i) General Corporate Information:
Indian Toners & Developers Limited is a Company domiciled and incorporated in India under the Indian
Companies Act, 2013 and is in the business of manufacturing of Compatible Toners only. The Company’s
maufacturing units are located at Rampur & Sitarganj.During the year the company concluded the buyback
of 458268 equity shares of face value Rs 10/- representing up to 4.22% of the total number of Equity
Shares of the company at a price of Rs 450/- per Equity Share (including premium of Rs 440/- per Equity
Share ) payable in cash for an aggregate amount of up to Rs 2062.21 Lakhs.
ii) Basis of preparation of financial statements:
a) The financial statements of the Company have been prepared in accordance with accounting
principles generally accepted in India including Indian Accounting Standards (Ind AS) notified under
the provisions of section 133 of the Companies Act, 2013 read with Companies (Indian Accounting
Standards) Rules, 2015 and the companies (Accounting Standard) Amendment Rules-2016 and
guidelines issued by the Securities Exchange Board of India (SEBI) and relevent amendments
thereunder. The Financial statement have been prepared on the historical cost convention on the
accrual basis except for certain financial instruments which are measured at fair value, the provision
of Companies Act. 2013 (‘Act’) (to the extent notified) and guidelines issued by the Securities and
Exchange Board of India (SEBI).
Historical cost is the generally based on the fair value of the consideration given in exchange for
goods & services. Fair value is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date, regardless
of whether that price is directly observable or estimated using another valuation.
Accounting policies have been consistently applied except where a newly issued Indian Accounting
Standard is initially adopted or are vision to an existing Indian Accounting Standard requires a
change in the accounting policy hitherto in use.
b) Functional and Presentation currency
These financial statements are presented in Indian Rupees (INR), which is the Company’s functional
currency. All financial information presented in INR has been rounded to the nearest Lakhs (upto
two decimals), except as stated otherwise.
iii) Use of Estimates
The preparation of the Financial Statements in conformity with Ind AS requires the management to make
estimates, judgments and assumptions. These estimates, judgment and assumptions affect the application
of accounting policies and reported amount of Assets and Liabilities and disclosure of Contingent Liabilities
on the date of the Financial Statements and reported amounts of revenues and expenses for the year.
Accounting estimate & undergoing assumption are reviewed on an ongoing basis. Actual results could
differ from those estimates. Appropriate changes in estimates are made as the management becomes
aware of the changes in estimates are reflected in the financial statements in the period in which the
changes are made and if material, their effects are disclosed in the notes to financial statements.
iv) Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non-current
classification.
An asset is current when it is:
• Expected to be realized or intended to sold or consumed in normal operating cycle.
• Held primarily for the purpose of trading.
• Expected to be realized within twelve months after the reporting period or
• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.Deffered Tax Assets & Liabilities are classified as
Non Current.
All other assets are classified as non-current.
A liability is current when:
• It is expected to be settled in normal operating cycle.
• It is held primarily for the purpose of trading.
• It is due to be settled within twelve months after the reporting period or
• There is no unconditional right to defer settlement of the liability for at least twelve months after the
reporting period.
All other liabilities are classified as non-current.
The operting cycle is the time between the acquisition of assets for the processing and their realisation
in cash and cash equivalents. The company has identified twelve months as its operting cycle.
v) Property, Plant and Equipments
a) Initial recognition and measurement
An item of property, plant and equipments recognized as an asset if and only if 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.
Property, plant and equipment are considered cost or deemed cost less accumulated depreciation/
amortizaton and accumulated impairment losses, if any except Land which is recognized at Fair
value. Cost includes expenditure that is directly attributable to bringing the asset, inclusive of non¬
refundable taxes & duties. Costs directly attributable to acquisition are capitalized until the property,
plant and equipment are ready for use, as intended by management. The company depreciates
property, plant and equipment over their estimated useful lives using the straight-line method.
When parts of an item of property, plant and equipment have different useful lives, they are recognized
separately.
