h) Provisions and Contingencies
The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying
economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.
If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting
is used, the increase in the provision due to the passage of time is recognized as a finance cost.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying
economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of
resources embodying economic benefits is remote, no provision or disclosure is made.
i) Cash and Cash Equivalents
Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances and demand deposits with banks where the original maturity
is three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
j) Employee Benefits
Short Term Employee Benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized as an expense at the
undiscounted amount in the Statement of Profit & Loss of the year in which related service is rendered.
k) Events after Reporting date
Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the
financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.
l) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders 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 are divided with the
weighted average number of shares outstanding during the year after adjustment for the effects of all dilutive potential equity shares.
3. Key Accounting Estimates & Judgements
The preparation of the Company’s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of assets or liabilities affected in future periods.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year, are described below:
a. Income taxes
Deferred tax assets are recognised for unused tax losses / MAT carry forward to the extent is probable that taxable profit will be available against which the losses can be utilised.
Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable
profits together with future tax planning strategies including amount expected to be paid / recovered for uncertain tax positions (Refer Note 9).
b. Property, Plant and Equipment and Useful Life of PPE and Intangible Assets
Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an
estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by the
management at the time the asset is acquired and reviewed periodically, including at each financial year end. The life based on historical experience with similar assets as well as
anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a
change in market demand of the product or service output of the asset.
c. Fair value measurement of Financial Instruments
When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is
measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.
b) Terms / Rights attached to Equity Shares
The Company has one class of equity shares having a par value of ? 10/- per share. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Director is subject to
the approval of the shareholders in the ensuing Annual General meeting . In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of
all preferential amount, in proportion to their shareholding.
c) The Company being ultimate holding company, there are no shares held by any other holding, ultimate holding company and their subsidiaries / associates. Details of shareholders holding more than
5% shares in the Company is given as below:
The management assessed that the fair value of cash and cash equivalents, trade receivables, derivative instruments, trade payables and other current financial assets and
liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.
25 A Financial Risk Management Objectives and Policies:
The Company’s principal financial liabilities comprises trade and other payables and other financial liabilities. The main purpose of these financial liabilities is to finance and
support the operations of the Company. The Company’s principal financial assets include trade and other receivables, loans and cash and cash equivalents that derive directly
The Company’s business activities are exposed to a variety of risks including liquidity risk, credit risk and market risk. The Company seeks to minimize potential adverse effects
of these risks on its financial performance and capital. Financial risk activities are identified, measured and managed in accordance with the Company's policies and risk
objectives which are summarized below and are reviewed by the senior management.
(A) Credit risk
Credit risk refers to risk of financial loss to the Company if customers or counterparties fail to meet their contractual obligations. The Company is exposed to credit risk from its
operating activities (mainly trade receivables).
(i) Credit risk management
(a) Trade Receivables
Customer credit risk is managed by the Company through its established policies and procedures which involve setting up credit limits based on credit profiling of individual
customers, credit approvals for enhancement of limits and regular monitoring of important developments viz. payment history, change in credit rating, regulatory changes,
industry outlook etc. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 7. Outstanding
receivables are regularly monitored and an impairment analysis is performed at each reporting date on an individual basis for each major customer. On account of adoption of
(B) Liquidity Risk
Liquidity risk implies that the Company may not be able to meet its obligations associated with its financial liabilities. The Company manages its liquidity risk on the basis of the
business plan that ensures that the funds required for financing the business operations and meeting financial liabilities are available in a timely manner and in the currency
required at optimal costs. The Management regularly monitors rolling forecasts of the Company’s liquidity position to ensure it has sufficient cash on an ongoing basis to meet
(C) Market Risk
Market risk is the risk that the fair value of future cash flow of financial instruments may fluctuate because of changes in market conditions. Market risk broadly comprises three
types of risks namely foreign currency risk, interest rate risk and price risk (for commodities) . The above risks may affect the Company’s income and expense and profit.
26 First-time adoption of Ind AS
These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 2 have been applied in preparing the financial
statements for the year ended March 31,2022 and the comparative period information.
