2 Significant Accounting Policies
2.1 Basis of preparation
Statement of Compliance with IND AS
"These financial statements have been prepared on a going concern basis following the accrual basis of accounting in accordance with
the Generally accepted Accounting Principles (GAAP) in India (Indian Accounting standards referred to as “IndAS”) as specified
under the section 133 of the Companies Act, 2013 read with Rule 3 of Companies (Indian Accounting Standard) Rules, 2015 and
relevant amendments rules issued there after and and presentation requirements of Division II of Schedule III to the Companies Act,
2013, (Ind AS compliant Schedule III). These Standalone financial statements are presented in INR and all values are rounded to the
nearest Lakhs, except when otherwise indicated.
The financial statements have been prepared on a historical cost convention, except for the following assets and liabilities:
i. Certain financial assets and liabilities that is measured at fair value;
ii. Defined benefit plans-plan assets measured at fair value.
iii. Investments in equity instruments, other than investments in subsidiary & associates firm, measured at fair value thorugh profit
& loss account (FVTPL) ."
2.2 Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as
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.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets and their realisation in cash and cash equivalents. The Company has
identified twelve months as its operating cycle.
2.3 Property, Plant & Equipments
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 discount 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 associated with the item will
flow to the Company.
All other repair and maintenance costs are recognized in statement of profit or loss as incurred.
Subsequent costs are included in asset’s carrying amount or recognized as separate assets, as appropriate, only when it is probable that
future economic benefit associated with the item will flow to the Company and the cost of item can be measured reliably.
An item of property, plant and 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 (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset
is derecognized.
Capital work- in- progress includes cost of property, plant and equipment under installation/under development as at the balance sheet
date.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end
and adjusted prospectively, if appropriate."
2.4 Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Cost of intangible assets acquired in business
combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less
accumulated amortization and accumulated impairment losses, if any.
Internally generated intangibles, excluding capitalized development cost, are not capitalized and the related expenditure is reflected
in statement of Profit and Loss in the period in which the expenditure is incurred. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for its intended use.
Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the
cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to
be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. The Company has assessed
indefinite life for such brand considering the expected usage, expected investment on brand, business forecast and challenges to
establish a premium electronic segment. These are carried at historical cost and tested for impairment annually.
An intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Gains or
losses arising from disposal of the intangible assets 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 assets are disposed off.
Depreciation and Amortisation
Depreciation on property, plant and equipment is calculated on straight-line method using the useful lives prescribed in Schedule II to
the Companies Act, 2013.
The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortized over their
useful lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization
period and the amortization method for an intangible asset with a finite useful life is reviewed at least at the end of each reporting
period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset
is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.
The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss.
2.5 Impairment of noil-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or
when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. The
recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent
of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its recoverable amount.
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. In determining fair value less costs of
disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is
used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available
fair value indicators.
The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each
of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period
of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year. To
estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow
projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any
case, this growth rate does not exceed the long-term average growth rate for the products, industries, or country or countries in which
the Company operates, or for the market in which the asset is used.
Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement of profit and loss,
except for properties previously revalued with the revaluation surplus taken to OCI. For such properties, the impairment is recognized
in OCI up to the amount of any previous revaluation surplus.
For assets excluding goodwill and intangible assets having indefinite life, an assessment is made at each reporting date to determine
whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication
exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if
there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was
recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior
years. Such reversal is recognized in the statement of profit and loss unless the asset is carried at a revalued amount, in which case, the
reversal is treated as a revaluation increase.
As per the assessment conducted by the Company there were no indications that the non-financial assets have suffered an impairment
loss during the reporting periods.
2.6 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.
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.
2.6.1 Financial assets
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or
sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or
convention in the marketplace.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the
classification of the financial assets .
2.6.2 Classification of financial assets
Debt instruments that meet the following conditions are subsequently measured at amortised cost (except for debt instruments that are
designated as at fair value through profit or loss on initial recognition):
• the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows: and
• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income
(except for debt instruments that are designated as at fair value through profit or loss on initial recognition):
• the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial
assets: and
• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
Interest income is recognised in profit or loss for FVTOCI debt instruments. For the purposes of recognising foreign exchange gains
and losses, FVTOCI debt instruments are treated as financial assets measured at amortised cost. Thus, the exchange differences on the
amortised cost are recognised in profit or loss and other changes in the fair value of FVTOCI financial assets are recognised in other
comprehensive income and accumulated under the heading of 'Reserve for debt instruments through other comprehensive income'.
When the investment is disposed of, the cumulative gain or loss previously accumulated in this reserve is reclassified to profit or loss.
All other financial assets are subsequently measured at fair value.
2.6.3 Effective interest method
The effective interest method is a method of calculating the amortised 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 (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial
recognition.
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL.
Interest income is recognised in profit or loss and is included in the "Other income" line item.
2.6.4 Financial assets at fair value through profit or loss (FVTPL)
Initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments,
which are not held for trading.