Stores and Spares received alongwith the plant or equipment & those purchased subsequently for
specific machines & having irregular use are being capitalised & impairment.
Expenditure related to & incured during implementation of capital projects is inculded under “Capital
work in Progress”. The same is allocated in a systematic basis to the respective fixed assets an
completion of construction of fixed assets.
The Company assesses at each balance sheet date whether there is any indication that a Property,
plant and equipment may have been impaired. If any such indication exists, the Company estimates
the recoverable amount of the Property, plant and equipment. If such recoverable amount of the
Property, plant and equipment or the recoverable amount of the cash generating unit to which the
Property, plant and equipment belongs is less than its carrying amount, the carrying amount is
reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized
in the Statment of profit and loss . If at the balance sheet date there is an indication that if a
previously assessed impairment loss no longer exists, the recoverable amount is reassessed and
the Asset is reflected at the recoverable amount subject to a maximum of depreciated historical
cost.
b) Subsequent costs
Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is
probable that future economic benefits deriving from the cost incurred will flow to the enterprise and
the cost of the item can be measured reliably.The cost of replacing part of an item of property, plant
and equipment is recognized in the carrying amount of the item if it is probable that the future
economic benefits embodied within the part will flow to the Company and its cost can be measured
reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day
servicing of Property, Plant and Equipment are recognized in profit or loss as incurred.
c) Impairment
Property, Plant and Equipments are derecognized when no future economic benefits are expected
from their use or upon their disposal. Gains and losses on disposal of an item of property, plant and
equipment are determined by comparing the proceeds from disposal with the carrying amount of
property, plant and equipment, and are recognized in the statement of profit and loss.
d) Depreciation/amortization
Depreciation is recognized in statement of profit or loss on a straight-line basis over the estimated
useful lifes of each part of an item of Property, Plant and Equipment . Leasehold lands are amortized
over the lease term unless it is reasonably certain that the Company will obtain ownership by the
end of the lease term.
Depreciation on additions to/deductions from property, plant and equipment during the year is charged
on pro-rata basis from/up to the date on which the asset is available for use/disposed.
Depreciation on Revalued Assets is calculated on their respective revalued amounts and is computed
on the basis of remaining useful life as estimated by the valuer on straight line method.
The company, based on technical assessment made by technical expert and management estimate,
depreciates certain items of property, plant and equipment over estimated useful lives which are
different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management
believes that these estimated useful lives are realistic and reflect fair approximation of the period
over which the assets are likely to be used.
• Leasehold Land Lease Period
• Plant Buildings 30 years
• Plant & Equipment 20 years
• Furniture 10 years
• Office Equipment 5 years
• Computers 3 years
• Motor Vehicles 8 years
• Electric Installation 12 years
• RTU(Right to use) 5 years
The property, plant and equipment acquired under finance leases is depreciated over the asset’s
useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable
certainty to obtain ownership at the end of the lease term.
vi) Intangible Assets
Intangible Assets are recorded at the consideration paid for acquisition less accumulated amortization
and accumulated impairment, if any. Amortization is recognized at Straight Line Basis over their estimated
useful life’s. The estimated useful life and amortisation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible
assets with indefinite useful lives that are acquire separately are carried at cost less accumulated
impairment losses.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in Statement of profit and loss within other income/ expenses.
Depreciation
Intangible assets that are acquired by the company are measured initially at cost. After initial recognition,
intangible assets are carried at its cost less any accumulated amortization and any accumulated
impairment loss. Intangible assets are amortized on Straight Line Basis over a period of 3 years.
vii) Financial Instrument
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of
assets within the time frame established by regulation or convention in the marketplace.
A Financial Assets
I Initial recognition and measurement
All financial assets are recognized initially at fair value plus or minus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs are attributable to the
acquisition or issue of the financial asset, otherwise charged to Statement of Profit & Loss.
