Mar 31, 2023
Provisions
Provisions 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. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of management''s best estimate of the expenditure required to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is a
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time is recognised as finance cost.
p) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker.
The board of directors of Facor alloys Limited has been identified as being the chief operating decision maker by the
Management of the company. Refer note 37 for segment information presented.
q) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand and short-term money market deposits with original
maturities of three months or less that is readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
r) Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount is intended to be recovered principally
through sale rather than through continuing use. The condition for classification of held for sale is met when the non¬
current asset is available for immediate sale and the same is highly probable of being completed within one year
from the date of classification as held for sale. These are measured at the lower of carrying amount and fair value
less costs to sell.
Non-current assets classified as held for sale are not depreciated or amortized while they are classified as held for
sale.
Non-current assets that ceases to be classified as held for sale shall be measured at the lower of carrying amount
before the non-current asset was classified as held for sale adjusted for any depreciation/ amortization and its
recoverable amount at the date when it no longer meets the âheld for saleâ criteria.
s) Events occurring after the balance sheet date
All material events occurring after the balance sheet date upto the date of approval of financial statements by the
board of directors, have been considered, disclosed and adjusted, wherever applicable, as per the requirements of
Ind AS 10 - Events after the Reporting Period.
3. RECENT INDIAN ACCOUNTING STANDARDS (IND AS)
Ministry of Corporate Affairs (MCA), notifies new standard or amendments to the existing standards. There are no new
standards that are notified, but not yet effective, upto the date of issuance of the Company''s financial statements.
Mar 31, 2018
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
41 Financial Instruments - Fair Values And Risk Management I. Fair Value Measurements
Financial Instruments By Category* |
(Rs. in Lacs) |
||
Particulars |
As at 31 March 2018 |
As at 31 March 2017 |
As at 1 April 2016 |
Amortised Cost |
Amortised Cost |
Amortised Cost |
|
Financial assets |
|||
Non-Current Investments |
809.27 |
2.05 |
3.05 |
Loans |
- |
6.51 |
- |
Other Non-Current Financial Assets |
1,130.41 |
702.56 |
43.72 |
Trade Receivables |
1,840.67 |
1,377.51 |
284.60 |
Cash and Cash Equivalents |
139.51 |
949.00 |
69.17 |
Bank Balances other than Above |
6.38 |
10.45 |
10.56 |
Other Current Financial Assets |
1,078.27 |
923.16 |
70.02 |
5,004.51 |
3,971.24 |
481.12 |
|
''Exclude financial instruments measured at cost |
|||
Financial Liabilities |
|||
Borrowings |
6,846.20 |
9,600.97 |
8,699.74 |
Trade Payables |
2,467.28 |
2,106.93 |
711.23 |
Other Financial Liabilities |
2,907.82 |
2,218.72 |
514.57 |
12,221.30 |
13,926.62 |
9,925.54 |
B. Fair Value Hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are:
(a) recognised and measured at fair value and
(b) measured at amortised cost and for which fair values are disclosed in the financial statements.
