A Oneindia Venture
Click it and Unblock the Notifications
Accounting Policies of Concord Biotech Ltd. Company
Mar 31, 2025
3. MATERIAL ACCOUNTING POLICIES
3.1. Property, Plant and Equipment
i. Recognition and measurement
Property, plant and equipment are stated
at cost of acquisition or construction less
accumulated depreciation and any accumulated
impairment losses. The cost of Plant, Property
& Equipment comprises of its purchase price,
non-refundable taxes & levies, freight and other
incidental expenses related to the acquisition and
installation of the respective assets. Borrowing
cost attributable to financing of acquisition or
construction of the qualifying Property, Plant
and Equipment is capitalized to respective assets
when the time taken to put the assets to use is
substantial.
When major items of property, plant and
equipment have different useful lives, they are
accounted for as separate items of property, plant
and equipment. The cost of replacement of any
property, plant and equipment is recognized in
the carrying amount of the item if it is probable
that the future economic benefit associated with
the item will flow to the Company and its cost can
be measured reliably.
Capital work-in-progress comprises cost of
Property, Plant and Equipment those are not yet
installed and ready for their intended use at the
Balance sheet date.
Pre-operative expenditure comprising of
revenue expenses incurred in connection with
project implementation during the period up
to commencement of commercial production
are treated as part of the project costs and
are capitalized. Such expenses are capitalized
only if the project to which they relate, involve
substantial expansion of capacity or upgradation.
An item of property, plant and equipment is
derecognized upon disposal or when no future
economic benefits are expected to arise from its
use. Difference between the sales proceeds and
the carrying amount of the asset is recognized in
profit and loss.
The cost of property, plant and equipment as at
I April, 2016, the company''s date of transition
to Ind AS, was determined with reference to its
carrying value recognised as per the previous
GAAP (deemed cost), as at the date of transition
to Ind AS.
ii. Subsequent expenditure
Subsequent expenditure is capitalized only if
it is probable that the future economic benefits
associated with the expenditure will flow to
the Company and the cost of the item can be
measured reliably.
iii. Depreciation
Freehold land is carried at historical cost and not
depreciated. Depreciation on Property, Plant and
Equipment is provided using straight line method
based as per the useful life prescribed in Schedule
II to the Companies Act, 2013. Depreciation on
assets added / disposed off during the year is
provided on pro-rata basis with reference to
month of addition / disposal. The estimated
useful lives, residual values and depreciation
method are reviewed at each financial year-end
and changes in estimates, if any are accounted for
on a prospective basis. The residual values are not
more than 5% of the original cost of asset.
3.2. Intangible Assets
i. Recognition and measurement
Intangible assets acquired separately are
measured at cost of acquisition. Following initial
recognition, intangible assets are carried at cost
less accumulated amortisation and impairment
losses if any.
Intangible assets (software & technical know¬
how) are amortised over the estimated useful
life of three years which reflects the manner
in which the economic benefit is expected
to be generated. The estimated useful life of
amortizable intangibles is reviewed at the end of
each reporting period and change in estimates if
any are accounted for on a prospective basis.
ii. Subsequent Expenditure
Subsequent expenditure is capitalized only
when it increases the future economic benefits
embodied in the specific asset to which it relates.
All other expenditure, including expenditure
on internally generated goodwill and brands, is
recognized in profit or loss as incurred.
iii. Amortisation
Intangible assets are amortised on a straight line
basis over the estimated useful life.
Amortisation method, useful lives and residual
values are reviewed at the end of each financial
year and adjusted if appropriate.
The cost of intangibles as at 1 April, 2016,
the Group''s date of transition to Ind AS, was
determined with reference to its carrying value
recognised as per the previous GAAP (deemed
cost), as at the date of transition to Ind AS.
3.3. Foreign currency Transaction and Translation
Foreign currency transactions are recorded at exchange
rates prevailing on the date of the transaction. The
net gain or loss on account of exchange differences
arising on settlement of foreign currency transactions
are recognized as income or expense of the period
in which they arise. Monetary assets and liabilities
denominated in foreign currency as at the balance
sheet date are translated at the closing rate. The
resultant exchange rate differences are recognized in
the statement of profit and loss. Non-monetary assets
and liabilities are carried at the rates prevailing on the
date of transaction.
3.4. Financial Instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets
and financial liabilities are recognized when an entity
becomes a party to the contractual provisions of the
instruments.
3.4.1. Financial assets
(a) Classification of financial assets:
All financial assets not classified as measured
at amortised cost or FVOCI as described
above are measured at FVTPL. On initial
recognition, the company may irrevocably
designate a financial asset that otherwise
meets the requirements to be measured at
amortised cost or at FVOCI as at FVTPL if
doing so eliminates or significantly reduces
an accounting mismatch that would
otherwise arise.
Financials Assets are not reclassified
subsequent to their initial recognition unless
the company changes its business model for
managing financial assets, in which case all
affected financial assets are reclassified on
the first day of the first reporting period
following the change in the business model.
