Accounting Policies of Shalimar Paints Ltd. Company
Mar 31, 2023
Significant accounting policies
3.1 Basis of measurement
The standalone financial statements have been prepared under the historical cost convention on the accrual basis, except for
the following assets and liabilities which have been measured fair value:
- Property, Plant & Equipment (at fair value as deemed cost as at 1st April 2016);
- Financial assets and liabilities except certain investments, Loans and borrowings carried at amortised cost;
- Defined benefit plans - plan assets measured at fair value;
- Share based payments
The standalone financial statements are presented in Indian Rupees which is the Companyâs functional and presentation
currency and all amounts are rounded to the nearest lakhs and two decimals thereof, except otherwise stated.
The Company measures financial instruments at fair value which is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between independent 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.
All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable; and
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available
to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. For
assets and liabilities that are recognised in the balance sheet at fair value on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.
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 is recognized upon transfer of control of promised goods or services to customers at an amount that reflects the
consideration to which the Company is expected to be entitled to in exchange for those goods or services. Revenue towards
satisfaction of a performance obligation is measured at the amount of transaction price allocated to that performance obligation
as per contractually agreed terms with the customers. The transaction price of goods sold and services rendered is net of
various discounts and schemes offered by the Company as part of the contract. Revenue is recorded provided the recovery of
consideration is probable and determinable. Revenue from sale of goods and services transferred to distributors/intermediaries
are recognised at a point in time.
a) Sale of goods:
Revenue from the sale of manufactured and traded goods products is recognised upon transfer of control of products to
the customers which coincides with their handing over the goods to the transporter and is measured at fair value of
consideration received/receivable, net of discounts, amount collected on behalf of third parties and applicable taxes.
b) Services rendered:
Revenue from service related activities is recognised as and when services are rendered and on the basis of contractual
terms with the parties.
3.4 Other Income
Interest Income
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the
rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying
amount of a financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial instrument but does not consider the expected credit losses.
Dividend Income
Dividend income from investments is recognised when the Companyâs right to receive dividend is established.
Inventories are valued as follows:
a) Raw materials, components, stores and spares:
At lower of cost and net realisable value. Cost of inventory comprises all costs of purchases, duties, taxes (other than
those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory to their present
location and condition and is determined on a weighted average cost basis.
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.
b) Work-in-progress:
At lower of cost and net realisable value. Cost for this purpose includes material, labour and appropriate allocation of
overheads including depreciation. Cost is determined on a weighted average basis.
c) Intermediate goods/ Finished goods:
i. Self manufactured - At lower of cost and net realisable value. Cost for this purpose includes material, labour and
appropriate allocation of overheads. Cost is determined on a weighted average cost basis.
ii. Traded - At lower of cost and net realisable value. Cost of inventory comprises all costs of purchases, duties, taxes
(other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory
to their present location and condition and is determined on a weighted average cost basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
Obsolete, defective, unprocessable and slow/ non-moving stocks are duly provided for and valued at net realisable value.
3.6 Property, plant and equipment and capital work-in-progress
a) Measurement at recognition
Property, plant and equipment and capital work-in progress are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any.
Cost comprises the purchase price, borrowing costs if capitalisation criteria are met and any 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. The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if:
a) it is probable that future economic benefits associated with the item will flow to the entity; and
b) the cost of the item can be measured reliably.
Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increased
the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on
existing assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the
Standalone Statement of Profit and Loss for the period during which such expenses are incurred. Expenditure directly
relating to construction activity is capitalised. Indirect expenditure incurred during construction period is capitalised as a
part of indirect construction cost to the extent the expenditure is related to construction or is incidental thereto. Other
indirect costs incurred during the construction periods which are not related to construction activity nor are incidental
thereto are charged to the Standalone Statement of Profit and Loss.
Capital work-in-progress includes cost of property, plant and equipment under installation/under development, other
expenditure (including trial run / test run expenditures) during construction / erection period (net of income) pending
allocation/capitalization as at the balance sheet date.
b) Derecognition
An item of property, plant and equipment and any significant part initially recognised is de-recognised upon disposal or
when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal proceeds or amount of security deposit adjusted and the
carrying amountof the asset) is included in the Standalone Statement of Profit and Loss when the asset is de-recognised.
c) Depreciation
Depreciation on property, plant and equipment is provided on straight line method in the manner specified in Schedule II
of the Companies Act, 2013 as given below and in respect of assets added/disposed off during the year on pro-rata basis
with reference to the date of its use / disposal/residual value.
Factory building 30 years
Other than factory building 60 years
Plant & machinery 7 to 15 years
Office equipments 5 years
Computer 3 years
Tinting machines 10-15 years
Furnitures and fixtures 10 years
Vehicles 8 years
Depreciation is charged on fair valued amount less estimated salvage value. Leasehold land is amortized on a straight
line basis over the remaining period of lease. Depreciation on tinting machines is basis the technical evaluation.
The useful lives, residual values of each part of an item of property, plant and equipment and the depreciation methods
are reviewed at the end of each financial year. If any of these expectations differ from previous estimates, such change is
accounted for as a change in an accounting estimate.
a) Measurement at recognition
Intangible assets are recognised when it is probable that the expected future economic benefits that are attributable to the
asset will flow to the entity and cost of assets can be measured reliably. Intangible assets acquired separately are measured
on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation
and accumulated impairment loss, if any.
Intangible Assets with finite lives are amortised over the estimated useful economic life on straight line method.
The amortisation expense on intangible assets with finite lives is recognised in the Standalone Statement of Profit and
Loss. The estimated useful life of intangible assets as per management is mentioned below:
Computer software 6 years
Trade mark 10 years
Technical know how 25 years
The amortisation period and the amortisation method for an intangible asset with finite useful life is reviewed at the end of each
financial year.
c) Derecognition
The carrying amount of an intangible asset is derecognised on disposal or when no future economic benefits are expected
from its use or disposal. The gain or loss arising from the derecognition of an intangible asset is measured as the difference
between the net disposal proceeds and the carrying amount of the intangible asset and is recognized in the Standalone
Statement of Profit and Loss when the asset is derecognised.
3.8 Investment in subsidiaries
An investor, regardless of the nature of its involvement with an entity (the investee), shall determine whether it is a parent by
assessing whether it controls the investee. An investor 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, an investor controls an investee if and only if the investor has all the following
a) power over the investee;
b) exposure, or rights, to variable returns from its involvement with the investee; and
c) the ability to use its power over the investee to affect the amount of the investorâs returns
The Company has elected to recognise its investments in subsidiaries at cost in accordance with the option available in Ind AS
27, âSeparate Financial Statementsâ.
Investment carried at cost is tested for impairment as per Ind AS 36.
The Company as a lessee
The Company enters into an arrangement for lease of buildings and equipments. Such arrangements are generally for a fixed
period but may have extension or termination options. In accordance with Ind AS 116 - Leases, at inception of the contract, the
Company assesses whether a contract is, or contains a lease. A lease is defined as âa contract, or part of a contract, that
conveys the right to control the use an asset (the underlying asset) for a period of time in exchange for considerationâ.
To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
a) The contract involves the use of an identified asset - this may be specified explicitly or implicitly, and should be physically
distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution
right, then the asset is not identified;
b) The Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period
of use; and
c) The Company assesses whether it has the right to direct âhow and for what purposeâ the asset is used throughout the
period of use. At inception or on reassessment of a contract that contains a lease component, the Company allocates the
consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the
leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and
account for the lease and non-lease components as a single lease component.
The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or
before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses
(unless such right of use assets fulfills the requirements of Ind AS 40 - Investment Property and is accounted for as there
under), if any and adjusted for any re-measurement of the lease liability. The right-of-use asset is depreciated using the
straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. Right-of-
use asset are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable.
