P. Provisions:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted. Contingent liabilities and contingent assets are not recognized in the financial statements but are disclosed in the notes.
Warranty provisions:
Provision for warranty related costs are recognized on sale of product or service rendered based on historical experience and technical assessment and reviewed annually.
Onerous contracts:
A provision for onerous contracts other than construction contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.
Q. Financial Assets:
Recognition and measurement:
All financial assets are recognized initially at fair value. Subsequently, financial assets are measured at fair value or amortized cost based on their classification.
Embedded derivative:
If the hybrid contract contains a host that is a financial asset within the scope of Ind-AS 109, the Company does not separate embedded derivatives. Rather, it applies the classification requirements contained in Ind AS 109 to the entire hybrid contract. If the hybrid contains a host that is not an asset within the scope of Ind AS 109, the embedded derivative is separated and accounted at fair value.
Derecognition:
A financial asset or part of a financial asset is derecognized when the rights to receive cash flows from the asset have expired.
Trade and other receivables:
Receivables are initially recognized at fair value, which in most cases approximates the nominal value. If there is any subsequent indication that those assets may be impaired, they are reviewed for impairment.
Cash and cash equivalents:
Cash comprises of cash on hand and demand deposits. Cash equivalents are short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash, which are subject to an insignificant risk of change in value.
Impairment of financial assets:
In accordance with Ind-AS 109, the Company applies the expected credit loss (ECL) model for measurement and recognition of impairment loss on financial assets with credit risk exposure.
R. Financial Liabilities:
Recognition and measurement:
Financial liabilities are classified, at initial recognition, at fair value through statement of profit and loss as loans, borrowings, payables, or derivatives, as appropriate.
Financial liabilities are measured based on their classification at fair value through statement of profit and loss, amortized cost or fair value through other comprehensive income.
Derecognition:
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
Trade and other payables:
Liabilities are recognized for amounts to be paid in future for goods or services received, whether billed by the supplier or not.
S. Financial Assets and Liabilities Reclassification:
Reclassification of financial Assets and Liabilities:
After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For other financial assets, a reclassification is made prospectively only if there is a change in the business model for managing those assets.
Offsetting of financial Assets and Liabilities:
Financial assets and financial liabilities are offset and the net amount is reported in
the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis.
T. Earnings per share:
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year, adjusted for own shares held.
Diluted earnings per share is determined by adjusting profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
U. Cash dividend and non-cash distribution to equity shareholders:
The Company recognizes a liability to make cash or non-cash distributions to equity holders when the distribution is authorized and the distribution is no longer at the discretion of the Company.
V. Events after the reporting period:
Adjusting events are events that provide further evidence of conditions that existed at the end of the reporting period. The financial statements are adjusted for such events before authorization for issue.
Non-adjusting events are events that are indicative of conditions that arose after the end of the reporting period. Non-adjusting events after the reporting date are not accounted, but disclosed.
As per our report of even date attached For and on behalf of the Board of Directors For G Natesan & Co,
Chartered Accountants
Firm Registration Number: 002424S
Sd/- Sd/- Sd/-
CA. K MURALI ANIL JERATH SHANTANU ROY
Partner Director (Finance) Chairman & Managing Director
Membership No.: 024842 (DIN 09543904) (DIN 10053283)
Sd/-
Place: Mysore JAI GOPAL MAHAJAN
Date: 12.05.2024 Company Secretary
|