Click it and Unblock the Notifications
Accounting Policies of Lancer Container Lines Ltd. Company
Mar 31, 2025
2. Significant accounting policies
The financial statements have been prepared on the following basis:
2.1 Basis of accounting and preparation of financial statements
These financial statements have been prepared in accordance with Ind AS as prescribed under section 133 of the Companies
Act 2013 read with Companies (Indian Accounting Standards) Rules, as amended from time to time.
These financial statements have been prepared on a historical cost basis, except following assets and liabilities which have
been measured at fair value:
Defined Benefit plans-plan assets:
Up to the year ended March 31,2018, the Company has prepared its financial statements in accordance with the requirement
of Indian Generally Accepted Accounting Principles (GAAP) which includes standards notified under the Companies
(Accounting Standards) Rules, 2006 and considered as " Previous GAAP".
The functional and presentation currency of the Company is Indian Rupee (''T'') which is the currency of the primary economic
environment in which the Company operates.
2.2 Use of estimates
The preparation of the financial statements are in conformity with Ind AS requires the Management to make estimates,
judgement and assumptions. These estimates, judgement and assumption affect the application of accounting policies
and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could
change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made
as the management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes are made and if material, their effects are disclosed in
the notes to the financial statements.
2.3 Revenue recognition
Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership
to the buyer, which generally coincides with the delivery of goods to customer Sale of goods is net of Indirect taxes, returns
and discounts.
Interest income from a financial asset is recognised using effective interest rate method. Dividend income is accounted for
when the right to receive the payment is established.
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there
is no uncertainty in receiving the claims.
Other income is accounted for on accrual basis except where the receipt of income is uncertain in which case it is accounted
for on receipt basis.
2.4 Inventories (For Trading)
Inventories of Containers are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other
cost including customs duty incurred in bringing inventories to their present location and condition.
2.5 Property, Plant and Equipment
Property, plant and equipment are stated at cost of acquisition net of recoverable taxes, trade discount and rebates including
any cost, directly attributable to bringing the assets to their working condition for its intended use, net charges on foreign
exchange arising from exchange rate variations attributable to the assets less accumulated depreciation and impairment
losses.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured
reliably.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of a property, plant and equipment 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 and Loss when
the asset is derecognised.
Capital Work in Progress if any, are carried at cost, comprising direct cost, related incidental expenses and attributable
interest.
2.6 Depreciation /Amortisation and useful lives of property, plant and equipment/intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking
into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The
useful lives and residual values are based on the Company''s historical experience with similar assets and take into account
anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant
changes from previous estimates.
2.7 Foreign Currency Transactions and Translation
Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction
or that approximates the actual rate at the date of the transaction.
The monetary assets and liabilities denominated in the foreign currencies are translated at the functional currency closing
rates of exchange at the reporting date.
Any income or expense on account of exchange difference either on settlement on translation is recognised in the Statement
of profit and loss except in the case the long term liabilities, if any, where they relate to the acquisition of the fixed assets, in
which case they are adjusted to the carrying amount of such assets.
2.8 Employees Benefits
Defined Contribution Plans
Provident Fund are defined contribution schemes established under a State Plan. The contributions to the schemes are
charged to the statement of profit and loss in the year when the contributions become due.
Defined Benefit Plans
The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a
gratuity on post employment at 15 days salary (last drawn salary) for each completed year of services as per the Payment
of Gratuity Act, 1972. The aforesaid liability is provided for on the basis of an actuarial valuation made using Project Unit
Credit Method at the end of the financial year. The scheme is funded with an insurance company in the form of a qualifying
insurance policy. Actuarial gains/losses are recognized in statement of profit and loss in the year in which they arise.
Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.
2.9 Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as
part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended
use.
All other borrowing costs are recognised as expense in the period in which they are incurred.
2.10 Fair value Measurement:
Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the
characteristics of asset and liability if market participants would take those into consideration. Fair value for measurement
and / or disclosure purposes in these financial statements is determined in such basis except for transactions in the scope
of Ind AS 2, 17 and 36. Normally at initial recognition, the transaction price is the best evidence of fair value.
The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest. A Fair value measurement of a
non-financial asset takes in to account a market participants ability to generate economic benefits by using the asset in its
highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All financial assets and financial liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
⢠Level 1 - Quoted (Unadjusted) market prices and active market for identical assets and liabilities.
⢠Level 2 - Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is
directly or indirectly observable.
⢠Level 3 - Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is
unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by the re assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
2.11 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. The Company recognises a financial asset or financial liability in its balance sheet only when
the entity becomes party to the contractual provisions of the instrument.
a. Financial assets:
A financial asset inter-alia includes any asset that is cash, equity instrument of another entity and a financial liability or
equity instrument of another entity. The Company recognises a financial asset or financial liability in its balance sheet
only when the entity becomes party to the contractual provisions of the instrument.
