1.2 Material accounting policies
a Revenue recognition
Revenue is recognised to the extent that it is
probable that the economic benefits will flow
to the Company and the revenue can be reliably
measured, regardless of when the payment is
made. Revenue is measured at the fair value of
the consideration received or receivable, taking
into account contractually defined terms of
payment and net of taxes or duties collected on
behalf of the government.
Interest and dividend income
Interest income from debt instruments is
recognised using the effective interest rate
method. The effective interest rate is the rate
that exactly discounts estimated future cash
receipts through the expected life of the financial
asset to the gross carrying amount of a financial
asset. When calculating the effective interest
rate, the Company estimates the expected cash
flows by considering all the contractual terms of
the financial instrument but does not consider
the expected credit losses.
Dividends are recognised in profit or loss
only when the right to receive payment is
established, it is probable that the economic
benefits associated with the dividend will flow
to the Company, and the amount of the dividend
can be measured reliably.
b Property, plant and equipment and
depreciation
1 Tangible assets
Property, plant and equipment are stated
at cost less accumulated depreciation and
impairment losses, if any. Cost comprises
purchase price and any attributable cost of
bringing the asset to its working condition
for its intended use.
Depreciation on Property, plant and
equipment is provided on straight-line
basis based on useful lives of the assets
prescribed in Schedule II of the Companies
Act, 2013.
2 Subsequent expenditure
Subsequent expenditure is capitalised only
if it is probable that the future economic
benefits associated with the expenditure
will flow to the Company.
3 Intangible assets
Intangible assets are carried at cost
less accumulated amortisation and
accumulated impairment losses, if any.
The Company only has software as an
intangible asset having a useful life of
5 years.
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 or loss when the asset
is derecognised.
c Impairment of property, plant and
equipment and intangible assets
The Company assesses at each reporting date
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset
is required, the Company estimates the asset's
recoverable amount. An asset's recoverable
amount is the higher of an asset's or cash¬
generating unit's (CGU) net selling price and
its value in use. The recoverable amount is
determined for an individual asset, unless the
asset does not generate cash inflows that are
largely independent of those from other assets
or groups of assets. Where the carrying amount
of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and
is written down to its recoverable amount. In
assessing value in use, the estimated future
cash flows are discounted to their present
value using a pre-tax discount rate that reflects
current market assessments of the time value of
money and the risks specific to the asset.
d Foreign currency transactions
Transactions and balances
Foreign currency transactions are translated
into the functional currency using the
exchange rates prevailing on the dates of
the transactions or an average rate if the
average rate approximates the actual rate on
the date of transaction. Monetary assets and
liabilities denominated in foreign currencies
are translated into the functional currency
at the exchange rate at the reporting date.
Non-monetary assets and liabilities that are
measured at fair value in a foreign currency
are translated into the functional currency
at the exchange rate when the fair value
was determined. Non-monetary assets and
liabilities that are measured based on historical
cost in a foreign currency are translated at the
exchange rate on the date of the transaction.
Exchange differences are recognised in the
statement of profit or loss.
e Income taxes
Income tax comprises current and deferred
tax. It is recognised in the statement of profit
and loss except to the extent that it relates to
an item recognised directly in equity or in other
comprehensive income.
Current tax
Current tax comprises the expected tax payable
or receivable on the taxable income or loss for
the year and any adjustment to the tax payable
or receivable in respect of previous years. The
amount of current tax reflects the best estimate
of the tax amount expected to be paid or received
after considering the uncertainty, if any, related
to income taxes. It is measured using tax rates
(and tax laws) enacted or substantively enacted
by the reporting date.
Current tax assets and liabilities are measured
at the amount expected to be recovered from
or paid to the taxation authorities. Current tax
assets and current tax liabilities are offset only
if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise
the asset and settle the liability on a net basis
or simultaneously.
Current tax relating to items recognised outside
profit or loss is recognised outside profit or
loss (either in other comprehensive income or
in equity). Current tax items are recognised in
correlation to the underlying transaction either
in Other Comprehensive Income or directly
in equity. Management periodically evaluates
positions taken in the tax returns with respect
to situations in which applicable tax regulations
are subject to interpretation and establishes
provisions where appropriate.
Deferred tax
Deferred tax is recognised in respect of
temporary differences between the carrying
amounts of assets and liabilities for financial
reporting purposes and the corresponding
amounts used for taxation purposes. Deferred
tax is also recognised in respect of carried
forward tax losses and tax credits. Deferred tax
is not recognised for:
• temporary differences arising on the
initial recognition of assets or liabilities
in a transaction that is not a business
combination and that affects neither
accounting nor taxable profit or loss at the
time of the transaction.