II Subsequent measurement
Financial assets are subsequently classified and measured at:
• Financial assets at amortised cost
• Financial assets at fair value through profit and loss (FVTPL)
• Financial assets at fair value through other comprehensive income (FVTOCI).
b) Trade Receivables
Trade receivables are initially recognised at fair value. Subsequently, these assets are
held at amortised cost, using the effective interest rate (EIR) method net of any expected
credit losses wherever applicable. The EIR is the rate that discounts estimated future
cash income through the expected life of financial instrument.
c) Debt instruments
i) Measured at amortized cost
A ‘debt instrument’ is measured at the amortized cost if both the following conditions
are met:
(a) The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows, and
(b) Contractual terms of the asset give rise on specified dates to cash flows that are
solely payments of principal and interest (SPPI) on the principal amount
outstanding.
After initial measurement, such financial assets are subsequently measured at
amortized cost using the EIR method. 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 in finance income in
the profit or loss. The losses arising from impairment are recognized in the
Statement of profit or loss.
ii) Measured at FVTOCI (Fair Value through OCI)
A ‘debt instrument’ is classified as at the FVTOCI if both of the following criteria are
met:
(a) The objective of the business model is achieved both by collecting contractual
cash flows and selling the financial assets, and
(b) The asset’s contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as
well as at each reporting date at fair value. Fair value movements are recognized
in the OCI. However, the Company recognizes interest income, impairment losses
& reversals and foreign exchange gain or loss in the profit and loss. On
derecognition of the asset, cumulative gain or loss previously recognized in OCI
is reclassified from the equity to profit and loss. Interest earned while holding
FVTOCI debt instrument is reported as interest income using the EIR method.
iii) Measured at FVTPL (Fair value through profit or loss)
Debt instruments does not meet the criteria for categorization as at amortized cost or
as FVTOCI, is classified as at FVTPL.
The Company elects to classify the debt instrument, which otherwise meets amortized
cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing
so reduces or eliminates a measurement or recognition inconsistency (referred to as
‘accounting mismatch’). Debt instruments included within the FVTPL category are
measured at fair value with all changes recognized in the profit and loss.
III Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a Company of
similar financial assets) is primarily derecognized (i.e. removed from the Company’s balance
sheet) when:
• The contractual rights to receive cash flows from the asset have expired, or
• The Company has transferred its contratcual rights to receive cash flows from the asset.
IV Impairment of Financial Asset
Expected credit losses are recognized for all financial assets subsequent to initial recognition
in Statement of Profit & Loss other than financials assets in FVTPL category.
For recognition of impairment loss on financial assets other than Trade receivables, the company
determines whether there has been a sigificant increase in the credit risk since initial recogniton.
B Financial liabilities
I Initial recognition and measurement
All financial liabilities are recognized at fair value . Fees of recurring nature are directly recognised
in the Statement of Profit and Loss as finance cost.
II Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. Amortized
cost is calculated by taking into account any discount or premium on acquisition and any
material transaction that are any integral part of the EIR. For 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.Financial liabilities carried at fair value through profit
or loss are measured at fair value with all changes in fair value recognised in the Statement of
Profit and Loss.
III Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or
cancelled 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 or loss.
viii) Revenue Recognition
Revenue from sale of products is recognized when the significant risks and rewards of ownership of the
products are transferred to the buyer, recovery of the consideration is reasonably assured and the
amount of revenue can be measured reliably. Revenues are shown net of discounts.
Insurance claims are recognised in the books only after certainity of its realization.
Dividend income is recognized when the right to receive the income is established. Income from interest
on deposits is recognized on time proportionate basis.
ix) Employee Benefits
The company’s contribution to provident fund and pension fund, are charged on accrual basis to Statement
of Profit & Loss.
a) Expenses and Liabilities in respect of employee benefits are recorded in accordance with Indian
Accounting Standard 19 - Employee Benefits issued by the ICAI.
b) Short-term employee benefits are recognised as an expense at the undiscounted amount in the
statement of profit and loss of the year in which the related service is rendered.
c) Post employment and other long term employee benefits are recognised as an expense in the
Statement of Profit and Loss for the year in which the employee has rendered services. The expense
is recognised at the present value of the amounts payable determined using actuarial valuation
techniques. Actuarial gains and losses in respect of post employment and other long term benefits
are charged to the Profit and Loss account.