(b) Recognition and initial measurement:
Financial assets are initially measured at
fair value. Transaction costs that are directly
attributable to the acquisition or issue of
financial assets (other than financial assets
at fair value through profit or loss) are
added to or deducted from the fair value
of the financial assets, as appropriate, on
initial recognition. Transaction costs that
are directly attributable to the acquisition or
issue of financial assets at fair value through
profit or loss are recognised immediately in
profit or loss.
(c) Subsequent measurement:
⢠Amortised Cost
Assets that are held for collection of
contractual cash flows where those
cash flows represent solely payments
of principal and interest are measured
at amortised cost. A gain or loss on a
debt investment that is subsequently
measured at amortised cost and is
not part of a hedging relationship is
recognised in profit or loss when the
asset is derecognised or impaired.
Interest income from these financial
assets is included in finance income
using the effective interest rate
method.
⢠Fair value through other
comprehensive income (FVOCI):
Assets that are held for collection
of contractual cash flows and for
selling the financial assets, where the
assets'' cash flows represent solely
payments of principal and interest,
are measured at fair value through
other comprehensive income (FVOCI).
Movements in the carrying amount
are taken through OCI, except for the
recognition of impairment gains or
losses, interest revenue and foreign
exchange gains and losses which are
recognised in profit and loss. When
the financial asset is derecognised,
the cumulative gain or loss previously
recognised in OCI is reclassified from
equity to profit or loss and recognised
in other gains / (losses). Interest
income from these financial assets
is included in other income using
the effective interest rate method.
Foreign exchange gains and losses are
presented in other gains and losses
and impairment expenses in other
expenses.
⢠Fair value through profit or loss
(FVTPL)
Assets that do not meet the criteria for
amortised cost or FVOCI are measured
at fair value through profit or loss. A
gain or loss on a debt investment that
is subsequently measured at fair value
through profit or loss and is not part of
a hedging relationship is recognised
in profit or loss and presented net in
the statement of profit and loss within
other gains / (losses) in the period in
which it arises. Interest income from
these financial assets is included in
other income.
(d) Derecognition of financial assets:
A financial asset (or, where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised
(i.e. removed from the Company''s balance
sheet) when:
⢠The rights to receive cash flows from
the asset have expired, or
⢠The Company has transferred its rights
to receive cash flows from the asset
When the Company has transferred an
asset, the Company evaluates whether
it has transferred substantially all risks
and rewards of ownership of the financial
asset. In such cases, the financial asset is
derecognised. Where the Company has
not transferred substantially all risks and
rewards of ownership of the financial asset,
the financial asset is not derecognised.
Where the Company has neither transferred
a financial asset nor retains substantially all
risks and rewards of ownership of financial
asset, the financial asset is derecognised if
the Company has not retained control over
the financial asset. Where the Company
retains control of the financial asset, the
asset is continued to be recognised to the
extent of continuing involvement in the
financial asset.
(e) Income recognition:
Dividend is accounted when the right to
receive payment is established.
(f) Cash and cash equivalents:
Cash and cash equivalents consists of cash
on hand, bank balances, short demand
deposits and highly liquid investments
that are readily convertible into known
amounts of cash and which are subject
to an insignificant risk of change in value.
Short term means investments with original
maturities / holding period of three months
or less from the date of investments. Bank
overdrafts that are repayable on demand
and form an integral part of the Company''s
cash management are included as a
component of cash and cash equivalent for
the purpose of statement of cash flow.
(g) Investments:
I investments in mutual funds are primarily
held for the Company''s temporary cash
requirements and can be readily convertible
in cash. These investments are initially
recorded at fair value and classified as fair
value through profit or loss.
(h) Trade receivables:
Trade receivables are amounts due from
customers for sale of goods or services
performed in the ordinary course of
business. Trade receivables are initially
recognized at its transaction price which
is considered to be its fair value and are
classified as current assets as it is expected
to be received within the normal operating
cycle of the business.
3.4.2. Financial liabilities
The Company''s financial liabilities include trade
payables, loans, borrowing and derivative
financial instruments.
(a) Classification:
All the Company''s financial liabilities, except
for financial liabilities at fair value through
profit or loss, are measured at amortised
cost.
(b) Initial measurement:
Financial liabilities are initially measured at
fair value. Transaction costs that are directly
attributable to the acquisition or issue of
financial liabilities (other than financial
liabilities at fair value through profit or loss)
are added to or deducted from the fair value
of the financial liabilities, as appropriate, on
initial recognition. Transaction costs that
are directly attributable to the acquisition
or issue of financial liabilities at fair value
through profit or loss are recognised
immediately in profit or loss.
(c) Subsequent measurement:
Financial liabilities are subsequently
measured at amortised cost using the
Effective Interest Rate Method. The Effective
Interest Rate Method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense
over the relevant period. The effective
interest rate is the rate that exactly discounts
estimated future cash payments (including
transaction costs and other premiums or
discounts) through the expected life of the
financial liability, or (where appropriate) a
shorter period, to the net carrying amount
on initial recognition.
