2 Significant Accounting Policies
2.1 Basis of preparation
Compliance with IND AS
Th«e rm.nc,,' statementshave fen Papered on a go,ng concern bas,s following the accrual basis of account,ng In accordance with the Generally accepted
ic:* o7^r, lmd,s" Tntre,erred ,p as ''inaAs'’ -io<a,,ed ^*•
Division I l tied7T h r ' ’ ' ^ ,e"Va"' amendmeTO "*• '*«d *». after and and presentation requirements of
are round d , 7 to the ComM™“ A“- 2°13- <l"d AS compliant Schedule III}. These standalone financial statements are presented in INR and all values are rounded to the nearest Lakhs, except when otherwise indicated.
^mT'^Zo^l^rr,ir5t 'nd AS ,lnanCl"' “““ and *" —d P* '"d AS time adoption of Indian Accounting Standards
ÝPrevBus GW- or ,nJ 7 d ac'in", “"** °U' ^ Pr'nC,p'eS ge"'ra"'’ aCCep"d '"dla ("Indian SAAP”I «*» Is cons,Pared as th.
unde se boTlSS o hi l t d h h Pr'V'°US GAAP fi"a"Clal 5ta“mams were crapafed '» «“"*»"« »» «» Accounting Standards nobbed
Tillable '°ge “ Bara8raph 7 °f the C°mpan,'s ,ACCOUm) Rules' 201/1 ("lndian GAAP"> a"d <*»»' '»'««"! provisions of the Act as
The financial statements h.ve been prepared on a historical cost convention, ercept for th. following assets and liabilities:
t Certain financial assets and liabilities that is measured a: fair value; ii. Defined benefit plans-plan assets measured at fair value
'rC7^777pnnS,ri,m*ntS' °ther than inv'stments ln —«» & associates firm, measured at fair value thorugh profit
2.2 Current versus non-current classification
7£z;zzzi7Zzzb:'T 'Tbalance sheet based °n curren,/ n°-curre"' ciassificati°"- a- •«* -—«h.n**
_ pecsea 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
aiTtrmzzizzrr"" e“han“d °r used;° “n,e •—*- - -——-——
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 oe 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 All other liabilities are classified as non-current.
7lts°HII7lgC7de'S ,hb 'lme b"W"n th* acqui,ltl0n pf aMets and 'he,r realim'°" ln c«h and equivalents. The Company has identified twelve months
2.3 Property. Plant & Equipments
7 r rr*w,cha5e pr,M- bprrpwngc“! - -.....*
All other repair and maintenance costs are recognized in statement of profit or loss as incurred
.......
^^^^^^sss=s=ssss=sz
Tr“Jr7 ln'i Pr0grSSVnC!Ud'S COSt °f pr0pertv' plant and edulp"’e"' •"»" '"Stella.,on/und,r development as a. the balance sheet date
^ " dePr'C,a"°" - P,a"' a"d — a'd - a' - £ZZ - ^<1 adjusted
2.4 intangible assets
r«rof,«=uirZTt,Z'*T! 7 m'aSUred °" 'ni<‘al r'C°8nl,,0n a' CO“ C01‘ l"“"8'bl' "5""! a‘p“'ad I*— combination Is th.tr tar value at
” q ° 0Wm8 lnm>l '"“"*'b* ««>s ar. carried at cos. less accumulate amortitation and accumulated impairment losses. If
To» in me dd,'n8 C3P,ta"Jed dr,0Pmem “* a,e n°' -pltrt“d and ,h' re,3ted «Ý»«*«• » -fleeted ,n statement of Profit and
for its Intended use “ C°St C°mPn5eS PUrChaS* price and •”* attrlbu'»bl' cos. of brin8,ng the asset to Its working condition
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Depreciation and Amortisation
P'8nt 3"d eqU'Pmen‘ “ Cal£U'ated Pr°'ra,a ** Stra'8h<-n™ '""h°d “** <ba Prescribed in Schedule « to the
^im%UrZS,0Z.Zr''pr“*.h ZZ‘ \Zl'Z°' T"^ '”*** ““ fl"'" *" ”d b«r'h'............* aPd —d
rat rnd*::f p°~
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2.5 Impairment of non-financial assets
Zm:r:™z;rxz^.......—<
generating unit's (CGUJ Mr vatue less coTof dZZInd ns ! T *" |S tha h«h'r a" ^ts or cash-
not generate cash inflows that are large! independent of those from oZ * -coveraole amount is determined for an individual asset, unless the asset does
..............."•••— ~ ............-*
“zr ir,:»r.rz ~ r'z ~ Ý- • —* ~ —»......
into account. If no such transactions can be identified an aooroDr ar* * 0 08 ^ V3lUe *** C°5tS °f dlsp05al'recent mafket transactions are taken
quoted share prices for publ.cly traded compan.es or other ava.lable L WluTin!LToV ‘$ ^ ™ Ca,CUlat‘°nS corrob<>^ by valuat.on multiples.
