1 Summary of Material Accounting Policies
a. Statement of Compliance
The Financial statement of the company comprise the
balance sheet as of March 31,2025 and March 31,
2024, the related statement of profit and loss (including
other comprehensive income) for the year ended, the
statement of changes in equity and the statement
of cash flows for the year ended March 31,2025 and
March 31,2024 and the Material accounting policies,
and other explanatory information (together referred
to as 'financial statements').
The Financial statement has been prepared on a
going-concern basis.
The financial statements comply in all material aspects
with Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 (the
Act), Companies (Indian Accounting Standards) Rules,
2015 and other relevant provisions of the Act and other
accounting principles generally accepted in India.
These Financial statements do not reflect the effects
of events that occurred after the respective dates of
the board meeting held for the approval of the financial
statements as at and for the year ended March 31,
2025, as mentioned above.
The accounting policies are applied consistently and
presented in the financial statement except where a
newly issued accounting standard is initially adopted or
a revision to an existing accounting standard requires a
change in accounting policy hitherto in use.
This note provides a list of the significant
accounting policies adopted in the preparation of
the financial statement. These policies have been
consistently applied to all the year presented unless
otherwise stated.
The Financial statement have been prepared on an
accrual basis under the historical cost convention
except where the Ind AS requires a different
accounting treatment.
b. Functional and presentation currency
These Financial statements are presented in Rs., which
is also functional currency of the Company. All amounts
disclosed in the financial statement and notes have
been rounded off to the nearest “million” with two
decimals, unless otherwise stated.
c. Historical cost convention
These financial statements are prepared in accordance
with Indian Accounting Standards (Ind AS) under the
historical cost convention on the accrual basis, except
for the following:
• certain financial assets and liabilities which are
measured at fair value or amortised cost;
• defined benefit plans and
• share-based payments
d. Current / non-current classification
The Company presents assets and liabilities in
the balance sheet based on current / non-current
classification.
An asset is classified as current when it is expected to
be realized in, or is intended for sale or consumption in,
the Company's normal operating cycle, held primarily
for the purpose of being traded, expected to be realized
within 12 months after the reporting date; cash or cash
equivalent unless it is restricted from being exchanged
or used to settle a liability for at least 12 months after
the reporting date.
All other assets are classified as non-current.
A liability is classified as current it is expected to be
settled in the Company’s normal operating cycle, it is
held primarily for the purpose of being traded, it is
due to be settled within 12 months after the reporting
date, or the Company does not have an unconditional
right to defer settlement of the liability for at least 12
months after the reporting date. Terms of a liability
that could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do not
affect its classification.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as
non-current only.
The company has ascertained its operating cycle
as twelve months for current and non-current
classification of assets and liabilities.
e. Use of estimates
The preparation of financial statement in conformity
with Ind AS requires the Management to make
estimates and assumptions that affect the reported
amount of assets and liabilities as at the Balance Sheet
date, reported amount of revenue and expenditure for
the period and disclosures of contingent liabilities as at
the Balance Sheet date. Actual results could differ from
those estimates.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimates are
revised and in any future periods affected.
This note provides an overview of the areas where
there is a higher degree of judgment or complexity.
Detailed information about each of these estimates and
judgments is included in relevant notes together with
information about the basis of calculation.
Critical accounting estimates:
(a) Useful lives of Property, plant and equipment
The Company reviews the useful life of property,
plant and equipment at the end of each reporting
period. This reassessment may result in change
in depreciation expense in future periods
(b) Income Taxes
Significant judgments are involved in determining
the provision for income taxes including judgment
on whether tax positions are probable of being
sustained in tax assessments. A tax assessment
can involve complex issues, which can only be
resolved over extended time periods.
(c) Deferred Taxes
Deferred tax is recorded on temporary
differences between the tax bases of assets and
liabilities and their carrying amounts, at the rates
that have been enacted or substantively enacted
at the reporting date. The ultimate realization
of deferred tax assets is dependent upon the
generation of future taxable profits during the
periods in which those temporary differences
and tax loss carry forwards become deductible.
The Company considers the expected reversal
of deferred tax liabilities and projected future
taxable income in making this assessment. The
amount of the deferred tax assets considered
realizable, however, could be reduced in the near
term if estimates of future taxable income during
the carry-forward period is reduced.
(d) Expected credit losses on financial assets
The impairment provisions of financial assets
are based on assumptions about risk of default
and expected timing of collection. The Company
uses judgment in making these assumptions and
selecting the inputs to the impairment calculation,
based on the Company's past history, customer's
creditworthiness, existing market conditions as
well as forward looking estimates at the end of
each reporting period.