(d) Derecognition of financial liabilities:
The Company derecognises financial
liabilities when, and only when, the
Company''s obligations are discharged,
cancelled or waived off or have expired.
An exchange between the Company
and the lender of debt instruments with
substantially different terms is accounted for
as an extinguishment of the original financial
liability and the recognition of a new
financial liability. The difference between
the carrying amount of the financial liability
derecognised and the consideration paid
and payable is recognised in profit or loss.
(e) Borrowings:
Borrowings are initially recorded at fair value
and subsequently measured at amortised
costs using effective interest rate method.
Transaction costs are charged to statement
of profit and loss as financial expenses over
the term of borrowing.
(f) Trade payables:
Trade payables are amounts due to vendors
for purchase of goods or services acquired
in the ordinary course of business and are
classified as current liabilities to the extent
it is expected to be paid within the normal
operating cycle of the business
3.4.3. Derivative Financial Instruments:
The Company enters into derivative financial
instruments to manage its foreign exchange rate
risk. Derivatives are initially recognized at fair
value at the date a derivative contract is entered
into and are subsequently re-measured to their
fair value at the end of each reporting period. The
resulting gain or loss is recognized in profit or loss
immediately.
3.5 Leases - Company as lessee
At inception of a contract, the Company assesses
whether a contract is or contains a lease. A contract
is or contains a lease if the contract conveys the right
to control the use of an identified assets for a period
of time in exchange for consideration. To assess
whether a contract conveys the right to control the
use of an identified asset the Company assesses
whether contract involves the use of an identified
asset, the Company has a right to obtain substantially
all of the economic benefits from the use of the asset
throughout the period of use and the Company has the
right to direct the use of the asset.
At the inception date, right-of-use asset ("ROU") is
recognised at cost which includes present value of
lease payments adjusted for any payments made on
or before the commencement of lease and initial direct
cost, if any. It is subsequently measured at cost less
accumulated depreciation, accumulated impairment
losses, if any and adjusted for any remeasurement
of the lease liability. Right-of-use asset ("ROU") is
depreciated using the straight-line method from the
commencement date over the earlier of useful life of
the asset or the lease term. When the Company has
purchase option available under lease and cost of right-
of-use assets ("ROU") reflects that purchase option will
be exercised, right-of-use asset is depreciated over the
useful life of underlying asset. Right-of-use assets 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 statement
of profit and loss.
At the inception date, lease liability is recognised at
present value of lease payments that are not made
at the commencement of lease. Lease liability is
subsequently measured by adjusting carrying amount
to reflect interest, lease payments and remeasurement,
if any.
Lease payments are discounted using the incremental
borrowing rate or interest rate implicit in the lease, if
the rate can be determined.
The Company has elected not to apply requirements
of Ind AS 116 to leases that has a term of 12 months or
less and leases for which the underlying asset is of low
value. Lease payments of such lease are recognised as
an expense on straight line basis over the lease term.
3.6 Inventories
I nventories are Valued at the lower of cost and net
realizable value.
The cost incurred in bringing the inventory to their
existing location and conditions are determined as
follows:
(a) Raw Material and Packing Material - Purchase cost
of materials on FIFO basis.
(b) Finished Goods (Manufactured) and work in
progress - Cost of purchase, conversion cost, and
other costs attributable to inventories.
(c) Trading goods - Purchase cost on FIFO basis.
The cost of purchase of inventories comprises the
purchase price, import duties and other taxes (other
than those subsequently recovered by the Company
from taxing authorities), and transport, handling and
other costs directly attributable to the bringing the
inventory to their existing location and conditions.
Trade discounts, rebates and other similar items are
deducted in determining the costs of purchase.
Net realizable value is the estimated selling price in the
ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make
the sales. The net realisable value of work-in-progress
is determined with reference to the selling prices of
related finished products.
The comparison of cost and net realisable value is
made on an item-by-item basis.
The Company considers various factors like ageing of
inventory, product discontinuation, obsolete items and
any other factor which impact the Company''s business
in determining the allowance for inventories. The
Company considers the above factors and adjusts the
inventory provision to reflect its actual experience on a
periodic basis.
3.7 Impairment of Assets
3.7.1 Financial Assets
At each balance sheet date, the Company assesses
whether a financial asset is to be impaired. Ind
AS 109 requires expected credit losses to be
measured through loss allowance. The Company
measures the loss allowance for financial assets
at an amount equal to lifetime expected credit
losses if the credit risk on that financial asset has
increased significantly since initial recognition.
If the credit risk on a financial asset has not
increased significantly since initial recognition,
the Company measures the loss allowance for
financial assets at an amount equal to 12-month
expected credit losses. Loss allowance for financial
assets measured at amortised cost are deducted
from gross carrying amount of the assets. The
amount of ECL (or reversal) that is required to
adjust the loss allowance at the reporting date is
recognised as an impairment gain or loss in the
Statement of Profit and Loss.