To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table. Financial assets and liabilities which are Measured at amortised cost for which fair values are disclosed
(Rs. in Lacs)
Particulars |
As at 31 March 2018 |
|||
Level 1 |
Level 2 |
Level 3 |
Total |
|
Financial Assets |
||||
Non-Current Investments |
- |
- |
809.27 |
809.27 |
Other Non-Current Financial Assets |
- |
- |
1,130.41 |
1,130.41 |
Trade Receivables |
- |
- |
1 ,840.67 |
1,840.67 |
Cash and Cash Equivalents |
- |
- |
139.51 |
139.51 |
Bank Balances Other Than Above |
- |
- |
6.38 |
6.38 |
Other Current Financial Assets |
- |
- |
1 ,078.27 |
1,078.27 |
Total financial assets |
- |
- |
5,004.51 |
5,004.51 |
Financial Liabilities |
||||
Borrowings |
- |
- |
6,846.20 |
6,846.20 |
Trade Payables |
- |
- |
2,467.28 |
2,467.28 |
Other Financial Liabilities |
- |
- |
2,907.82 |
2,907.82 |
Total financial liabilities |
- |
- |
12,221.30 |
12,221.30 |
Financial assets and liabilities which are Measured at amortised cost for which fair values are disclosed
(Rs. in Lacs) |
||||
Particulars |
As at 31 March 2017 |
|||
Level 1 |
Level 2 |
Level 3 |
Total |
|
Financial Assets |
||||
Non-Current Investments |
- |
- |
2.05 |
2.05 |
Loans |
6.51 |
6.51 |
||
Other Non-Current Financial Assets |
- |
- |
702.56 |
702.56 |
Trade Receivables |
- |
- |
1,377.51 |
1,377.51 |
Cash and Cash Equivalents |
- |
- |
949.00 |
949.00 |
Bank Balances other than Above |
- |
- |
10.45 |
10.45 |
Other Current Financial Assets |
- |
- |
923.16 |
923.16 |
Total Financial Assets |
- |
- |
3,971.24 |
3,971.24 |
Financial Liabilities |
||||
Borrowings |
- |
- |
9,600.97 |
9,600.97 |
Trade Payables |
- |
- |
2,106.93 |
2,106.93 |
Other Financial Liabilities |
- |
- |
2,218.72 |
2,218.72 |
Total Financial Liabilities |
- |
- |
13,926.62 |
13,926.62 |
Assets and Liabilities which are Measured at amortised cost for which fair values are disclosed |
||||
(Rs. in Lacs) |
||||
Particulars |
As at 1 April 2016 |
|||
Level 1 |
Level 2 |
Level 3 |
Total |
|
Financial Assets |
||||
Non-Current Investments |
- |
- |
3.05 |
3.05 |
Loans |
- |
- |
- |
- |
Other Non-Current Financial Assets |
- |
- |
43.72 |
43.72 |
Trade Receivables |
- |
- |
284.60 |
284.60 |
Cash and Cash Equivalents |
- |
- |
69.17 |
69.17 |
Bank Balances other than Above |
- |
- |
10.56 |
10.56 |
Other Current Financial Assets |
- |
- |
70.02 |
70.02 |
Total Financial Assets |
- |
- |
481.12 |
481.12 |
Financial Liabilities |
||||
Borrowings |
- |
- |
8,699.74 |
8,699.74 |
Trade Payables |
- |
- |
711.23 |
711.23 |
Other Financial Liabilities |
- |
- |
514.57 |
514.57 |
Total Financial Liabilities |
- |
- |
9,925.54 |
9,925.54 |
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities. There are no transfers between level 1 and level 2 during the year
C. Fair value of financial assets and liabilities measured at amortised cost
(Rs. in Lacs)
Particulars |
As at 31 March 2018 |
As at 31 March 2017 |
As at 1 April 2016 |
|||
Carrying Amount |
Fair Value |
Carrying Amount |
Fair Value |
Carrying Amount |
Fair Value |
|
Financial assets |
||||||
Non-Current Investments |
809.27 |
809.27 |
2.05 |
2.05 |
3.05 |
3.05 |
Loans |
- |
- |
6.51 |
6.51 |
- |
- |
Other Non-Current Financial Assets |
1,130.41 |
1,130.41 |
702.56 |
702.56 |
43.72 |
43.72 |
Trade Receivables |
1,840.67 |
1,840.67 |
1,377.51 |
1,377.51 |
284.60 |
284.60 |
Cash and Cash Equivalents |
139.51 |
139.51 |
949.00 |
949.00 |
69.17 |
69.17 |
Bank Balances other than Above |
6.38 |
6.38 |
10.45 |
10.45 |
10.56 |
10.56 |
Other Current Financial Assets |
1,078.27 |
1,078.27 |
923.16 |
923.16 |
70.02 |
70.02 |
5,004.51 |
5,004.51 |
3,971.24 |
3,971.24 |
481.12 |
481.12 |
|
Financial liabilities |
||||||
Borrowings |
6,846.20 |
6,846.20 |
9,600.97 |
9,600.97 |
8,699.74 |
8,699.74 |
Trade Payables |
2,467.28 |
2,467.28 |
2,106.93 |
2,106.93 |
711.23 |
711.23 |
Other Financial Liabilities |
2,907.82 |
2,907.82 |
2,218.72 |
2,218.72 |
514.57 |
514.57 |
12,221.30 |
12,221.30 |
13,926.62 |
13,926.62 |
9,925.54 |
9,925.54 |
II. Financial Risk Management
The Company has exposure to the following risks arising from financial instruments:
- credit risk;
- liquidity risk; and
- market risk
Risk Management Framework
A company is exposed to uncertainties owning to the sector in which it is operating. The Company is conscious of the fact that any risk that could have a material impact on its business should be included in its risk profile. Accordingly, in order to contain / mitigate the risk, the Board of Directors have approved a Risk management policy which shall be reviewed by Board and the management from time to time.