Impairment loss, if any, is recognised in the Standalone Statement of Profit and Loss.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Companyâs incremental
borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
a) Fixed payments, including in-substance fixed payments;
b) Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement
date;
c) Amounts expected to be payable under a residual value guarantee; and
d) The exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an
optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early
termination of a lease unless the Company is reasonably certain not to terminate early.
The lease liability is measured at amortized cost using the effective interest rate method. It is remeasured when there is a
change in future lease payments arising from a change in an index or rate, if there is a change in the Companyâs estimate of
the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether
it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding
adjustment is made to the carrying amount of the right-of-use asset, or is recorded in standalone profit or loss if the carrying
amount of the right-of-use asset has been reduced to zero, as the case may be.
The Company presents right-of-use assets that do not meet the definition of investment property and lease liabilities as a
separate line item in the standalone financial statements of the Company.
The Company has elected not to apply the requirements of Ind AS 116 - Leases to short-term leases of all assets that have a
lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with
these leases are recognized as an expense on a straight-line basis over the lease term.
a) Contribution to provident and other funds
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other
than the contribution payable to the provident fund. The Company recognises contribution payable to the provident fund
scheme as an expense, when an employee renders the related service. If the contribution payable to the scheme for
service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme
is recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the
contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent
that the pre-payment will lead to, for example, a reduction in future payment or a cash refund.
b) Gratuity
Gratuity is a defined benefit scheme. The cost of providing benefits under the defined benefit plan is determined using the
projected unit credit method. The Company recognises termination benefit as a liability and an expense when the Company
has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the termination
benefits fall due more than twelve months after the balance sheet date, they are measured at present value of future cash
flows using the discount rate determined by reference to market yields at the balance sheet date on government bonds.
Re-measurements, comprising 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 recognised immediately in the standalone balance sheet with a corresponding debit or
credit to retained earnings through Standalone Other Comprehensive Income (âOCIâ) in the period in which they occur.
Re-measurements are not reclassified to standalone profit or loss in subsequent periods.
Past service costs are recognised in Standalone Statement of Profit and Loss on the earlier of:
⢠The date of the plan amendment or curtailment, and
⢠The date that the Company recognises related restructuring cost
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset.
The Company recognises the following changes in the net defined benefit obligation as an expense in the Standalone
Statement of Profit and Loss:
⢠Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and
⢠Net interest expense or income
c) Compensated absences (other long-term employee benefits)
The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit which are computed based on the actuarial valuation using the projected unit credit method at the period end.
Actuarial gains/losses are immediately taken to the Standalone Statement of Profit and Loss and are not deferred. The
Company presents the leave as a current liability in the standalone balance sheet to the extent it does not have an
unconditional right to defer its settlement for twelve months after the reporting date. Where Company has the unconditional
legal and contractual right to defer the settlement for a period beyond twelve months, the balance is presented as a non¬
current liability.
Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short term employee
benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a
result of the unused entitlement that has accumulated at the reporting date.
All other employee benefits payable/available within twelve months of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, wages, bonus, etc. are recognised in the Standalone Statement of Profit
and Loss in the period in which the employee renders the related service.
Employees of the Company receive remuneration in the form of share-based payments, whereby employees render services
as consideration for equity instruments which are classified as equity-settled transactions.
The cost of equity-settled transactions is determined by the fair value at the date of grant using an appropriate valuation
model. That cost is recognised as an employee benefit expense with a corresponding increase in âShare option outstanding
accountâ in other equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative
expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the
vesting period has expired and the Companyâs best estimate of the number of equity instruments that will ultimately vest.
Service and non-market performance conditions are not taken into account when determining the grant date fair value of
awards, but the likelihood of the conditions being met is assessed as part of the Companyâs best estimate of the number of
equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any
other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting
conditions.
Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there
are also service and/or performance conditions.
No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions
have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective
of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are
satisfied.
When the terms of an equity-settled award are modified, the minimum expense recognised is the expense had the terms had
not been modified, if the original terms of the award are met. An additional expense is recognised for any modification that
increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured
at the date of modification. Where an award is cancelled by the Company or by the counterparty, any remaining element of the
fair value of the award is expensed immediately through the Standalone Statement of Profit and Loss.
3.12 Foreign currency transactions and translations
Transactions in foreign currencies are initially recorded in the functional currency, by applying to the foreign currency amount
the exchange rate between the functional currency and the foreign currency at the date of the transaction.
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
Exchange differences arising on the settlement of monetary items or on restatement of the Companyâs monetary items at rates
different from those at which they were initially recorded during the year, or reported in previous financial statements, are
recognised as income or as expenses in the year in which they arise.
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the
extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.
Borrowing costs attributable to acquisition or construction of qualifying asset that necessarily take a substantial period of time
to get ready for their intended use is worked out on the basis of attributable of funds out of project specific loans and/or other
borrowings to the extent identifiable with the qualifying asset and is capitalized with the cost of qualifying asset, using the
effective interest method. Other borrowing costs are recognised as an expense in the period in which they are incurred.
Items which are material by virtue of their size and nature, are disclosed separately as exceptional items to ensure that
standalone financial statements allow an understanding of the underlying performance of the business during the year and to
facilitate comparison with prior year.
Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and
deferred tax. It is recognised in profit or loss except to the extent that it relates to items recognised directly in equity or in other
comprehensive income.
a) Current income tax
Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-
tax Act, 1961 and rules thereunder. Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in OCI or in equity).
Current tax items are recognised 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.
While determining the tax provisions, the Company assesses whether each uncertain tax position is to be considered
separately or together with one or more uncertain tax positions depending upon the nature and circumstances of each
uncertain tax position. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable
right to set off the recognised amounts and where it intends either to settle on a net basis, or to realise the asset and
liability simultaneously.
Minimum Alternate tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period.
b) Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities
and their book bases. Deferred tax liabilities are recognised for all temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised 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 utilised. Deferred tax assets and liabilities are measured at the tax rates that are expected to
apply in the year when the asset is realised 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 recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are
recognised in correlation to the underlying transaction either in OCI or directly in equity.
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 utilised. Unrecognised
deferred tax assets (including on unabsorbed losses) are re-assessed at each reporting date and are recognised to the
extent that it has become probable that there is reasonable certainity with convincing evidence of future taxable profits.
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.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision
maker, who is responsible for allocating resources and assessing performance of the operating segments. The business
activities of the Company predominantly fall within a single operating segment, i.e., manufacturing and sale of paints.
Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the standalone
financial statements, thus there are no additional disclosures to be provided under Ind AS 108 -âSegment Reportingâ.
Basic earnings per share is 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.
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 effects of all dilutive potential
equity shares.
3.18 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, bank balance, short-term deposits with original maturities of three months
or less and other short term highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
For the purpose of presentation in the standalone statement of cash flows, cash and cash equivalents includes cash on hand,
deposits 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 standalone balance
sheet.
3.19 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 assetâs recoverable amount. An
assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (âCGUâ) 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 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 Companyâs 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 Companyâs 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 entity operates, or for the market in which the asset is used.
Impairment losses of continuing operations, including impairment on inventories, are recognised in the Standalone Statement
of Profit and Loss.
An assessment is made at each reporting date to determine whether there is an indication that previously recognised 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 recognised 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 recognised. 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 recognised for the asset in prior years. Such reversal is recognised
in the Standalone 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.
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.
Initial recognition and measurement
All financial assets are recognised initially at fair value, in the case of financial assets not recorded at fair value through profit
or loss (âFVTPLâ), transaction costs that are attributable to the acquisition of the financial asset, except for trade receivables
which are initially measured at transaction price.
For purposes of subsequent measurement, financial assets are classified as follows:
a) Debt instruments at amortised cost
A âdebt instrumentâ is measured at the amortised cost where the asset is held within a business model whose objective is
to hold assets for collecting contractual cash flows; and contractual terms of the asset give rise to cash flows on specified
dates that are solely payments of principal and interest.
