1.3 Significant Accounting Policies:
1.3.1 Basis of Preparation and Presentation
The Financial Statements have been prepared on the historical cost basis except for
following assets and liabilities which have been measured at fair value amount:
(a) Certain Financial Assets and Liabilities (including derivative instruments if any), and
(b) Defined Benefit Plans - Plan Assets
The financial statements of the Company have been prepared to comply with the Indian
Accounting standards ('Ind AS'), including the rules notified under the relevant provisions
of the Companies Act, 2013.
Company's financial statements are presented in Indian Rupees, which is also its functional
currency.
1.3.2 Fair Value Measurement
Some of the Company's accounting policies and disclosures require the measurement of
fair values, for both financial and non-financial assets and liabilities.
The Company has an established control framework with respect to the measurement of
fair values. This includes a financial reporting team that has overall responsibility for
overseeing all significant fair value measurements, including Level 3 fair values.
The financial reporting team regularly reviews significant unobservable inputs and
valuation adjustments. If third party information, such as pricing services, is used to
measure fair values, then the financial reporting team assesses the evidence obtained
from the third parties to support the conclusion that these valuations meet the
requirements of Ind AS, including the level in the fair value hierarchy in which the
valuations should be classified.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs
used in the valuation techniques as follows.
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
When measuring the fair value of an asset or a liability, the Company uses observable
market data as far as possible. If the inputs used to measure the fair value of an asset or a
liability fall into different levels of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in the same level of the fair value hierarchy as
the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred.
1.3.3 Current and Non-Current Classification
The Company presents assets and liabilities in the Balance Sheet based on Current /Non-
Current classification.
An asset is treated as Current when it is -
- Expected to be realised or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realised 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.
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 the settlement of the liability for at least twelve
months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
1.3.4 Property, Plant and Equipment
(a) Tangible Assets
Property, Plant and Equipment are stated at cost, net of recoverable taxes, trade discount
and rebates less accumulated depreciation and impairment losses, if any. Such cost
includes purchase price, borrowing cost and any cost directly attributable to bringing the
assets to its working condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the assets.
Subsequent costs are included in the asset's carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the entity and the cost can be measured reliably.
Property, Plant and Equipment which are significant to the total cost of that item of
Property, Plant and Equipment and having different useful life are accounted separately.
Depreciation
Free hold land is not depreciated. Leasehold land and the improvement costs are
amortized over the period of the lease. Depreciation on Property, Plant and Equipment is
provided using Written Down Value Method (WDV). Depreciation is provided based on
useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 as below:
The residual values, useful lives and methods of depreciation of Property, Plant and
Equipment are reviewed at each financial year end and adjusted prospectively, if
appropriate.
Derecognition
Gains or losses arising from derecognition of a Property, Plant and Equipment are
measured as the difference between the net disposal proceeds and the carrying amount of
the asset and are recognised in the Statement of Profit and Loss when the asset is
derecognised.
(b) Capital Work-in-Progress and Capital Advances
Cost of Property, Plant and Equipment not ready for intended use, as on the balance sheet
date, is shown as a "Capital Work-in-Progress". The Capital Work-in-Progress is stated at
cost. Any expenditure in relation to survey and investigation of the properties is carried as
Capital Work-in-Progress. Such expenditure is either capitalized as cost of the projects on
completion of construction project or the same is expensed in the period in which it is
decided to abandon such project. Any advance given towards acquisition of Property,
Plants and Equipment outstanding at each balance sheet date is disclosed as "Other
Current Assets".
(c) Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount
and rebates less accumulated amortisation/depletion and impairment losses, if any. Such
cost includes purchase price, borrowing costs, and any cost directly attributable to bringing
the asset to its working condition for the intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the
Intangible Assets.
Subsequent costs are included in the asset's carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the entity and the cost can be measured reliably.
Amortization
The amortization expenses on Intangible assets with the finite lives are recognized in the
Statement of Profit and Loss. The Intangible assets being trademark, software and website
are recognized in the books of accounts at the incurred in their acquisition. The software
being intangible in nature are amortized on pro-rata basis using Written Down Value
Method over the useful life estimated by the management which is three years. The
amortization period and the amortization method for an intangible asset with finite useful
life is reviewed at each financial year end and adjusted prospectively, if appropriate.
Derecognition
Gains or losses arising from derecognition of an Intangible Asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and
are recognised in the Statement of Profit and Loss when the asset is derecognised.
