CORPORATE INFORMATION
Seshachal Technologies Limited, is a public limited company incorporated on 22/03/1988
having its registered office at Plot No 57, AP Text Book Press Colony, Kharkhana,
Secunderabad.
The Shares of the Company is listed on Bombay Stock Exchange Limited and Ahmedabad
Stock Exchange Limited.
BASIS OF PREPARATION
(A) ACCOUNTING CONVENTION
These standalone Ind AS financial statements of the company have been prepared in
accordance with Indian Accounting standard (Hereinafter referred to as the "Ind AS") as
noticed by the Ministry of corporate Affairs pursuant to the section 133 of the Companies
Act, 2013 ("the Act") read along with the companies (Indian Accounting standard) Rules,
2015 and the companies (Indian Accounting standard) amendment rules, 2016 and other
relevant provisions of the companies act as applicable in India.
This Ind AS financial statement have been prepared and presented under the Historical cost
Convention, on accrual basis of accounting except for certain financial assets and financial
liabilities that are measured at the fair values at the end of each reporting period, as stated
in the accounting policies set out below. The accounting policies, have been applied
consistently over all the periods presented in these Ind AS financial statements, including
the preparation of Opening Ind AS balance Sheet as at April 01, 2016 being the date of
transition to the Ind AS.
B) Use of Estimates
The preparation of these Ind AS financial statements in conformity with Ind AS requires the
management to make estimates, judgments and assumptions. These estimates, judgments
and assumptions affect the application of accounting policies and the reported amount of
assets and liabilities, the disclosures of contingent assets and liabilities at the date of Ind AS
financial statements and reported amount of revenues and expenses during the periods.
The application of the accounting policies that require critical accounting estimates
involving complex and subjective judgments and the use of assumptions in these Ind AS
financial statement have been disclosed in "Notes to Ind As Financial Statements.".
c) Current/ Non- Current Classification
Any assets or liabilities are classified as Current if it satisfies any of the following conditions:
i) The assets/liabilities are expected to be realized/ settled in the company's normal
operating cycle;
ii) The assets is intend for sales or consumptions;
iii) The assets/liabilities are held primarily for the purpose of trading;
iv) The assets/ liabilities are expected to be realized/ settled within a 12 month of period
after the end if the reporting period.
v) The assets is considered as currents when it is as cash or cash Equivalents unless it is
restricted from being exchanged or used to settle a liability for at least 12 month after the
reporting periods.
vi) In the case of liabilities, the Company does not have and unconditional right to defer the
settlement of the liabilities for at least 12 month after the end of the reporting period. All
other assets and liabilities are classified as Non - current.
For the purpose of liabilities classification, the Company has ascertained, the Company has
ascertained its normal operating cycles as 12 months. This bases on the nature of services
and the time between the acquisition of assets or inventories for processing and their
realization in cash Equivalents.
(d)Property, plants and equipments
(i) Measurement at recognition:
An Item of property, plants and Equipments that qualifies as an asset is measured on initial
recognition at cost, net of recoverable taxes, if any less accumulated
depreciation/amortization and impairment losses, if any.
The Company identifies and determines cost of each part of an item of property, plants and
Equipment separately. If the part has a cost which is significant to the total cost of that item
of property, plant and equipment and has a useful life that is materially different from that
of remaining items.
The cost comprises of its purchase price including import duties and other non-refundable
purchase taxes or levies, directly attributable to the cost of bringing the asset to its present
location and working condition for its intended use and the initial estimate of
decommissioning, restoration and similar liabilities, if any. Any trade discount and rebates
are deducted in arriving at the purchase prices of such property, plants and Equipments.
Such cost also includes the cost of replacing a part of the plants and Equipments and the
borrowing cost of the long term construction projects, if the recognition criteria are met.
When the significant parts of property, plants and Equipment are required to be replaced at
periodical intervals, the Company recognizes such part as individual assets with specific
useful lives and depreciates them accordingly. Likewise, When a major inspection is
performed, its cost is recognized in the carrying amount of the plants and Equipments as a
replacement as a replacement if the recognition criteria are satisfied.
All other repair and maintenance costs are recognized in the statement of profit and loss as
incurred. The present value of the expected cost for the decommissioning of assets after its
use is included in the cost of the respective asset if the recognition criteria for a provision
are met.
