m) Provision for liabilities and charges, Contingent liabilities and contingent assets
The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS.
Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the
Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources,
that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount
rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Unwinding of the discount is recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting
date and are adjusted to reflect the current best estimate.
The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance
sheet. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based
on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations
are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although
there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that
such contingencies will have a material effect on its financial position or profitability.
Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.
n) Foreign currency transactions
In the financial statements of the Company, transactions in currencies other than the functional currency are translated into the
functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in other
currencies are translated into the functional currency at exchange rates prevailing on the reporting date. Non-monetary assets and
liabilities denominated in other currencies and measured at historical cost or fair value are translated at the exchange rates prevailing
on the dates on which such values were determined.
All exchange differences are included in the statement of profit and loss except any exchange differences on monetary items
designated as an effective hedging instrument of the currency risk of designated forecasted sales or purchases, which are recognized
in the other comprehensive income.
o) Earnings per share
The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing
the profit and loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding
during the period. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted
average number of equity shares outstanding for the effects of all dilutive potential equity shares.
p) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.
Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Inter
segment revenue are accounted for based on the cost price. Revenue, expenses, assets and liabilities which are not allocable to
segments on a reasonable basis, are included under "Unallocated revenue/ expenses/ assets/ liabilities".
q) Cash Flow Statement
Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit / (loss) before tax
is adjusted for the effects of transactions of 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 based on the available information.
r) Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of
the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
For arrangements entered into prior to 1 April 2015, the Company has determined whether the arrangement contains lease on the
basis of facts and circumstances existing on the date of transition.
Company as a lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and
rewards incidental to ownership to the Company is classified as a finance lease.
Finance leases are capitalized at the commencement of the lease at the inception date fair value of the leased property or, if lower, at
the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the
lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in
finance costs in the statement of profit and loss, unless they are directly attributable to qualifying assets, in which case they are
capitalized in accordance with the Company’s general policy on the borrowing costs. Contingent rentals are recognised as expenses
in the periods in which they are incurred.
Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.
s) Use of Estimates and Judgments
The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and
disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and
expenses for the years presented. Actual results may differ from these estimates under different assumptions and conditions.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and future periods affected.
|