Click it and Unblock the Notifications
Accounting Policies of Star Delta Transformers Ltd. Company
Mar 31, 2024
2-2 Material Accounting Policies
(a) Property, Plant and Equipment
The Company has elected to continue with the carrying value of its Property Plant & Equipment (PPE) recognised as of April 1, 2017 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the ramition date as per Para D7AA of Ind AS 101.
Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the Balance Sheet at cost less accumulated depreciation and impairment losses, if any. Freehold land is not depreciated.
Property,Plant & Equipment (PPE) comprises of Tangible assets and Capital Work in progress (except Right Of Use assets). PPE are stated at cost, net of tax/duty credit availed, if any, after reducing accumulated depreciation and accumulated impairment losses, if any, until the date of the Balance Sheet. The cost of PPE comprises of its purchase price or its construction cost (net of applicable tax credit, if any), any cost directly attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner intended by the management. Direct costs are capitalized until the asset is ready for use and includes borrowing cost capitalised in accordance with the Company''s accounting policy.
Capital work in progress includes the cost of PPE that are not yet ready for the intended use.
An item of PPE is de-recognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.
Depreciation of these PPE commences when the assets are ready for their intended use.
Depreciation is provided on the cost of Property, Plant and Equipment (other than land and properties under construction) less their estimated residual value, using the straight-line method over the useful life of PPE as stated in the Schedule II to the Companies Act, 2013 or based on technical assessment by the Company.
Useful lives of each class of PPE as prescribed under Part C of Schedule II to the Companies Act, 2013 and adopted by the company are as under-
The estimated useful lives, residual values and depreciation method are reviewed on an annual basis and if necessary, changes in estimates are accounted for prospectively.
As per internal technical evaluation carried out by the management, the management of the company believes that its PPE are of such nature that separate components are not distinctly identifiable having different useful life. And therefore, Component level accounting and reporting is not practically feasible for the company.
Depreciation on additions/deletions to PPE during the year is provided for on a pro-rata basis with reference to the date of additions/deletions.
Depreciation on subsequent expenditure on PPE arising on account of capital improvement or other factors is provided for prospectively over the remaining useful life.
(b) Impairment of non-financial assets
The Company reviews at each reporting period whether there is any indication that an asset may be impaired. If at the end of reporting period any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit & Loss. If at the reporting period, there is an indication that there is change in the previously assessed impairment loss, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the Statement of Profit and Loss.
An assessment is made at an interval of 3 years to see if there are any indications that impairment losses recognized earlier may no longer exist or may have come down. The impairment loss is reversed, if there has been a change in the estimates which has the effect of increasing the asset''s recoverable amount since the pervious impairment loss was recognized. If it is so, the carrying amount of the asset is increased to the lower of its recoverable amount and the carrying amount that has been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. After a reversal, the depreciation charge is adjusted in future periods to allocate the asset''s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. Reversals of Impairment loss are recognized in the Statement of Profit and Loss.
(e) Revenue and Income Recognition
Revenues are recognized when the Company satisfies the performance obligation by transferring a promised product or service to a customer, in an amount that reflects the consideration which the company expects to receive in exchange of those goods or services. A product is transferred when the customer obtains control of that product, which is either at the point in time when the product is delivered to the Customer premises or at the point in time when the title is passed to the customer based on the contractual terms.
Revenue from services is recognised at a point in time or over the time depending upon the terms of the contract as and when performance obligations are fulfilled.
Revenue is measured at the transaction price of the consideration received or receivable duly adjusted for variable consideration and the same represents amounts receivable for goods and services provided in the normal course of business excluding amounts collected on behalf of third parties such as goods and services tax or other taxes directly linked to sales. Contract modifications are accounted for as a part of existing contract or separate contract based on conditions prescribed in Ind AS 115. Any retrospective revision in prices is accounted for in the year of such revision.
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interestrate applicable (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).
Dividend income is recognised when the right to receive the same in established.
Export incentives are accrued in the year when the right to receive the same is established in respect of expons made and are accounted to the extent there is no significant uncertainty about the measurability and ultimate realization/ utilization of such benefits/ duty credit.
Other income is recognized on accrual basis except when realization of such income is uncertain.
(f) Foreign Exchange Transactions
Transactions in currencies other than the Company''s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated using exchange rate prevailing on the last day of the reporting period.
Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction.
Exchange differences on monetary items are recognized in the Starement of Profit and Loss in the period in which they arise.
(g) Lease
As Lessee
The Company assesses whether a contract, is, or contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchang for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
-the contract involves the use of an identified asset:
-the Company has substantially all of the economic benefits from use of the asset throughout the period of the lease and -the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognises a lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases and corresponding Right-of-use Asset. For these short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.
