1 Corporate Information
Integrated Capital Services Limited having CIN: L74899DL1993PLC051981 is a public company domiciled in India and incorporated under
the provisions of Companies Act, 1956. Its equity shares are listed on the Bombay Stock Exchange. The preferance shares are not listed on
any Stock Exchange. The Company is primarily engaged in Corporate Advisory & Consulting, Expert Services in Turnaround &
Restructuring, Business Combinations, Takeovers, Mergers & Amalgamations and Accounting Services.
2 BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
A) Basis of preparation of financial statements
(a) Statement of Compliance
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) issued under
the provisions of the Companies Act, 2013 ("the Act") and guidelines issued by the Securities and Exchange board of India (SEBI).
The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules,
2015 and relevant amendments made thereafter.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision
to an existing 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 (Rs.), which is the Company's functional currency. Figures are shown in
Lakhs.
(c) Basis of Measurement
The financial statements are prepared in accordance with the historical cost convention basis, except for certain items that are
measured at fair values.
Determining the Fair Value
While measuring the Fair Value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are
categorised into different levels in a Fair Value hierarchy based on the inputs used in the valuation techniques as follows:
(d) Use of Estimate
The preparation of financial statements in conformity with the Ind AS requires management to make estimates, judgements and
assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of
assets and liabilities, the disclosures of the contingent asset and contingent liability at the date of the financial statements and reported
amount of income and expenses during the period. Accounting estimates could change from period to period. Actual results could
differ from the estimates. Appropriate changes in estimate are made as the management become aware of the change in circumstances
surrounding the estimates. Change in the estimates are reflected in the financial statements in the period in which the changes are
made and, if material, their effect are disclosed in the notes to financial statements.
(e) Operating Cycle
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria
set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements issued by the Ministry of
Corporate Affairs based on the nature of products and the time between the acquisition of assets for processing and their realisation in
cash and cash equivalents.
B) Significant accounting policies
(a) Property, Plant and Equipment
Property, Plant and Equipment are stated at cost of acquisition or construction less accumulated depreciation and impairment, if any.
Cost directly attributable to acquisition are capitalised until the Property, Plant and Equipment are ready for use as intended by the
management.
Property, Plant and Equipment are derecognised from financial statements, either on disposal or when no economic benefits are
expected from its use. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or
retirement of the Property, Plant and Equipment and the resultant gains or losses are recognized in the Statement of Profit and Loss.
Property, Plant and Equipment, which are to be disposed off are reported at the lower of the carrying value or the fair value less cost to
sell.
Depreciation on Property, Plant and Equipment commences when the these assets are ready for their intended use. Items of Property,
Plant and Equipment are depreciated in a manner that amortizes the cost (or other amount substituted for cost) of these assets, less its
residual value, over their useful lives as specified in Schedule II of the Companies Act, 2013 on a straight line basis. Depreciation on
Property, Plant and Equipment purchased or sold during the period is proportionately charged.
Depreciation methods, useful lives and residual values of Property, Plant and Equipment are reviewed periodically, including at each
financial year end by the management of the Company.
The Company has adopted policy to carry out fair value of its Property, Plant and Equipments at the earlier of 24 months or a
Significant Change in Business Circumstances.
(b) Impairment of non financial assets
Property, Plant and Equipment are evaluated for recoverability, whenever events or changes in circumstances indicate that their
carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair
value less cost 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 such cases, the recoverable amount is determined for the cash generating unit
(CGU) to which the asset belongs.
If such assets 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 assets exceeds the estimated recoverable amount of the asset. An impairment loss is
reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The
carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying
amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been
recognized for the asset in prior years.
(c) Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the relevant
instrument and are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are
added to or deducted from the fair value on initial recognition of financial assets or financial liabilities. Purchase or sale of financial
assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way
trades) are recognised on the trade date, i.e., the date when the Company commits to purchase or sell the asset.
Financial Assets :
Recognition: Financial assets include Investments, Trade receivables, Advances, Security Deposits, Cash and cash equivalents. Such
assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The transaction price
includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss.
Classification: Management determines the classification of an asset at initial recognition depending on the purpose for which the
assets were acquired. The subsequent measurement of financial assets depends on such classification.
Financial assets are classified as those measured at:
(a.) amortised cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or
interest.
(b.) fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash
flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently
measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in other
comprehensive income.
(c.) fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that
triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value,
with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the
period in which they arise.
In case of investment in equity shares
a) For subsidiaries, associates and joint ventures: Investments in equity instruments are carried at deemed cost. The value is
tested for impairment on periodical basis. Impairment, if any, is charged to the Statement of Profit and Loss.
The Company has adopted policy to carry out fair value of its Investments at the earlier of 24 months or a Significant Change in
Business Circumstances.
Debt instruments:
Debt instruments are measured at amortised cost. Assets that are held for collection of contractual cash flows where those cash
flows represent solely payment of principal and interest are measured at amortised cost. A gain or loss on a debt instrument that
is subsequently measured at amortised cost is recognised as profit or loss when the asset is derecognised or impaired. Interest
income from these financial assets is included as part of other income using the effective interest rate method.
Other:
Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc., are reclassified for measurement at amortised
cost.
Impairment: The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as
investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair
value through other comprehensive income are tested for impairment based on evidence or information that is available without undue
cost or effort. Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has
deteriorated significantly since its initial recognition.
Reclassification: When and only when the business model is changed, the Company shall reclassify all affected financial assets
prospectively from the reclassification date as subsequently measured at amortised cost, fair value through other comprehensive
income, fair value through profit or loss without restating the previously recognised gains, losses or interest and in terms of the
reclassification principles laid down in the Ind AS relating to Financial Instruments.
De-recognition: Financial assets are derecognised when the right to receive cash flows from the assets has expired, or has been
transferred, and the Company has transferred substantially all of the risks and rewards of ownership. Concomitantly, if the asset is one
that is measured at:
(a.) amortised cost, the gain or loss is recognised in the Statement of Profit and Loss;
(b.) fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are
reclassified to the Statement ofProfit and Loss unless the asset represents an equity investment in which case the cumulative fair
value adjustments previously taken to reserves is reclassified within equity.
Financial Liabilities
Initial and subsequent recognition: Borrowings, trade payables and other financial liabilities are initially recognised at the value of
the respective contractual obligations. They are subsequently measured at amortised cost. Any discount or premium on redemption /
settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest
method and adjusted to the liability figure disclosed in the Balance Sheet.
De-recognition: Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is
discharged, cancelled and settled on expiry.
Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there is a legally enforceable right
to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability
simultaneously.
Equity Instruments
Equity instruments are recognised at the value of the proceeds, net of direct costs of the capital issue.
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