1™“; zzrr rzzzrd 7d8eti apd :°rKast ca,cu,a',ons-^ *r*~comP.nV's csu, to
rate .. calculated ano a , ,o p” Z fu “ JZZ Z, T^ "" *'a'S Fp' lb"8" *«•*Ý a ZZm growth
budgets/forecasts. the Company llTZT T !°" ^ ^
increasing rate can be notified. In any case this gtowth rate does not -»ceed rh l" 08 * 5'MdV °' a'C"nm8 8'0wtn ,ate ,or sub!equent years, unless an countries In which the Company operates, or for the market In wh,ch the asset ,s aV'ra8' ** "" or cb“"<tv of
revaluation surplus. Properties, the impairment Is recognlted m OCI up to the amount of any prewous
recoverable amount. A orev.ously recogmted ,mp.„ment loss ,s reversed on ”f °Z““' 7 C°n'P‘,'V a“et'S °f CGU'*
recoverable amount since the last impairment loss was recogmted The reversal s limited so rhar rh T a5SumB,loni used !0 b'«rmine the asset's
recoverable amount, nor exceed the carrying amount that would have been d.r. * ,carrying amount of the asset does not exceed .ts
asset in poor years. Such reversal is recogmted In the statement of profit and lo ™T ’ 7 ° epr'c'a,i°P' had no lmPP'rment loss been recogmted for the treated as a revaluation Increase. P “* Un"K aSS" * “rr‘ed at * •mount. ,n wh.ch case. th. reversal I,
per^s^1* M,*Mment conducted by the Company there were no Indications that the non-financial assets have suffered an Impairment loss during the reporting
2.6 Financial instruments
A financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity
of the financial assets or financial liabilities, as a^Z^ZZ^nltiaUec^ilfi”^ ** U* throu*b Ptof*1 or loss) are added to or deducted from the fair value
2.6.1 Financial assets
z: z:zz itrs ;n a ,r:de da,a bas,i Regp,af - ~ pf - «—-
All recognised financial assets .re 7 established by regulation or convention ,n the marketplace
sets are subsequently measure^h^n^.t either amortised cos, or fair va,ue. depending on the classification of the financial
2.6.2 Classification of financial assets
Debt instruments that meet the following conditions are subsequently measured at amortised cost (except for debt Instruments that are designated as at fair value through profit or loss on initial recognition).
•the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows, and
• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amour outstanding.
Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (except for debt instruments that are designated as at fair value through profit or loss on initial recognition)
•the asset is held withrn a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets and
• the contractual terms of the instrument give rise on specified dates to cash flows that ate solely payments of principal and .merest on the principal amour
outstanding r
interest income Is recogn.seo in profit or loss for FVTOCI debt instruments. Fcr the purposes of recognising foreign exchange gams and losses FVTOCI debt instruments are treated as financial assets measured at amortised cost. Thus, the exchange difference, on the amortised cost are recogn.seo in profit or loss and other Ganges in the fair value of FVTOCI financial assets are recognised in other comprehensive income and accumulated under the heading of 'Reserve for debt instruments through other comprehensive income'. When the investment i, d.sposed of. the cumulative gam or loss previously accumulated ,n this reserve ,s reclassified to profit or loss
All other financial assets are subsequently measured at fair value
2.6.3 Effective interest method
The effective interest method is a method of calculating the amorbsed cost of a debt Instrument and of allocating interest Income over the relevant period The effecuve interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of
."***"" 'n'erest ra,e' 'ranw,c<lon costs and °'h*F premiums or discounts) through the expected life of the debt instrument, or. where appropriate a shorter period, to the net carrying amount on initial recognition
°n 'n»r«« »o, dob. instruments other than those financa! asset, class,fed as at FVTPl. Interest income is recognised In
profit or loss and is included in the Other income" line item.