The Right-of-use Assets are initially recognized at cost, which comprises the initial amount of the lease liabilities adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities.
The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if it is not readily determinable, using the incremental borrowing rate. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option.
The Company accounts for each lease component within the contract as a lease separarely from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components, except for leases where the company has elected to use practicle expedient not to separate non-lease payments from the calculation of the lease liability and ROU asset where the entire consideration is treated as lease component.
Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term lesses of Property, Plant and Equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered of low value. Lesse payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term or another systematic basis if that basia is more representative of the pattern of the lesser''s benefit.
As lessor
Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease except where-
(i) Another systematic basis is more representative of the time pattern of the benefit derived from the asset given on lease; or
(ii) The payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
(h) Employees Benefits
(i) Defined Contribution Plan Provident fund (PF)
Contribution towards PF is determined under the Employees'' Provident Funds & Miscellaneous Provisions Act, 1952 and charged to the Statement of Profit and Loss during the period of incurrence when the services are rendered by the employees.
Employee State Insurance (ESI)
Company''s contribution employee state insurance and other funds are determined under the relevant schemes and / or statute and charged to the Statement of Profit and Loss in the period of incurrence when the services are rendered by the employees
(ii) Defined Benefit Plan
The company has a scheme of arrangement with Life Insurance Corporation of India ("The Corporation") through master policy for payment of gratuity liabilities of employees. The anual premium paid/payable as determined by the Corporation on actuarial valuations is recognized in the Statement of Profit and Loss.
(iii) Short Term Employee Benefits
Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized undiscounted during the period employee renders services. These benefits include salaries, wages, bonus, performance incentives, etc.
(iii) Other Long Term Employee Benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as a determined liability at the balance sheet date.
(i) Borrowing Cost
Borrowing costs are interest and ancillary costs incurred in connection with the arrangement of borrowings.
General and specific borrowing costs attributable to acquisition and construction of qualifying assets is added to the cost of the assets upto the date the asset is ready for its intended use. A qualifying asset is an asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted. All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are incurred.
(j) Income Taxes
Income tax expense represents the sum of the current tax and deferred tax.
(i) Current Tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ''profit before tax as reported in the Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tas rates and laws that have been enacted or substantively enacted by the end of the reporting period.
(ii) Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferend tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
(iii) Current and Deferred Tax Expense for the Year
Current and deferred tax expense is recognized in the Statement of Profit and Loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
(k) Financial Instruments
Financial assets and financial liabilities are recognized when Company becomes a party to the contractual provisions of the i nstruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. "Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in the Statement of Profit and Loss.
I Financial Assets
a. Classfication and Measurement
(i) Cash and Cash Equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
(ii) Financial Assets at Amortized Cost
Financial assets are subsequently measured at amortized cost using the effective interest method if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows 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.
(iii) Financial Assets at Fair Value through Other Comprehensive Income
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows 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.
(iv) Financial Assets at Fair Value through Profit and Loss
Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehansive income on intial recognition.
b. Impairment of Financial Assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the financial assets and credit risk exposure.
(i) Simplified Approach
The Company follows ''simplified approach'' for recognition of impairment loss allowance on Trade Receivables.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
(ii) General Approach
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-months ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL. is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credir risk since initial recognition then the entity reverts to recognizing impairment loss allowance based on 12-months ECL.
Lifetime ECL are the expected credit losses resulting from all posible default events over the expected life of a financial instrument. The 12-months ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.
As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analysed. On that basis, the Company estimates provision on that trade receivabiles at the reporting date. The specific/individual impairment assessment is carried out for major customers.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as expense (or income) in the Statement of Profit and Loss.
c. Derecognition of Financial Assets
The Company derecognizes a financial asset when the contractual right to receive the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership 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 retaint 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 collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirery (except for equity instruments designated ar FVTOCI), the difference between the asset''s carrying amount and the sum of the consideration received and receivable is recognized in the Statement of Profit and Loss.
II Financial Liabilities
a. Classfication and Measurement
(i) Financial Guarantee Contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs became a specified debtor fails to make payments when due in accordance with the terms of a debt instrument
Financial guarantee contracts issued by the Company are initially measured at their fair values and, if not designated as at FVTPL are subsequently measured at the higher of:
-the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
-the amount initially recognized less, when appropriate, the cumulative amount of income recognized in accordance with
principles enunciated in Ind AS 115.
(ii) Other Liability
Other Financial liabilities are measured at amortized coat using the effective interest method.
The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.
(iii) Financial Liabilities and Equity Instruments
Classification as Debt or Equity:
Debt and equity instruments lssued by the Company are classified as financial liabilities or as equity in accordance with the substance of the Contractual arrangements and the definitions of a financial liability and an equity instrument.