1.3.5 Impairment of Non-Financial Assets - Property, Plant and Equipment and Intangible
Assets
The Company assesses at each reporting date as to whether there is any indication that
any Property, Plant and Equipment and Intangible Assets or group of Assets, called Cash
Generating Units (CGU) may be impaired. If any such indication exists, the recoverable
amount of an asset or CGU is estimated to determine the extent of impairment, if any.
When it is not possible to estimate the recoverable amount of an individual asset, the
Company estimates the recoverable amount of the CGU to which the asset belongs.
An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset's
carrying amount exceeds its recoverable amount. The recoverable amount is higher of an
asset's fair value less cost of disposal and value in use. Value in use is based on the
estimated future cash flows, discounted to their present value using pre-tax discount rate
that reflects current market assessments of the time value of money and risk specific to
the assets.
The impairment loss recognised in prior accounting period is reversed if there has been a
change in the estimate of recoverable amount.
There are no losses from impairment of assets to be recognized in the financial
statements.
1.3.6 Lease
(a) The Company as a Lessee
The Company, as a lessee, recognises a right- of-use asset and a lease liability for its leasing
arrangements, if the contract conveys the right to control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the
use of an identified asset and the Company has substantially all of the economic benefits
from use of the asset and has right to direct the use of the identified asset. The cost of the
right-of- use asset shall comprise of the amount of the initial measurement of the lease
liability adjusted for any lease payments made at or before the commencement date plus
any initial direct costs incurred. The right-of-use assets is subsequently measured at cost
less any accumulated depreciation, accumulated impairment losses, if any, and adjusted
for any remeasurement of the lease liability. The right-of-use assets are depreciated using
the straight-line method from the commencement date over the shorter of lease term or
useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that
are not paid at the commencement date of the lease. The lease payments are discounted
using the interest rate implicit in the lease, if that rate can be readily determined. If that
rate cannot be readily determined, the Company uses incremental borrowing rate.
(b) The Company as a Lessor
Leases for which the Company is a lessor is classified as a finance or operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee, the contract is classified as a finance lease. All other leases are
classified as operating leases.
For operating leases, rental income is recognized on a straight-line basis over the term of
the relevant lease.
1.3.7 Investment Properties
Items of investment properties are measured at cost less accumulated depreciation/
amortization and accumulated impairment losses. Cost includes expenditure that is
directly attributable to bringing the asset to the location and condition necessary for its
intended use. Investment properties are depreciated on straight line method on pro-rata
basis at the rates specified therein. Subsequent expenditure including cost of major
overhaul and inspection is recognized as an increase in the carrying amount of the asset
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.
1.3.8 Inventories
Items of inventories under raw material, Work in Progress, consumables, Finished good
and other items are valued at cost and net realizable value w.e. less after providing for
obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion
and other costs including manufacturing overheads net of recoverable taxes incurred in
bringing them to their respective present location and condition. Inventories valued on
above basis is certified by the management.
1.3.9 Borrowing Costs
Borrowing costs include exchange differences arising from foreign currency borrowings to
the extent they are regarded as an adjustment to the interest cost. Borrowing costs that
are directly attributable to the acquisition or construction of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use.
Interest income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalization.
All other borrowing costs are charged to the Statement of Profit and Loss for the period for
which they are incurred.
1.3.10 Employee Benefits
(A) Short-Term Employee Benefits
The undiscounted amount of short-term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense during the
period when the employees render the services.
(B) Post-Employment Benefits
(i) Defined Contribution Plans
The Company recognises contribution payable to the provident fund scheme as an
expense, when an employee renders the related service.The Company makes the
contribution to LIC India, which is funded defined benefit plan for qualifying emploees. If
the contribution payable to the scheme for service received before the balance sheet date
exceeds the contribution already paid, the deficit payable to the scheme is recognised as a
liability. If the contribution already paid exceeds the contribution due for services received
before the balance sheet date, then excess is recognised as an asset to the extent that the
pre-payment will lead to a reduction in future payment or a cash refund.
(ii) Defined Benefit Plan
(a) Gratuity Scheme: The Company pays gratuity to the employees who have completed
five years of service with the Company at the time of resignation/superannuation. The
gratuity is paid @ 15 days basic salary for every completed year of service as per the
Payment of Gratuity Act, 1972. The liability in respect of gratuity and other post¬
employment benefits is calculated using the Projected Unit Credit Method and spread over
the period during which the benefit is expected to be derived from employees' services.
Remeasurement gains and losses arising from adjustments and changes in actuarial
assumptions are recognised in the period in which they occur in Other Comprehensive
Income.
(iii) Other Long - Term Employee Benefits
Entitlement to annual leave is recognized when they accrue to employees.