2.6.4 Financial assets « fair value through profit or loss (FVTPL)
ff^g*C°‘n'"C ' “ Pr'1"” iub“quen' chan8ei in ,alr value ln °th*' comprehensive income for investments In .quit., instruments, wh,ch are not held (or
.Dmpr!^r,ti'h*id°r cm"”h*,am°rt'“d ““ Crite,la FVT0C' Cn"r,“ <- ab°''a> a" —« fVTPL In addition, deb. instruments that meet the amortised cost criteria or the FVTOCI criteria Put are designated as at FVTPL are measured at FVTPL
J sTllTt r.:r,he am0rT ““ Cn,eri‘ °r deM thaI ™V !» designated as a, FVTPl upon W recognition
^rr°n 2 °r S,gn,r,Cantly reduces a °' recognition inconsistency that wou!d ar.se from measur.ng asset, o, llabZ.s or
recognising the gams and losses on them on different bases. The Company has not designated any debt instrument as at FVTPL
orTo^Th.”^ 0t fVrP\ *'* *' f“’r Value *',h' 'nd °f aach r'B0r,,n* penod' *lth a"V 6-ns or tosses arlsmg on reme.su,ements recognised In profit
L ,«m Dividend" \ a"Y dividend or interest earned on ,h. financial assa, and is included ,n the 'Other income'
benefit"1 , h T ^ “ reC°g",S'd Wde" «" C°mpa"*'s a tha *«•"* ,s established, I, probable that the economtc
dM^rL“r,rrw"'flow ,o the e",,,v',he d,v,de-d doas not r~a—-«--- - —- - -
2.6.5 Investments in equity instruments at FVTOCI
ItZT COm°a"V make an lrre',OCable eleC"°n (°n *" mstrument-by-inst rumen, basis) to present the subsequent changes in fair value in
elected rrf T ,nCOmVMrta'n,ng “ lnve5'ments instruments. This election is no, permitted If the equity mvestment is held for trading These
e ected investments are Initially measured at fair value plus transaction costs. *
LUc"dintt "LZZ1 atJ,,r;alUa W'thhga,n5 a"d ,05S'5 ....... ,r°m £ha"gai in -««"<- ib other comprehensive income and
dlsisa, onhI"ntLm.nt ' ^ ^ Cd"”’rehe"s'« “™'a"« *a'" »r toss is no, recass.fied to profit or toss on
A financial asset is held for trading if:
•it has been acquired principally for the purpose of selling it in the near term or
term";rZg"or°" “ * * h0^"0 * 'd'nti'l,d ,in*naa' 'ha' 'h' Cd"«a"y ™"ag« «*•*.....< baa a — actual pattern o, shor
•it is a der.vative that Is not designated and effecnve as a hedging instrument or a financial guarantee
XbT^tthT^ZT^ m adU,tV ara Ptofi, or toss when the Company's right to receive the dividends is established. I, is
p obable that the economic benefits associated with the dividend win flow to the entity, the dlv.dend does not represent a recovery of part of cos. of th. nvestmen, and the amount of dividend can be measured reliably. Dividends recognised ,n profit or loss 1> included In the 'Other Income' line „em The Company has not elected for the FVTOCI irrevocable option for this Investment.
2.6.6 Impairment of financial assets
^.<^,3, rr;;,afrard'lao^g bas,s the expec,ed cred'' iosms asso,:ia"d ^,u «• ****** ^ on
from transactions that m It! '""**? credlt n,k' For ,rade rac'luable'- or a"V contractual right to receive cash or another financial asset that result withm the scop, of md AS 18, the Company always measure, the toss allowance at an amount equal to lifetime expected credit tosses
t-SjS!