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial
assets carried at fair value through profit or loss are expensed in Statement of Profit and Loss. When transaction price is not
the measure of fair value and fair value is determined using a valuation method that uses data from observable market, the
difference between transaction price and fair value is recognised in Statement of Profit and Loss and in other cases spread
over life of the financial instrument using effective interest method.
Subsequent measurement
For purposes of subsequent measurement financial assets are classified in three categories:
⢠Financial asset measured at amortised cost
⢠Financial asset at fair value through OCI
⢠Financial assets at fair value through profit or loss
Financial assets measured at amortised cost
Financial assets are measured at amortised cost if the financial asset is held within a business model whose objective is
to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows are solely payments of principal and interest on the principal amount outstanding. These
financial assets are amortised using the effective interest rate (EIR) method, less impairment. Amortised cost is calculated
by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are
recognised in the statement of profit and loss in finance costs.
Financial assets at fair value through OCI (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if the financial asset is held within a
business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding. At initial recognition, an irrevocable election is made (on an instrument-by¬
instrument basis) to designate investments in equity instruments other than held for trading purpose at FVTOCI. Fair value
changes are recognised in the other comprehensive income (OCI). However, the Company recognises interest income,
impairment losses and reversals and foreign exchange gain or loss in the income statement. On derecognition of the
financial asset other than equity instruments, cumulative gain or loss previously recognised in OCI is reclassified to income
statements.
Financial assets at fair value through profit or loss (FVTPL)
Any financial asset that does not meet the criteria for classification as at amortised cost or as financial assets at fair value
through other comprehensive income, is classified as financial assets at fair value through profit or loss. Further, financial
assets at fair value through profit or loss also include financial assets held for trading and financial assets designated upon
initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired
for the purpose of selling or repurchasing in the near term. Financial assets at fair value ugh profit or loss are fair valued at
each reporting date with all the changes recognised in the Statement of profit and loss.
De-recognition of financial assets
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If
the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and
continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated
liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a
transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralized
borrowing for the proceeds receivables.
Impairment of financial assets
The Company assesses impairment based on expected credit loss (ECL) model on the following:
a) Financial assets that are measured at amortised cost.
b) Financial assets measured at fair value through other comprehensive income (FVTOCI)
ECL is measured through a loss allowance on a following basis: -
a) The twelve month expected credit losses (expected credit losses that result from all possible default events on the
financial instruments that are possible within twelve months after the reporting date)
b) Full life time expected credit losses (expected credit losses that result from all possible default events over the life of
financial instruments)
The company follows ''simplified approach'' for recognition of impairment on trade receivables or contract assets resulting
from normal business transactions. The application of simplified approach does not require the Company to track changes
in credit risk. However, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, from the date
of initial recognition.
For recognition of impairment loss on other financial assets, the Company determines whether there has been a significant
increase in the credit risk since initial recognition. If credit risk has increased significantly, lifetime ECL is provided. For
assessing increase in credit risk and impairment loss, the Company assesses the credit risk characteristics on instrument-
by-instrument basis.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and
all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.
Impairment loss allowance (or reversal) recognised during the period is recognised as expense/income in the statement of
profit and loss.
b. Financial liabilities and equity instruments:
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all
of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial liabilities
The Company''s financial liabilities include loans and borrowings including book overdraft, trade payable, accrued
expenses and other payables.
Initial Recognition and measurement
All financial liabilities at initial recognition are classified as financial liabilities at amortised cost or financial liabilities
at fair value through profit or loss, as appropriate. All financial liabilities are recognised initially at fair value and, in
the case of loans and borrowings and payables, net of directly attributable transaction costs. Any difference between
the proceeds (net of transaction costs) and the fair value at initial recognition is recognised in the Statement of Profit
and Loss or in the "Expenditure Attributable to Construction" if another standard permit inclusion of such cost in the
carrying amount of an asset over the period of the borrowings using the effective rate of interest.
Subsequent measurement
Subsequent measurement of financial liabilities depends upon the classification as described below: -
Financial Liabilities classified at Amortised Cost:
Financial Liabilities that are not held for trading and are not designated as at FVTPL are measured at amortised cost
at the end of subsequent accounting periods. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are integral part of the Effective Interest Rate. Interest expense that is
not capitalised as part of cost of assets is included as Finance costs in the Statement of Profit and Loss.
Financial Liabilities at Fair value through profit and loss (FVTPL)
FVTPL includes financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.
Financial liabilities have not been designated upon initial recognition at FVTPL.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged/cancelled/expired. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the de recognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the statement of profit and loss.