(e) Revenue Recognition
The Company's revenue is derived from the
single performance obligation to transfer
primarily Namkeen and other Products under
arrangements in which the transfer of control of
the products and the fulfillment of the Company’s
performance obligation occur at the same time.
Therefore, revenue from the sale of goods is
recognized when the Company transfers control
at the point in time the customer takes undisputed
delivery of the goods.
(f) Defined benefit plans and compensated absences
The cost of the defined benefit plans,
compensated absences and the present value
of the defined benefit obligation are based on
actuarial valuation using the projected unit
credit method. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to the
complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.
(g) Leases
The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and the
applicable discount rate.
The Company determines the lease term as the
non-cancellable period of a lease, together with
both periods covered by an option to extend the
lease if the Company is reasonably certain to
exercise that option; and periods covered by an
option to terminate the lease if the Company is
reasonably certain not to exercise that option. In
assessing whether the Company is reasonably
certain to exercise an option to extend a lease, or
not to exercise an option to terminate a lease, it
considers all relevant facts and circumstances
that create an economic incentive for the Company
to exercise the option to extend the lease, or not
to exercise the option to terminate the lease.
The Company revises the lease term if there is a
change in the non-cancellable period of a lease.
The discount rate is generally based on the
incremental borrowing rate specific to the lease
being evaluated or for a portfolio of leases with
similar characteristics.
2 Accounting policies
The accounting policies set out below have been applied
consistently to the year presented in the financial statements.
a. Revenue recognition
1. Sale of goods
Revenue from sale of goods is recognized when
control of the products being sold is transferred to
customer and when there are no longer any unfulfilled
obligations. The performance obligations in our
contracts are fulfilled at the time of dispatch, delivery
or upon formal customer acceptance depending on the
customer terms.
Revenue is measured at the fair value of the
consideration received or receivable, after the deduction
of any trade discounts, volume rebates, and any taxes
or duties collected on behalf of the government such
as goods and services tax etc. Accumulated experience
is used to estimate the provision for such discounts
and rebates. Revenue is recognized to the extent that,
probably, a significant reversal will not occur. In case
customers have the contractual right to return goods,
an estimate is made for goods that will be returned,
and a liability is recognized for this amount using the
best estimate based on accumulated experience. The
Company does not generally provide a right of return
on the goods supplied to customers.
Satisfaction of performance obligations
The Company's revenue is derived from the single
performance obligation to transfer primarily Namkeen
and other Products under arrangements in which the
transfer of control of the products and the fulfillment
of the Company’s performance obligation occur at the
same time. Therefore, revenue from the sale of goods
is recognized when the Company transfers control
at the point in time the customer takes undisputed
delivery of the goods.
Contract balances
Contract Assets: Any amount of income accrued but
not billed to customers in respect of such contracts
is recorded as a contract asset. Such contract assets
are transferred to Trade receivables on actual
billing to customers.
Contract liabilities: If a customer pays consideration
before the Company transfers goods or services to
the customer, contract liability is recognized when
the payment is received. Contract liabilities are
recognized as revenue when the Company performs
under the contract.
Trade receivables
A receivable is recognized if an amount of consideration
is unconditional (i.e., only the passage of time is
required before payment of the consideration is due).
2. Transport income
Transport income is usually recognized as and when
service is completed.
3. Interest income
Interest income is recognized when it is probable that
the economic benefits will flow to the Company and the
amount of income can be measured reliably. Interest
income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate
applicable, which is the rate that discounts estimated
future cash receipts through the expected life of the
financial asset to that asset's net carrying amount
on initial recognition. Interest income is included
under the head 'other income' in the Statements of
profit and loss.
4. Dividend income
Dividend income on investments is recognized when
the right to receive dividends is established.
b. Inventories
Items of inventories are valued lower of cost or estimated
net realizable value as given below.
1. Raw materials, packing materials, stores, and spares
Raw Materials, Stores, and Spares and packing
materials are valued at lower of cost or net realizable
value. Cost includes purchase price, (excluding those
subsequently recoverable by the enterprise from
the concerned revenue authorities), freight inwards
and other expenditure incurred in bringing such
inventories to their present location and condition. In
determining the cost, the weighted average method is
used. However, materials and other items held for use
in the production of inventories are not written down
below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost.