Defined benefit costs which are recognized in the statement of profit and loss are categorized as
follows:
- Service cost (including current service cost, past service cost. as well as gains and losses on
curtailments and settlements); and
- Net interest expense or income; and
Defined contribution plans
Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities
and will have no legal or constructive obligation to pay further amounts. Provident Fund and Employee
State Insurance are Defined Contribution Plans in which company pays a fixed contribution and will have
no further obligation beyond the monthly contributions and are recognised as an expenses in Statement
of Profit & Loss.
Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.Company
pays Gratuity as per provisions of the Gratuity Act, 1972. Leave Encashment payable at the end of the
employment is also a post employment defined benefit plan. The Company’s net obligation in respect of
defined benefit plans is calculated separately for each plan by estimating the amount of future benefit
that employees have earned in return for their service in the current and prior periods; that benefit is
discounted to determine its present value. The discount rate is based on the prevailing market yields of
Indian government securities as at the reporting date that have maturity dates approximating the terms
of the Company’s obligations and that are denominated in the same currency in which the benefits are
expected to be paid.
The calculation is performed annually by a qualified actuary using the projected unit credit method. The
net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the
statement of profit and loss.
Any actuarial gains or losses pertaining to components of re-measurements of net defined benefit liability/
(asset) are recognized in OCI in the period in which they arise.
The retirement benefit obligation recognized in the Balance Sheet represents the actual deficit or surplus
in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the
present value of any economic benefits available in the form of refunds from the plans or reduction in
future contributions to the plans.
The liability for termination benefit is recognized at the earlier of when the entity can no longer withdraw
the offer of the termination benefit and when the entity recognizes any related restructuring costs.
x) Valuation of Inventories - Inventories consists of Raw Material.Finished Goods.WIP, & Store &
Spares
Inventories are stated at lower of cost or net realisable value. The cost for the purpose of valuation is
computed on the basis of weighted average price. The cost of work-in-progress and finished goods
comprises of raw materials, direct labour, other direct costs, cost of conversion and appropriate portion
of variable and fixed production overheads and such other costs incurred as to bring the inventory to its
present location and condition . Net realisable value is the estimate of the selling price in the ordinary
course of business, less the estimated costs of completion/reprocessing and the estimated cost necessary
to make the sale. The Allowance is estimated and made for defective and obselete items weherever
necessary based on the past experience of the company.
xi) Foreign Currency Transactions and Translations
a) Initial Recognition: Foreign currency transactions are recorded in the reporting currency i.e Indian
Rupess by applying to the foreign currency amount the exchange rate between the reporting currency
and the foreign currency on/or closely approximating to the date of the transaction.
b) Conversion: Foreign currency monetary items, if any are reported using the closing rate. Non¬
monetary items which are carried in terms of historical cost denominated in a foreign currency are
reported using the exchange rate at the date of the transaction; and non-monetary items which are
carried at fair value or other similar valuation denominated in a foreign currency are reported using
the exchange rates that existed when the values were determined.
c) Exchange Difference: Exchange differences arising on the settlement / re-translation of monetary
items, if any or on reporting such monetary items of the Company at rates different from those at
which they were initially recorded during the year or reported in previous financial statements, are
recognized as income or as expenses in the year in which they arise.
d) Foreign Exchange Forward Contracts: Monetary Assets and Liabilities, if any are restated at the
rate prevailing at the period end or at the spot rate at the inception of forward contract where
forward cover for specific asset/liability has been taken and in respect of such forward contracts the
difference between the contract rate and the spot rate at the inception of the forward contract is
recognized as income or expense in Statement of Profit and Loss over the life of the contract. All
other outstanding forward contracts on the closing date are mark to market and resultant loss is
recognized as expense in the Statement of Profit and Loss. Mark to market gains, if any, are ignored.
Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognized
as income or as expense for the period.
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