Offsetting of financial instruments
Financial assets and liabilities are offset and net amount is reported if there is currently enforceable legal right to
offset the recognised amounts and there is intention to settle on a net basis, to realise assets and settle the liabilities
simultaneously.
2.12 Earnings per share
Basic Earnings per share is computed by dividing the profit from continuing operations and total profits, both attributable to
equity share holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted
earnings per share are computed using the weighted average number of equity and dilutive equivalent shares outstanding
during the period, except where the results would be anti-dilutive.
2.13 Income Tax Expenses
Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognised in the Statement of Profit
and Loss, except to the extent that it relates to the items recognised directly in equity or in other comprehensive income.
Current tax
Current tax includes provision for Income Tax computed under special provision (i.e. Minimum Alternate Tax) or normal
provision of Income Tax Act provisions. Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities on the basis of estimated taxable Income. The tax rates and tax laws used
to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred tax
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements
and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are recognised for all temporary
differences that are expected to increase taxable profit in the future. Deferred tax assets are recognised for all temporary
differences that are expected to reduce taxable profit in the future, and any unused tax losses or unused tax credits. Deferred
tax assets are measured at the highest amount that, on the basis of current or estimated future taxable profit, is more likely
than not to be recovered. The net carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted
to reflect the current assessment of future taxable profits. Any adjustments are recognised in profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which it
expects the deferred tax asset to be realised or the deferred tax liability to be settled, on the basis of tax rates that have been
enacted or substantively enacted by the end of the reporting period.
Deferred Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to the income taxes levied by the same taxation authority and the Company intends
to settle its current tax assets and liabilities on a net basis.
Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation
and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income
available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent
that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised.
Deferred tax assets are reviewed at each Balance Sheet date for their realisability.
2.14 Impairment of Assets non-financial assets - property, plant and equipment and intangible assets
The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any
indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the
carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling
price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an
appropriate discount factor.
When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or
may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of
revalued assets.
2.15 Leases
Till 31st March 2019 all leases were classified as operating leases. Rental expenses from operating lease was recognised
on a straight line basis over the term of the relevant lease.
From 1st April 2019 the company has applied Ind AS 116 ''Leases'' for assets acquired during the year on lease. The company
recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying
asset.
a) Right-of-use assets are measured at cost comprising the following:
i) the amount of the initial measurement of lease liability
ii) any initial direct costs
Right-of-use assets are depreciated over the lease term on a straight-line basis.
b) Lease Liabilities are measured at present value of fixed payments.
Incremental borrowing rate used for discounting has been determined by taking the interest rates obtained from financial
institutions for borrowings for similar value of right of use of asset. In case of financial leases, lease liability is measured using
implicit rate.
The company applies the short term lease recognition exemption to its short term lease contracts (i.e. those leases that have a
lease term of 12 months or less from the commencement date and do not and do not contain a purchase option). Lease payments
on a short term leases are recognised as expense on a straight-line basis over the lease term.
Mar 31, 2024
2. Significant accounting policies
The financial statements have been prepared on the following basis:
2.1 Basis of accounting and preparation of financial statements
These financial statements have been prepared in accordance with Ind AS as prescribed under section 133 of the Companies Act 2013 read with Companies (Indian Accounting Standards) Rules, as amended from time to time.
These financial statements have been prepared on a historical cost basis, except following assets and liabilities which have been measured at fair value:
(i) Defined Benefit plans-plan assets
Up to the year ended March 31, 2018, the Company has prepared its financial statements in accordance with the requirement of Indian Generally Accepted Accounting Principles (GAAP) which includes standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as " Previous GAAP".
The functional and presentation currency of the Company is Indian Rupee ("''") which is the currency of the primary economic environment in which the Company operates.
2.2 Use of estimates
The preparation of the financial statements are in conformity with Ind AS requires the Management to make estimatesjudgement and assumptions. These estimatesjudgement and assumption affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material, their effects are disclosed in the notes to the financial statements.
2.3 Revenue recognition
Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sale of goods is net of Indirect taxes,returns and discounts.
Interest income from a financial asset is recognised using effective interest rate method. Dividend income is accounted for when the right to receive the payment is established.
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.
Other income is accounted for on accrual basis except where the receipt of income is uncertain in which case it is accounted for on receipt basis.
2.4 Inventories (For Trading)
Inventories of Containers are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost including customs duty incurred in bringing inventories to their present location and condition.
2.5 Property, Plant and Equipment
Property, plant and equipment are stated at cost of acquisition net of recoverable taxes, trade discount and rebates including any cost, directly attributable to bringing the assets to their working condition for its intended use, net charges on foreign exchange arising from exchange rate variations attributable to the assets less accumulated depreciation and impairment losses.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of a property, plant and equipment 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 and Loss when the asset is derecognised.