(iv) Derecognition of Financial Liabilities
The company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in Statement of Profit and Loss.
III Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of it''s liabilities.
Equity Instruments issued by a Company are recognized at the proceeds received.
IV Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.
(l) Government grants
Government grants are recognized only when there is resonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Deferred income is recognized in the statement of profit or loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of profit or loss over the periods as and when related obligations are achieved to match them with the related costs which they are intended to compensare.
(m) Earning per Share
Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax effect of exceptional items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/ (loss) after tax (including the post-tax effect of exceptional items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.
Mar 31, 2023
Note 1: Significant accounting policies General Information
Star Delta Transformers Limited ("the Company") is a public limited company, which is domiciled and incorporated in the Republic of India with its registered office situated at "92-A, Sector - A, Industrial Area, Govindpura, Bhopal - 462023" The Company was incorporated under the Companies Act, 1956 on February 17, 1977. The Company is a manufacturer of distribution and power transformers.
Significant accounting policies
(a) Basis of preparation
(i) Compliance with Ind AS
The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind As) notified under Section 133 of the Companies Act,2013 (the Act) read with [companies (Indian Accounting Standards) Rules,2015] and Companies (Indian Accounting Standards) Amendnent Rule 2016, Companies (Indian Accounting Standards) Amendnent Rule 2018 and other relevant provisions of the Act.
The financial statements have been prepaired on accrual and going concern basis. The accounting policies are applied consistantly to all the periods presented in the financial statements. All assets and liabilities have been classified as current and non current as per the Companie''s normal operating cycle assertained as 12 months for the purpose by the Company.
(ii) Historical cost convention
The financial statements have been prepared on historical cost convention unless otherwise indicated.
(b) Key estimates and assumptions
In preparing these financial statements in accordance with Ind AS, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts in the balance sheet and statement of profit and loss, actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognized prospectively.
Judgment, estimates and assumptions are required in particular for:
(i) Recognition and measurement of defined benefit obligations
The obligation arising from defined benefit plan is determined on the basis of acturial assumptions. Key acturial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate determined by refrence to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.
(ii) Recognition and measurement of other provisions
The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances know at the balance sheet date. The actual outflow of resources at a future date may therefore, vary from the amount included in other provisions.
(c) Foreign currency translation
Function and presentation currency
Item included in the financial statements of the Company are measured using the currency of the primary economic enviornment in which the entity operates (''the functional currency''). The Indian Rupee ('') is the functional and presentation currency of the company.
Transaction and balances
Foreign currency transaction are translated into the respective functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transaction and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in profit or loss.
Foreign exchange differences regards as an adjustment to borrowing costs are presented in the statement of profit and loss, whithin finance cost. All other foreign exchange gains and losses are presented in the statements of profit and loss on a net basis within loss on exchange rates & forward Exchange Contracts. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
(d) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable after deduction of any trade discounts and net of returns, rebates, and any taxes or duties collected on behalf of the government which are lavied on sales such as Sales Tax, VAT, Goods and Service Tax etc.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and when significant risks and rewards of ownership in the goods are transferred to the buyer.
Income from services rendered is recognised based on agreements/ arrangements with the customers as the service is performed in propotion to the stage of completion of the transaction at the reporting date and the amount of revenue can be measured reliably.
(e) Income tax
The income tax expenses or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in India. Management periodically evaluates positions taken in tax returns whith respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally inforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other conprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
(f) Financial Assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through statement of profit and loss), and
- those measured at amortised cost.
(ii) Initial recognition & measurement
At initial recognition, the Company measures a financial asset at fair value plus, in the case of a financial asset not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
(iii) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial asset) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:
- The rights to receive cash flows from the asset have expired, or
- The Company has transferred its rights to receive cash flows from the assets or has assumed an obligation to pay the received cash flows in full without material delay to a third party; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither tranferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
(iv) Impairment of financial assets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
- Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debts securities, deposits, and bank balance.
- Trade receivables - The application of simplified approch does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on life time ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the sanctioned credit limits, security like letters of credit, security deposit collected etc. and expectations about future cash flows.
(g) Financial liabilities
(i) Classification
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered in to and the definitions of a financial liability and an equity instrument.
The Company classified all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
(ii) Initial recognition and measurement
Financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings or payables 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 and incremental transaction cost.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or cost that are integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts.
(iii) Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
(h) Impairment of assets
Intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less cost of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
(i) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker ("CODM") of the company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and Chief Operating Officer of the Company. The Company has identified Two segment i.e. Manufacturing & distribution of electrical transformers and production & supply of solar power as reporting segment based on the information reviewed by CODM.