After initial measurement, such financial assets are subsequently measured at amortised cost using the EIR method.
Amortised 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 interest income from these financial assets is included in finance income in the Standalone
Statement of Profit and Loss. The losses arising from impairment are recognised in the Standalone Statement of Profit and
Loss. This category generally applies to trade and other receivables.
b) Debt instruments at fair value through other comprehensive income
Assets that are held for collection of contractual cashflows and for selling the financial assets, where the cash flow
represent solely payments of principal and interest, are measured at fair value through other comprehensive income
(âFVOCIâ). The Company has not designated any debt instrument in this category.
c) Debt instruments at fair value through profit or loss
Fair Value Through Profit or Loss (âFVTPLâ) is a residual category for debt instruments. Any debt instrument, which does
not meet the criteria for categorisation as at amortized cost or as FVTOCI, is classified as at FVTPL.
In addition, the Company may elect to designate a debt instrument which otherwise meets amortized cost or FVTOCI
criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition
inconsistency (referred to as âaccounting mismatchâ).
Debt instruments included within the FVTPL category are measured at fair value with all changes recognised in the
Standalone Statement of Profit and Loss. The Company has not designated any debt instrument in this category.
d) Equity instruments
All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading and
contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 âBusiness Combinationsâ
applies are Ind AS classified as at FVTPL. Equity instruments included within the FVTPL category are measured at fair
value with all changes recognised in the Standalone Statement of Profit and Loss.
For all other equity instruments, the Company may make an irrevocable election to present in other comprehensive
income subsequent changes in the fair values. The Company makes such election 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 recognised in the OCI. There is no recycling of the amounts from OCI to profit or loss, even on
sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
De-recognition
A financial asset is de-recognised when the contractual rights to receive cash flows from the asset have expired or the Company
has transferred its rights to receive the contractual cash flows from the asset in a transaction in which substantially all the risks
and rewards of ownership of the asset are transferred.
Impairment of financial assets
The Company measures the Expected Credit Loss (âECLâ) associated with its assets based on historical trends, industry
practices and the general business environment in which it operates. The impairment methodology applied depends on whether
there has been a significant increase in credit risk. ECL impairment loss allowance (or reversal) recognised during the period
is recognised as income/ expense in the Standalone Statement of Profit and Loss under the head âother expenses''.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs. The Companyâs financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts and derivative financial instruments.
Utilisation of borrowings availed from banks and financial institutions
The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which
such loans were was taken.
Trade and Other Payables
Trade and other payables represent liabilities for goods or services provided to the Company prior to the end of financial year
which are unpaid.
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in
standalone profit or loss over the period of the borrowings using the effective interest rate method. Borrowings are de recognised
from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference
between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration
paid, including any non-cash assets transferred or liabilities assumed, is recognised in standalone profit or loss.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
a) Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial
recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred
for the purpose of repurchasing in the near term.
This category includes derivative financial instruments entered into by the Company that are not designated as hedging
instruments in hedge relationships as defined by Ind AS 109.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value
gains/ losses are recognised in the Standalone Statement of Profit and Loss, except for those attributable to changes in
own credit risk, which are recognised in Standalone OCI. These gains/ loss are not subsequently transferred to the
Standalone Statement of Profit and Loss.
b) Financial liabilities at amortised cost
After initial recognition, financial liabilities designated at amortised costs are subsequently measured at amortised cost
using the EIR method. Gains and losses are recognised in Standalone Statement of Profit and Loss when the liabilities are
derecognised as well as through the EIR amortisation process.
Amortised 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 amortisation is included as finance costs in the Standalone Statement of Profit and Loss.
De-recognition
A financial liability is de-recognised when the obligation under the liability is discharged or cancelled 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 de-recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Standalone
Statement of Profit and Loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise
the assets and settle the liabilities simultaneously.
Derivative financial instruments
Derivatives are initially recognised at fair value on the date of executing a derivative contract and are subsequently remeasured
to their fair value at the end of each reporting period. Derivatives are carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative. Changes in the fair value of derivatives that are designated and
qualify as fair value hedges are recognised in the Standalone Statement of Profit and Loss immediately, together with any
changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Mar 31, 2018
1 Overview
Shalimar Paints Limited (âthe Companyâ) is a public limited company domiciled in India. The registered office of the Company is located at Stainless Centre, 4th floor, Plot no.- 50, Sector 32, Gurugram, 122001, Haryana. The shares of the Company are listed on National Stock Exchange and Bombay Stock Exchange.
The Company is engaged in the business of manufacturing, selling and distribution of paints, coatings and providing related services. The Company has pan-India presence through its marketing offices in all major states in India.
2. Basis of preparation of financial statements
These financial statements have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard (âInd ASâ) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 (''the Act'') and other relevant provisions of the Act to the extent applicable. For all periods up to and including the year ended 31st March 2017, the Company had prepared its financial statements in accordance with accounting standards as prescribed under Section 133 of the Companies Act, 2013 (the ''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014 (referred to as âIndian GAAPâ).
The Company has consistently applied the accounting policies used in the preparation of its opening Ind AS Balance Sheet at April 1, 2016 throughout all periods presented, as if these policies had always been in effect and are covered by Ind AS 101 ''''First-time adoption of Indian Accounting Standards''''. The transition was carried out from accounting principles generally accepted in India (ââIndian GAAPââ) which is considered as the previous GAAP, as defined in Ind AS 101. The reconciliation of effects of the transition from Indian GAAP on the equity as at April 1, 2016 and March 31, 2017 and on the net profit and material adjustments to cash flows for the year ended March 31, 2017 is disclosed in Note 61 to these financial statements.
The standalone financial statements provide comparative information in respect of previous year. In addition, the company presents balance sheet as at the beginning of previous year which is the transition date to Ind AS.
3. Key Accounting Judgments, Estimates & Assumptions:
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of incomes, expenses, assets and liabilities, and the accompanying disclosures at the date of the financial statements. The judgments, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years.
Income Tax
Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The company reviews at each balance sheet date the carrying amount of deferred tax assets/ liabilities. The factors used in the estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the standalone financial statements.
Defined Benefit Obligation
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These include the determination of the discount rate, future salary increases, mortality rates and attrition rate. 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.
Fair value measurement of Financial Instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Contingencies
Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/ claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
Property, plant and equipment
Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The residual values of Company''s assets are determined by the management at the time the asset is acquired and reviewed periodically.
4. Significant Accounting Policies
4.1. Basis of measurement
The financial statements have been prepared under the historical cost convention on the accrual basis, except for the following assets and liabilities which have been measured fair value:
- Property, Plant & Equipment (at fair value as deemed cost as at 1st April 2016);
- Financial assets and liabilities except certain investments, Loans and borrowings carried at amortized cost;
- Defined benefit plans - plan assets measured at fair value;
- Share based payments
The financial statements are presented in Indian Rupees which is the Companyâs functional and presentation currency and all amounts are rounded to the nearest lakhs and two decimals thereof, except otherwise stated.
4.2. Property, plant and equipment
i) Recognition and measurement
On transition to Ind AS, the Company has adopted optional exception under Ind AS 101 to measure Property, Plant and Equipment at fair value. Consequently the fair value has been assumed to be deemed cost of Property, Plant and Equipment (PPE) on the date of transition.
An asset is recognized as property, plant and equipment when it qualifies the recognition criteria as specified in Ind AS 16. Following initial recognition, items of Property, Plant and Equipment are carried at its cost, net of available duty/tax credits, less accumulated depreciation and accumulated impairment losses if any. Costs include costs of acquisitions or constructions including incidental expenses thereto, borrowing costs, and other attributable costs of bringing the asset to its working condition for its intended use.