2. Finished goods, semi-finished goods, and traded
goods
Manufactured finished goods & semi-finished goods are
valued at lower of cost or net realizable value. The cost
is computed on the Weighted average method and the
cost of manufactured finished goods comprises direct
material, direct labour, and an appropriate proportion
of variable and fixed overhead expenditure, the latter
being allocated based on normal operating capacity.
Traded goods are valued at a lower cost or net
realizable value. Cost includes the cost of purchase and
other costs incurred in bringing the inventories to their
present location and condition. Cost is determined on a
weighted average basis.
Net realizable value is the estimated selling price
in the ordinary course of business, less estimated
costs of completion and estimated cost necessary
to make the sale.
c. Property, plant, and equipment
Recognition and initial measurement
Property, plant and equipment are stated at their cost of
acquisition. The cost comprises purchase price, borrowing
cost if capitalization criteria are met and directly attributable
cost of bringing the asset to its working condition for the
intended use. Any trade discounts and rebates are deducted
in arriving at the purchase price. Subsequent costs are
included in the asset's carrying amount or recognized as a
separate asset, as appropriate, only when it is probable that
future economic benefits attributable to such subsequent cost
associated with the item will flow to the Company. All other
repair and maintenance costs are recognized in the statement
of profit or loss as incurred.
Subsequent measurement (depreciation and useful lives)
Depreciation on property, plant and equipment is provided
on the written-down value method on the basis of the useful
life prescribed under Schedule II of the Companies Act, 2013.
The following useful life of assets has been taken by the
Company:
Derecognition of assets
An item of property plant & equipment and any significant part
initially recognized is derecognized upon disposal or when no
future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the
asset is included in the income statement when the asset is
derecognized.
Individual assets costing INR 5,000 or less are fully depreciated
in the year of purchase.
d. Capital work-in-progress
Property, plant, and equipment that are not ready for
intended use as of the date of the Balance Sheet are
disclosed as "Capital work-in-progress”.
e. Intangible assets
Recognition and initial measurement
Intangible assets acquired separately are measured on
initial recognition at cost. Following initial recognition,
intangible assets are carried at cost less any accumulated
amortization and accumulated impairment losses, if any.
Subsequent measurement (depreciation and useful lives)
All finite-lived intangible assets, including internally
developed intangible assets, are accounted for using the
cost model whereby capitalized costs are amortized on a
straight-line basis over their estimated useful lives.
The following useful lives are applied:
The estimated useful life of the intangible assets and the
amortization period are reviewed at the end of the each
financial year and the amortization period is revised to reflect
the changed pattern, if any.
Subsequent costs related to intangible assets are recognized
as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will
flow to the Company and the cost of the item can be measured
reliably.
Derecognition
Gains or losses arising from the derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and
are recognized in the Statement of Profit and Loss when the
asset is derecognized.
f. Intangible Assets under development
The cost of the assets not put to use before such date are
disclosed under the head "Intangible under Development”.
g. Impairment of non-financial asset
Property, plant and equipment and Intangible assets
PPE and intangible assets with definite lives, are reviewed for
impairment, whenever events or changes in circumstances
indicate that their carrying values may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (that is, higher of the fair value less costs to sell and
the value-in-use) is determined on an individual asset basis,
unless the asset does not generate cash flows that are largely
independent of those from other assets, in which case the
recoverable amount is determined at the cash-generatingunit
('CGU') level to which the said asset belongs. If such individual
assets or CGU are considered to be impaired, the impairment
to be recognized in the statement of profit and loss is
measured by the amount by which the carrying value of the
asset / CGU exceeds their estimated recoverable amount and
allocated on pro-rata basis. Impairment losses, if any, are
recognized in statement of profit and loss.
Reversal of impairment losses
Impairment losses are reversed and the carrying value is
increased to its revised recoverable amount provided that this
amount does not exceed the carrying value that would have
been determined had no impairment loss been recognized for
the said asset in previous periods/years.
h. Leases
As a lessee
Right of use assets and lease liabilities
The determination of whether an arrangement is (or contains)
a lease is based on the substance of the arrangement at
the inception of the lease. The arrangement is, or contains,
a lease if fulfilment of the arrangement is dependent on
the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is
not explicitly specified in an arrangement.
Recognition and initial measurement
The right-of-use asset is measured at cost, which is made
up of the initial measurement of the lease liability, any initial
direct costs incurred by the Company, an estimate of any
costs to dismantle and remove the asset at the end of the
lease (if any), and any lease payments made in advance of the
lease commencement date (net of any incentives received).