2.6.7 Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the r.sxs and rewards of ownership of the asset to another party, if the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognises its retained .merest in the asset and an associated liability for amounts .t may have to pay If the Company retains substantially all the risks and rewaros of ownership of a transferred financial asset, the Company continues .o recognise the financial asset and recogmses a collateralised borrowing for the proceeds received
On derecognition of a financial asset ,n „s entirety, the difference between the asset s carrying amount and the sum of the consideration received and receivable and the cumulative gam or loss that nad been recognised .n other comprehensive income and accumulated in equity ,s recognised ,n profit or loss If such ga.n or •oss would have otherwise oeen recognised In profit or loss on disposal of that financial asset
a°L«esT'!T °' * "nanC'*' *“*' 0'her ,h*" em,r"V " 8 "h'n ,h” COmPanV re“,nS an 10 'e‘>u'ch»« <»« - • transferred asset), the Company c3se l m, LU Car,T T°Un?' ,h' f'nan.C,al aMe! h5™"" ,he part " » -W- under continuing involvement, and the oat, „ no longer
thaus 1 one re^nhld ft? T ^ 1(3,5 °f ** 'n”h' be''"33" th3 *™unt allocated to the part
£.n r.7oen Ld T ' ° ' CPmW'fa''°" 1 tecogn.sed and any cumulative ga,n or loss allocated ,o I. that had
been recognised other comprehensive .ncom, ,s recognised ,n profit or loss if such „,n or loss would have otherw.se been recogn.sed In profit or loss on
: ^ 8am " ZZh3d b55n ,5C08n,S5d “mpr3h'™3 •«— - »«>ween the oar, that continues
recognised and the pert that is no longer recognised on the basts of the relative fair values of those parts.
2.7 Financial liabilities and equity instruments 2-7.1 Classification as debt or equity
aDt7ngenmeen,s *1 *' ‘T'’’3'"' 8,5 C'3SS,r,ed “ 5l'h5r °' 35 «**» in Ý«*•«« with the substance of the contractu.,
a rangements and the definitions of a financial liability and an equity Instrument.
2.7.2 Equity instruments
deducting all of its liabilities. Equity Instruments Issued by the Company are recognised at the proceed, received, net of direct Issue costs,
purch,tSse„°,f ,S ,5C08n,S5d and d5dUCt5d *•«* 3p^ N» *3'" " * -ogmsed in profit or loss on the
hu i-nase. saie. issue or cancei.ation of the Company s own equity instruments.
2.7.3 Financial liabilities
All financial liabilities are subsequently measured at amqrtised cost us.ng the effective interest method or at FVTPL
2.7.4 Financial liabilities at FVTPL:
financial liabilities are classified as at FVTPL when the financial liability Is either held for trading or I, is designated as a, FVTPL A financial liability Is classified as held for trading if:
•It has been incurred princ.pally for the purpose of repurchasing it in the near term- or
;ro"grTm'°n " Mrt °f * 0OrrfO"° * ld5n,,'"d f,nanC'al ms,'um5n“lha'*• C°—V manages ...... has a recent actual pattern o, sHort-ter,
•it IS a derivative that is not designated and effecbve as a hedging instrument
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MM SS"™ “““ — « •» ----
Statement of Profit and Loss. C 3 '3 ^ ereco6n'sed and the consideration paid and payable is recognised In
2.7.5 Other financial liabilities:
Other flnanc.1 liabilities including borrowings are subsequently measured a, amortised cost using me effective interest method.
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—mm.s.zzzzzz r.r,r.“ r- ~—*• -.....—........ -(— •»»»•«”.
2.7.6 Derecognition of financial liabilities
2.8 Investment in Subsidiaries
The investment In subsidiaries are earned a, cost as oer IND AS 27. The Company regardless of the nature of its involvement with an entity (the Investee) determines whether .t is a parent by assessing whether „ contro.s the investee. The Company controls an .nyestee when ,t „ exposed, or has rights to variable eturns from Its Involvement with the investee and has the ability to affect those returns through its power over the investee.
Thus, the Company controls an Investee f and only if it has all the following;
•power over the investee;
•exposure, or rights, to variable returns from its involvement with the investee and •the ability to use its power over the investee to affect the amount of the returns.
“Tmppl“nd 3|C°rda',Ce AS 105 Whe" ,h'V "* C,aSS’*ed “ held ,0r d's00»' * the difference between ,ts
carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
2.9 Inventories
inventories comprise of Raw Materials. Work in Progress, Stores and spares. Packing Materials and Finished Goods.
Cost of Raw Materials. Work in Progress. Stores & Spares. Packing Material Is determined at FIFO Basis.
Finished Goods and stock in trade Is valued at lower of cost or net realisable value
2.10 Revenue recognition
---*-----Ý--
Interest Income
interest Income ,s recognlted on a time proportion basis taking into account the amount outstanding and applicable interest rate.