(j) Inventories
Raw materials and stores, work in progress, traded and finished goods
Raw materials and stores, work in progress, traded and finished goods are stated at the lower of cost and net realisable value. Cost of raw materials and traded goods comprises cost of purchases. Cost of work in progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on the basis of weighted average price. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
(k) Property, plant and equipment
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
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 whith the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives specified in schedule II of the Companies Act, 2013.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greather than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other gains/(losses).
(l) Intangible assets
Company has no intangible assets.
(i) Research and development
Revenue expenditure on research & development is charged to the statement of Profit and Loss of the year in which it is incurred.
(m) Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substancial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
Provisions for legal claims, volume discounts and returns are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provision are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably not, require an outflow of resources. When there is a possible obligation of a present obligation in respect of which the liklihood of outflow of resources is remote, no provision disclosure is made.
A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is probable.
(o) Employee benefits
(i) Short term obligations
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditinal right todefer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to accrue.
(iii) Post-employment obligations:-
The company operated the followings post-employments schemes:
(a) . Defined benefits plans such as gratuity, and
(b) . Defined contribution plan such as provident fund.
Gratuity obligations
The following post - employment benefit plans are covered under the defined benefit plant:
Gratutity :
The Company''s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The Company has a scheme with Life Insurance Corporation of India for payment of gratuity liability. The annual premium paid/payable as per the acturial calculation made by the agency is charged as an expense to the statement of profit and loss. The Company has no further defined obligation beyond the contribution.
Defined contribution plan
The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for a defined contribution plans and the contributions are recognised as employee benefit expense when they are due.
(p) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reprting period.
(q) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at the banks and on hand and shortterm deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.
(r) Earning per share
(i) Basic earning per share
Basic earning per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.
(i) Diluted earning per share
Diluted earning per share adjusted the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potencial equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potencial equity shares.
(s) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to rupees in lakhs as per the requirement of schedule III, unless otherwise stated.
Mar 31, 2018
Significant accounting policies
(a) Basis of preparation
(i) Compliance with Ind AS
The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind As) notified under Section 133 of the Companies Act,2013 (the Act) read with [companies (Indian Accounting Standards) Rules,2015] and Companies (Indian Accounting Standards) Amendnent Rule 2016 and other relevant provisions of the Act.
The financial statements up to year ended March 31, 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
These financial statements are the first financial statements of the Company under Ind AS. Refer note 32 for an explanation of how the transition from previous GAAP to Ins AS has affected the Companyâs financial position, financial performance and cash flows.
The financial statements have been prepaired on accrual and going concern basis. The accounting policies are applied consistantly to all the periods presented in the financial statements. All assets and liabilities have been classified as current and non current as per the Companieâs normal operating cycle assertained as 12 months for the purpose by the Company.
(ii) Historical cost convention
The financial statements have been prepared on unless otherwise indicated.
(b) Key estimates and assumptions
In preparing these financial statements in accordance with Ind AS, management has made judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts in the balance sheet and statement of profit and loss, actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognozed prospectively.
Judgment, estimates and assumptions are required in particular for:
(i) Recognition and measurement of defined benefit obligations
The obligation arising from defined benefit plan is determined on the basis of acturial assumptions. Key acturial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate determined by refrence to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the postemployment benefit obligations.
(ii) Recognition and measurement of other provisions
The recognition and measurement of other provisions are based based on the assessment of the probability of an outflow of resources, and on past experience and circumstances know at the balance sheet date. The actual outflow of resources at a future date may therefore, vary from the amount included in other provisions.
(c) Foreign currency translation
Function and presentation currency
Item inclued in the financial statements of the Company are measured using the currency of the primary economic enviornment in which the entity operates (âthe functional currencyâ). The Indian Rupee () is the functional and presentation currency of the company.
Transaction and balances
Foreign currency transaction are translated into the respective functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transaction and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in profit or loss.
Foreign exchange differences regards as an adjustment to borrowing costs are presented in the statement of profit and loss, whithin finance cost. All other foreign exchange gains and losses are presented in the statements of profit and loss on a net basis within loss on exchange rates & forward Exchange Contracts. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
(d) Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable after deduction of any trade discounts and net of returns, rebates, and any taxes or duties collected on behalf of the government which are lavied on sales such as Sales Tax, VAT, Goods and Service Tax etc.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and when significant risks and rewards of ownership in the goods are transferred to the buyer.
Income from services rendered is recognised based on agreements/ arrangements with the customers as the service is performed in propotion to the stage of complition of the transaction at the reporting date and the amount of revenue can be measured reliably.