3.7.2 Non-financial Assets
Property, plant and equipment and intangible
assets with finite life are evaluated for recoverability
whenever there is any indication that their
carrying amounts may not be recoverable. If any
such indication exists, the recoverable amount (i.e.
higher of the fair value less cost to sell or the value-
in-use) is determined on an individual asset basis
unless the asset does not generate cash flows
that are largely independent of those from other
assets. In such cases, the recoverable amount is
determined for the cash generating unit (CGU) to
which the asset belongs.
If the recoverable amount of an asset (or CGU) is
estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced
to its recoverable amount. An impairment
loss is recognized in the profit or loss to such
extent. When an impairment loss subsequently
reverses, the carrying amount of the asset (or a
cash-generating unit) is increased to the revised
estimate of its recoverable amount, such that
the increase in the carrying amount does not
exceed the carrying amount that would have
been determined had no impairment loss been
recognised for the asset (or cash-generating unit)
in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.
3.7.3 Presentation of allowance for ECL in the
balance sheet
Loss allowances for financial assets measured
at amortised cost are deducted from the gross
carrying amount of the assets. For debt securities
at FVOCI, the loss allowance is charged to profit or
loss and is recognised in OCI.
3.7.4 Credit-impaired financial assets
At each reporting date, the Company assesses
whether financial assets carried at amortised cost
and debt securities at FVOCI are credit-impaired.
A financial asset is ''credit-impaired'' when one or
more events that have a detrimental impact on
the estimated future cash flows of the financial
asset have occurred.
Evidence that a financial asset is credit-impaired
includes the following observable data:
⢠significant financial difficulty of the debtor;
⢠a breach of contract such as a default or
being more than 90 days past due;
⢠the restructuring of a loan or advance by the
Company on terms that the Company would
not consider otherwise;
⢠it is probable that the debtor will enter
bankruptcy or other financial reorganisation;
or
⢠the disappearance of an active market for a
security because of financial difficulties.
3.7.5 Write Off
The gross carrying amount of a financial asset is
written off when the Company has no reasonable
expectations of recovering a financial asset in
its entirety or a portion thereof. For individual
customers, the Company has a policy of writing
off the gross carrying amount when the financial
asset is 3 years past due based on historical
experience of recoveries of similar assets. For
corporate customers, the Company individually
makes an assessment with respect to the timing
and amount of write-off based on whether
there is a reasonable expectation of recovery.
The Company expects no significant recovery
from the amount written off. However, financial
assets that are written off could still be subject to
enforcement activities in order to comply with the
Company''s procedures for recovery of amounts
due.
3.8 Employee Benefits
3.8.1 Short term employee benefits
Short term benefits payable before twelve
months after the end of the reporting period in
which the employees have rendered service are
accounted as expense in profit and loss account.
3.8.2 Long term employment benefits
Defined Contribution Plans
Contributions to defined contribution plans
(provident fund and other social security schemes)
are recognized as expense when employees have
rendered services entitling them to such benefits.
Defined Benefit Plans
The Company''s net obligation in respect of an
approved gratuity plan, which is defined benefit
plan, is calculated using the projected unit credit
method and the same is carried out by qualified
actuary. The current service cost and net interest
on the net defined benefit liability (asset) is
recognized in the statement of profit and loss.
Past service cost are immediately recognized
in the statement of profit and loss. Actuarial
gains and losses net of deferred taxes arising
from experience adjustment and changes in
actuarial assumptions are recognized in other
comprehensive income in the period in which
they arise.
Compensated absences and earned leaves
The Company''s current policy permit eligible
employees to accumulate compensated absences
up to a prescribed limit and receive cash in lieu
thereof in accordance with the terms of the
policy. The Company measures the expected cost
of accumulating compensated absences as the
additional amount that the Company expects
to pay as a result of unused entitlement that
has accumulated as at the reporting date. The
expected cost of these benefits is calculated using
the projected unit credit method by qualified
actuary every year. Expense on non-accumulating
compensated absences is recognized is the
period in which the absences occur.
The liability in respect of all defined benefit
plans and other long-term benefits is accrued
in the books of account on the basis of actuarial
valuation carried out by an independent actuary
using the Projected Unit Credit Method. The
obligation is measured at the present value
of estimated future cash flows. The discount
rates used for determining the present value of
obligation under defined benefit plans, is based
on the market yields on Government securities
as at the Balance Sheet date, having maturity
periods approximating to the terms of related
obligations.
Remeasurement gains and losses in respect
of all defined benefit plans arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in
which they occur, directly in other comprehensive
income. They are included in other equity in
the Statement of Changes in Equity and in the
Balance Sheet. Changes in the present value of
the defined benefit obligation resulting from
plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.
Gains or losses on the curtailment or settlement
of any defined benefit plan are recognised
when the curtailment or settlement occurs. Any
differential between the plan assets (for a funded
defined benefit plan) and the defined benefit
obligation as per actuarial valuation is recognised
as a liability if it is a deficit or as an asset if it is
a surplus (to the extent of the lower of present
value of any economic benefits available in the
form of refunds from the plan or reduction in
future contribution to the plan).