2.11 Income Tax
.....——......—
whirr:::;:; !awi rrr 5udi“m,veiv ",ac,ed at me end * the —*—- -
With -aspect ,c situations in whll ^1 ^b ^oT s "TXT* “ *>"»
expected to be paid to the ta, authorities ' interpretation. It establishes provisions where appropriate on the basis of amounts
- -—-— .no
end of the reporting oenod and are excepted to apply when the related defer-edTcir IT” "nd.'aW51 have a"a<:"d or sub!«n>|e"V enacted by the Deferred tax assets are recognised for all Z T 1 ***“ “ the de,er™ tab-hty is settled,
available to utilise those temporary differences and osses Deferred ,erenCeJ *" ^nused tax lMses °nl'' lf " “ P'obable that future taxable amounts will be tax assets and liabilities and ^ ^ “ * "8a"* ^ to offset current
company nas a legally enforceable right to offset and intend- e thor to m * *"! °n ailt °ntV Current !ax assats and tax babilUlM are off set where the Current and deferred tax Is °n ” ’ “ r“"Za ,h' N*bili* “™'‘a"a°-'V
dr directly in equity ,n this case, the tax ,s also recognised In otl, COmbrahadsi« '"“™
oniy\o“;r:t rs r1 and t as currem ,ax The companv mat — •-«* -»—
is allowed to be earned forward In le^l whlchle CoZT, Zr ‘°'°f"d P'rtod ’ha daPod '°r »h'ch MAT «-*
.........
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2.12 Employee Benefits:
2.12.1 Short-term obligations
“‘/“I ’7" Snd ,nclud,ng "‘’"-"oneurv befits that .re expected co be settled wholly within twelve month, after the end of the o.„od in
2.12.2 Post-employment Defined contribution plan
—>—-
Defined benefit plan
zzzLrzzz'xztzz szzzz, : -r - —-—-> —-
=;rr~=~^
securities as at the balance sheet date 8i,l0n Und*' d<,,ined h'™*' D,8"s’'» ba5'd th' "»*« Vleld, oh Government
The company recognizes the following changes in the net defined benefit obligation under Employee benefit expense in statement of prof,, or loss'
costv co!,s- *" -d —• «•«- — -t,.,™*
a“" C*"int '<C,Udln8 ~ *“ * W— on the net defined benef,,
Sheet w„h a corresponding debit or T T "“h"'*1' ^ ,eC08n'“a «" Balance
reclassified to profit or loss In subsequent periods. P enSIVe nconne " the penod ,n whlch th'V occur. Remeasurements are not
2.13 Transition to Ind AS
The following is the summary of practical expedients elected on initial application
ITZ* r/exetZ not t“ * h^"0 °f S'm"3r ““ S,m"ar ** 8 similar end date
«r,.PbP.l?e ,r,r;;uaSSetS and ,iabiH,leS * 'H“! ""h *“ lh8" « of lease term on the d„, of initial appllcatio,
•Excluded the imbal d.rec, costs from the measurement of ,h. nght-of-use ass., at the da,, of Initial appl,canon.
2.14 Segment reporting:
businesses th* account,n8 Pohc.es adopted for the Company The Company’s operating
dr;";x:s:ryZ7r^*nd^diff'r'b‘ma^Tb:—
Unallocated “rd «pe^ Wh‘Ch “ Pr,ma"1'' m8^" b85“
However, the company has no separate business end geographical segments to be reported.
2.15 Earnings Per Share
equity shares outstanding during ThTw^hted avlrage^tar ofe D'r,0d 8!tr'but8bl9 t0 8<<uitV shareholders by the weighted average number of
2.16 Borrowing costs
acqu,s,,;°"' ~on °r produc,ran °’ qua"fv''’8 ^ **Ý •»—«Ý* —v ready for their intended uw or sale All other borrowing costs are recogn^e'd m Sutemem If Profit th^rare SUbSt,ntlall',
2.17 Cash and cash equivalents
.....—,
~-rzs,r r res cash -Ý ---«- - •——.
...................
2.18 Foreign currency translation Functional and presentation currency
recorded on bit,.I r!^£nT,^ F°r''en CUrr'"CV 'r*"“Ctton *"
Measurement of foreign currency item at the balance sheet date:
:F;rmo,r;zrr“
transactions. '8 urrenCY are translated using the excnange ratej at the dates of the Initi
Exchange differences:
Exchange differences a sing on sett,.men, or translate of monetary Items............. as income or expense in the Statemer t of Prof,, 8 Loss.
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