(e) Income tax
The income tax expenses or credit for the period is the tax payable on the current periodâs taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in India. Management periodically evaluates positions taken in tax returns whith respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally inforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally inforceable right to offset and intends aither to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other conprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.
(f) Financial Assets
(i) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through statement of profit and loss), and
- those measured at amortised cost.
(ii) Initial recognition & measurement
At initial recognition, the Company measures a financial asset at fair value plus, in the case of a financial asset not recorded at fair value through profit or loss, trandsaction costs that are attributable to the acquisition of the financial asset.
(iii) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial asset) is primarily derecognised (i.e. removed from the Companyâs balance sheet) when:
- The rights to receive cash flows from the asset have expired, or
- The Company has transferred its rights to receive cash flows from the assets or has assumed an obligation to pay the received cash flows in full without material delay to a third party; and either (a) the Company has tranferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither tranferred nor retained substantially all of thr risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Companyâs continuing involvement. In that case, the Companyalso recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that Compant has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
(iv) Impairment of financial assets
In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
- Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debts securities, deposits, and bank balance.
- Trade receivables - The application of simplified approch does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on life time ECLs at each reporting date, right from its initial recognition. Trade receivables are tested for impairment on a specific basis after considering the sanctioned credir limits, security like letters of credit, security deposit collected etc. and expectations about future cash flows.
(g) Financial liabilities
(i) Classification
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered in to and the definitions of a financial liability and an equity instrument. The Company classified all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.
(ii) Initial recognition and measurement
Financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings or payables 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 and incremental transaction cost.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or cost that are integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
The Companyâs financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts.
(iii) Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
(h) Impairment of assets
Integible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the assetâs carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assetâs fair value less cost of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
(i) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (âCODMâ) of the company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director and Chief Operating Officer of the Company. The Company has identified only one segment i.e. Manufacturing of distribution and power transformers as reporting segment based on the information reviewed by CODM.
(j) Inventories
Raw materials and stores, work in progress, traded and finished goods
Raw materials and stores, work in progress, traded and finished goods are stated at the lower of cost and net realisable value. Cost of raw materials and traded goods comprises cost of purchases. Cost of work in progress and finished goods camprises direct materials, direct labour and an appropriate proportion of veriable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Costs are assigned to individual items of inventory on the basis of weighted average price. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
(k) Property, plant and equipment
Freehold land is carries at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the assetâs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated whith the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as at April 1, 2017 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives specified in schedule II of the Companies Act, 2013.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
An assetâs carrying amount is written down immediately to its recoverable amount if the assetâs carrying amount is greather than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss within other gains/(losses).
(l) Intangible assets
Company has no intangible assets.
(i) Research and development
Revenue expenditure on research & development is charged to the statement of Profit and Loss of the year in which it is incurred.
(m) Borrowing costs
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substancial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
(n) Provisions
Provisions for legal claims, volume discounts and returns are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provision are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably not, require an outflow of resources. When there is a possible obligation of a present obligation in respect of which the liklihood of outflow of resources is remote, no provision disclosure is made.
A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is probable.
(o) Employee benefits
(i) Short term obligations
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditinal right todefer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to accrue.
(iii) Post-employment obligations:-
The company operated the followings post-employments schemes:
(a) Defined benefits plans such as gratuity, and
(b) Defined contribution plan such as provident fund.
Gratuity obligations
The following post - employment benefit plans are covered under the defined benefit plant:
Gratutity :
The Companyâs net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.
The Company has a scheme with Life Insurance Corporation of India for payment of gratuity liability. The annual premium paid/payable as per the acturial calculation made by the agency is charged as an expense to the statement of profit and loss. The Company has no further defined obligation beyond the contribution.
Defined contribution plan
The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for a defined contribution plans and the contributions are recognised as employee benefit expense when they are due.
(p) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distribted at the end of the reprting period.
(q) Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at the banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Companyâs cash management.
(r) Earning per share
(i) Basic earning per share
Basic earning per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.
(ii) Diluted earning per share
Diluted earning per share adjusted the figures used in the determination of basic earnings per share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive potencial equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potencial equity shares.
(s) Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupees as per the requirement of schedule III, unless otherwise stated.
Mar 31, 2016
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on historical cost convention and on accrual method of accounting in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the company.
B. Use of Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates, if any, are recognized in the period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production/ up to the date the asset is put to use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion. All costs, including costs till commencement of commercial production net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.
E. Depreciation and Amortization
Depreciation on fixed assets has been provided on SLM in the manner provided in schedule II of The Companies Act, 2013.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the yearend are restated at the yearend rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are stated at cost. Provision for diminution in the value of investments is made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Scrap material is valued at net realizable value.