Capital Work in Progress if any, are carried at cost, comprising direct cost, related incidental expenses and attributable interest.
2.6 Depreciation /Amortisation and useful lives of property, plant and equipment/intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.
2.7 Foreign Currency Transactions and Translation
Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.
The monetary assets and liabilities denominated in the foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.
Any income or expense on account of exchange difference either on settlement on translation is recognised in the Statement of profit and loss except in the case the long term liabilities, if any, where they relate to the acquisition of the fixed assets, in which case they are adjusted to the carrying amount of such assets.
2.8 Employees Benefits
Defined Contribution Plans
Provident Fund are defined contribution schemes established under a State Plan. The contributions to the schemes are charged to the statement of profit and loss in the year when the contributions become due.
Defined Benefit Plans
The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on post employment at 15 days salary (last drawn salary) for each completed year of services as per the Payment of Gratuity Act, 1972. The aforesaid liability is provided for on the basis of an actuarial valuation made using Project Unit Credit Method at the end of the financial year. The scheme is funded with an insurance company in the form of a qualifying insurance policy. Actuarial gains/losses are recognized in statement of profit and loss in the year in which they arise.
Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.
2.9 Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use.
All other borrowing costs are recognised as expense in the period in which they are incurred.
2.10 Fair value Measurement:
Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of asset and liability if market participants would take those into consideration. Fair value for measurement and / or disclosure purposes in these financial statements is determined in such basis except for transactions in the scope of Ind AS 2, 17 and 36. Normally at initial recognition, the transaction price is the best evidence of fair value.
The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A Fair value measurement of a non-financial asset takes in to account a market participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and For which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All financial assets and financial liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1 - Quoted (Unadjusted) market prices and active market for identical assets and liabilities.
⢠Level 2 - Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is directly or indirectly observable.
⢠Level 3 - Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by the re assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
2.11 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. The Company recognises a financial asset or financial liability in its balance sheet only when the entity becomes party to the contractual provisions of the instrument.
a. Financial assets:
A financial asset inter-alia includes any asset that is cash, equity instrument of another entity and a financial liability or equity instrument of another entity. The Company recognises a financial asset or financial liability in its balance sheet only when the entity becomes party to the contractual provisions of the instrument.
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in Statement of Profit and Loss. When transaction price is not the measure of fair value and fair value is determined using a valuation method that uses data from observable market, the difference between transaction price and fair value is recognised in Statement of Profit and Loss and in other cases spread over life of the financial instrument using effective interest method.
Subsequent measurement
For purposes of subsequent measurement financial assets are classified in three categories:
⢠Financial asset measured at amortised cost
⢠Financial asset at fair value through OCI
⢠Financial assets at fair value through profit or loss Financial assets measured at amortised cost
Financial assets are measured at amortised cost if the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows are solely payments of principal and interest on the principal amount outstanding. These financial assets are amortised using the effective interest rate (EIR) method, less impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss in finance costs.
Financial assets at fair value through OCI (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. At initial recognition, an irrevocable election is made (on an instrument-by-instrument basis) to designate investments in equity instruments other than held for trading purpose at FVTOCI. Fair value changes are recognised in the other comprehensive income (OCI). However, the Company recognises interest income, impairment losses and reversals and foreign exchange gain or loss in the income statement. On derecognition of the financial asset other than equity instruments, cumulative gain or loss previously recognised in OCI is reclassified to income statements.
Financial assets at fair value through profit or loss (FVTPL)
Any financial asset that does not meet the criteria For classification as at amortised cost or as financial assets at Fair value through other comprehensive income, is classified as financial assets at Fair value through profit or loss. Further, financial assets at Fair value through profit or loss also include financial assets held For trading and financial assets designated upon initial recognition at Fair value through profit or loss. Financial assets are classified as held For trading iF they are acquired for the purpose of selling or repurchasing in the near term. Financial assets at fair value ugh profit or loss are fair valued at each reporting date with all the changes recognised in the Statement of profit and loss.
De-recognition of financial assets
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralized borrowing for the proceeds receivables.
Impairment of financial assets
The Company assesses impairment based on expected credit loss (ECL) model on the following:
a) Financial assets that are measured at amortised cost.
b) Financial assets measured at fair value through other comprehensive income (FVTOCI)
ECL is measured through a loss allowance on a following basis: -
a) The twelve month expected credit losses (expected credit losses that result from all possible default events on the financial instruments that are possible within twelve months after the reporting date)
b) Full life time expected credit losses (expected credit losses that result from all possible default events over the life of financial instruments)
The company follows ''simplified approach'' for recognition of impairment on trade receivables or contract assets resulting from normal business transactions. The application of simplified approach does not require the Company to track changes in credit risk. However, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, from the date of initial recognition.