Subsequent expenditure relating to Property, Plant and Equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Costs in nature of minor repairs and maintenance are recognized in the Statement of Profit and Loss as and when incurred.
The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from discard/sale of Property, Plant and Equipment 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 discarded / sold.
Capital work-in-progress includes cost of property, plant and equipment under installation/under development, other expenditure (including trial run / test run expenditures) during construction / erection period (net of income) pending allocation/capitalization as at the balance sheet date.
ii) Depreciation
Depreciation on property, plant and equipment is provided at the rates and in the manner specified in Schedule II of the Companies Act, 2013 and in respect of assets added/disposed of during the year on prorata basis with reference to the date of its use / disposal/residual value:
a) In respect of assets located at Nashik, Chennai and Sikandrabad - on straight line method.
b) In respect of other assets - on written down value method.
Subsequent to fair value as deemed cost of property, plant and equipment as at 1st April 2016 under Ind AS 101, depreciation is charged on fair valued amount less estimated salvage value.
Leasehold land is amortized on a straight line basis over the remaining period of lease.
The useful lives, residual values of each part of an item of property, plant and equipment and the depreciation methods are reviewed at the end of each financial year. If any of these expectations differ from previous estimates, such change is accounted for as a change in an accounting estimate.
4.3. Intangible assets
i) Recognition & measurement :
Intangible assets are recognized when it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and cost of assets can be measured reliably. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment loss, if any Amortization:
Intangible Assets with finite lives are amortized over the estimated useful economic life as per following manner:
a) In respect of assets located at Nashik, Sikandrabad & Chennai - on straight line method.
b) In respect of other assets - on written down value method.
The amortization expense on intangible assets with finite lives is recognized in the Statement of Profit and Loss. The estimated useful life of intangible assets as per management is mentioned below:
Computer Software 6 years
Trade mark 10 Years
Technical knowhow 10 years
The amortization period and the amortization method for an intangible asset with finite useful life is reviewed at the end of each financial year. If any of these expectations differ from previous estimates, such change is accounted for as a change in an accounting estimate.
ii) Derecognition:
The carrying amount of an intangible asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the Derecognition of an intangible asset is measured as the difference between the net disposal proceeds and the carrying amount of the intangible asset and is recognized in the Statement of Profit and Loss when the asset is derecognized.
4.4 Impairment
The carrying amount of Property, Plant & Equipment, Intangible assets and cash generating assets are reviewed at each Balance Sheet date to assess impairment, if any based on internal / external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value being higher of value in use and fair value less cost of disposal. An impairment loss is recognized as an expense in the Statement of Profit & Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been an improvement in recoverable amount.
4.5. Lease Accounting
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date, whether fulfillment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that is not explicitly specified in an arrangement.
4.6. 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.
i) Initial recognition
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added/deducted respectively to the fair value on initial recognition. Trade receivables and trade payables that do not contain a significant financing component are initially measured at their transaction price.
ii) Subsequent measurement
(i) Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. When the financial asset is derecognized or impaired, the gain or loss is recognized in the statement of profit and loss
(ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are recognized in OCI except the recognition of impairment gains or losses, interest revenue calculated using the Effective Interest Rate (EIR) method and foreign exchange gains and losses which are recognized in profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in Other Comprehensive Income is reclassified from the equity to Statement of Profit and Loss.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognized in the Statement of Profit and Loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method. Financial liabilities at fair value through profit and loss (FVTPL) includes financial liability held for trading and financial liability designated upon initial recognition as at fair value through profit and loss.
(v) Investment in subsidiaries
Investment in subsidiaries is carried at cost less impairment, if any, in the separate financial statements.
iii) Impairment of financial assets
Financial assets, other than debt instruments measured at FVTPL and Equity instruments are assessed for indicators of impairment at the end of each reporting period. The Company recognizes a loss allowance for expected credit losses on all financial asset. In case of trade receivables, the Company follows the simplified approach permitted by Ind AS 109 - Financial Instruments for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.
iv) Derecognition Finanical Assets
Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
Financial liabilities
The company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expires.
v) Reclassification of Financial Assets and Financial Liabilities
The company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. If the company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The company does not restate any previously recognized gains, losses (including impairment gains or losses) or interest.
vi) Derivative financial instruments
Derivative instruments such as forward currency contracts are used to hedge foreign currency risks, and are initially recognized at their fair values on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. A hedge of foreign currency risk of a firm commitment is accounted for as a fair value hedge. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss.
vii) Offsetting
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
4.7. Fair value measurement
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 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 in to account a market participantâs 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 in which they fall.
4.8. Inventory
Inventory are valued at lower of cost, computed on weighted average basis, or net realizable value. Cost of inventories includes in case of raw material, cost of purchase including taxes and duties net of tax credits/GST and incidental expenses; in case of work-in-progress, estimated direct cost including taxes and duties net of cenvat credits and appropriate proportion of administrative and other overheads; in case of finished goods, estimated direct cost including taxes and duties net of tax credits/GST and appropriate administrative and other overheads including other cost incurred in bringing the inventories to the present location and conditions; and in case of traded goods, cost of purchase and other costs incurred in bringing the inventories to the present location and conditions. The obsolete/damaged items of inventories are valued at estimated realizable value.
4.9. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized if, as a result of a past event, the Company has a present obligation (legal or constructive) that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects, when appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an outflow of resources embodying economic benefits is remote or the amount cannot be estimated reliably. Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are not recognized but disclosed in the financial statements when an inflow of economic benefits is probable.
4.10. Revenue Recognition
Revenue is recognized when it is probable that economic benefits associated with a transaction flows to the Company in the ordinary course of its activities and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and rebates granted by the Company.
Revenue includes only the gross inflows of economic benefits, including excise duty, received and receivable by the Company, on its own account. Amounts collected on behalf of third parties such as sales tax, value added tax and goods & service tax are excluded from revenue.
4.11 Other income Interest Income
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable effective interest rate. Interest income is included in other income in the statement of profit and loss. Dividends
Dividend income is recognized when the Companyâs right to receive dividend is established, and is included in other income in the statement of profit and loss.â
4.12. Employee Benefits
i) Short term employee benefits are recognized as an expense in the Statement of Profit and Loss of the year in which the related services are rendered. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.
ii) The Company makes regular contribution to provident funds which are administered by Government and are independent of Companyâs finance. The Company recognizes contribution payable to a defined contribution plan as an expense in the Statement of Profit and Loss when the employees render services to the Company during the reporting period.
iii) The Company is maintaining Defined Benefit Plan for its Gratuity Scheme. The Company contributes to gratuity fund, and such contribution is determined by the actuary at the end of the year. The gratuity fund is administered by the Trustees.
For Schemes where recognized funds have been set up, annual contributions are made as determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. Remeasurements comprising actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged / credited to Other Comprehensive Income in period in which they arise. The Company recognizes in the Statement of Profit & Loss gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.
iv) Provision is made for leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Statement of Profit and Loss.
4.13. Foreign Exchange Transactions Initial Recognition:
On initial recognition, transactions in foreign currencies entered into by the Company are initially recorded in the functional currency (i.e. Indian Rupees) at rates prevailing at the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss. Measurement of foreign currency items at reporting date:
Foreign currency monetary items of the Company are translated at the closing exchange rates and the resulting exchange difference recognized in statement of profit & loss. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is measured. Exchange component of the gain or loss arising on fair valuation of nonmonetary items is recognized in line with the gain or loss of the item that gave rise to such exchange difference.
4.14 Borrowing costs
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Borrowing costs attributable to acquisition or construction of qualifying asset that necessarily take a substantial period of time to get ready for their intended use is worked out on the basis of attributable of funds out of project specific loans and/or other borrowings to the extent identifiable with the qualifying asset and is capitalized with the cost of qualifying asset, using the effective interest method. Other borrowing costs are recognized as an expense in the period in which they are incurred.