The Company''s Risk Management framework is designed to identify, assess and monitor various risks related to key business and strategic objectives and lead to the formulation of a mitigation plan. Major risks in particular are monitored regularly at Executive meetings and the Board of Directors of the Company is kept abreast of such issues and the policy was reviewed by the Board and Committee at its meeting.
The Company''s Audit Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.
i. Credit Risk
Credit risk is the risk of financial loss to company if a customer or counterparty to the financial instrument fails to meet its financial obligations, and arises principally from the loans & advances to related parties and company''s receivables from customers.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, cash and cash equivalents, other balances with banks and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk other than trade receivable.
The company maintains its Cash and cash equivalents and Bank Deposits with banks having good reputation, good past track record and high quality credit rating and also reviews their credit rating on a timely basis.
The gross carrying amount of trade receivables is Rs. 1840.67 lacs (31 March 2017 Rs. 1,377.51 Lacs & 1 April 2016 -Rs. 284.59 Lacs).
During the period, the Company has made no write-offs of trade receivables. The Company management also pursue all options for recovery of dues wherever necessary based on its internal assessment. A default on a financial asset is when counterparty fails to make payments within 365 days when they fall due.
Other current financial assets basically include loans and advances recoverable from related parties. Provision is created in books of accounts on case to case basis depending upon the possibility/probability of recovery of the amount due to financial position of related parties. The gross carrying amount of loan and advances to related parties as on 31 March 2018 amounted to Rs. 9,694.30 lacs (As at 31 March 2017 is Rs. 9,537.76 lacs & 1 April 2016 is Rs. 8,684.54 lacs).
Reconciliation Of Loss Allowance Provision - Loan And Advances To Related Parties
(Rs. in Lacs)
31 March 2018 |
31 March 2017 |
1 April 2016 |
|
Opening balance |
8,614.60 |
8,614.60 |
- |
Changes in loss allowance calculated at life time expected credit losses |
1.47 |
- |
8,614.60 |
Closing balance |
8,616.07 |
8,614.60 |
8,614.60 |
ii. Liquidity risk
Liquidity risk refers to risk of financial distress or extra ordinary high financing cost arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and require financing. The Company''s objective is to maintain at all times optimum levels of liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by senior management and management monitors the Company''s net liquidity position through rolling forecast on the basis of expected cash flows.
(a) Financing arrangements
The group had access to the following undrawn borrowing facilities at the end of the reporting period: (Rs. in Lacs)
Particulars |
31 March 2018 |
31 March 2017 |
1 April 2016 |
Floating rate |
|||
Expiring within one year (bank overdraft and other facilities) |
|||
- Fund/ Non fund based (secured) |
- |
5,986.29 |
5,849.95 |
- Fund/ Non fund based (unsecured) |
- |
- |
- |
Expiring beyond one year |
- |
- |
- |
Total |
- |
5,986.29 |
5,849.95 |
The company do not have undrawn bank overdraft facilities as on 31 March 2018.
(b) Maturities of financial liabilities
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and excluding contractual interest payments and exclude the impact of netting agreements.