(iv) Characteristics of defined benefit plans and risks associated with them:
Valuation of defined benefit plan are performed on certain basic set of pre-determined
assumptions and other regulatory framework which may vary over time. Thus, the
Company is exposed to various risks in providing the above benefit plans which are as
follows:
A. Actuarial Risk:
It is the risk that benefits will cost more than expected. This can arise due to one of the
following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary
escalation will result into an increase in Obligation at a rate that is higher than expected.
Variability in mortality rates: If actual mortality rates are higher than assumed mortality
rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is
no condition of vesting on the death benefit, the acceleration of cashflow will lead to an
actuarial loss or gain depending on the relative values of the assumed salary growth and
discount rate.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed
withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected.
The impact of this will depend on whether the benefits are vested as at the resignation
date.
B. Investment Risk:
For funded plans that rely on insurers for managing the assets, the value of assets certified
by the insurer may not be the fair value of instruments backing the liability. In such cases,
the present value of the assets is independent of the future discount rate. This can result in
wide fluctuations in the net liability or the funded status if there are significant changes in
the discount rate during the inter- valuation period.
C. Liquidity Risk:
Employees with high salaries and long durations or those higher in hierarchy, accumulate
significant level of benefits. If some of such employees resign/retire from the company
there can be strain on the cashflows.
D. Market Risk:
Market risk is a collective term for risks that are related to the changes and fluctuations of
the financial markets. One actuarial assumption that has a material effect is the discount
rate. The discount rate reflects the time value of money. An increase in discount rate leads
to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This
assumption depends on the yields on the corporate/government bonds and hence the
valuation of liability is exposed to fluctuations in the yields as at the valuation date
E. Legislative Risk:
Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets
due to change in the legislation/regulation. The government may amend the Payment of
Gratuity Act thus requiring the companies to pay higher benefits to the employees. This
will directly affect the present value of the Defined Benefit Obligation and the same will
have to be recognized immediately in the year when any such amendment is effective.
1.3.11 Revenue Recognition
Revenue from contracts with customers is recognised when control of the goods or
services are transferred to the customer at an amount that reflects the consideration
entitled in exchange for those goods or services.
The Company has generally typically controls the goods or services before transferring
them to the customer.
Generally, control is transferred upon shipment of goods to the customer or when the
goods is made available to the customer, provided transfer of title to the customer occurs
and the Company has not retained any significant risks of ownership or future obligations
with respect to the goods shipped.
Revenue from rendering of services is recognized on when the services are rendered and
related cost are incurred over time by measuring the progress towards complete
satisfaction of performance obligations at the reporting period.
Revenue is measured at the amount of consideration which the Company expects to be
entitled to in exchange for transferring distinct goods or services to a customer as specified
in the contract, excluding amounts collected on behalf of third parties (for example taxes
and duties collected on behalf of the government). Consideration is generally due upon
satisfaction of performance obligations and a receivable is recognised when it becomes
unconditional.
Export Incentives
Export incentive revenues are recognized when the right to receive the credit is
established and there is no significant uncertainty regarding the ultimate collection.
Interest Income
Interest Income from a Financial Assets is recognised using effective interest rate method.
And it is recognized on time proportion basis taking into account the amount outstanding
and rate applicable.
Dividend Income
Dividend Income is recognised when the Company's right to receive the amount has been
established.
Surplus / (Loss) on disposal of Property, Plants and Equipment / Investments
Surplus or loss on disposal of property, plants and equipment or investment is recorded on
transfers of title from the Company, and is determined as the difference between the sales
price and carrying value of the property, plants and equipment or investments and other
incidental expenses.
Rental Income
Rental income arising from operating lease on investments properties is accounted for on
a straight - line basis over the lease term except the case where the incremental lease
reflects inflationary effect and rental income is accounted in such case by actual rent for
the period.
Insurance Claim
Claim receivable on account of insurance is accounted for to the extent the Company is
reasonably certain of their ultimate collections.
Other Income
Revenue from other income is recognized when the payment of that related income is
received or credited.
1.3.12 Foreign Currency Transactions and Translation
Transactions in foreign currencies are recorded at the exchange rate prevailing on the date
of transaction. Monetary assets and liabilities denominated in foreign currencies are
translated at the functional currency closing rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are
recognised in Statement of Profit and Loss except to the extent of exchange differences
which are regarded as an adjustment to interest costs on foreign currency borrowings that
are directly attributable to the acquisition or construction of qualifying assets which are
capitalised as cost of assets.