4.15 Taxes on Income
Tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that it relates to items recognized directly in equity or in Other Comprehensive Income.
Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Deferred tax is provided on temporary difference arising between the tax bases of assets & liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax is measured using the tax rate that are expected to apply in the year when the asset is realized or the liability is settled based on the tax rates and the tax laws enacted or substantively enacted at the reporting date.
Deferred tax asset is recognized to the extent that it is probable that sufficient future taxable profit will be available against which the deductible temporary differences and the carry forward unused tax credits and unused tax losses can be utilized. 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.
Minimum Alternate tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period.
4.16. Segment Reporting
As the companyâs business falls within a primary business segment viz, âPaintsâ.
4.17. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, bank balance, short-term deposits with original maturities of three months or less and other short term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
4.18. Share-based payment transactions
Equity-settled share-based payments to employees are measured at the fair value of the equity instruments at the grant date. The fair value determined at the grant date of the equity settled share-based payments is expensed on a straight line basis over the vesting period, based on the Company''s estimate of equity instruments that will eventually vest, with a corresponding increase in equity.
4.19. Earnings per share
Basic earnings per share is 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. 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 effects of all dilutive potential equity shares.
SECURITY
Term Loans from banks
Loans of '' 75.30 lakhs (March 31, 2017 '' 376.51 lakhs), ROI 10.95%, taken from HDFC Bank Ltd, originally repayable in 45 monthly installments, rescheduled to 11 Quarterly installments, starting from 29.11.2015 and ending on 29.05.2018 and Loans of '' 144.00 lakhs (March 31, 2017 '' 672.00 lakhs), ROI 11.25 %, taken from State Bank of India, repayable in 28 monthly installments starting from 30.04.2016 and ending on 31.07.2018. Above loans are secured by (i) first charge, ranking pari passu, by way of an equitable mortgage on the land and building, and hypothecation of other fixed assets thereon, at the Companyâs factory at Nasik, Maharashtra (ii) first charge, ranking pari passu, by way of hypothecation of plant and machinery at the Company''s factory situated at Howrah, West Bengal (iii) second charge, raking pari passu, on the fixed assets of the Company at its factory situated at Sikandarabad, Uttar Pradesh (iv) first pari passu charge by way of equitable mortgage of land and building of the Company situated at village-Chinnapuliyur, Taluka-Gummidipoondi, District - Thiruvallur, Tamil Nadu; and hypothecation charge over plant and machinery to be purchased out of the term loan (v) Second pari passu charge on the entire current assets of the Company.
Term Loans from financial institutions
Loans of '' 405.90 lakhs (March 31, 2017 '' 458.01 lakhs), ROI 13.5%, taken from India Bulls Housing Finance Ltd, repayable in 84 monthly installments starting from 05.05.2016 and ending on 05.04.2023 are secured by first charge on companyâs immovable property situated at 5th Floor,C wing, Oberoi Garden Estate,Chandivalli Farm Road, Chandivali, Andheri (East), Mumbai-400072.
Loans of '' 1741.87 lakhs (March 31, 2017 '' 1856.44 lakhs), ROI 13.0%, taken from Religare Finvest Ltd, repayable in 117 monthly installments starting from 01.08.2016 and ending on 01.04.2026 are secured by First charge on companyâs the immovable & movable properties of Sikandrabad plant situated at Plot No A1 & A2 UPSIDC Industrial Area, Sikandrabad Distt- Bulandshahar (U.P).
Vehicle Loan
Loans of '' 18.40 lakhs (March 31, 2017: Nil), ROI 8.75%, taken from Toyota Financial Service India Ltd, repayable in 84 monthly installments starting from 22.01.2018 and ending on 20.12.2024.
Cash Credit and WCDL from Banks
Secured by (i) first charge , ranking pari passu (a) by way of hypothecation on the entire stocks and current assets of the Company (b) by way of equitable mortgage of land and building, and hypothecation of other fixed assets thereon, of the Company''s factory, at Nasik, Maharashtra (c) by way of hypothecation of plant and machinery at the Companyâs factory situated at Howrah, West Bengal (ii) second charge , ranking pari passu, (a) on the fixed assets of the Company at its factory situated at Sikandarabad ,Uttar Pradesh ( b) by way of equitable mortgage of land and building situated at village -Chinnapuliyur , Taluka-Gummidipoondi , District- Tiruvallur, Tamil Nadu ; and hypothecation of plant and machinery to be purchased out of term loan.
Rate of borrowing: 11.15% p.a. - 14.85% p.a.
It is not possible to predict the outcome of the pending litigations with accuracy, the Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The management believe the ending actions will not require outflow of resources embodying economic benefits and will not have a material adverse effect upon the results of the operations, cash flows or financial condition of the Company.
*Effect being antidilutive, hence ignored.
The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity.
Mar 31, 2016
1. ACCOUNTING POLICIES
1.1 GENERAL
The financial statements have been prepared on accrual basis, except otherwise stated, and under the historical cost convention except revalued fixed assets in accordance with the applicable accounting standards specified by the Institute of Chartered Accountants of India and relevant provisions of Companies Act, 2013.
1.2 FIXED ASSETS
Fixed Assets are stated at cost, net of convert. The cost comprises the purchase price and any other attribute table cost of bringing the assets to its working conditions for its intended use.
In case of revaluation of Fixed Assets, the cost / book value as written up by the approved value is considered in the books of accounts and the differential amount is transferred to Fixed Asset Revaluation Reserve.
Cash generating assets are assessed for possible impairment at balance sheet dates based on external and internal sources of information. Impairment losses, if any, are recognized as an expense in the Statement of Profit and Loss.
1.3 LEASE ACCOUNTING
The Company provides tinting systems to dealers on an operating lease basis. Lease rentals are accounted in accordance with the respective lease agreements.
1.4 DEPRECIATION
Depreciation on fixed assets in previous year as well as in current year is provided at the rates and in the manner specified in Schedule II of the Companies Act, 2013 and in respect of assets added/disposed off during the year on pro-rata basis with reference to the date of its use / disposal/residual value:
a) In respect of assets located at Nashik,Sikandrabad and Chennai Plant - on straight line method.
b) In respect of other assets - on written down value method.
1.5 INVESTMENTS
Investments, being long term in nature are stated at cost, less any diminution in value other than temporary.
1.6 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are accounted for at the equivalent rupee value incurred/earned. Foreign currency assets and liabilities at the year-end are realigned at the applicable exchange rate and variations are adjusted to the revenue or capital heads as the case may be.
1.7 INVENTORY
a) Raw materials including materials in transit, stores & spare parts and loose tools are valued at lower of cost or net realizable value.
b) Stock in trade, finished goods and work-in-process are valued at lower of cost or net realizable value.
c) The cost which is arrived at following weighted average basis comprises all direct costs including taxes and duties net of cenvat credits, transportation and other costs incurred in bringing the inventories to the present location and conditions.
d) The obsolete/damaged items of inventories are valued at estimated realizable value.
1.8 SALES
The amount recognized as sale is exclusive of VAT and is net of returns. Sales are stated gross of excise duty as well as net of excise duty; excise duty being the amount included in the amount of gross sales. The excise duty related to difference between the closing stock and opening stock is recognized separately as part of âmaterial costâ.
1.9 RETIREMENT BENEFITS TO EMPLOYEES
(i) The Company operates defined contributions schemes.
The Company makes regular contribution to provident funds which are fully funded and administered by Government and are independent of Companyâs finance. Contributions are recognized in the Statement of Profit & Loss on an accrual basis.
(ii) The Company is maintaining Defined Benefit Plan for its Gratuity Scheme. The Company contributes to gratuity fund and such contribution is determined by the actuary at the end of the year. The gratuity fund is administered by the Trustees.