Short-term leases
The Company applies the short-term lease recognition
exemption to its short-term leases of the building (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).
Lease payments of short-term leases are recognized as
expense on a straight-line basis over the lease term.
i. Financial instruments
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
I) Financial assets
Initial recognition and measurement:
Financial assets are classified, at initial recognition,
as subsequently measured at amortized cost, fair
value through other comprehensive income (OCI), and
fair value through profit or loss. The classification of
financial assets at initial recognition depends on the
financial asset's contractual cash flow characteristics
and the company's business model for managing them.
In order for a financial asset to be classified and
measured at amortized cost or fair value through OCI, it
needs to give rise to cash flows that are 'solely payments
of principal and interest (SPPI)' on the principal amount
outstanding. This assessment is referred to as the SPPI
test and is performed at an instrument level. Financial
assets with cash flows that are not SPPI are classified
and measured at fair value through profit or loss,
irrespective of the business model.
Subsequent measurement
For purposes of subsequent measurement, financial
assets are classified in following categories:
a) at amortized cost; or
b) at fair value through other comprehensive
income (FVTOCI); or
c) at fair value through profit or loss (FVTPL).
The classification depends on the entity’s business
model for managing the financial assets and the
contractual terms of the cash flows.
Amortized cost:
Assets that are held for collection of contractual
cash flows where those cash flows represent solely
payments of principal and interest are measured at
amortized cost. Interest income from these financial
assets is included in finance income using the effective
interest rate method (EIR).
Fair value through other comprehensive income
(FVTOCI):
Assets that are held for collection of contractual
cash flows and for selling the financial assets, where
the assets’ cash flows represent solely payments of
principal and interest, are measured at fair value through
other comprehensive income (FVTOCI). Movements in
the carrying amount are taken through OCI, except for
the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses which
are recognized in statement of profit and loss. When
the financial asset is derecognized, the cumulative gain
or loss previously recognized in OCI is reclassified from
equity to profit or loss and recognized in other gains/
(losses). Interest income from these financial assets is
included in other income using the effective interest
rate method.
Fair value through profit or loss (FVTPL):
Assets that do not meet the criteria for amortized cost
or FVOCI are measured at fair value through profit or
loss. Interest income from these financial assets is
included in other income.
All equity instruments in the scope of Ind AS 109
are measured at fair value. For all other equity
instruments, the company may make an irrevocable
election to present in other comprehensive income all
subsequent changes in the fair value. The company
makes such elections on an instrument-by-instrument
basis. The classification is made on initial recognition
and is irrevocable.
If the company decides to classify an equity instrument
as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the
OCI. There is no recycling of the amounts from OCI to
profit and loss, even on the sale of investment.
Equity instruments included within the FVTPL category
are measured at fair value with all changes recognized
in the statement of profit and loss.
Impairment of financial assets
In accordance with Ind AS 109, Financial Instruments,
the company applies the expected credit loss (ECL)
model for the measurement and recognition of
impairment loss on financial assets that are measured
at amortized cost, FVTPL, and FVTOCI and for the
measurement and recognition of credit risk exposure.
The company follows a 'simplified approach’ for
recognition of impairment loss allowance on trade
receivables. The application of a simplified approach
does not require the Company to track changes in
credit risk. Rather, it recognizes the impairment loss
allowance based on lifetime ECL at each reporting
date, right from its initial recognition.
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-month ECL is used
to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If in
subsequent year, the credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the entity reverts to recognizing impairment loss
allowance based on 12 months ECL.
Lifetime ECLs are the expected credit losses resulting
from all possible default events over the expected life
of a financial instrument. The 12-month ECL is a portion
of the lifetime ECL that results from default events that
are possible within 12 months after the year-end.
ECL impairment loss allowance (or reversal)
recognized during the periods/years is recognized as
income/ expense in the statement of profit and loss. In
the balance sheet, ECL for financial assets measured at
amortized cost is presented as an allowance, i.e. as an
integral part of the measurement of those assets in the
balance sheet. The allowance reduces the net carrying
amount. Until the asset meets write-off criteria, the
company does not reduce impairment allowance from
the gross carrying amount.
Derecognition of financial assets:
A financial asset is derecognized only when:
a) the rights to receive cash flows from the financial
asset is transferred; or
b) retains the contractual rights to receive the
cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one
or more recipients.