All costs, including administrative, financing and general overhead expenses, as are
specifically attributable to construction of a project or to the acquisition of a property,
plants and Equipments or bringing it to its present location and working condition, is
included as a part of the cost of construction of a project or as a part of the cost of property,
plants and Equipments, till the commencement of the property, plants and Equipments are
capitalized as aforementioned. borrowing cost relating to the acquisition / construction of
property, plants and Equipments are ready to be put to use. Any subsequent expenditure
related to an item of property plants and Equipments is added to its book value only if it
increases the future economic benefits from the existing property, plants and Equipments
beyond its previously assessed standard of performance. Any items such as spare parts,
stand by equipment are servicing equipment that meet the definitions of the property,
plants and equipments are capitalized at cost and depreciated over the useful life of the
respective property, plants and Equipments. Cost is in the nature of repair and maintance
are recognised in the statement of profit and loss as and when incurred.
(ii) Capital work-in-progress and capital advances
Cost of any property, plants and equipments not ready for intended use, as on the balance
sheet date, is shown as a Capital work-in-progress. Any advance given towards acquisition of
property, plants and equipments outstanding at each balance sheet date are disclosed as
"Other Non- current Asset".
(iii) Depreciation
Depreciation on each part of property, plants and equipment is provided to the extent of
the depreciable amount of the assets on the basis of "Written Down value method (WDV)"
on the useful life the property, plants and Equipments as estimated by the management and
is changed to the statement of profit and loss as per the requirements of schedule-II to the
companies Act, 2013. The estimated useful life of the property, plants Equipments has been
assessed based on the technical advice which is considered in the property, plants and
equipments, the usage of the property,, plants and equipments, expected physical wear and
tear of the property, plants and equipments, the operating conditions, anticipated
technological changes, manufactured warranties and maintenance support of the property
and Equipment etc.
When the parts of an item of the property, plants and Equipments have different useful life,
they are accounted for as a separate item (major components) and are depreciated over
their useful life of the principal property, plants and Equipments whichever is less.
(e)Inventories
Inventories of the raw material, work-in-progress, finished goods, packing material, stores
and spares, components, consumable and trading stock are carried at lower of cost and net
realizable value. However, raw material and other items held for use in production of
inventories are not written down below cost if the finished goods in which they will be
incorporated are expected to be sold at or above cost. The comparison of cost and net
realizable value is made on an item by item basis. Cost of inventories included the cost
incurred in bringing the each product to its present location and conditions are accounted as
follows:
a)Raw material: - cost includes the purchase price and other direct or indirect costs incurred
to bring the inventories into their present location and conditions. Cost is determined on
first in first out basis (FIFO).
b) Finished goods and work-in-progress:- cost included cost of direct materials and the
labour cost and a proportion of manufacturing overhead based on the normal operating
capacity, but excluding the borrowing costs. Cost is determined on first out basis (FIFO).
c) Trading stock: - cost includes the purchase price and other direct or indirect costs incurred
in bringing the inventories to their present location and conditions. Cost is determined on
weighted average basis.
All other inventories of stores and spares, consumable, project material at site are valued at
cost. The stock of waste or scrap is valued at net realizable value. Excise duty wherever
applicable is provided on the finished goods lying within the factory and bonded warehouse
at the end of the reporting period.
(f) Revenue recognitions
Revenue is recognised when it is probable that economic benefit associated with the
transaction flows to the company in ordinary course of its activities and the amount of
revenue can be measured reliable, regardless of when the payment is being made. Revenue
is measured at the fair values of consideration received or receivable taking into the account
contractually defined terms of payments, net of its returns, trade discounts and volume
rebates allowed.
Revenue includes only the gross inflows of economic benefits, including the Excise duty
received and receivable by the company, on its own account. Amount collected on behalf of
third parties such as goods and service tax (GST) value added tax (VAT) and sales tax are
excluded from revenue.
Sales of products
Revenue from sale of products is recognized when the company transfer all significant risks
and rewards of ownership to the buyer, while the company retains neither continuing
managerial involvement nor effective control over the products sold, which generally
coincide with dispatch. Revenue from export sales is recognized on shipment basis based on
the bill of lading.
(g) Cash and cash equivalents
cash and cash equivalents in the balance sheet comprises cash at banks cash in hand and
also the short term deposits with maturity of three month or less, which are subject to an in
significant risk of changes in value. For the purpose of the statement of cash flows, cash and
cash equivalents consists of cash and short term deposits, as defined above.
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