Debt instruments that do not meet the amortised cost criteria or FVTOCI criteria (see above) are measured at FVTPL. In addition, debt
instruments that meet the amortised cost criteria or the FVTOCI criteria but are designated as at FVTPL are measured at FVTPL.
A financial asset that meets the amortised cost criteria or debt instruments that meet the FVTOCI criteria may be designated as at
FVTPL upon initial recognition if such designation eliminates or significantly reduces a measurement or recognition inconsistency
that would arise from measuring assets or liabilities or recognising the gains and losses on them on different bases, The Company has
not designated any debt instrument as at FVTPL.
Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on
remeasurements recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest
earned on the financial asset and is included in the 'Other income' line item. Dividend on financial assets at FVTPL is recognised when
the Company's right to receive the dividends is established, it is probable that the economic benefits associated with the dividend will
flow to the entity, the dividend does not represent a recovery of part of cost of the investment and the amount of dividend can be
measured reliably.
2.6.5 Investments in equity instruments at FVTOCI
On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the
subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments. This election is not
permitted if the equity investment is held for trading. These elected investments are initially measured at fair value plus transaction
costs.
Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other
comprehensive income and accumulated in the 'Reserve for equity instruments through other comprehensive income'. The
cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.
A financial asset is held for trading if:
• it has been acquired principally for the purpose of selling it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent
actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument or a financial guarantee.
Dividends on these investments in equity instruments are recognised in profit or loss when the Company's right to receive the
dividends is established, it is probable that the economic benefits associated with the dividend win flow to the entity, the dividend does
not represent a recovery of part of cost of the investment and the amount of dividend can be measured reliably. Dividends recognised
in profit or loss is included in the 'Other income' line item.
The Company has not elected for the FVTOCI irrevocable option for this investment.
2.6.6 Impairment of financial assets
The Company assesses on a forward-looking basis the expected credit losses associated with its assets. The impairment methodology
applied depends on whether there has been a significant increase in credit risk. For trade receivables or any contractual right to receive
cash or another financial asset that result from transactions that are within the scope of Ind AS 18, the Company always measures the
loss allowance at an amount equal to lifetime expected credit losses.
2.6.7 Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to 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 retains substantially all the
risks and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and recognises
a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration
received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in
equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that
financial asset.
On derecognition of a financial asset other than in its entirety (e.g. when the Company retains an option to repurchase part of a
transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognise
under continuing involvement, and the part it no longer recognises on the basis of the relative fair values of those parts on the date of
the transfer. The difference between the carrying amount allocated to the part that is no longer recognised and the sum of the
consideration received for the part no longer recognised and any cumulative gain or loss allocated to it that had been recognised in
other comprehensive income is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss
on disposal of that financial asset. A cumulative gain or loss that had been recognised in other comprehensive income is allocated
between the part that continues to be recognised and the part that is no longer recognised on the basis of the relative fair values of those
parts.
2.7 Financial liabilities and equity instruments
2.7.1 Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the
substance ofthe contractual arrangements and the definitions of a financial liability and an equity instrument.
2.7.2 Equity instruments
deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue
costs.
Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in
profit or loss on the purchase, sale, issue or cancellation ofthe Company's own equity instruments."
2.7.3 Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.
2.7.4 Financial liabilities at FVTPL:
Financial liabilities are classified as at FVTPL when the financial liability is either held for trading or it is designated as at FVTPL.
A financial liability is classified as held for trading if:
• It has been incurred principally for the purpose of repurchasing it in the near term; or
• on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent
actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
A financial liability other than a financial liability held for trading may be designated as at FVTPL upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;
• the financial liability forms part of a Company of financial assets or financial liabilities or both, which is managed and its
performance is evaluated on a fair value basis, in accordance with the Company’s documented risk management or investment
strategy, and information about the grouping is provided internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire combined contract to be
designated as at FVTPL in accordance with Ind AS 109.
Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in Statement of
Profit and Loss. The net gain or loss recognised in Statement of Profit and Loss incorporates any interest paid on the financial liability
and is included in the ‘other gains and losses' line item in the Statement of Profit and Loss. The Company derecognises financial
liabilities when, and only when, the Company's obligations are discharged, cancelled or they expire. The difference between the
carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in Statement of Profit and
Loss.
2.7.5 Other financial liabilities:
Other financial liabilities including borrowings are subsequently measured at amortised cost using the effective interest method.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)
through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial
recognition.
2.7.6 Derecognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the Company's obligations are discharged, cancelled or have
expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability, Similarly, a substantial modification
of the terms of an existing financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying
amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.
2.8 Investment in Subsidiaries
The investment in subsidiaries are carried at cost as per IND AS 27. The Company regardless of the nature of its involvement with an
entity (the investee), determines whether it is a parent by assessing whether it controls the investee. The Company controls an investee
when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee.
Thus, the Company controls an investee if and only if it has all the following:
• power over the investee;
• exposure, or rights, to variable returns from its involvement with the investee and
• the ability to use its power over the investee to affect the amount of the returns.