For all periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with Generally Accepted Accounting Principles
(GAAP) in India and complied with the accounting standards as notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules,
2014, to the extent applicable, and the presentation requirements of the Companies Act, 2013 (Previous GAAP). The transition to Ind AS was carried out in accordance with Ind AS
101, with April 1,2016 being the date of transition. This note explains the exemptions on the first-time adoption of Ind AS availed in accordance with Ind AS 101 and an explanation of
how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows.
Exemptions availed and mandatory exceptions Ind AS 101 First-time Adoption of Indian Accounting Standards allows first-time adopters certain exemptions from retrospective
application of certain requirements under Ind AS. Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous
GAAP to Ind AS.
Ind AS optional exemptions
A. Deemed cost for property, plant and equipment and intangible assets
The Company has elected to continue with carrying value as recognised in its Indian GAAP Financial Statements of following items as deemed cost at the transition date, viz., April 1,
2016 in accordance with Ind-AS 101- First-time Adoption of Indian Accounting Standards.
i) Property Plant and Equipment
B. Designation of previously recognised financial instruments
Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.
C. Investments in subsidiaries
Ind AS 101 permits a first-time adopter to measure its investments in subsidiaries at deemed cost. The deemed cost of such an investment could be either
(a) its fair value at the date of transition; or
(b) previous GAAP carrying amount at that date.
The option may be exercised individually and separately for each item of investment.
Accordingly, the Company has opted to measure its investments in subsidiaries at previous GAAP carrying amount as its deemed cost.
Footnotes to the reconciliation
Note 1
Dies, Spares and inventory
As per Ind AS 16, Property, plant and equipment (PPE) are tangible items that are held for use in the production or supply of goods or services and are
expected to be used during more than one accounting period.
Note 2
Deferred Tax
In the financial statements prepared under Previous GAAP, deferred tax was accounted as per the income statement approach which required creation
of deferred tax asset/liability on temporary differences between taxable profit and accounting profit. Under Ind AS, deferred tax is accounted as per the
Balance Sheet approach which requires creation of deferred tax asset/liability on temporary differences between the carrying amount of an asset/liability
in the Balance Sheet and its corresponding tax base.
Note 3
Revenue
Under previous GAAP, revenue is measured at transaction value. Under Ind AS revenue is recognized at fair value of consideration received or
receivable which require adjustment of all discounts and rebates as netted from revenue. Accordingly, discounts earlier grouped under other expenses
is netted off with revenue.
29 Standards issued but not effective
The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these
standards, if applicable, when they become effective.
The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018
amending the following standards:
Ind AS 115 Revenue from Contracts with Customers
This clause is not applicable to the company.
Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses
The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary
difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery
of some assets for more than their carrying amount.
These amendments are effective for annual periods beginning on or after 1 April 2018. These amendments are not expected to have any impact on the Company as the Company has no
deductible temporary differences or assets that are in the scope of the amendments.
Amendments to Ind AS 112 Disclosure of Interests in Other Entities, Ind AS 40 Investment Property and Ind AS 28 Investments in Associates and Joint Ventures are not applicable to the Company.
30 The Ind AS comparative financial information of the Companyfor theyearended March 31, 2017 and the transition date opening balance sheet as at April 1, 2016 included in these standalone Ind
AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the accounting principles generally accepted in India, including the
Companies (Accounting Standards) Rules, 2006 (as amended) specified under section 133 of the Act, read with the Companies (Accounts) Rules, 2014 audited by the auditor whose report for the
year ended March 31, 2017 and March 31, 2016 dated May 30, 2017 and May 30, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted forthe
differences in the accounting principles adopted by the Company on transition to the Ind AS.
As per our report of even date For and on behalf of the Board of Directors of
Dalmia Industrial Development Limited
For M/S Ghosh and Ghosh
Chartered Accountants
ICAI Firm Registration No. 306020E
( Raj Mohta ) Naren Kumar Joshi
Whole Time Director Director
DIN: 03575779 DIN: 09008182
G.SINHA
Partner
Membership No. 050488
UDIN No:- 24050488BKHJXH6887
Place: Kolkata
Dated: 20.05.2024
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