(Rs. in Lacs) |
||||||
Particulars |
Carrying Amounts -31 March 2018 |
Contractual cash flows |
||||
Total |
Upto 1 year |
Between 1 and 2 years |
Between 2 and 5 years |
More than 5 year |
||
Non-derivative financial liabilities |
||||||
Borrowings |
6,846.20 |
6,846.20 |
4,851.32 |
- |
1 ,994.88 |
- |
Trade payables |
2,467.28 |
2,467.28 |
2,467.28 |
- |
- |
- |
Other financial liabilities |
2,907.82 |
2,907.82 |
2,907.82 |
- |
- |
- |
Total non-derivative liabilities |
12,221.30 |
12,221.30 |
10,226.42 |
_ |
1,994.88 |
_ |
(Rs. in Lacs)
Particulars |
Carrying Amounts 31 March 2017 |
Contractual cash flows |
||||
Total |
Upto 1 year |
Between 1 and 2 years |
Between 2 and 5 years |
More than 5 year |
||
Non-derivative financial |
||||||
liabilities |
||||||
Borrowings |
9,600.97 |
9,600.97 |
7,904.47 |
- |
1,696.50 |
- |
Trade payables |
2,106.93 |
2,106.93 |
2,106.93 |
- |
- |
- |
Other financial liabilities |
2,218.72 |
2,218.72 |
2,218.72 |
- |
- |
- |
Total non-derivative liabilities |
13,926.62 |
13,926.62 |
12,230.12 |
- |
1,696.50 |
- |
(Rs. in Lacs) |
||||||
Particulars |
Carrying Amounts 1 April 2016 |
Contractual cash flows |
||||
Total |
Upto 1 year |
Between 1 and 2 years |
Between 2 and 5 years |
More than 5 year |
||
Non-derivative financial liabilities |
||||||
Borrowings |
8,699.74 |
8,699.74 |
8,699.74 |
- |
- |
- |
Trade payables |
711.23 |
711.23 |
711.23 |
- |
- |
- |
Other financial liabilities |
514.57 |
514.57 |
514.57 |
- |
- |
- |
Total non-derivative liabilities |
9,925.54 |
9,925.54 |
9,925.54 |
- |
- |
- |
iii. Market risk
Market risk is the risk that changes in market prices, foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
a) Equity Price risk
Commodity Price Risk is the risk that future cash flow of the Company will fluctuate on account of changes in market price of the material produced and sold by the company. The Company is exposed to the movement in price of key raw materials in domestic and international markets. The Company has in place policies to manage exposure to fluctuations in the prices of the materials. The Company enters into contracts for procurement of materials and most of the transactions are short term fixed price contracts.
b) Currency risk
Foreign currency risk is the risk that fair value of future cash flow of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has foreign currency trade payables and receivables and is therefore, exposed to a foreign exchange risk. Foreign currency risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The risk is managed through a forecast of highly probable foreign currency cash flows Exposure to currency risk
The summary quantitative data about the Group''s exposure to currency risk as reported to the management of the Group is as follows:
Particulars |
As at 31 March 2018 |
As at 31 March 2017 |
As at 1 April 2016 |
USD |
USD |
USD |
|
Financial asset |
|||
Trade receivables |
17 |
46 |
- |
Net exposure to foreign currency risk (assets) |
17 |
46 |
- |
Financial Liabilities |
|||
Trade payables |
- |
- |
|
Net statement of financial position exposure |
- |
- |
- |
Sensitivity analysis
A reasonably possible strengthening (weakening) of the INR against all other currencies at 31 March would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.
Particulars |
Profit or loss, net of tax |
Equity, net of tax |
||
Strengthening |
Weakening |
Strengthening |
Weakening |
|
31 March 2018 |
||||
5% movement |
||||
USD |
(1) |
1 |
(1) |
1 |
31 March 2017 |
||||
5% movement USD |
(1) |
1 |
(1) |
1 |
31 March 2016 |
||||
5% movement USD |
. |
. |
. |
. |
c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates related primarily to the Company''s short term borrowing with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.