Deferred tax assets are recognised to the extent
that it is probable that future taxable profits will
be available against which they can be used. The
existence of unused tax losses is strong evidence
that future taxable profit may not be available.
Therefore, in case of a history of recent losses,
the Company recognises a deferred tax asset
only to the extent that it has sufficient taxable
temporary differences or there is convincing
other evidence that sufficient taxable profit
will be available against which such deferred
tax asset can be realised. Deferred tax assets-
unrecognised or recognised, are reviewed
at each reporting date and are recognised/
reduced to the extent that it is probable/no
longer probable respectively that the related tax
benefit will be realised.
The measurement of deferred tax reflects the
tax consequences that would follow from the
manner in which the Company expects, at the
reporting date, to recover or settle the carrying
amount of its assets and liabilities.
Deferred tax assets and liabilities are offset
if there is a legally enforceable right to offset
current tax liabilities and assets, and they
relate to income taxes levied by the same
tax authority on the same taxable entity, or
on different tax entities, but they intend to
settle current tax liabilities and assets on a net
basis or their tax assets and liabilities will be
realised simultaneously.
f Earnings per share
The basic earnings per share is computed by
dividing the net profit attributable to owner's
of the Company for the year by the weighted
average number of equity shares outstanding
during reporting period.
Diluted earnings per share amounts are
calculated by dividing the profit attributable to
equity holders of the Company by the weighted
average number of equity shares outstanding
during the year plus the weighted average
number of equity shares that would be issued
on conversion of all the dilutive potential equity
shares into equity shares.
Dilutive potential equity shares are deemed
converted as of the beginning of the reporting
date, unless they have been issued at a later
date. In computing diluted earnings per share,
only potential equity shares that are dilutive
and which either reduce earnings per share or
increase loss per share are included.
g Employee stock option cost
Stock Options are granted to eligible
employees of the Company and its subsidiary
under the Employee Stock Option Schemes,
as may be decided by the Nomination &
Remuneration Committee. The cost of equity-
settled transactions is determined by the fair
value at the date when the grant is made using
an appropriate valuation model. The cost is
recognised, together with a corresponding
increase in stock option outstanding reserve
in equity, over the period in which the
performance and/or service conditions are
fulfilled in employee benefits expense. The
cumulative expense recognised for equity-
settled transactions at each reporting date
until the vesting date reflects the extent to
which the vesting period has expired and the
Company's best estimate of the number of
equity instruments that will ultimately vest.
The statement of profit and loss expense or
credit for a period represents the movement
in cumulative expense recognised as at
the beginning and end of that period and is
recognised in employee benefits expense. The
Company has created an Employee Benefit
Trust for providing share-based payment to
its employees.
h Financial assets, financial liabilities and
equity instruments
Financial assets and liabilities are recognised
when the Company becomes a party to the
contractual provisions of the instrument.
Financial assets and liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue
of financial assets and financial liabilities (other
than financial assets and financial liabilities at
fair value through profit or loss) are added to or
deducted from the fair value measured on initial
recognition of financial asset or financial liability.
The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers the
rights to receive the contractual cash flows in a
transaction in which substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which the Company neither
transfers nor retains substantially all of the risks
and rewards of ownership and does not retain
control of the financial asset.
Financial assets and financial liabilities are offset
and the net amount presented in the balance
sheet when, and only when, the Company
currently has a legally enforceable right to set
off the amounts and it intends either to settle
them on a net basis or to realise the asset and
settle the liability simultaneously. The legally
enforceable right must not be contingent on
future events and must be enforceable in the
normal course of business as also in the event
of default, insolvency or bankruptcy of the
Company or the counterparty.
Cash and cash equivalents
The Company considers all highly liquid financial
instruments, which are readily convertible into
known amounts of cash that are subject to an
insignificant risk of change in value and having
original maturities of three months or less from
the date of purchase, to be cash equivalents.
Cash and cash equivalents consist of balances
with banks which are unrestricted for withdrawal
and usage.
Financial assets at amortised cost
Financial assets are subsequently measured
at amortised cost if these financial assets are
held within a business whose objective is to hold
these assets to collect contractual cash flows
and the contractual terms of the financial assets
give rise on specified dates to cash flows that are
solely payments of principal and interest on the
principal amount outstanding.