J. Revenue Recognition
"Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes sale of goods, services, sales tax, service tax and excise duty adjusted for discount (net) and Value Added Tax (VAT). Dividend income is recognized when right to receive is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable or as certified by financial institution.âFor construction contracts revenue is recognized on percentage completion method based on the percentage of actual cost incurred up to the reporting dte to the total estimated cost of the contract. Income from erection, commissioning and other project management services is recognized on work done based on percentage of completion method."
K. Employee Benefits
(i) Short-term employee benefits are recognized as an expenses at the undiscounted amount in the profit and loss account in the year in which the related service is rendered and as per the policy consistently followed by the Company.
(ii) The gratuity liability in respect of employees of the company has been covered through LIC policy, the annual premium paid/ payable for such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognized in accounts based on management''s assessment of the probable outcomes with reference to the available information supplemented by experience of similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or variation in contract work are recognized as revenue only when there are conditions in the contracts for such claims or variations and/or evidence of the acceptability of the same from customers. However, escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for the intended use. All other borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from âtiming differenceâ between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that is a virtual certainty that the asset will be realized in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.
Mar 31, 2015
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets has been provided on SLM in the manner
provided in schedule II of The Companies Act, 2013.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recoginised
over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacrturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Ta x (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financilal
institution.
For construction contracts revenue is recognised on percentage
completion method based on the percentage of actual cost incurred upto
the reporting date to the total estimated cost of the contract. Income
from erection, commissioning and other project management services is
recognised on work done based on percentage of completion method.
K. Employee Benefits
(i) Short-term employee benefites are recoginsed as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendered and as per the policy consistently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management's assessment of the probable outcomes with
reference to the available information supplimented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of
resources.Contingent Liabilities are not recognised but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
Mar 31, 2014
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets acquired upto 31/03/1996 has been provided
on WDV method at the rates prescribed in the schedule "XIV" of The
Companies Act, 1956. Depreciation on assets acquired after 01/04/1996
has been provided on SLM in the manner provided in schedule "XIV" of
The Companies Act, 1956 and no depreciation has been charged on the
assets sold during the year.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recognised over
the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financial
institution.
For construction contracts revenue is recognised on percentage
completion method based on the percentage of actual cost incurred upto
the reporting date to the total estimated cost of the contract. Income
from erection, commissioning and other project management services is
recognised on work done based on percentage of completion method.
K. Employee Benefits
(i) Short-term employee benefits are recognised as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendered and as per the policy consistently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management''s assessment of the probable outcomes with
reference to the available information supplemented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2013
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets acquired upto 31/03/1996 has been provided
on WDV method at the rates prescribed in the schedule "XIV" of The
Companies Act, 1956. Depreciation on assets acquired after 01/04/1996
has been provided on SLM in the manner provided in schedule "XIV" of
The Companies Act, 1956 and no depreciation has been charged on the
assets sold during the year.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing'' on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recoginised
over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
H. Investment
Current investment are carried at cost. Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacrturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financilal
institution.
For construction contracts revenue is recognised on percentage
completion method based on the percentage of actual cost incurred upto
the reporting date to the total estimated cost of the contract. Income
from erection, commissioning and other project management services is
recognised on work done based on percentage of completion method.
K. Employee Benefits
(i) Short-term employee benef ites are recoginsed as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendered and as per the policy consistently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC poijcy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management''s assessment of the probable outcomes with
reference to the available information supplimented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims eta, if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that is a virtual certainty that the asset will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of
resources.Contingent Liabilities are not recognised but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
Mar 31, 2012
A. Basis of Preparation of Financial Statements
The financial statements have been prepared as of a going concern on
historical cost convention and on accrual method of accounting in
accordance with the generally accepted accounting principles and the
provisions of the Companies Act, 1956 as adopted consistently by the
company.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates, if any, are recognised in the
period in which the results are known/materialized.
C. Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. All costs, including financing costs till
commencement of commercial production/ upto the date the asset is put
to use, net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to the fixed assets
are capitalised.
D. Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation/depletion. All costs, including
costs till commencement of commercial production net charges on foreign
exchange contracts and adjustments arising from exchange rate
variations attributable to the intangible assets are capitalised.
E. Depreciation and Amortisation
Depreciation on fixed assets acquired upto 31/03/1996 has been provided
on WDV method at the rates prescribed in the schedule ÃXIVÃ of The
Companies Act, 1956. Depreciation on assets acquired after 01/04/1996
has been provided on SLM in the manner provided in schedule ÃXIVÃ of
The Companies Act, 1956 and no depreciation has been charged on the
assets sold during the year.
F. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
G. Foreign Currency Transactions
(a) Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at the year end rates. In case of items which are covered
by forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference and the premium paid on forward contracts is recoginised
over the life of the contract.
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expenses on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition
of fixed assets, in which case they are adjusted to the carrying cost
of such assets.
H. Investment
Current investment are carried at cost . Long Term investments are
stated at cost. Provision for diminution in the value of investments is
made only if such a decline is other than temporary.
I. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and costs including
manufacrturing overheads incurred in bringing them to their respective
present location and condition. Scrap material is valued at net
realisable value.
J. Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operation
includes sale of goods, services, sales tax, service tax and excise
duty adjusted for discount (net) and Value Added Tax (VAT). Dividend
income is recognised when right to receive is established. Interest
income is recognized on time proportion basis taking into account the
amount outstanding and rate applicable or as certified by financilal
institution.
For construction contracts revenue is recognised on percentage
completion method based on the percentage of actual cost incurred upto
the reporting dte to the total etimated cost of the contract. Income
from erection, commissioning and other project management services is
recognised on work done based on percentage of completion method.
K. Employee Benefits
(i) Short-term employee benefites are recoginsed as an expenses at the
undiscounted amount in the profit and loss account in the year in which
the related service is rendred and as per the policy consitently
followed by the Company.
(ii) The gratuity liability in respect of employees of the company has
been covered through LIC policy, the annual premium paid/ payable for
such policy is accounted for as a revenue expenditure.
L. Claims by/against the Company
(i) Claims for liquidated damages against the Company are recognised in
accounts based on management's assessment of the probable outcomes with
reference to the available information suplimented by experience of
similar transactions.
(ii) Claims for export incentives/duty drawbacks/duty refunds and
insurance claims etc., if any, are taken into account on accrual basis.
(iii) Amounts due in respect of price escalation claims and/or
variation in contract work are recognised as revenue only when there
are conditions in the contracts for such claims or variations and/or
evidence of the acceptability of the same from customers. However,
escalation is restricted to intrinsic value.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to profit and loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the
Income-tax Act, 1961. Deferred tax resulting from Ãtiming differenceÃ
between taxable and accounting income is accounted for using the tax
rates and laws that are enacted or substantively enacted as on the
balance sheet date. Deferred tax asset is recognised and carried
forward only to the extent that is a virtual certainty that the asset
will be realised in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that will be an outflow of
resources.Contingent Liabilities are not recognised but are disclosed
in the notes. Contingent Assets are neither recognized nor disclosed in
the financial statements.
Mar 31, 2011
(A) GENERAL :
a. Accounts are prepared on historical cost and on going concern
basis.
b. All expenses and income to the extent considered payable and
receivables respectively are accounted for on accrual basis.
(B) FIXED ASSETS, DEPRECIATION :
Depreciation on fixed assets acquired up to 31/03/96 has been provided
on W.D.V. method at the rates prescribed in the schedule ÃXIVÃ to the
Companies Act 1956. Depreciation on assets acquired after 01/04/96 has
been provided on straight line method in the manner provided in
schedule ÃXIVÃ and no depreciation has been charged on assets sold
during the year.
(C) REVENUE RECOGNITION :
a. Sales include income from service. Sales of products and service
are recognised when the product are despatched and services rendered.
b. Accounting for Contracts (Projects) :- In accordance with
Accounting Standard (AS-7) on construction contracts, issued by the
ICAI, income on contracts of project execution are accounted on
Ãpercentage of completionà basis measured by the proportion of cost
incurred to the estimated total cost of the project.
(D) INVENTIORIES :
Raw materials, Stores, Spares and Consumables are valied at cost.
Finished goods and semi finished goods are valued at cost of raw
material and the cost incurred in the normal course of business in
bringing the goods upto the present condition on estimate basis, and
scrap is valued at net realisable value. Work-in-progress related to
project and construction are valued at percentage of work completed and
at realisable value thereafter.
(E) RETIREMENT BENEFITS :
The Company has an arrengement with Life Insurance Corporation of
India, to administer its superannuation and Gratuity Schemes. The
premium paid/payable annually are debited to profit and loss account on
accrual bais.
Mar 31, 2010
(A) GENERAL :
a. Accounts are prepared on historical cost and on going concern
basis.
b. All expenses and income to the extent considered payable and
receivables respectively are accounted for on accrual basis.
(B) FIXED ASSETS, DEPRECIATION :
Depreciation on fixed assets acquired up to 31/03/96 has been provided
on W.D.V. method at the rates prescribed in the schedule ÃXIVÃ to the
Companies Act 1956. Depreciation on assets acquired after 01/04/96 has
been provided on straight line method in the manner provided in
schedule ÃXIVÃ and no depreciation has been charged on assets sold
during the year.