Exposure to interest rate risk
The interest rate profile of the Company''s interest bearing financial instruments at the end of the reporting period are as follows:
(Rs. in Lacs)
Particulars |
31-Mar-18 |
31-Mar-17 |
1-Apr-16 |
Fixed Rate Instruments |
|||
Financial Assets |
2.05 |
2.05 |
53.05 |
Financial Liabilities |
1,994.88 |
1,796.50 |
1,000.00 |
1,992.83 |
1,794.45 |
946.95 |
|
Variable Rate Instruments |
|||
Financial Assets |
- |
- |
|
Financial Liabilities |
3,890.13 |
6,935.70 |
7,699.74 |
3,890.13 |
6,935.70 |
7,699.74 |
Sensitivity analysis Fixed rate instruments
Fixed rate instruments that are carried at amortised cost are not subject to interest rate risk for the purpose of sensitive analysis.
Variable rate instruments
A reasonably possible change of 100 basis points in variable rate instruments at the reporting dates would have increased or decreased profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant.
(Rs. in Lacs) |
||||
Particulars |
Profit or loss, net of tax |
Equity, net of tax |
||
100 bp increase |
100 bp decrease |
100 bp increase |
100 bp decrease |
|
31 March 2018 |
||||
Variable Rate Instruments |
(25) |
25 |
(25) |
25 |
Cash flow sensitivity (net) |
(25) |
25 |
(25) |
25 |
31 March 2017 |
||||
Variable Rate Instruments |
(45) |
45 |
(45) |
45 |
Cash flow sensitivity (net) |
(45) |
45 |
(45) |
45 |
31 March 2016 |
||||
Variable Rate Instruments |
(50) |
50 |
(50) |
50 |
Cash flow sensitivity (net) |
(50) |
50 |
(50) |
50 |
42 Capital management
For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity share holders of the Company. The primary objective of the Company''s capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through equity, internal accruals, long term borrowings and short term borrowings. In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
43 The plant was operative in the previous financial year for only 6 months, therefore the figures of the current year''s statements of profit & loss is not comparable with the previous year figures.
44 First Time Adoption of Ind AS
As stated in note 2, these are the Company''s first standalone financial statements prepared in accordance with Ind AS. The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS statement of financial position at 1 April 2016 (the Company''s date of transition). In preparing its opening Ind AS statement of financial position, the Company has adjusted amounts reported previously in financial statements prepared in accordance with Indian GAAP (previous GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables. Exemptions and exceptions availed Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
A. Ind AS Optional Exemptions
(i) Deemed cost of Property, Plant and Equipment:
The Company has elected to measure items of Property, Plant & Equipment (PPE) at the date of transition to Ind AS at their fair value. The Company has used the fair value of PPE, which is considered as deemed cost on transition. Fair valuations are assessed as on 1 April, 2016.
(ii) Investments in Subsidiary:
Ind AS 101 permits a first-time adopter to choose the previous GAAP carrying amount at the entity''s date of transition to Ind AS to measure the investment in the subsidiary as the deemed cost. Accordingly, the Group has opted to measure its investment in subsidiary at deemed cost, i.e. previous GAAP carrying amount.
B. Ind AS mandatory exceptions (i) Estimates
An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP.
(ii) Classification and Measurement of Financial Assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
C. Reconciliations between previous GAAP and Ind AS
Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.