Non-monetary items that are measured in terms of historical cost in a foreign currency are
recorded using the exchange rates at the date of the transaction. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value was measured. 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 recognised in Other Comprehensive Income or Statement of Profit and
Loss are also recognised in Other Comprehensive Income or Statement of Profit and Loss,
respectively).
1.3.13 Government Grants and Subsidies
Grants in the nature of subsidies which are non-refundable are recognized as income
where there is reasonable assurance that the Company will comply with all the necessary
conditions attached to them. Income from grants is recognized on a systematic basis over
periods in which the related costs that are intended to be compensated by such grants are
recognized.
Refundable government grants are accounted in accordance with the recognition and
measurement principle of Ind AS 109, "Financial Instruments". It is recognized as income
when there is a reasonable assurance that the Company will comply with all necessary
conditions attached to the grants. Income from such benefit is recognized on a systematic
basis over the period of the grants during which the Company recognizes interest expense
corresponding to such grants.
1.3.14 Financial Instruments - Financial Assets
(A) Initial Recognition and Measurement
All Financial Assets are initially recognised at fair value. Transaction costs that are directly
attributable to the acquisition or issue of Financial Assets, which are not at Fair Value
Through Profit or Loss, are adjusted to the fair value on initial recognition. Purchase and
sale of Financial Assets are recognised using trade date accounting.
(B) Subsequent Measurement
a) Financial Assets measured at Amortised Cost (AC)
A Financial Asset is measured at Amortised Cost if it is held within a business model whose
objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the Financial Asset give rise to cash flows on specified dates that represent solely
payments of principal and interest on the principal amount outstanding.
b) Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)
A Financial Asset is measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling Financial Assets
and the contractual terms of the Financial Asset give rise on specified dates to cash flows
that represents solely payments of principal and interest on the principal amount
outstanding.
Further, the Company, through an irrevocable election at initial recognition, has measured
certain investments in equity instruments at FVTOCI. The Company has made such election
on an instrument-by-instrument basis. These equity instruments are neither held for
trading nor are contingent consideration recognized under a business combination.
Pursuant to such irrevocable election, subsequent changes in the fair value of such equity
instruments are recognized in OCI. However, the Company recognizes dividend income
from such instruments in the Statement of Profit and Loss.
c) Financial Assets measured at Fair Value Through Profit or Loss (FVTPL)
A Financial Asset which is not classified in any of the above categories is measured at
FVTPL. Financial assets are reclassified subsequent to their recognition, if the Company
changes its business model for managing those financial assets. Changes in business model
are made and applied prospectively from the reclassification date which is the first day of
immediately next reporting period following the changes in business model in accordance
with principles laid down under Ind AS 109 - Financial Instruments.
(C) Investments
Investments are classified in to Current or Non-Current Investments. Investments that are
readily realizable and intended to be held for not more than a year from the date of
acquisition are classified as Current Investments. All other Investments are classified as
Non - Current Investments. However, that part of Non - Current Investments which are
expected to be realized within twelve months from the Balance Sheet date is also
presented under "Current Investments" under "Current portion of Non-Current
Investments" in consonance with Current/Non-Current classification of Schedule - III of
the Act.
All the equity investment which covered under the scope of Ind AS 109, "Financial
Instruments" is measured at the fair value. Investment in Mutual Fund is measured at fair
value through profit and loss (FVTPL). Trading Instruments are measured at fair value
through profit and loss (FVTPL).
(D) Investment in Subsidiaries, Associates and Joint Ventures
The Company has accounted for its investments in Subsidiaries, associates and joint
venture at cost less impairment loss (if any).
(E) Impairment of Financial Assets
In accordance with Ind AS 109, the Company uses 'Expected Credit Loss' (ECL) model, for
evaluating impairment of Financial Assets other than those measured at Fair Value
Through Profit and Loss (FVTPL).
1.3.15 Financial Instruments - Financial Liabilities
(A) Initial Recognition and Measurement
All Financial Liabilities are recognised at fair value and in case of borrowings, net of directly
attributable cost. Fees of recurring nature are directly recognised in the Statement of
Profit and Loss as finance cost.
(B) Subsequent Measurement
Financial Liabilities are carried at amortised cost using the effective interest method. 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.
1.3.16 Derivative Financial Instruments and Hedge Accounting
The Company enters into derivative contracts in the nature of forward currency contracts
with external parties to hedge its foreign currency risks relating to foreign currency
denominated financial assets measured at amortized cost.
The Company formally establishes a hedge relationship between such forward currency
contracts ('hedging instrument') and recognised financial assets ('hedged item') through a
formal documentation at the inception of the hedge relationship in line with the
Company's Risk Management objective and strategy.
