity). Current tax items are
recognized in correlation to the underlying
transaction either in OCI or directly in equity.
Management periodically evaluates positions
taken in the tax returns with respect to
situations in which applicable tax regulations
are subject to interpretation and establishes
provisions where appropriate.
Deferred tax
Deferred tax is provided in full using the liability
method on temporary differences between
the tax bases of assets and liabilities and
their carrying amounts for financial reporting
purposes at the reporting date.
Deferred tax assets are recognized for all
deductible temporary differences, the carry
forward of unused tax credits and any unused
tax losses. Deferred tax assets are recognized
to the extent that it is probable that taxable profit
will be available against which the deductible
temporary differences and the carry forward of
unused tax credits and unused tax losses can
be utilized, except when the deferred tax asset
relating to the deductible temporary difference
arises from the initial recognition of an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss.
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced
to the extent that it is no longer probable that
sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be
utilized. Unrecognized deferred tax assets are
re-assessed at each reporting date and are
recognized to the extent that it has become
probable that future taxable profits will allow
the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realized or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date.
Deferred tax relating to items recognized
outside profit or loss is recognized outside
profit or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognized in correlation to the underlying
transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities
are offset if a legally enforceable right exists
to set off current tax assets against current
tax liabilities and the deferred taxes relate to
the same taxable entity and the same taxation
authority.
Cash and cash equivalents
Cash and cash equivalent in the balance sheet
comprise cash at banks, cash on hand, and
short-term deposits with an original maturity
of three months or less, which are subject
to an insignificant risk of changes in value.
However, for the purpose of the statement of
cash flows, in addition to the above items, any
bank overdrafts/cash credits that are integral
part of the Company's cash management, are
also included as a component of cash and
cash equivalents.
m. Government grants and subsidies
Government grants are recognized where there
is reasonable assurance that the grant will be
received, and all attached conditions have
been complied with. When the grant relates
to an expense item, it is recognized as other
operating revenue on a systematic basis over
the Government grants are recognized where
there is reasonable assurance that the grant
will be received and all attached conditions
have been complied with. When the grant
relates to an asset, it is recognized as income
in equal amounts over the expected useful life
of the related asset.
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