Reconciliation of Equity
(Rs. in Lacs)
Particulars |
As at 1 April 2016 |
As at 31 March 2017 |
||||
Previous GAAP* |
Adjustments |
Ind AS |
Previous GAAP* |
Adjustments |
Ind AS |
|
ASSETS |
||||||
Non -current assets |
||||||
Property, Plant and Equipment |
1,800.05 |
15,318.17 |
17,118.22 |
1,675.83 |
15,318.16 |
16,993.99 |
Investments in Subsidiary and Associates |
4,947.06 |
(3,091.42) |
1,855.64 |
4,947.06 |
(3,091.42) |
1,855.64 |
Financial Assets |
||||||
(i) Investments |
2,016.72 |
(2,013.67) |
3.05 |
2,015.72 |
(2,013.67) |
2.05 |
(ii) Loans |
- |
- |
- |
6.51 |
0.00 |
6.51 |
(iii) Other Non-Current Financial Assets |
43.72 |
(0.00) |
43.72 |
702.56 |
0.00 |
702.56 |
Deferred Tax Asset (Net) |
1,634.60 |
(0.00) |
1,634.60 |
1,638.24 |
(1.21) |
1,637.03 |
Current Assets |
||||||
Inventories |
1,372.69 |
0.00 |
1,372.69 |
1,812.38 |
0.01 |
1,812.39 |
Financial Assets |
||||||
(i) Trade Receivables |
284.60 |
0.00 |
284.60 |
1,377.51 |
(1.00) |
1,376.51 |
(ii) Cash and Cash Equivalents |
69.17 |
0.00 |
69.17 |
949.00 |
(0.00) |
949.00 |
(iii) Bank Balances other than (ii) Above |
10.56 |
0.00 |
10.56 |
10.44 |
0.01 |
10.45 |
(iv) Other Current Financial Assets |
8,684.62 |
(8,614.60) |
70.02 |
8,669.00 |
(7,745.84) |
923.16 |
Current Tax Assets (Net) |
138.20 |
0.00 |
138.20 |
229.74 |
(0.00) |
229.74 |
Other Current Assets Total Assets Equity and Liabilities |
1,330.34 |
(0.01) |
1,330.33 |
1,583.31 |
0.00 |
1,583.31 |
22,332.31 |
1,599.49 |
23,931.80 |
25,617.30 |
2,466.04 |
28,083.34 |
|
Equity |
||||||
Equity Share Capital |
1,955.47 |
0.01 |
1,955.48 |
1,955.47 |
0.01 |
1,955.48 |
Other Equity |
8,737.69 |
1,598.47 |
10,336.16 |
8,783.33 |
1,600.76 |
10,384.09 |
Non-Current Liabilities |
||||||
Financial Liabilities |
||||||
(i) Borrowings |
- |
- |
- |
1,800.00 |
(103.50) |
1,696.50 |
Long Term Provisions |
1,135.82 |
(1,020.53) |
115.29 |
1,160.56 |
(1,020.53) |
140.03 |
Current Liabilities |
Particulars |
As at 1 April 2016 |
As at 31 March 2017 |
||||
Previous GAAP* |
Adjustments |
Ind AS |
Previous GAAP* |
Adjustments |
Ind AS |
|
Financial Liabilities |
||||||
(i) Borrowings |
8,225.34 |
474.40 |
8,699.74 |
6,939.61 |
865.86 |
7,805.47 |
(ii) Trade Payables |
711.23 |
0.00 |
711.23 |
2,106.93 |
(0.00) |
2,106.93 |
(iii) Other Financial Liabilities |
1,017.25 |
(502.68) |
514.57 |
2,214.81 |
103.91 |
2,318.72 |
Other Current Liabilities |
489.52 |
(191.25) |
298.27 |
618.42 |
(256.39) |
362.03 |
Short-Term Provisions |
59.99 |
1,240.07 |
1,300.06 |
38.17 |
1,276.92 |
1,315.09 |
Total Equity and Liabilities |
22,332.31 |
1,598.49 |
23,930.80 |
25,617.30 |
2,467.04 |
28,084.34 |
The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.
