1. Significant Accounting Policies: NOTE-21
Basis of preparation:
The financial statements have been prepared and presented under the historic cost convention on accrual basis
of accounting, in accordance with generally accepted accounting principles ("GAAP") applicable in India. GAAP
comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act')
and pronouncements of the Institute of Chartered Accountants of India, the provisions of the Act (to the extent
notified).
The financial statements are presented in Indian Rupees (INR) and are rounded off to the nearest thousands
except per share data and unless stated otherwise. Due to rounding off, the numbers presented throughout the
document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.
The figures which are appearing as '0'are result of rounding off.
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 of the Act. Based on the nature of products and the time
between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company
has ascertained its operating cycle as 12 months for current and non-current classification of assets and
liabilities.
Key Accounting Estimates and Judgements:
The preparation of standalone financial statements requires management to make judgments, estimates and
assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the
estimation and judgments based on historical experience and other factors, including expectations of future
events that are believed to be reasonable. Revisions to accounting estimates are recognized prospectively.
Significant Accounting Policies:
The significant accounting policies used in preparation of the standalone financial statements are as under.
2. Property, Plant and Equipment:
• Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and
accumulated impairment losses, if any. Cost of acquisition or construction of property, plant and
equipment comprises its purchase price including import duties and non-refundable purchase taxes
after deducting trade discounts, rebates and any directly attributable cost of bringing the item to its
working condition for its intended use.
• 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 associated with the item will flow to
the Company and the cost of the item can be measured reliably. All other repairs and maintenance cost
are charged to the standalone statement of profit and loss during the period in which they are incurred.
• Gains or losses that arise on disposal or retirement of an asset are measured as the difference between
net disposal proceeds and the carrying value of property, plant and equipment and are recognized in the
statement of profit and loss when the same is derecognized.
• Depreciation is calculated on pro rata basis on straight-line / WDV method based on estimated useful
life prescribed under Schedule II of the Companies Act, 2013. Freehold land is not depreciated.
• Intangible assets purchased are initially measured at cost.
3. Impairment of Assets:
During the year, the Company has undertaken a review of all fixed assets in line with the requirement of AS-28
on "impairment of assets" issued by the Institute of Chartered Accountants of India. Based on such review, no
provision for impairment is required to be recognized for the year.
4. Depreciation and Amortization:
Depreciation on the fixed assets is provided as per the period prescribed in Schedule II to the Companies Act,
2013 as to charge off the cost of assets to the Statement of Profit and Loss over their estimated useful life.
5. Employee Benefits:
Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss
account of the year in which the related service is rendered.
6. Inventories:
Stock in trade, stores and spares are valued at the lower of the cost or net realizable value. Net realizable value
is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale. Cost of stock in trade procured for specific projects is assigned by
specific identification of individual costs of each item. Costs of stock in trade, that are interchangeable and not
specific to any project is determined using the weighted average cost formula. Cost of stores and spare parts is
determined using weighted average cost.
7. Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of
the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of
interest, exchange differences arising from foreign currency borrowings to the extent they are regarded as an
adjustment to the interest cost and other costs that an entity incurs in connection with the borrowing of funds.
8. Revenue Recognition:
Revenue from Operations
• Sale and operating income includes sale of products, services, etc.
• Sale of goods are recognized, net of returns and trade discounts, on transfer of significant risks and rewards
of ownership to the buyer.
9. Taxation:
Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the
income-tax law) and deferred tax charge or credit effects of timing differences between accounting income and
taxable income for the period). Income-tax expense is recognized in profit or loss except that tax expense
related to items recognized directly in reserves is also recognized in those reserves.
Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using
the applicable tax rates and tax laws. Deferred tax is recognized in respect of timing differences between taxable
income and accounting income i.e. differences that originate in one period and are capable of reversal in one or
more subsequent periods. The deferred tax charge or credit and the corresponding deferred tax liabilities or
assets are recognized using the tax rates and tax laws that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the
assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is a virtual certainty supported by convincing
evidence that sufficient future taxable income will be available against which such deferred tax assets can be
realized. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to
reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.
Minimum Alternative Tax ('MAT') under the provisions of the Income-tax Act, 1961 is recognized as current tax
in the Statement of Profit and Loss. The credit available under the Act in respect of MAT paid is recognized as an
asset only when and to the extent there is convincing evidence that the company will pay normal income tax
during the period for which the MAT credit can be carried forward for set-off against the normal tax liability.
MAT credit recognized as an asset is reviewed at each balance sheet date and written down to the extent the
aforesaid convincing evidence no longer exists.
10. Earnings per share:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
EPS - Rs.5.94.
|