Past service cost is recognised as an expense in
the Statement of Profit and Loss on a straight-line
basis over the average period until the benefits
become vested. To the extent that the benefits
are already vested immediately following
the introduction of, or changes to, a defined
benefit plan, the past service cost is recognised
immediately in the Statement of Profit and Loss.
Past service cost may be either positive (where
benefits are introduced or improved) or negative
(where existing benefits are reduced).
Mar 31, 2024
1. CORPORATE INFORMATION
Concord Biotech Limited (the Company) is a public limited Company incorporated and domiciled in India, having registered office at 1482-86 Trasad Road, Dholka, Ahmedabad - 382225 and corporate office is located at B-1601 & B-1602, Mondeal Heights, S G highway, Ahmedabad-380051. The Company is engaged in research and development, manufacturing, marketing and selling of pharmaceutical products. The Companyâs API manufacturing facilities are located at Dholka and Limbasi, and its formulations facility at Valthera in the state of Gujarat, India.
The Companyâs equity shares have been listed on National Stock Exchange ("NSE") and on BSE Limited ("BSE") on August 18, 2023, by completing Initial Public Offering ("IPO") through offer for sale ("OFS") of 2,09,25,652 equity shares of face value of INR 1 each at an issue price of INR 741 per equity share by Helix Investment Holdings Pte Limited, Singapore ("selling shareholder").
2. BASIS OF PREPARATION AND PRESENTATION OF STANDALONE FINANCIAL STATEMENTS2.1. Statement of compliance
The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III) (as amended from time to time).
These standalone financial statements have been prepared for the Company as a going concern on the basis of relevant Ind AS that are effective at the Companyâs annual reporting date, 31st March 2024. These standalone financial statements were authorised for issuance by the Companyâs Board of Directors on 23rd May 2024.
2.2. Functional and Presentation Currency
The standalone financial statements are presented in Indian Rupees (INR), the currency of the primary economic environment in which the Company operates. All the amounts are rounded to the nearest rupee Lakhs, unless otherwise indicated. Transaction and balances with values below INR 50,000 have been reflected as "0.00" in standalone financial statements.
a) Historical cost convention
The standalone financial statements have been prepared on the historical cost basis (i.e. on accrual basis), except for the following items:
⢠Certain financial assets and liabilities (including derivative instruments) are measured at fair value or amortised cost and
⢠Net defined benefit assets/(liability) are measured at fair value of plan assets, less present value of defined benefit obligations.
2.4. Measurement of Fair Value
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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if the market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value measurement and/ or disclosure purposes in the financial statements is determined on such a basis except for leasing transactions that are within the scope of Ind AS 116 Leases, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 Inventories.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
⢠Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
⢠Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and
⢠Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The Company has an established control framework with respect to the measurement of fair values. This includes a finance team that has overall responsibility
for overseeing all significant fair value measurements, including Level 3 fair values.
The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values, then the finance team assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
2.5. Use of estimates and judgements
The preparation of the standalone financial statements in conformity with Ind AS requires Management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the standalone financial statements.
2.6. Assumptions and estimation uncertainties:
Key source of estimation of uncertainty at the date of standalone financial statements, which may cause material adjustment to the carrying amount of assets and liabilities within the next financial year, is in respect of:
⢠Useful lives of property, plant and equipment (Refer note no. 3.1)
⢠Leases-Company as a lessee (Refer note no. 3.5)
⢠Valuation of Inventories (Refer note no. 3.6)
⢠Employee benefits (refer note no.3.8)
⢠Provisions & Contingent Liabilities (Refer note no. 3.9)
⢠Recognition of deferred tax assets (Refer note no. 3.12)
⢠Impairment of financial assets (Refer note no. 3.7)
⢠Estimate of expected return (Refer note no. 3.11)
⢠Measurement of ECL allowance for trade and finance receivables. (Refer note no. 3.7.3)
2.7. Current versus non-current classification:
All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current
- noncurrent classification of assets and liabilities.
All assets and liabilities are classified into current and non-current.
An asset is classified as current when it satisfies any of the following criteria:
- i t is expected to be realised in, or is intended for sale or consumption in, the Companyâs normal operating cycle;
- it is held for the purpose of being traded;
- it is expected to be realised within 12 months after the reporting date; or
- it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of noncurrent assets / non-current financial assets. All other assets are classified as non-current.
A liability is classified as current when it satisfies any of the following criteria:
- it is expected to be settled in the Companyâs normal operating cycle;
- it is held primarily for the purpose of being traded;
- it is expected to be settled within 12 months after the reporting date; or
- the Company does not have any unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Current liabilities include the current portion of noncurrent liabilities / non-current financial liabilities. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalent. The operating cycle of the Company is less than 12 months.
3. MATERIAL ACCOUNTING POLICIES3.1. Property, Plant and Equipmenti. Recognition and measurement
Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and any accumulated impairment losses. The cost of Plant, Property & Equipment comprises of its purchase price, non-refundable taxes & levies, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing cost attributable to financing of acquisition or construction of the qualifying Property, Plant and Equipment is capitalised to respective assets when the time taken to put the assets to use is substantial.
