2 Significant Accounting Policies
A summary of the significant accounting policies applied in the preparation of the financial statements is as given below. These
accounting policies have been applied consistently to all the periods presented in the financial statements.
A Property, Plant and Equipment
Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price, directly attributable cost of bringing the asset to its working condition for the intended use and initial
estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase
price.
Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable that future economic benefit
associated with these will flow with the Company and the cost of the item can be measured reliably.
Borrowing costs to the extent related/attributable to the acquisition/construction of property , plant and equipment that takes
substantial period of time to get ready for their intended use are capitalized up to the date such asset is ready for use.
An item of property, plant and equipment and any significant part initially recognised is derecognised 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 (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss
when the asset is derecognised.
The Company identifies and determines cost of each component/ part of the asset separately, if the component/ part has a cost which
is significant to the total cost of the asset and has useful life that is materially different from that of the remaining asset.
Transition date:
The Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as of April 1, 2018
(the transition date) measured as per the previous GAAP and use such carrying value as its deemed cost as of the transition date.
Depreciation on plant, property and equipment
Depreciation on property, plant and equipment is provided on straightline method at estimated useful life, which is in line with the
estimated useful life as specified in Schedule II of the Companies Act, 2013.
B Revenue recognition
Interest income for all financial instruments except for those measured or designated as at FVTPL are recognised in the profit or loss
account using the effective interest method (EIR). Interest on financial instruments measured as at FVTPL is included within the fair
value movement during the period.
C Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after
deducting attributable taxes) 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 period are adjusted for the effects of all dilutive potential equity
shares.
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