(iii) For Schemes where recognized funds have been set up, annual contributions are made as determined as per the actuarial valuation report. Actuarial gains & losses are recognized in the Statement of Profit & Loss. The Company recognizes in the Statement of Profit & Loss gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.
(iv). Provision is made for leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Statement of Profit and Loss.
1.10 BORROWING COST
Borrowing Costs attributable to acquisition and construction of assets are capitalized as part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to Statement of Profit and Loss.
1.11 TAXES ON INCOME
Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax assets are recognized and carried forward 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.
1.12 VOLUNTARY RETIREMENT SCHEME
Payments made under the Voluntary Retirement Scheme (VRS) including gratuity arising pursuant to the VRS are amortized over a period of five years commencing from the year in which it is incurred.
1.13 EMPLOYEE STOCK OPTION SCHEME
The Company determines the compensation cost based on the intrinsic value method. The compensation cost is amortized on a straight line basis over the vesting period.
1.14 CONTINGENT LIABILITIES
Liabilities which are material in the opinion of the Company and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of notes to the Accounts.
Mar 31, 2014
1.1 GENERAL
The financial statements have been prepared on accrual basis, except
otherwise stated, and under the historical cost convention, except
revalued fixed assets, in accordance with the applicable accounting
standards specified by the Institute of Chartered Accountants of India
and relevant provisions of Companies Act, 1956.
1.2 FIXED ASSETS
Fixed Assets are stated at cost, net of cenvat. The cost comprises the
purchase price and any other attributable cost of bringing the assets
to its working conditions for its intended use.
In case of revaluation of Fixed Assets, the cost / book value as
written up by the approved valuer is considered in the books of
accounts, and the differential amount is transferred to Fixed Asset
Revaluation Reserve.
Cash generating assets are assessed for possible impairment at balance
sheet dates based on external and internal sources of information.
Impairment losses, if any, are recognized as an expense in the
Statement of Profit and Loss.
1.3 LEASE ACCOUNTING
The Company provides tinting systems to dealers on an operating lease
basis. Lease rentals are accounted in accordance with the respective
lease agreements.
1.4 DEPRECIATION
Depreciation on fixed assets is provided at the rates and in the manner
specified in Schedule XIV of the Companies Act, 1956, and in respect of
assets added/disposed off during the year on pro-rata basis with
reference to the date of its use / disposal:
a ) In respect of assets located at Nashik and Sikandrabad Plant - on
straight line method.
b ) In respect of other assets - on written down value method.
Depreciation on amount added on revaluation is recouped from Fixed
Assets Revaluation Reserve.
1.5 INVESTMENTS
Investments, being long term in nature are stated at cost, less any
diminution in value other than temporary.
1.6 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are accounted for at the equivalent
rupee value incurred/earned. Foreign currency assets and liabilities at
the year-end are realigned at the applicable exchange rate and
variations are adjusted to the revenue or capital heads.
1.7 INVENTORY
a) Raw materials including materials in transit, stores & spare parts
and loose tools are valued at lower of cost or net realisable value.
b) Stock in trade, finished goods and work-in-process are valued at
lower of cost or net realisable value.
c) The cost which is arrived at following weighted average basis,
comprises all direct costs including taxes and duties net of cenvat
credits, transportation and other costs incurred in bringing the
inventories to the present location and conditions.
d) The obsolete/damaged items of inventories are valued at estimated
realisable value.
1.8 SALES
The amount recognised as sale is net of returns, and is inclusive of
excise duty but exclusive of VAT. The excise duty related to difference
between the closing stock and opening stock is recognised separately as
part of ''material cost''.
1.9 RETIREMENT BENEFITS TO EMPLOYEES
(i) The Company operates defined contributions schemes.
The Company makes regular contribution to provident funds which are
fully funded and administered by Government , and are independent of
Company''s finance. Contributions are recognized in Statement of Profit
& Loss on an accrual basis.
(ii) The Company is maintaining Defined Benefit Plan for its Gratuity
Scheme. The Company contributes to gratuity fund and such contribution
is determined by the actuary at the end of the year. The gratuity fund
is administered by the Trustees.
(iii) For Schemes where recognized funds have been set up, annual
contributions are made as determined as per the actuarial valuation
report. Actuarial gains & losses are recognized in the Statement of
Profit & Loss. The Company recognizes in the Statement of Profit &
Loss, gains or losses on curtailment or settlement of a defined benefit
plan as and when the curtailment or settlement occurs.
(iv) Provision is made for leave encashment benefit payable to
employees on the basis of independent actuarial valuation at the end of
each year, and charge is recognized in the Statement of Profit and
Loss.
1.10 BORROWING COST
Borrowing Costs attributable to acquisition and construction of assets
are capitalized as part of the cost of such asset up to the date when
such asset is ready for its intended use. Other borrowing costs are
charged to Statement of Profit and Loss.
1.11 TAXES ON INCOME
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
Deferred tax assets are recognized and carried forward 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.
1.12 VOLUNTARY RETIREMENT SCHEME
Payments made under the Voluntary Retirement Scheme (VRS) including
gratuity arising pursuant to the VRS are amortized over a period of
five years commencing from the year in which it is incurred.
1.13 EMPLOYEE STOCK OPTION SCHEME
The Company determines the compensation cost based on the intrinsic
value method. The compensation cost is amortized on a straight line
basis over the vesting period.
1.14 CONTINGENT LIABILITIES
Liabilities which are material in the opinion of the Company and whose
future outcome cannot be ascertained with reasonable certainty, are
treated as contingent and disclosed by way of notes to the Accounts.
Mar 31, 2013
1.1 GENERAL
The financial statements have been prepared on accrual basis, except
otherwise stated, and under the historical cost convention except
revalued fixed assets in accordance with the applicable accounting
standards specified by the Institute of Chartered Accountants of India
and relevant provisions of Companies Act, 1956.
1.2 FIXED ASSETS
Fixed Assets are stated at cost, net of cenvat. The cost comprises the
purchase price and any other attributable cost of bringing the assets
to its working conditions for its intended use.
In case of revaluation of Fixed Assets, the cost / book value as
written up by the approved valuer is considered in the books of
accounts and the differential amount is transferred to Fixed Asset
Revaluation Reserve.
Cash generating assets are assessed for possible impairment at balance
sheet dates based on external and internal sources of information.
Impairment losses, if any, are recognized as an expense in the
Statement of Profit and Loss.
1.3 LEASE ACCOUNTING
The Company provides tinting systems to dealers on an operating lease
basis. Lease rentals are accounted in accordance with the respective
lease agreements.
1.4 DEPRECIATION
Depreciation on fixed assets is provided at the rates and in the manner
specified in Schedule XIV of the Companies Act, 1956 and in respect of
assets added/disposed off during the year on pro-rata basis with
reference to the date of its use / disposal:
a ) In respect of assets located at Nashik and Sikandrabad Plant - on
straight line method.
b ) In respect of other assets - on written down value method.
Depreciation on amount added on revaluation is recouped from Fixed
Assets Revaluation Reserve.
1.5 INVESTMENTS
Investments, being long term in nature are stated at cost, less any
diminution in value other than temporary.
1.6 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are accounted for at the equivalent
rupee value incurred/earned. Foreign currency assets and liabilities
at the year-end are realigned at the applicable exchange rate and
variations are adjusted to the revenue or capital heads.
1.7 INVENTORY
a ) Raw materials including materials in transit, stores & spare parts
and loose tools are valued at lower of cost or net realisable value.
b ) Stock in trade, finished goods and work-in-process are valued at
lower of cost or net realisable value.
c ) The cost which is arrived at following weighted average basis,
comprises all direct costs including taxes and duties net of cenvat
credits, transportation and other costs incurred in bringing the
inventories to the present location and conditions.
d ) The obsolete/ damaged items of inventories are valued at estimated
realisable value.