Where the financial asset is transferred then in that case
financial asset is derecognized only if substantially all
risks and rewards of ownership of the financial asset
are transferred. Where the entity has not transferred
substantially all risks and rewards of ownership of the
financial asset, the financial asset is not derecognized.
Where the financial asset is neither transferred, nor
the entity retains substantially all risks and rewards
of ownership of the financial asset, then in that case
financial asset is derecognized only if the Company
has not retained control of the financial asset. Where
the Company retains control of the financial asset,
the asset continues to be recognized to the extent of
continuing involvement in the financial asset.
II) Financial liabilities
Initial recognition and measurement:
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss and at amortized cost, as appropriate. All financial
liabilities are recognized initially at fair value and, in
the case of borrowings and payables, net of directly
attributable transaction costs.
Subsequent measurement:
The measurement of financial liabilities depends on
their classification, as described below:
Financial liabilities at fair value through profit
and loss (FVTPL):
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition
as at fair value through profit or loss. Gains or losses
on liabilities held for trading are recognized in the
profit or loss.
(a) Loans and borrowings:
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortized cost using the effective interest rate
('EIR’) method. Gains and losses are recognized
in statement of profit and loss when the
liabilities are derecognized as well as through
the EIR amortization process. Amortized cost is
calculated by taking into account any discount or
premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortization
is included as finance costs in the statement of
profit and loss.
(b) Trade & other payables
After initial recognition, trade and other
payables maturing within one year from the
Balance sheet date, the carrying amounts
approximate fair value due to the short maturity
of these instruments.
Derecognition of financial liability:
A financial liability is derecognized when the obligation
under the liability is discharged or canceled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in the
statement of profit and loss as finance costs.
j. Foreign currency transactions and translation
The functional currency of the Company is the H. Financial
statements are presented in Rs.
Foreign currency transactions are translated into functional
currency using the exchange rates at the dates of the
transactions. Foreign currency-denominated monetary
assets and liabilities are translated into the relevant
functional currency at exchange rates in effect at the
Balance Sheet date. The gains and losses resulting from
such translations are included in net profit in the Statement
of Profit and Loss.
Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at fair
value are translated at the exchange rate prevalent at the
date when the fair value was determined. Non-monetary
assets and non-monetary liabilities denominated in a foreign
currency and measured at historical cost are translated at
the exchange rate prevalent at the date of the transaction.
The gain or loss arising on translation of non-monetary
items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value
of the item (i.e., translation differences on items whose fair
value gain or loss is recognized in Other Comprehensive
Income or Statement of Profit and Loss are also recognized
in Other Comprehensive Income or Statement of Profit and
Loss, respectively).
Transaction gains or losses realized upon settlement of
foreign currency transactions are included in determining net
profit for the periods/years in which the transaction is settled.
k. Taxes
Current income tax
Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
taxation authorities. The Company determines the tax as per
the provisions of the Income Tax Act 1961 and other rules
specified thereunder.
Current income tax relating to items recognized outside
profit or loss is recognized outside profit or loss (either in
other comprehensive income or in equity). Current tax items
are recognized in correlation to the underlying transaction
either in OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect to
situations in which applicable tax regulations are subject to
interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided in full using the liability method on
temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting
purposes at the reporting date.
Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are
recognized to the extent that it is probable that taxable profit
will be available against which the deductible temporary
differences and the carry forward of unused tax credits and
unused tax losses can be utilized, except when the deferred
tax asset relating to the deductible temporary difference
arises from the initial recognition of an asset or liability in
a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit
nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at
each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available
to allow all or part of the deferred tax asset to be utilized.
Unrecognized deferred tax assets are re-assessed at each
reporting date and are recognized to the extent that it has
become probable that future taxable profits will allow the
deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset is
realized or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
reporting date.
Deferred tax relating to items recognized outside profit
or loss is recognized outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items
are recognized in correlation to the underlying transaction
either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same
taxation authority.
l. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise
cash at banks, cash 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.
However, for the purpose of the statement of cash flows,
in addition to the above items, any bank overdrafts/
cash credits that are integral part of the Company's cash
management, are also included as a component of cash and
cash equivalents.
m. Government grants and subsidies
Government grants are recognized where there is reasonable
assurance that the grant will be received, and all attached
conditions have been complied with. When the grant relates
to an expense item, it is recognized as other operating
revenue on a systematic basis over the Government grants
are recognized where there is reasonable assurance that
the grant will be received and all attached conditions have
been complied with. When the grant relates to an asset, it is
recognized as income in equal amounts over the expected
useful life of the related asset.
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