The hedge relationship so designated is accounted for in accordance with the accounting
principles prescribed for a cash flow hedge under Ind AS 109, 'Financial Instruments'.
Recognition and measurement of cash flow hedge:
The Company strictly uses foreign currency forward contracts to hedge its risks associated
with foreign currency fluctuations relating to certain forecasted transactions. As per Ind AS
109 - Financial Instruments, foreign currency forward contracts are initially measured at
fair value and are re-measured at subsequent reporting dates. Changes in the fair value of
these derivatives that are designated and effective as hedges of future cash flows are
recognised in hedge reserve (under reserves and surplus) through other comprehensive
income and the ineffective portion is recognised immediately in the statement of profit
and loss.
The accumulated gains / losses on the derivatives accounted in hedge reserve are
transferred to the statement of profit and loss in the same period in which gains / losses
on the underlying item hedged are recognised in the statement of profit and loss.
Derecognition:
Hedge accounting is discontinued when the hedging instrument expires or is sold,
terminated, or exercised, or no longer qualifies for hedge accounting. When hedge
accounting is discontinued for a cash flow hedge, the net gain or loss will remain in hedge
reserve and be reclassified to the statement of profit and loss in the same period or
periods during which the formerly hedged transaction is reported in the statement of
profit and loss. If a hedged transaction is no longer expected to occur, the net cumulative
gains / losses recognised in hedge reserve is transferred to the statement of profit and
loss.
Fair Value Hedge:
The Company designates derivative contracts or non-derivative Financial Assets/Liabilities
as hedging instruments to mitigate the risk of change in fair value of hedged item due to
movement in interest rates, foreign exchange rates and commodity prices.
Changes in the fair value of hedging instruments and hedged items that are designated and
qualify as fair value hedges are recorded in the Statement of Profit and Loss. If the hedging
relationship no longer meets the criteria for hedge accounting, the adjustment to the
carrying amount of a hedged item for which the effective interest method is used is
amortised to Statement of Profit and Loss over the period of maturity.
1.3.17 Derecognition of Financial Instruments
The Company derecognises a Financial Asset when the contractual rights to the cash flows
from the Financial Asset expire or it transfers the Financial Asset and the transfer qualifies
for derecognition under Ind AS 109. A Financial liability (or a part of a financial liability) is
derecognised from the Company's Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.
1.3.18 Financial Instruments - Offsetting
Financial Assets and Financial Liabilities are offset and the net amount is presented in the
balance sheet when, and only when, the Company has a legally enforceable right to set off
the amount and it intends, either to settle them on a net basis or to realise the asset and
settle the liability simultaneously.
1.3.19 Taxes on Income
The tax expenses for the period comprises of current tax and deferred income tax. Tax is
recognised in Statement of Profit and Loss, except to the extent that it relates to items
recognised in the Other Comprehensive Income. In which case, the tax is also recognised in
Other Comprehensive Income.
(a) Current Tax
Current tax assets and liabilities are measured at the amount expected to be recovered
from or paid to the Income Tax authorities, based on tax rates and laws that are enacted at
the Balance sheet date.
(b) Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of
assets and liabilities in the Financial Statements and the corresponding tax bases used in
the computation of taxable profit.
Deferred tax assets are recognised to the extent it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of
unused tax losses can be utilised. Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of Deferred tax liabilities and
assets are reviewed at the end of each reporting period.
Presentation
The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle
on a net basis, or to realize the asset and settle the liability simultaneously. In case of
deferred tax assets and deferred tax liabilities, the same are offset if the Company has a
legally enforceable right to set off corresponding current tax assets against current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same tax authority on the Company.
1.3.20 Segment Reporting
Operating segments are reported in the manner consistent with the internal reporting to
the management of the company. The Company is reported at an overall level, and hence
there are no separate reportable segments as per Ind AS 108.
1.3.21 Research and Development
Revenue expenditure pertaining to research is charged to the Statement of Profit and Loss
as and when incurred. (if any)
Development costs are capitalised as an intangible asset if it can be demonstrated that the
project is expected to generate future economic benefits, it is probable that those future
economic benefits will flow to the entity and the costs of the asset can be measured
reliably, else it is charged to the Statement of Profit and Loss. (if any)
1.3.22 Earnings per Share
Basic earnings per share is calculated by dividing the net profit after tax by the weighted
average number of equity shares outstanding during the year adjusted for bonus element
in equity share. Diluted earnings per share adjusts the figures used in determination of
basic earnings per share to take into account the conversion of all dilutive potential equity
shares. Dilutive potential equity shares are deemed converted as at the beginning of the
period unless issued at a later date.
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