For recognition of impairment loss on other financial assets, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has increased significantly, lifetime ECL is provided. For assessing increase in credit risk and impairment loss, the Company assesses the credit risk characteristics on instrument-by-instrument basis.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.
Impairment loss allowance (or reversal) recognised during the period is recognised as expense/income in the statement of profit and loss.
b. Financial liabilities and equity instruments:
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial liabilities
The Company''s financial liabilities include loans and borrowings including book overdraft, trade payable, accrued expenses and other payables.
Initial Recognition and measurement
All financial liabilities at initial recognition are classified as financial liabilities at amortised cost or financial liabilities at fair value through profit or loss, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. Any difference between the proceeds (net of transaction costs) and the fair value at initial recognition is recognised in the Statement of Profit and Loss or in the "Expenditure Attributable to Construction" if another standard permit inclusion of such cost in the carrying amount of an asset over the period of the borrowings using the effective rate of interest.
Subsequent measurement
Subsequent measurement of financial liabilities depends upon the classification as described below: -Financial Liabilities classified at Amortised Cost:
Financial Liabilities that are not held for trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are integral part of the Effective Interest Rate. Interest expense that is not capitalised as part of cost of assets is included as Finance costs in the Statement of Profit and Loss.
Financial Liabilities at Fair value through profit and loss (FVTPL)
FVTPL includes financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Financial liabilities have not been designated upon initial recognition at FVTPL.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged/cancelled/expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and liabilities are offset and net amount is reported if there is currently enforceable legal right to offset the recognised amounts and there is intention to settle on a net basis, to realise assets and settle the liabilities simultaneously.
2.12 Earnings per share
Basic Earnings per share is computed by dividing the profit from continuing operations and total profits, both attributable to equity share holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of equity and dilutive equivalent shares outstanding during the period, except where the results would be anti-dilutive.
2.13 Income Tax Expenses
Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to the items recognised directly in equity or in other comprehensive income.
Current tax
Current tax includes provision for Income Tax computed under special provision (i.e. Minimum Alternate Tax) or normal provision of Income Tax Act provisions. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities on the basis of estimated taxable Income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred tax
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are recognised for all temporary differences that are expected to increase taxable profit in the future. Deferred tax assets are recognised for all temporary differences that are expected to reduce taxable profit in the future, and any unused tax losses or unused tax credits. Deferred tax assets are measured at the highest amount that, on the basis of current or estimated future taxable profit, is more likely than not to be recovered. The net carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current assessment of future taxable profits. Any adjustments are recognised in profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which it expects the deferred tax asset to be realised or the deferred tax liability to be settled, on the basis of tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to the income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.
2.14 Impairment of Assets non-financial assets - property, plant and equipment and intangible assets
The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor.
When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.
2.15 Leases
Till 31st March 2019 all leases were classified as operating leases. Rental expenses from operating lease was recognised on a straight line basis over the term of the relevent lease.
From 1st April 2019 the company has applied Ind AS 116 ''Leases'' for assets aquired during the year on lease. The company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying asset.
a) Right-of-use assets are measured at cost comprising the following:
i) the amount of the initial measurement of lease liability
ii) any initial direct costs
Right-of-use assets are depreciated over the lease term on a straight-line basis.
b) Lease Liabilities are measured at present value of fixed payments.
Incremental borrowing rate used for discounting has been determined by taking the interest rates obtained from financial institutions for borrowings for similar value of right of use of asset. In case of financial leases, lease liability is measured using implicit rate.
The company applies the short term lease recognition exemption to its short term lease contracts (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not and do not contain a purchase option). Lease payments on a short term leases are recognised as expense on a straight-line basis over the lease term.
Mar 31, 2023
2. Significant accounting policies
The financial statements have been prepared on the following basis:
2.1 Basis of accounting and preparation of financial statements
These financial statements have been prepared in accordance with Ind AS as prescribed under section 133 of the Companies Act 2013 read with Companies (Indian Accounting Standards) Rules, as amended from time to time.
These financial statements have been prepared on a historical cost basis, except following assets and liabilities which have been measured at fair value:
(i) Defined Benefit plans-plan assets
Up to the year ended March 31, 2018, the Company has prepared its financial statements in accordance with the requirement of Indian Generally Accepted Accounting Principles (GAAP) which includes standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as " Previous GAAP".
The functional and presentation currency of the Company is Indian Rupee (''TO which is the currency of the primary economic environment in which the Company operates.
2.2 Use of estimates
The preparation of the financial statements are in conformity with Ind AS requires the Management to make estimates,judgement and assumptions. These estimates,judgement and assumption affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and if material, their effects are disclosed in the notes to the financial statements.
2.3 Revenue recognition
Sales of goods are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sale of goods is net of Indirect taxes.returns and discounts.