1.8 SALES
The amount recognised as sale is exclusive of VAT and are net of
returns. Sales are stated gross of excise duty as well as net of excise
duty; excise duty being the amount included in the amount of gross
sales. The excise duty related to difference between the closing stock
and opening stock is recognised separately as part of ''material cost''.
1.9 RETIREMENT BENEFITS TO EMPLOYEES
(i) The Company operates defined contributions schemes.
The Company makes regular contribution to provident funds which are
fully funded and administered by Government and are independent of
Company''s finance. Contributions are recognized in Statement of Profit
& Loss on an accrual basis.
(ii) The Company is maintaining Defined Benefit Plan for its Gratuity
Scheme. The Company contributes to gratuity fund and such contribution
is determined by the actuary at the end of the year. The gratuity fund
is administered by the Trustees.
(iii) For Schemes where recognized funds have been set up, annual
contributions are made as determined as per the actuarial valuation
report. Actuarial gains & losses are recognized in the Statement of
Profit & Loss. The Company recognizes in the Statement of Profit & Loss
gains or losses on curtailment or settlement of a defined benefit plan
as and when the curtailment or settlement occurs.
(iv) Provision is made for leave encashment benefit payable to
employees on the basis of independent actuarial valuation at the end of
each year and charge is recognized in the Statement of Profit and Loss.
1.10 BORROWING COST
Borrowing Costs attributable to acquisition and construction of assets
are capitalized as part of the cost of such asset up to the date when
such asset is ready for its intended use. Other borrowing costs are
charged to Statement of Profit and Loss.
1.11 TAXES ON INCOME
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
Deferred tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realised.
1.12 VOLUNTARY RETIREMENT SCHEME
Payments made under the Voluntary Retirement Scheme (VRS) including
gratuity arising pursuant to the VRS are amortised over a period of
five years commencing from the year in which it is incurred.
1.13 CONTINGENT LIABILITIES
Liabilities, which are material in the opinion of the Company and whose
future outcome cannot be ascertained with reasonable certainty, are
treated as contingent and disclosed by way of notes to the Accounts.
Mar 31, 2012
1.1 GENERAL
The financial statements have been prepared on accrual basis, except
otherwise stated, and under the historical cost convention except
revalued fixed assets in accordance with the applicable accounting
standards specified by the Institute of Chartered Accountants of India
and relevant provisions of Companies Act, 1956.
1.2 FIXED ASSETS
Fixed Assets are stated at cost, net of cenvat. The cost comprises the
purchase price and any other attributable costs of bringing the assets
to its working conditions for its intended use.
In case of revaluation of Fixed Assets, the cost / book value as
written up by the approved valuer is considered in the books of
accounts and the differential amount is transferred to Fixed Asset
Revaluation Reserve.
Cash generating assets are assessed for possible impairment at balance
sheet dates based on external and internal sources of information.
Impairment losses, if any, are recognized as an expense in the
Statement of Profit and Loss.
1.3 LEASE ACCOUNTING
The Company provides tinting systems to dealers on an operating lease
basis. Lease rentals are accounted in accordance with the respective
lease agreements.
1.4 DEPRECIATION
Depreciation on fixed assets is provided at the rates and in the manner
specified in Schedule XIV of the Companies Act, 1956 and in respect of
assets added/disposed off during the year on pro-rata basis with
reference to the date of its use / disposal:
a ) In respect of assets located at Nashik and Sikandrabad Plant - on
straight line method.
b ) In respect of other assets - on written down value method.
Depreciation on amount added on revaluation is recouped from Fixed
Assets Revaluation Reserve.
1.5 INVESTMENTS
Investments, being long term in nature are stated at cost, less any
diminution in value other than temporary.
1.6 FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currency are accounted for at the equivalent
rupee value incurred/earned. Foreign currency assets and liabilities
at the year-end are realigned at the applicable exchange rate and
variations are adjusted to the revenue or capital heads.
1.7 INVENTORY
a ) Raw materials including materials in transit, stores & spare parts
and loose tools are valued at lower of cost or net realisable value.
b ) Stock in trade, finished goods and work-in-process are valued at
lower of cost or net realisable value.
c ) The cost which is arrived at following weighted average basis,
comprises all direct costs including taxes and duties net of cenvat
credits, transportation and other costs incurred in bringing the
inventories to the present location and condition.
d ) The obsolete/damaged items of inventories are valued at estimated
realisable value.
1.8 SALES
The amount recognised as sale is exclusive of VAT and are net of
returns. Sales are stated gross of excise duty as well as net of excise
duty; excise duty being the amount included in the amount of gross
sales. The excise duty related to difference between the closing stock
and opening stock is recognised separately as part of 'material cost'.
1.9 RETIREMENT BENEFITS TO EMPLOYEES
(i) The Company operates defined contributions scheme.
The Company makes regular contribution to provident funds which are
fully funded and administered by Government and are independent of
Company's finance. Contributions are recognized in Statement of Profit
& Loss on an accrual basis.
(ii) The Company is maintaining Defined Benefit Plan for its Gratuity
Scheme. The Company contributes to gratuity fund and such contribution
is determined by the actuary at the end of the year. The gratuity fund
is administered by the Trustees.
(iii) For Schemes where recognized funds have been set up, annual
contributions are made as determined as per the actuarial valuation
report. Actuarial gains & losses are recognized in the Statement of
Profit & Loss. The Company recognizes in the Statement of Profit & Loss
gains or losses on curtailment or settlement of a defined benefit plan
as and when the curtailment or settlement occurs.
(iv) Provision is made for leave encashment benefit payable to
employees on the basis of independent actuarial valuation, at the end
of each year and charge is recognized in the Statement of Profit and
Loss.
1.10 BORROWING COST
Borrowing Costs attributable to acquisition and construction of assets
are capitalized as part of the cost of such asset upto the date when
such asset is ready for its intended use. Other borrowing costs are
charged to Profit and Loss Account.
1.11 TAXES ON INCOME
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
Deferred tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realised.
1.12 VOLUNTARY RETIREMENT SCHEME
Payments made under the Voluntary Retirement Scheme (VRS) including
gratuity arising pursuant to the VRS are amortised over a period of
five years commencing from the year in which it is incurred.
1.13 CONTINGENT LIABILITIES
Liabilities which are material in the opinion of the Company and whose
future outcome cannot be ascertained with reasonable certainty, are
treated as contingent and disclosed by way of notes to the Accounts.
Mar 31, 2011
1.1 General
The financial statements have been prepared on accrual basis, except
otherwise stated and under the historical cost convention except
revalued fixed assets in accordance with the applicable accounting
standards specified by the Institute of Chartered Accountants of India
and relevant provisions of Companies Act, 1956.
1.2 Fixed Assets
Fixed Assets are stated at cost, net of cenvat. The cost comprises the
purchase price and any other attributable cost of bringing the assets
to its working conditions for its intended use.
In case of revaluation of Fixed Assets, the cost/book value as written
up by the approved valuer is considered in the books of accounts and
the differential amount is transferred to Fixed Asset Revaluation
Reserve.
Cash generating assets are assessed for possible impairment at balance
sheet dates based on external and internal sources of information.
Impairment losses, if any, are recognized as an expense in the Profit
and Loss Account.
1.3 Lease Accounting
The Company provides tinting systems to dealers on an operating lease
basis. Lease rentals are accounted on accrual basis over the lease
period in accordance with the respective lease agreements.
1.4 Depreciation
Depreciation on fixed assets is provided at the rates and in the manner
specified in Schedule XIV of the Companies Act, 1956 and in respect of
assets added/disposed off during the year on pro-rata basis with
reference to the date of its use/disposal :
a ) In respect of assets located at Nasik and Sikandrabad Plant - on
straight-line method.
b ) In respect of other assets - on written down value method.