Reconciliation Of Total Equity As At 31 March 2017 And 1 April 2016 |
(Rs. in Lacs) |
|
Particulars |
31 March 2017 |
1 April 2016 |
Total Equity (Shareholder''s funds) as per previous GAAP |
10,738.80 |
10,693.17 |
Adjustments: |
||
Impact on Account of Fair Valuation of Fixed Assets |
- |
15,318.17 |
Impact on Account of Impairment of Investment in Subsidiary and Associates |
- |
(3,091.43) |
Impact on Account of Impairment of Investment in Equity of Other Companies |
- |
(2,013.67) |
Impact of Interest Charged as per EIR Method |
(0.05) |
- |
Impact of Interest Charged as per EIR Method adjusted in Other Equity |
2.32 |
- |
Impact on Account of Provision of Loans and Advances |
- |
(8,614.60) |
Tax Effects of Adjustments |
0.02 |
- |
Total Adjustments |
2.29 |
1,598.47 |
Net Impact Brought Forward from Opening Balance Sheet |
1,598.47 |
- |
Total Equity as per Ind AS |
12,339.56 |
12,291.64 |
Reconciliation of Total Comprehensive Income for the Year Ended 31 March 2017 |
(Rs. in Lacs) |
Particulars |
Amount |
Profit after tax under Indian GAAP |
45.64 |
Adjustments |
|
Impact of Interest Charged as per EIR Method |
(0.05) |
Impact of Provision for Doubtful Advances |
- |
Acturial Gain/(Loss) on Employee Benefit Recognised in Other Comprehensive Income |
43.64 |
Tax Effects of Adjustments |
(15.08) |
Total Adjustments |
28.51 |
Profit After Tax as per Ind AS |
74.14 |
Other Comprehensive Income |
|
Acturial Gain/(Loss) on Employee Benefit Recognized |
(28.54) |
Total Comprehensive Income for the year |
45.60 |
D. Notes To First-Time Adoption:
1 Property, Plant and Equipment
The Company has elected to measure items of Property, Plant & Equipment (PPE) at the date of transition to Ind AS at their fair value. The Company has used the fair value of PPE, which is considered as deemed cost on transition. Fair valuations are assessed as on 1 April, 2016 and the same had an impact of? 11,671.81 Lacs in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves.
2 Investment in Subsidiaries and Associates
The company had opted to carry its investment in subsidiary and associates at cost in accordance with Ind AS 27. Further, the company had carried out the impairment testing of investment value (at cost) in accordance with the Ind AS 36. The impairment testing has resulted in impairment of investment by Rs. 3,091.42 lacs with resultant impact being accounted for in the reserves on the transition date.
3 Other Investments (other than Subsidiary and Associates)
Under previous GAAP, the Company used to carry the investments in equity instruments of companies(other than subsidiary and associates) at cost. Under Ind AS, the Company elected to fair value the same through the other comprehensive income. As a result, the Company recorded downward fair valuation of Rs. 2,013.66 lacs as on the transition date.
4 Borrowings
Under Ind AS, the financial liability (borrowings) needs to be measured at amortised cost using EIR and for the computation of EIR market rate of interest needs to be considered. The company had obtained certain loans which were at below market interest rate and application of EIR method had resulted in decrease of borrowings by Rs. 6.02 lacs with corresponding increase in reserves (including other equity). The above adjustment had decreased profit by Rs. 0.22 lacs during FY 2016-17.
5 Impairment of Financial Assets - Loans and Advances
As per Ind AS 109, the company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a result, the allowance for doubtful debts has been booked by Rs. 8,614.59 Lacs with corresponding decrease in reserves as at 1 April 2016.
6 Remeasurements of Post-Employment Benefit Obligations
Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. Asa result of this change, the profit for the year (net of tax) ended 31 March 2017 increased by Rs. 43.64 lacs (Rs. 28.53 lacs). There is no impact on the total equity as at 31 March 2017.
7 Deferred tax
Deferred tax have been recognised on the adjustments made on transition to Ind AS.
8 Excise Duty
Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty as the excise duty is collected by the company as a principal unlike other indirect taxes. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by Rs. 160.81 lacs. There is no impact on the total equity and profit.
9 Retained Earnings
Retained earnings as at 1 April 2016 has been adjusted consequent to the above Ind AS transition adjustments.
As per our report of even date. |
||
For and on behalf of the Board of Directors |
||
Abhay Upadhye |
O.P. Saraswat |
R.K. Saraf |
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