Interest income from a financial asset is recognised using effective interest rate method. Dividend income is accounted for when the right to receive the payment is established.
Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.
Other income is accounted for on accrual basis except where the receipt of income is uncertain in which case it is accounted for on receipt basis.
2.4 Inventories (For Trading)
Inventories of Containers are valued at lower of Cost and net realisable Value. Cost Comprises all cost of purchase and other cost including customs duty incurred in bringing inventories to their present location and condition.
2.5 Property, Plant and Equipment
Property, plant and equipment are stated at cost of acquisition net of recoverable taxes, trade discount and rebates including any cost, directly attributable to bringing the assets to their working condition for its intended use, net charges on foreign exchange arising from exchange rate variations attributable to the assets less accumulated depreciation and impairment losses.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of a property, plant and equipment 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 and Loss when the asset is derecognised.
Capital Work in Progress if any, are carried at cost, comprising direct cost, related incidental expenses and attributable interest.
2.6 Depreciation /Amortisation and useful lives of property, plant and equipment/intangible assets
Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded during any reporting period. The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.
2.7 Foreign Currency Transactions and Translation
Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.
The monetary assets and liabilities denominated in the foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.
Any income or expense on account of exchange difference either on settlement on translation is recognised in the Statement of profit and loss except in the case the long term liabilities, if any, where they relate to the
acquisition of the fixed assets, in which case they are adjusted to the carrying amount of such assets.
2.8 Employees Benefits Defined Contribution Plans
Provident Fund are defined contribution schemes established under a State Plan. The contributions to the schemes are charged to the statement of profit and loss in the year when the contributions become due.
Defined Benefit Plans
The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on post employment at 15 days salary (last drawn salary) for each completed year of services as per the Payment of Gratuity Act, 1972. The aforesaid liability is provided for on the basis of an actuarial valuation made using Project Unit Credit Method at the end of the financial year. The scheme is funded with an insurance company in the form of a qualifying insurance policy. Actuarial gains/losses are
recognized in statement of profit and loss in the year in which they arise.
Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income.
2.9 Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use.
All other borrowing costs are recognised as expense in the period in which they are incurred.
2.10 Fair value Measurement:
Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of asset and liability if market participants would take those into consideration. Fair value for measurement and / or disclosure purposes in these financial statements is determined in such basis except for transactions in the scope of Ind AS 2, 17 and 36. Normally at initial recognition, the transaction price is the best evidence of fair value.
The fair value of an asset or liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A Fair value measurement of a non-financial asset takes in to account a market participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All financial assets and financial liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
⢠Level 1 - Quoted (Unadjusted) market prices and active market for identical assets and liabilities.
⢠Level 2 - Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is directly or indirectly observable.
⢠Level 3 - Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by the re assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
2.11 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. The Company recognises a financial asset or financial liability in its balance sheet only when the entity becomes party to the contractual provisions of the instrument.
a. Financial assets:
A financial asset inter-alia includes any asset that is cash, equity instrument of another entity and a financial liability or equity instrument of another entity. The Company recognises a financial asset or financial liability in its balance sheet only when the entity becomes party to the contractual provisions of the instrument.
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in Statement of Profit and Loss. When transaction price is not the measure of fair value and fair value is determined using a valuation method that uses data from observable market, the difference between transaction price and fair value is recognised in Statement of Profit and Loss and in other cases spread over life of the financial instrument using effective interest method.
Subsequent measurement
For purposes of subsequent measurement financial assets are classified in three categories:
⢠Financial asset measured at amortised cost
⢠Financial asset at fair value through OCI
⢠Financial assets at fair value through profit or loss
Financial assets measured at amortised cost
Financial assets are measured at amortised cost if the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows are solely payments of principal and interest on the principal amount outstanding. These financial assets are amortised using the effective interest rate (EIR) method, less impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss in finance costs.
Financial assets at fair value through OCI (FVTOCI)
Financial assets are measured at fair value through other comprehensive income if the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. At initial recognition, an irrevocable election is made (on an instrument-by-instrument basis) to designate investments in equity instruments other than held for trading purpose at FVTOCI. Fair value changes are recognised in the other comprehensive income (OCI). However, the Company recognises interest income, impairment losses and reversals and foreign exchange gain or loss in the income statement. On derecognition of the financial asset other than equity instruments, cumulative gain or loss previously recognised in OCI is reclassified to income statements.
Financial assets at fair value through profit or loss (FVTPL)
Any financial asset that does not meet the criteria for classification as at amortised cost or as financial assets at fair value through other comprehensive income, is classified as financial assets at fair value through profit or loss. Further, financial assets at fair value through profit or loss also include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial assets at fair value ugh profit or loss are fair valued at each reporting date with all the changes recognised in the Statement of profit and loss.