Depreciation on amount added on revaluation is recouped from Fixed
Assets Revaluation Reserve.
1.5 Investments
Investments, being long term in nature are stated at cost, less any
diminution in value other than temporary.
1.6 Foreign Currency Transactions
Transactions in foreign currency are accounted for at the equivalent
rupee value incurred/earned. Foreign currency assets and liabilities
at the year-end are realigned at the applicable exchange rate and
variations are adjusted to the revenue or capital heads.
1.7 Inventory
a ) Raw materials including materials in transit, stores & spare parts
and loose tools are valued at lower of cost or net realisable value.
b ) Work-in-process and finished goods are valued at lower of cost or
net realisable value.
c ) The cost which is arrived at following weighted average basis,
comprises all direct costs including taxes and duties net of cenvat
credits, transportation and other costs incurred in bringing the
inventories to the present location and conditions.
d) The obsolete/damaged items of inventories are valued at estimated
realisable value.
1.8 Sales
The amount recognised as sale is exclusive of sales tax / VAT and are
net of returns. Sales are stated gross of excise duty as well as net of
excise duty; excise duty being the amount included in the amount of
gross turnover. The excise duty related to difference between the
closing stock and opening stock is recognised separately as part of
Ãmaterial cost'.
1.9 Retirement Benefits
(i) The Company operates defined contribution schemes.
The Company makes regular contribution to provident funds which are
fully funded and administered by Trustees / Government and are
independent of Company's finance. Contributions are recognized in
Profit & Loss Account on an accrual basis. The Company also contributes
to a Government administered pension fund on behalf of certain category
of its employees.
(ii) The Company is maintaining Defined Benefit Plan for its Gratuity
Scheme. The Company contributes to gratuity fund and such contribution
is determined by the actuary at the end of the year. The gratuity fund
is administered by the Trustees.
(iii) For Schemes where recognized funds have been set up, annual
contributions are made as determined as per the actuarial valuation
report. Actuarial gains & losses are recognized in the Profit & Loss
Account. The Company recognizes in the Profit & Loss Account gains or
losses on curtailment or settlement of a defined benefit plan as and
when the curtailment or settlement occurs.
(iv) Provision is made for retirement leave encashment benefit payable
to employees on the basis of independent actuarial valuation, at the
end of each year and charge is recognized in the Profit and Loss
Account.
1.10 Borrowing Cost
Borrowing Costs attributable to acquisition and construction of assets
are capitalized as part of the cost of such asset upto the date when
such asset is ready for its intended use. Other borrowing costs are
charged to Profit and Loss Account.
1.11 Taxes on Income
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
Deferred tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realised.
1.12 Voluntary Retirement Scheme
Payments made under the Voluntary Retirement Scheme (VRS) including
gratuity arising pursuant to the VRS are amortised over a period of
five years commencing from the year in which it is incurred.
1.13 Contingent Liabilities
Liabilities which are material in the opinion of the Company and whose
future outcome cannot be ascertained with reasonable certainty, are
treated as contingent and disclosed by way of notes to the Accounts.
Mar 31, 2010
1.1 General
The financial statements have been prepared on accrual basis, except
otherwise stated, and under the historical cost convention except
revalued fixed assets in accordance with the applicable accounting
standards specified by the Institute of Chartered Accountants of India
and relevant provisions of Companies Act, 1956.
1.2 Fixed Assets
Fixed Assets are stated at cost, net of cenvat. The cost comprises the
purchase price and any other attributable cost of bringing the assets
to its working conditions for its intended use.
In case of revaluation of Fixed Assets, the cost/book value as written
up by the approved valuer is considered in the books of accounts and
the differential amount is transferred to Fixed Asset Revaluation
Reserve.
Cash generating assets are assessed for possible impairment at balance
sheet dates based on external and internal sources of information.
Impairment losses, if any, are recognized as an expense in the Profit
and Loss Account.
1.3 Lease Accounting
The Company provides tinting systems to dealers on an operating lease
basis. Lease rentals are accounted on accrual basis over the lease
period in accordance with the respective lease agreements.
1.4 Depreciation
Depreciation on fixed assets is provided at the rates and in the manner
specified in Schedule XIV of the Companies Act, 1956 and in respect of
assets added/disposed off during the year on pro-rata basis with
reference to the date of its use/disposal :
a) In respect of assets located at Nasik and Sikandrabad Plant - on
straight-line method.
b) In respect of other assets - on written down value method.
Depreciation on amount added on revaluation is recouped from Fixed
Assets Revaluation Reserve.
1.5 Investments
Investments, being long term in nature are stated at cost, less any
diminution in value other than temporary.
1.6 Foreign Currency Transactions
Transactions in foreign currency are accounted for at the equivalent
rupee value incurred/earned. Foreign currency assets and liabilities
at the year-end are realigned at the applicable exchange rate and
variations are adjusted to the revenue or capital heads.
1.7 Inventory
a) Raw materials including materials in transit, stores & spare parts
and loose tools are valued at lower of cost or net realisable value.
b) Work-in-process and finished goods are valued at lower of cost or
net realisable value.
c) The cost which is arrived at following weighted average basis,
comprises all direct costs including taxes and duties net of cenvat
credits, transportation and other costs incurred in bringing the
inventories to the present location and conditions.
d) The obsolete/damaged items of inventories are valued at estimated
realisable value.
1.8 Sales
The amount recognised as sale is exclusive of sales tax / VAT and are
net of returns. Sales are stated gross of excise duty as well as net of
excise duty; excise duty being the amount included in the amount of
gross turnover. The excise duty related to difference between the
closing stock and opening stock is recognised separately as part of
Ãmaterial costÃ.
1.9 Retirement Benefits
(i) The Company operates defined contribution schemes.
The Company makes regular contribution to provident funds which are
fully funded and administered by Trustees / Government and are
independent of CompanyÃs finance. Contributions are recognized in
Profit & Loss Account on an accrual basis. The Company also contributes
to a Government administered pension fund on behalf of certain category
of its employees.
(ii) The Company is maintaining Defined Benefit Plan for its Gratuity
Scheme. The Company contributes to gratuity fund and such contribution
is determined by the actuary at the end of the year. The gratuity fund
is administered by the Trustees.
(iii) For Schemes where recognized funds have been set up, annual
contributions are made as determined as per the actuarial valuation
report. Actuarial gains & losses are recognized in the Profit & Loss
Account. The Company recognizes in the Profit & Loss Account gains or
losses on curtailment or settlement of a defined benefit plan as and
when the curtailment or settlement occurs.
(iv) Provision is made for retirement leave encashment benefit payable
to employees on the basis of independent actuarial valuation, at the
end of each year and charge is recognized in the Profit and Loss
Account.
1.10 Borrowing Cost
Borrowing Costs attributable to acquisition and construction of assets
are capitalized as part of the cost of such asset upto the date when
such asset is ready for its intended use. Other borrowing costs are
charged to Profit and Loss Account.
1.11 Taxes on Income
Tax on income for the current period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance Sheet
date.
Deferred tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred tax assets can be
realised.
1.12 Voluntary Retirement Scheme
Payments made under the Voluntary Retirement Scheme (VRS) including
gratuity arising pursuant to the VRS are amortised over a period of
five years commencing from the year in which it is incurred.
1.13 Contingent Liabilities
Liabilities which are material in the opinion of the Company and whose
future outcome cannot be ascertained with reasonable certainty, are
treated as contingent and disclosed by way of notes to the Accounts.
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Shalimar Paints Ltd. Company Details
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- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
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Company History
- Rights
- BSE Price History
- NSE Price History
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Shalimar Paints Ltd. Key Financial Ratios
- Ratios
-
Shalimar Paints Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Shalimar Paints Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Shalimar Paints Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Shalimar Paints Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