When major items of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. The cost of replacement of any property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefit associated with the item will flow to the Company and its cost can be measured reliably.
Capital work-in-progress comprises cost of Property, Plant and Equipment those are not yet installed and ready for their intended use at the Balance sheet date.
Pre-operative expenditure comprising of revenue expenses incurred in connection with project implementation during the period up to commencement of commercial production are treated as part of the project costs and are capitalised. Such expenses are capitalised only if the project to which they relate, involve substantial expansion of capacity or upgradation.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from its use. Difference between the sales proceeds and the carrying amount of the asset is recognised in profit and loss.
ii. Subsequent expenditure
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.
iii. Depreciation
Freehold land is carried at historical cost and not depreciated. Depreciation on Property, Plant and Equipment is provided using straight line method based as per the useful life prescribed in Schedule II to the Companies Act, 2013. Depreciation on assets added / disposed off during the year is provided on pro-rata basis with reference to month of addition / disposal. The estimated useful lives, residual values and depreciation method are reviewed at each financial year-end and changes in estimates, if any are accounted for on a prospective basis. The residual values are not more than 5% of the original cost of asset.
3.2. Intangible Assetsi. Recognition and measurement
Intangible assets acquired separately are measured at cost of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortisation and impairment losses if any.
Intangible assets are amortised over the estimated useful life of three years which reflects the manner in which the economic benefit is expected to be generated. The estimated useful life of amortisable intangibles is reviewed at the end of each reporting period and change in estimates if any are accounted for on a prospective basis.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
Intangible assets are amortised on a straight line basis over the estimated useful life.
Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted if appropriate.
3.3. Foreign currency Transaction and Translation
Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognised as income or expense of the period in which they arise. Monetary assets and liabilities denominated in foreign currency as at the balance sheet date are translated at the closing rate. The resultant exchange rate differences are recognised in the statement of profit and loss. Non-monetary assets and liabilities are carried at the rates prevailing on the date of transaction.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.
(a) Classification of financial assets:
The Company classifies its financial assets in the following measurement categories:
⢠those measured at amortised cost.
⢠those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss) and
The classification depends on the Companyâs business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.
(b) Recognition and initial measurement:
Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets (other than financial assets at fair value through profit or loss) are added to or deducted from the fair value of the financial assets, as appropriate, on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets at fair value through profit or loss are recognised immediately in profit or loss.
(c) Subsequent measurement:
⢠Amortised Cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.
⢠Fair value through other comprehensive income (FVOCI):
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assetsâ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains / (losses). Interest income from these financial assets is included in other income
using the effective interest rate method. Foreign exchange gains and losses are presented in other gains and losses and impairment expenses in other expenses.
⢠Fair value through profit or loss (FVTPL)
Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other gains / (losses) in the period in which it arises. Interest income from these financial assets is included in other income.
(d) Derecognition of financial assets:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Companyâs balance sheet) when:
⢠The rights to receive cash flows from the asset have expired, or
⢠The Company has transferred its rights to receive cash flows from the asset
When the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.
Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of financial asset, the financial asset is derecognised if the Company has not retained control over the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.
Dividend is accounted when the right to receive payment is established.
(f) Cash and cash equivalents:
Cash and cash equivalents consists of cash on hand, bank balances, short demand deposits and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of change in value. Short term means investments with original maturities / holding period of three months or less from the date of investments. Bank overdrafts that are repayable on demand and form an integral part of the Companyâs cash management are included as a component of cash and cash equivalent for the purpose of statement of cash flow.
(g) Investments:
I nvestments in mutual funds are primarily held for the Companyâs temporary cash requirements and can be readily convertible in cash. These investments are initially recorded at fair value and classified as fair value through profit or loss.
(h) Trade receivables:
Trade receivables are amounts due from customers for sale of goods or services performed in the ordinary course of business. Trade receivables are initially recognised at its transaction price which is considered to be its fair value and are classified as current assets as it is expected to be received within the normal operating cycle of the business.
The Companyâs financial liabilities include trade payables, loans, borrowing and derivative financial instruments.
(a) Classification:
All the Companyâs financial liabilities, except for financial liabilities at fair value through profit or loss, are measured at amortised cost.
(b) Initial measurement:
Financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial liabilities, as appropriate, on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
(c) Subsequent measurement:
Financial liabilities are subsequently measured at amortised cost using the Effective Interest Rate Method. The Effective Interest Rate Method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
(d) Derecognition of financial liabilities:
The Company derecognises financial liabilities when, and only when, the Companyâs obligations are discharged, cancelled or waived off or have expired. An exchange between the Company and the lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.
(e) Borrowings:
Borrowings are initially recorded at fair value and subsequently measured at amortised costs using effective interest rate method. Transaction costs are charged to statement of profit and loss as financial expenses over the term of borrowing.
Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary course of business and are classified as current liabilities to the extent it is expected to be paid within the normal operating cycle of the business
3.4.3 Derivative Financial Instruments:
The Company enters into derivative financial instruments to manage its foreign exchange rate risk. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately.