De-recognition of financial assets
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset and continues to control the transferred asset, the Company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralized borrowing for the proceeds receivables.
Impairment of financial assets
The Company assesses impairment based on expected credit loss (ECL) model on the following:
a) Financial assets that are measured at amortised cost.
b) Financial assets measured at fair value through other comprehensive income (FVTOCI)
ECL is measured through a loss allowance on a following basis: -
a) The twelve month expected credit losses (expected credit losses that result from all possible default events on the financial instruments that are possible within twelve months after the reporting date)
b) Full life time expected credit losses (expected credit losses that result from all possible default events over the life of financial instruments)
The company follows ''simplified approach'' for recognition of impairment on trade receivables or contract assets resulting from normal business transactions. The application of simplified approach does not require the Company to track changes in credit risk. However, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, from the date of initial recognition.
For recognition of impairment loss on other financial assets, the Company determines whether there has been a significant increase in the credit risk since initial recognition. If credit risk has increased significantly, lifetime ECL is provided. For assessing increase in credit risk and impairment loss, the Company assesses the credit risk characteristics on instrument-by-instrument basis.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR.
Impairment loss allowance (or reversal) recognised during the period is recognised as expense/income in the statement of profit and loss.
b. Financial liabilities and equity instruments:
Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial liabilities
The Company''s financial liabilities include loans and borrowings including book overdraft, trade payable, accrued expenses and other payables.
Initial Recognition and measurement
All financial liabilities at initial recognition are classified as financial liabilities at amortised cost or financial liabilities at fair value through profit or loss, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. Any difference between the proceeds (net of transaction costs) and the fair value at initial recognition is recognised in the Statement of Profit and Loss or in the "Expenditure Attributable to Construction" if another standard permit inclusion of such cost in the carrying amount of an asset over the period of the borrowings using the effective rate of interest.
Subsequent measurement
Subsequent measurement of financial liabilities depends upon the classification as described below: -Financial Liabilities classified at Amortised Cost:
Financial Liabilities that are not held for trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are integral part of the Effective Interest Rate. Interest expense that is not capitalised as part of cost of assets is included as Finance costs in the Statement of Profit and Loss.
Financial Liabilities at Fair value through profit and loss (FVTPL)
FVTPL includes financial liabilities held for trading and financial liabilities designated upon initial recognition as FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. Financial liabilities have not been designated upon initial recognition at FVTPL.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged/cancelled/expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Offsetting of financial instruments
Financial assets and liabilities are offset and net amount is reported if there is currently enforceable legal right to offset the recognised amounts and there is intention to settle on a net basis, to realise assets and settle the liabilities simultaneously.
2.12 Earnings per share
Basic Earnings per share is computed by dividing the profit from continuing operations and total profits, both attributable to equity share holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of equity and dilutive equivalent shares outstanding during the period, except where the results would be antidilutive.
2.13 Income Tax Expenses
Income tax expense represents the sum of tax currently payable and deferred tax. Tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to the items recognised directly in equity or in other comprehensive income.
Current tax
Current tax includes provision for Income Tax computed under special provision (i.e. Minimum Alternate Tax) or normal provision of Income Tax Act provisions. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities on the basis of estimated taxable Income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred tax
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are recognised for all temporary differences that are expected to increase taxable profit in the future. Deferred tax assets are recognised for all temporary differences that are expected to reduce taxable profit in the future, and any unused tax losses or unused tax credits. Deferred tax assets are measured at the highest amount that, on the basis of current or estimated future taxable profit, is more likely than not to be recovered. The net carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current assessment of future taxable profits. Any adjustments are recognised in profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which it expects the deferred tax asset to be realised or the deferred tax liability to be settled, on the basis of tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred Tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to the income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.
Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets are reviewed at each Balance Sheet date for their realisabilitv
2.14 Impairment of Assets non-financial assets - property, plant and equipment and intangible assets
The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor.
When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.
2.15 Leases
Till 31st March 2019 all leases were classified as operating leases. Rental expenses from operating lease was recognised on a straight line basis over the term of the relevent lease.
From 1st April 2019 the company has applied Ind AS 116 ''Leases'' for assets aquired during the year on lease. The company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying asset.
a) Right-of-use assets are measured at cost comprising the following:
i) the amount of the initial measurement of lease liability
ii) any initial direct costs
Right-of-use assets are depreciated over the lease term on a straight-line basis.
b) Lease Liabilities are measured at present value of fixed payments.
Incremental borrowing rate used for discounting has been determined by taking the interest rates obtained from financial institutions for borrowings for similar value of right of use of asset. In case of financial leases, lease liability is measured using implicit rate.
