1. Corporate Information
PH Trading Limited (the Company ) having CIN No.- L51109WB1982PLC035011 and
registered office at Plot No.-62, Tower -II, 12th Floor, Millennium City Information Technology
Park, Sector -V, Block DN, Bidhan Nagar, North 24 Parganas, Sakltlake, West Bengal, India,
700064, India is a Public Limited Company incorporated and domiciled in India.
2.1. Basis of Preparation
The financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under The Companies (Indian Accounting Standards)
Rules, 2015 (the Rules).
2.2. Basis of classification of Current and non-current
Assets and liabilities in the Balance Sheet have been classified as either current or non-current
based upon the requirements of Schedule III to the Companies Act, 2013.
An asset has been classified as current if (a) it is expected to be realized in, or is intended for
sale or consumption in the Company's normal operating cycle; or (b) it is held primarily for the
purpose of being traded; or (c) it is expected to be realized within twelve months after the
reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or
used to settle a liability for at least twelve months after the reporting date. All other assets have
been classified as non-current.
A liability has been classified as current when (a) it is expected to be settled in the Company's
normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is due to
be settled within twelve months after the reporting date; or (d) the Company does not have an
unconditional right to defer settlement of the liability for at least twelve months after the reporting
date. All other liabilities have been classified as non-current.
An operating cycle is the time between the acquisition of assets for processing and their
realization in cash or cash equivalents. The Company has considered its operating cycle to be
12 months.
Fair value measurement
The Company measures certain financial instruments at fair value at each reporting date.Fair value
is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the
presumption that the transaction to sell the asset or transfer the liability takes place either:"
- In the principal market for the asset or liability, or
- In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.The fair value of
an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest."
A fair value measurement of a non-financial asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
For the purpose of fair value disclosures, the Company has determined classes of assets and
liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the
fair value hierarchy as explained above.
Revenue Recognition
Revenue, if any, from sale of goods will be recognized upon passage of title to the customers which
would generally coincide with delivery thereof. Claims, due to uncertainty in realization, are
accounted for on acceptance/cash basis. Dividend income on investments is accounted for when
the right to receive the payment is established. Interest income, if any, will be recognized on a time
proportion basis taking into account the amount outstanding and rate applicable. Profit on sale of
investments is recorded on transfer of title from the Company and is determined as the difference
between sale price, carrying value of Investment and other incidental expenses.Rental Income is
recognised on an accrual basis in accordance with the terms of the relevant agreement.
Operating Leases
Company as Lessee
Leases where the lessor effectively retains substantially all the risks and benefits of the ownership of
the leased assets, are classified as operating leases. Operating lease payments are recognized as
an expense in the Statement of Profit & Loss on a straight line basis over the leased term.
Company as Lessor
Leases in which the Company does not transfer substantially all the risks and benefits of ownership
of the asset are classified as operating leases. Assets subject to operating leases are included in
fixed assets. Lease income on an operating lease is recognized in the statement of profit and loss on
a straight-line basis over the lease term. Costs, including depreciation, are recognized as an
expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs,
etc. are recognized immediately in the statement of profit and loss.
Retirement Benefits and other employee benefits
Contributions to Defined Benefit Scheme are not applicable as the number of employees is below the
statutory limit.
Borrowing Costs
Borrowing costs (including other ancillary borrowing cost) directly attributable to the acquisition,
construction or production of an asset that necessarily takes a substantial period of time to get ready
for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are
expensed in the period in which they occur. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange
differences to the extent regarded as an adjustment to the borrowing costs.
Taxation
Provision for current Income Tax is made on the taxable income using the applicable tax rules and tax
laws. Deferred Tax, if any, arising on account of timing difference and which are capable of reversal in
one or more subsequent period is recognized using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date. Deferred tax assets, if any, subject to
consideration of prudence are recognized and carried forward only to the extent that there is
reasonable certainty that sufficient future taxable income will be available against which such
deferred tax assets can be realized.
Earnings Per Share
Earnings per share is calculated by dividing the net profit or loss before OCI for the year attributable
to equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss before OCI for the
period attributable to equity shareholders and the weighted average number of shares outstanding
during the period are adjusted for the effects of all dilutive potential equity shares.
Property, plant and equipment
Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any. Cost comprises of purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. When significant parts of plant and equipment are
required to be replaced at intervals, the Company depreciates them separately based on their
specific useful lives.
Under the previous GAAP (Indian GAAP), property, plant and equipment were carried in the balance
sheet on cost. The Company has elected to regard those values as deemed cost at the date of
transition.
An item of property, plant and equipment and any significant part initially recognised is derecognised
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
derecognised.
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.
Depreciation on Tangible Fixed Assets
Depreciation on Fixed Assets is provided on Written down value method and manner specified in
Schedule II of the Companies Act, 2013.
The Company has used Useful lives as specified in Schedule-II of Companies Act, 2013.
Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis with
reference to the date of addition/disposal thereof.
Impairment of non-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.
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 Company‘s assets. When the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered as
impaired and is written down to its recoverable amount.
Impairment losses are recognised in the statement of profit and loss.
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