Financial assets at fair value through
other comprehensive income
Financial assets are measured at fair value through
other comprehensive income if these financial
assets are held within a business whose objective
is achieved by both collecting contractual cash
flows on specified dates that are solely payments
of principal and interest on the principal amount
outstanding and selling financial assets.
Financial assets at fair value through
profit or loss
Financial assets are measured at fair value
through profit or loss unless they are measured
at amortised cost or at fair value through other
comprehensive income on initial recognition.
The transaction costs directly attributable to the
acquisition of financial assets and liabilities at
fair value through profit or loss are immediately
recognised in statement of profit and loss.
Investment in subsidiaries
Investment in subsidiaries are measured at cost
less impairment loss, if any.
Financial liabilities
Financial liabilities are measured at amortised
cost using the effective interest method.
Equity instruments
An equity instrument is a contract that evidences
residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments
issued by the Company are recognised at the
proceeds received net of direct issue cost.
i Cash flow statement
Cash flows are reported using the indirect
method, whereby net profit before tax is
adjusted for the effects of transactions of a non¬
cash nature and any deferrals or accruals of past
or future cash receipts or payments.
The cash flows from operating, investing
and financing activities of the Company are
segregated. For the purpose of the statement of
cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above,
net of outstanding bank overdraft and book
overdraft as they are considered an integral part
of the Company's cash management.
j Operating segments
Operating segments are defined as components
of an enterprise for which discrete financial
information is available that is evaluated
regularly by the chief operating decision maker
for assessing the Company's performance and
allocating the resources based on an analysis
of various performance indicators by business
segments and geographic segments.
k New and amended standards
The Ministry of Corporate Affairs has notified
new standards or amendment to existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
The Company applied following amendments
for the first-time during the current year which
are effective from April 01, 2024.
i Ind AS 117 Insurance Contracts
The Ministry of corporate Affairs (MCA)
notified the Ind AS 117, Insurance Contracts,
vide notification dated August 12, 2024,
under the Companies (Indian Accounting
Standards) Amendment Rules, 2024, which
is effective from annual reporting periods
beginning on or after April 01, 2024.
Ind AS 117 Insurance Contracts is
a comprehensive new accounting
standard for insurance contracts
covering recognition and measurement,
presentation and disclosure. Ind AS 117
replaces Ind AS 104 Insurance Contracts.
Ind AS 117 applies to all types of insurance
contracts, regardless of the type of entities
that issue them as well as to certain
guarantees and financial instruments
with discretionary participation features;
a few scope exceptions will apply. Ind
AS 117 is based on a general model,
supplemented by:
• A specific adaptation for contracts with
direct participation features (the variable
fee approach)
• A simplified approach (the premium
allocation approach) mainly for short-
duration contracts
The amendments had no impact on the Company's financial statements
as the Company has not entered any contracts in the nature of insurance
contracts covered under Ind AS 117.
ii Amendment to Ind AS 116 Leases - Lease Liability in a Sale and
Leaseback
The MCA notified the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024, which amend Ind AS 116, Leases, with respect to
Lease Liability in a Sale and Leaseback.
The amendment specifies the requirements that a seller-lessee uses in
measuring the lease liability arising in a sale and leaseback transaction, to
ensure the seller-lessee does not recognise any amount of the gain or loss
that relates to the right-of-use it retains.
The amendment is effective for annual reporting periods beginning on
or after April 01, 2024 and must be applied retrospectively to sale and
leaseback transactions entered into after the date of initial application of
Ind AS 116.
The amendments had no impact on the Company's financial statements.
i) During the previous year, short-term loan of 138.15 million was granted to
Hardcastle Restaurants Private Limited, which is repayable on demand. The loan
carries interest at the rate of 8% per annum which is repayable on demand. The
Company has not exercised its right to demand the loan during the year. As at
March 31, 2025, the amount outstanding in respect of the loan granted is 110.00
million (March 31, 2024: 128.15 million) and interest receivable is Nil (March 31,
2024: 11.31 million).
ii) During the financial year ended March 31, 2022, short-term loan of 155
million was granted to Westlife ESOS Trust, which is repayable on demand.
The loan granted is an interest free loan since this trust is an extended
arm of the Company and has been set up for the purpose of facilitating the
Employee Stock Option Scheme (“ESOP”) by the Company. The Company
has not exercised its right to demand the loan during the year. As at
March 31, 2025, the amount outstanding in respect of the loan granted is
154.13 million (March 31, 2024: 154.49 million).
iii) Loans are within India and it includes 10.05 million towards corpus fund of
the Trust.
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