The company applies the short term lease recognition exemption to its short term lease contracts (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not and do not contain a purchase option). Lease payments on a short term leases are recognised as expense on a straightline basis over the lease term.
Mar 31, 2018
Note 1: Significant accounting policies_
Note 1.1: Basis of accounting and preparation of financial statements
These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (âActâ) read with Rule 7 of the Companies (Accounts) Rules,2014, and other provisions of the Act (to the extent applicable).
Note 2.2: Use of estimates
The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. However, future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialized.
Note 2.3: Inventories
In terms of the Accounting Standard "Valuation of the Inventories" (Revised) (AS-2) issued by the Institute of Chartered Accountants of India, inventories are valued on First in First Out Basis (FIFO). Inventories of Containers are valued at lower of Cost or net realizable Value. Cost comprises all cost of purchase and other cost incurred in bringing inventories to their present location and condition. Imports are valued at cost and customs duty thereon.
Note 2.4: Depreciation and Amortization
Up to the year ended 31st March 2014, Schedule XIV of the Companies Act 1956 was followed for depreciation on Fixed Assets. From 1st April 2014, Schedule XIV has been replaced by Schedule II to the Companies Act 2013. Accordingly, the depreciation has been charged under the written down method on the balance estimated useful life of the Asset as specified in Schedule II of the Companies Act 2013.
Note 2.5: Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.
The recognition of Income is as follows:
A) Cargo Consolidation Services
The Income is inclusive of freight received from customers and net off Service Tax / Goods and Service Tax and is recognized in case of exports on intimation from the shipping line that the cargo has been shipped on board and in case of imports when the Delivery Order is issued by the company.
In case of sale of containers as and when the sale is complete as per the contractual terms.
B) Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.
Note 2.6: Tangible Fixed Assets
Fixed Assets are stated at cost of acquisition net of input tax credit including any cost, directly attributable to bringing the assets to their working condition less accumulated depreciation.
Capital Work in Progress if any, are carried at cost, comprising direct cost, related incidental expenses and attributable interest.
Note 2.7: Foreign Currency Transactions
Transactions denominated in the foreign currencies are recorded at the exchange rate prevailing on the date of transaction or that approximates the actual rate at the date of the transaction.
The monetary assets and liabilities item denominated in the foreign currencies at the yearend are restated at the yearend rates.
Any income or expense on account of exchange difference either on settlement or translation is recognized in the Statement of profit and loss.
Note 2.8: Investments
Investments that are readily realizable and intended to be held for not more than a year from the date of acquisition are classified as current investments.
Long term investments (including current portion thereof) are carried at cost less any other than temporary diminution in value, determined separately for each individual investment. Current investments are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments. Any reduction in the carrying amount and any reversals of such reductions in the carrying amount and any reversals of such reductions are charged to the statement of profit and loss.
Note 2.9: Employees Benefits
Defined Contribution Plans:
Provident Fund & ESIC are defined contribution schemes established under a State Plan. The contributions to the schemes are charged to the statement of profit and loss in the year when the contributions become due.
Defined Benefit Plans:
The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on post-employment at 15 daysâ salary (last drawn salary) for each completed year of services as per the rules of the company. The aforesaid liability is provided for on the basis of an actuarial valuation made using Project Unit Credit Method at the end of the financial year. The scheme is funded with an insurance company in the form of a qualifying insurance policy. Actuarial gains/losses are recognized in statement of profit and loss in the year in which they arise.
Note 2.10: Borrowing Cost
Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes substantial period of time to get ready for its intended use. All other borrowing costs are recognized as expense in the period in which they are incurred.
Operating Leases:
Lease rentals incurred under Operating Lease arrangements are charged to the Statement of Profit & Loss over the lease term.
Note 2.11: Earnings per share
The company reports basic and diluted earnings per equity share in accordance with AS-20, on earnings per share. Basic earnings per equity share have been computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the year. Diluted earnings per equity share, if applicable have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.
Note 2.12: Taxes on Income
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets are reviewed at each Balance Sheet date for their realizability.
Note 2.13: Impairment of Assets
The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets._
Note 2.14: Provisions and Contingent Liability
Provisions involving substantial degree of estimate in measurement are recognized when there is a present obligation as a result of the past events and it is probable that there will be an outflow of resources. Contingent liabilities and commitments are not recognized but are disclosed in the notes. Contingents assets are neither recognized nor disclosed in the financial statements.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Lancer Container Lines Ltd.
-
Lancer Container Lines Ltd. Tools
- Bulk Deals
- Block Deals
-
Lancer Container Lines Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Bonus
- BSE Price History
- NSE Price History
-
Lancer Container Lines Ltd. Key Financial Ratios
- Ratios
-
Lancer Container Lines Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Lancer Container Lines Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Lancer Container Lines Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Lancer Container Lines Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+