3.5 Leases - Company as lessee
At inception of a contract, the Company assesses whether a contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified assets for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset the Company assesses whether contract involves the use of an identified asset, the Company has a right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use and the Company has the right to direct the use of the asset.
At the inception date, right-of-use asset ("ROU") is recognised at cost which includes present value of lease payments adjusted for any payments made on or before the commencement of lease and initial direct cost, if any. It is subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. Right-of-use asset ("ROU") is depreciated using the straight-line method from the commencement date over the earlier of useful life of the asset or the lease term. When the Company has purchase option available under lease and cost of right-of-use assets ("ROU") reflects that purchase option will be exercised, right-of-use asset is depreciated over the useful life of underlying asset. Right-of-use assets 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 statement of profit and loss.
At the inception date, lease liability is recognised at present value of lease payments that are not made at the commencement of lease. Lease liability is subsequently measured by adjusting carrying amount to reflect interest, lease payments and remeasurement, if any.
Lease payments are discounted using the incremental borrowing rate or interest rate implicit in the lease, if the rate can be determined.
The Company has elected not to apply requirements of Ind AS 116 to leases that has a term of 12 months or less and leases for which the underlying asset is of low value. Lease payments of such lease are recognised as an expense on straight line basis over the lease term.
I nventories are Valued at the lower of cost and net realisable value.
The cost incurred in bringing the inventory to their existing location and conditions are determined as follows:
(a) Raw Material and Packing Material - Purchase cost of materials on FIFO basis.
(b) Finished Goods (Manufactured) and work in progress - Cost of purchase, conversion cost, and other costs attributable to inventories.
(c) Trading goods - Purchase cost on FIFO basis.
The cost of purchase of inventories comprises the purchase price, import duties and other taxes (other than those subsequently recovered by the Company from taxing authorities), and transport, handling and other costs directly attributable to the bringing the inventory to their existing location and conditions. Trade discounts, rebates and other similar items are deducted in determining the costs of purchase.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sales. The net realisable value of work-in-progress is determined with reference to the selling prices of related finished products.
The comparison of cost and net realisable value is made on an item-by-item basis.
Provisions are made towards slow-moving and obsolete items based on historical experience of utilisation on a product category basis, which
consideration of product lines and market conditions.
3.7 Impairment of Assets3.7.1 Financial Assets
At each balance sheet date, the Company assesses whether a financial asset is to be impaired. Ind AS 109 requires expected credit losses to be measured through loss allowance. The Company measures the loss allowance for financial assets at an amount equal to lifetime expected credit losses if the credit risk on that financial asset has increased significantly since initial recognition. If the credit risk on a financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for financial assets at an amount equal to 12-month expected credit losses. Loss allowance for financial assets measured at amortised cost are deducted from gross carrying amount of the assets. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or loss in the Statement of Profit and Loss.
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell or the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.
I f the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the profit or loss to such extent. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, such that the increase in the carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
3.7.3 Presentation of allowance for ECL in the balance sheet
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.
3.7.4 Credit-impaired financial assets
At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit-impaired. A financial asset is ''credit-impaired'' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
⢠significant financial difficulty of the debtor;
⢠a breach of contract such as a default or being more than 90 days past due;
⢠the restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;
⢠it is probable that the debtor will enter bankruptcy or other financial reorganisation; or
⢠the disappearance of an active market for a security because of financial difficulties.
The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For individual customers, the Company has a policy of writing off the gross carrying amount when the financial asset is 3 years past due based on historical experience of recoveries of similar assets. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement
activities in order to comply with the Companyâs procedures for recovery of amounts due.
3.8 Employee Benefits3.8.1 Short term employee benefits
Short term benefits payable before twelve months after the end of the reporting period in which the employees have rendered service are accounted as expense in profit and loss account.
3.8.2 Long term employment benefits Defined Contribution Plans
Contributions to defined contribution plans (provident fund and other social security schemes) are recognised as expense when employees have rendered services entitling them to such benefits.
The Companyâs net obligation in respect of an approved gratuity plan, which is defined benefit plan, is calculated using the projected unit credit method and the same is carried out by qualified actuary. The current service cost and net interest on the net defined benefit liability (asset) is recognised in the statement of profit and loss. Past service cost are immediately recognised in the statement of profit and loss. Actuarial gains and losses net of deferred taxes arising from experience adjustment and changes in actuarial assumptions are recognised in other comprehensive income in the period in which they arise.
Compensated absences and earned leaves
The Companyâs current policy permit eligible employees to accumulate compensated absences up to a prescribed limit and receive cash in lieu thereof in accordance with the terms of the policy. The Company measures the expected cost of accumulating compensated absences as the additional amount that the Company expects to pay as a result of unused entitlement that has accumulated as at the reporting date. The expected cost of these benefits is calculated using the projected unit credit method by qualified actuary every year. Expense on non-accumulating compensated absences is recognised is the period in which the absences occur.
