s. PROVISIONS AND CONTINGENT LIABLITIES:
A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. A Contingent Liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A Contingent Liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.
t. OPERATING CYCLE AND CURRENT/NON-CURRENT CLASSIFICATION:
All the assets and liabilities have been classified as current or non current as per the Companys' normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
An asset is current when it is:
Expected to be realised or intended to be sold or consumed in normal operating cycle.
Held primarily for the purpose of trading.
Expected to be realised within twelve months after the reporting period, or Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
It is expected to be settled in normal operating cycle.
It is held primarily for the purpose of trading.
It is due to be settled within twelve months after the reporting period, or
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities
u. BIOLOGICAL ASSETS:
Biological assets are measured at fair value less costs to sell, with any change therein recognised in Statement of Profit and Loss.
v. STANDARDS ISSUED BUT NOT EFFECTIVE:
Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On 28 March 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from 1 April 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.
Ind AS 115- Revenue from Contract with Customers: On 28 March 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from
Contract with Customers. The core principle of the new standard is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entitys' contracts with customers.
The standard permits two possible methods of transition:
Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors.
Retrospectively with cumulative effect of initially applying the standard recognised at the date of initial application (Cumulative catch-up approach).
The effective date for adoption of Ind AS 115 is financial periods beginning on or after 1 April 2018. The effect on adoption of Ind AS 115 is expected to be insignificant.
RECONCILIATIONS BETWEEN PREVIOUS GAAP AND Ind AS
Ind AS 101 requires an entity to reconcile Equity, Total Comprehensive Income and Cash Flows for the Prior Period.
The Following tables represent the Reconciliation from Previous GAAP to Ind AS:-
<td "=""> <td "=""> <td "="">Total Equity as per Previous GAAP<td "=""> <td "="">1,112,298,910
Reconciliation of Equity as at 31 March 2017 and 1 April 2016
|
(Figures in Rs.)
|
1
|
Particulars
|
Foot note
|
As at 31 March 2017
|
As at 1 April 2016
|
|
918,135,973
|
Add
|
Proposed dividend including dividend distribution tax
|
A
|
23,548,915
|
11,262,527
|
Reserves as per Ind AS
|
|
1,135,847,825
|
929,398,500
|
Reconciliation of Total Comprehensive Income for the year ended 31 March 2017
|
|
(Figures in Rs)
|
2
|
Particulars
|
Foot note
|
As at 31 March 2017
|
.........................
|
Net Profit as per Previous GAAP
|
|
248,427,840
|
Net Profit after Tax as per Ind AS
|
|
249,399,954
|
|
Other Comprehensive Income
|
|
|
Add
|
Actuarial (Iosses)/Gain reclassified to other comprehensive income
|
B
|
(1,486,641)
|
Add
|
Current Tax on above Adjustment
|
|
514,526
|
|
Total Comprehensive Income as per Ind AS
|
|
248,427,840
|
<td "="">
Reconciliation of Cash Flow Statement for the year ended 31 March 2017
|
(Figures in Rs)
|
3
|
Particulars
|
Previous GAAP
|
Effects of Transition to Ind AS
|
Ind AS
|
|
Net Cash Generated by Operating Activities
|
270,974,105
|
(4,556,863)
|
275,530,968
|
|
Net Cash Used in Investing Activities
|
(154,916,154)
|
15,950
|
(154,932,104)
|
|
Net Cash Used in Financing Activities
|
(51,402,840)
|
4,556,865
|
(55,959,705)
|
|
Net Increase in Cash & Cash Equivelants
|
64,655,111
|
|
64,639,159
|
|
Cash & Cash Equivelants at the beginning of the year
|
49,620,633
|
|
47,098,314
|
|
Cash & Cash Equivelants at the end of the year
|
114,275,744
|
|
111,737,474
|
Notes to reconciliations between previous GAAP and Ind AS :
A. Proposed dividend including dividend distribution tax
Under Ind AS, dividend payable and dividend distribution tax is recognised as a liability in the period in which it is declared and approved by the shareholders. Under previous GAAP, dividend payable and dividend distribution tax was recorded as a liability in the period to which it relates. This difference has resulted in increase in equity under Ind AS by Rs. 23,548,915 as at 31 March 2017 (Rs. 11,262,517 as at 1 April 2016).
B. Remeasurement of gratuity recognised in other comprehensive income
Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset and are recognised in other comprehensive income. Under previous GAAP, actuarial gains and losses were recognised in statement of profit and loss. This difference has resulted in increase of profit by Rs. 1,486,641 for the year ended 31 March 2017.
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