Investments are accounted in accordance with IND AS 105 when they are classified as held for sale. On disposal of investment, the
difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.
2.9 Inventories
Inventories comprise of Raw Materials, Work in Progress, Stores and spares, Packing Materials and Finished Goods.
Cost of Raw Materials, Work in Progress, Stores & Spares, Packing Material is determined at FIFO Basis.
Finished Goods and stock in trade is valued at lower of cost or net realisable value.
2.10 Revenue recognition
Revenue from contacts with customer is recognized when control of the goods or services are transferred to the customer at an amount
that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue is measured
based on the transaction price which is the consideration, adjusted for discount and other credits, if any, as specified in the contract
with customer. The Group presents revenue from contracts with customer net of indirect taxes in its statement of profit and loss. The
Group assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The Group has
concluded that it is acting as a principal in all of its revenue arrangement.
Sales revenue is recognized when property in the goods with all significant risk and rewards as well as the effective control of goods
usually associated with ownership are transferred to the buyer and are recorded net of trade discounts, rebates, Value Added Tax,
Goods and Service Tax and gross of Excise Duty.
Subsidy, Claims and refunds due from Government authorities and parties, through receivable / refundable are not recognized in the
accounts, if the amount thereof is not ascertainable. These are accounted for as and when ascertained or admitted by the concerned
authorities / parties in favor of the Company.
Revenue from sale of services
Income from services are recognized as and when the services are rendered. The Company collects service tax/GST on behalf of the
government and, therefore, it is not an economic benefit flowing to the Company. Hence, it is excluded from revenue.
Interest Income
Interest Income is recognized on a time proportion basis taking into account the amount outstanding and applicable interest rate.
2.11 Income Tax
The income tax expense 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 the countries where the company and its subsidiaries and associates operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with 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 amount in the financial statement. 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 excepted to apply when the related deferred income
tax assets is realized 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 enforceable 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 off set where the company has a legally enforceable right to offset and
intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognised in the Statement of profit and loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.
Minimum alternate tax (MAT) paid in a year is charged to statement of profit and loss as current tax. The Company recognizes MAT
credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the
specified period i.e. the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes
MAT credit as an asset in accordance with the Guidance note on Accounting for Credit available in respect of Minimum Alternate Tax
under the Income tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT Credit
Entitlement” under the deferred tax assets. The Company reviews the “MAT Credit Entitlement” asset at each reporting date and
writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified
period.
2.12 Employee Benefits:
2.12.1 Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within twelve months after
the end of the period in which the employees render the related service are recognized in respect of employee service upto the end of
the reporting period and are measured at the amount expected to be paid when the liabilities are settled. The liabilities are presented as
current employee benefit obligations in the balance sheet.
2.12.2 Post-employment
Defined contribution plan
The Company makes specified monthly contribution towards employee provident fund to Employees’ Provident Fund. The
Company’s contributions to the fund are recognised in the Statement of Profit and Loss in the financial year to which the employee
renders the service.
Defined benefit plan
The Company’s gratuity scheme is a defined benefit plan. The present value of obligation under such defined benefit plan is
determined based on actuarial valuation carried at the year-end using the Projected Unit Credit Method, which recognises each period
of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final
obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining
the present value of the obligation under defined benefit plans, is based on the market yields on Government securities as at the
balance sheet date.
The Company recognizes the following changes in the net defined benefit obligation under Employee benefit expense in statement of
profit or loss:
- Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements
- Net interest expense or income
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest
on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit
liability), are recognized immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through other
comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.
2.13 Segment reporting :
The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company. The
Company’s operating businesses are organized and managed separately according to the nature of products and services provided,
with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of
geographical segments is based on the areas in which major operating divisions of the Company operate.
Further, inter-segment revenue have been accounted for based on the transaction price agreed to between segments which is primarily
market based. Unallocated items include general corporate income and expense items, which are not allocated to any business
segment.
However, the company has no separate business and geographical segments to be reported.
2.14 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding
during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split
(consolidation of shares) if any that have changed the number of equity shares outstanding, without a corresponding change in
resources.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effect of all potentially dilutive equity shares."
2.15 Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and
exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognized in
Statement of Profit and Loss in the period in which they are incurred.
2.16 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of
three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposit held at call
with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities in the balance sheet.
2.17 Foreign currency translation
Functional and presentation currency
The Company’s Financial Statements are presented in Indian rupee (?) which is also the Company’s functional currency. Foreign
currency transaction are recorded on initial recognition in the functional currency, using the exchange rate prevailing at the date of
transaction.
Measurement of foreign currency item at the balance sheet date:
• Foreign currency monetary assets and liabilities denominated in foreign currency are translated at the exchange rates prevailing on
the reporting date.
• Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the
dates of the initial transactions.
Exchange differences:
Exchange differences arising on settlement or translation of monetary items are recognised as income or expense in the Statement of
Profit & Loss.
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