(C) REVENUE RECOGNITION :
a. Sales include income from service. Sales of products and service
are recognised when the product are despatched and services rendered.
b. Accounting for Contracts (Projects) :-
In accordance with Accounting Standard (AS-7) on construction
contracts, issued by the ICAI, income on contracts of project execution
are accounted on Ãpercentage of completionà basis measured by the
proportion of cost incurred to the estimated total cost of the project.
(D) INVENTORIES :
Raw materials, Stores, Spares and Consumables are valied at cost.
Finished goods and semi finished goods are valued at cost of raw
material and the cost incurred in the normal course of business in
bringing the goods upto the present condition on estimate basis, and
scrap is valued at net realisable value. Work-in-progress related to
project and construction are valued at percentage of work completed and
at realisable value thereafter.
(E) RETIREMENT BENEFITS :
The Company has an arrengement with Life Insurance Corporation of
India, to administer its superannuation and Gratuity Schemes. The
premium paid/payable annually are debited to profit and loss account on
accrual bais.
Mar 31, 2009
(A) GENERAL :
a. Accounts are prepared on historical cost and on going concern
basis.
b. All expenses and income to the extent considered payable and
receivables respectively are accounted for on accrual basis.
(B) FIXED ASSETS, DEPRECIATION :
Depreciation on fixed assets acquired up to 31/03/96 has been provided
on W.D.V. method at the rates prescribed in the schedule "XIV" to the
Companies Act 1956. Depreciation on assets acquired after 01/04/96 has
been provided on straight line method in the manner provided in
schedule "XIV" and no depreciation has been charged on assets sold
during the year.
(C) REVENUE RECOGNITION :
a. Sales include income from service. Sales of products and service
are recognised when the product are despatched and services rendered.
b. Accounting for Contracts (Projects) :-
In accordance with Accounting Standard (AS-7) on construction
contracts, issued by the ICAI, income on contracts of project execution
are accounted on "percentage of completion" basis measured by the
proportion of cost incurred to the estimated total cost of the project.
(D) INVENTORIES :
Raw materials, Stores, Spares and Consumables are valied at cost.
Finished goods and semi finished goods are valued at cost of raw
material and the cost incurred in the normal course of business in
bringing the goods upto the present condition on estimate basis, and
scrap is valued at net realisable value. Work-in-progress related to
project and construction are valued at percentage of work completed and
at realisable value thereafter.
(D) RETIREMENT BENEFITS :
The Company has an arrengement with Life Insurance Corporation of
India, to administer its superannuation andGratuity Schemes. The
premium paid/payable annually are debited to profit and loss account on
accrual bais.
Mar 31, 2008
(A) GENERAL :
a. Accounts are prepared on historical cost and on going concern
basis.
b. All expenses and income to the extent considered payable and
receivables respectively are accounted for on accrual basis.
(B) FIXED ASSETS, DEPRECIATION :
Depreciation on fixed assets acquired up to 31/03/96 has been provided
on W.D.V. method at the rates prescribed in the schedule "XIV" to the
Companies Act 1956. Depreciation on assets acquired after 01/04/96 has
been provided on straight line method in the manner provided in
schedule "XIV" and no depreciation has been charged on assets sold
during the year.
(C) REVENUE RECOGNITION :
a. Sales include income from service. Sales of products and service
are recognised when the product are despatched and services rendered.
b. Accounting for Contracts (Projects) :-
In accordance with Accounting Standard (AS-7) on construction
contracts, issued by the ICAI, income on contracts of project execution
are accounted on "percentage of completion" basis measured by the
proportion of cost incurred to the estimated total cost of the project.
(D) INVENTORIES :
Raw materials, Stores, Spares and Consumables are valied at cost.
Finished goods and semi finished goods are valued at cost of raw
material and the cost incurred in the normal course of business in
bringing the goods upto the present condition on estimate basis, and
scrap is valued at net realisable value. Work-in-progress related to
project and construction are valued at percentage of work completed and
at realisable value thereafter.
(E) RETIREMENT BENEFITS :
The Company has an arrengement with Life Insurance Corporation of
India, to administer its superannuation andGratuity Schemes. The
premium paid/payable annually are debited to profit and loss account on
accrual bais.
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 Star Delta Transformers Ltd.
-
Star Delta Transformers Ltd. Tools
- Bulk Deals
-
Star Delta Transformers Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
-
Star Delta Transformers Ltd. Key Financial Ratios
- Ratios
-
Star Delta Transformers Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Star Delta Transformers Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Star Delta Transformers Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Star Delta Transformers 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+