The liability in respect of all defined benefit plans and other long-term benefits is accrued
in the books of account on the basis of actuarial valuation carried out by an independent actuary using the Projected Unit Credit Method. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the Balance Sheet date, having maturity periods approximating to the terms of related obligations.
Remeasurement gains and losses in respect of all defined benefit plans arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in other equity in the Statement of Changes in Equity and in the Balance Sheet. Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost. Gains or losses on the curtailment or settlement of any defined benefit plan are recognised when the curtailment or settlement occurs. Any differential between the plan assets (for a funded defined benefit plan) and the defined benefit obligation as per actuarial valuation is recognised as a liability if it is a deficit or as an asset if it is a surplus (to the extent of the lower of present value of any economic benefits available in the form of refunds from the plan or reduction in future contribution to the plan).
Past service cost is recognised as an expense in the Statement of Profit and Loss on a straightline basis over the average period until the benefits become vested. To the extent that the benefits are already vested immediately following the introduction of, or changes to, a defined benefit plan, the past service cost is recognised immediately in the Statement of Profit and Loss. Past service cost may be either positive (where benefits are introduced or improved) or negative (where existing benefits are reduced).
3.9 Contingent liabilities, contingent assets and
provisions
(a) Contingent liabilities:
A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or nonoccurrence of one or
more uncertain future events not wholly within the control of the enterprise are disclosed as Contingent liability and not provided for. Such liability is not disclosed if the possibility of outflow of resources is remote.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent assets are not recognised and disclosed only when an inflow of economic benefits is probable.
(c) Provisions (other than employee benefits):
A provision is recognised when as a result of a past event, the Company has a present obligation whether 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 obligation is expected to be settled more than 12 months after the end of reporting date or has no definite settlement date, the provision is recorded as non-current liabilities after giving effect for time value of money, if material. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
The Company recognises government grants at their fair value only when there is reasonable assurance that the conditions attached to them will be complied with, and the grants will be received.
Government grants received in relation to assets are recognised directly to respective assets for which it is received. Government grants, which are revenue in nature are either recognised as income or deducted in reporting the related expense based on the terms of the grant, as applicable.
Revenue is measured based on the transaction price adjusted for discounts and rebates, which is specified in a contract with customer. Revenue are net of estimated returns and taxes collected from customer.
Revenue from sale of goods is recognised at point in time when control is transferred to the customer and it is probable that consideration will be collected. Control is usually transferred upon the shipment, delivery to or upon receipt of goods by the customer, in accordance with the delivery and acceptance terms agreed with the customer.
The transaction price is documented on the sales invoice and payment is generally due as per agreed credit terms with customer.
The consideration can be fixed or variable. Variable consideration is only recognised when it is highly probable that a significant reversal will not occur.
Revenue from services are recognised as the related services are performed, the contractual performance obligations are satisfied and there is no uncertainty related to the collection of the said revenue.
The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.
The Company from time to time enters into arrangements for the sale of its products in certain markets. Under such arrangements, the Company sells its products to the business partners at a base purchase price agreed upon in the arrangement and is also entitled to a profit share which is over and above the base purchase price. The profit share is typically dependent on the ultimate net sale proceeds or net profits, subject to any reductions or adjustments that are required by the terms of the arrangement. Revenue in an amount equal to the base purchase price is recognised in these transactions upon delivery of products to the business partners. An additional amount representing the profit share component is recognised as revenue only to the extent that it is highly probable that a significant reversal will not occur.
Profit share earned through a collaboration partner is recognised as the underlying sales are recorded by the collaboration partners
Export entitlements are recognised as income when right to receive credit as per the terms of the scheme is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.
I nterest income is recognised using effective interest rate method.
The ''effective interest rateâ is the rate that exactly discounts estimated future cash payments or receipts through the expected life of financial instrument to:
- The gross carrying amount of the financial assets; or
- The amortised cost of the financial liabilities
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis.
Sales return is variable consideration that is recognised and recorded based on historical experience, market conditions and provided for in the year of sale as reduction from revenue. The methodology and assumptions used to estimate returns are monitored and adjusted regularly in line with trade practices, historical trends, past experience and projected market conditions.
I ncome tax expense comprises current and deferred tax expense. Income tax expenses are recognised in statement of profit or loss, except when they relate to items recognised in other comprehensive income or directly in equity.
Current Tax
Current tax is the tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by the end of reporting period by the governing taxation laws, and any adjustment to tax payable in respect of previous periods. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred taxes arising from deductible and taxable temporary differences between the tax base of assets and liabilities and their carrying amount in the standalone financial statements are recognised using substantively enacted tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax asset are recognised only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilised. 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 income tax assets to be utilised.
Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to do the same.
Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.
Revenue expenditure on research and development activities is recognised as expense in the period in which it is incurred.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). The CODM of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the Chief Operating Decision Maker (CODM). All operating segmentsâ operating results are reviewed regularly by the CODM to make decisions about resources to be allocated to the segments and assess their performance.
4. NEW AND REVISED IND AS IN ISSUE BUT NOT YET EFFECTIVE
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
Mar 31, 2023
1. Corporate Information
Concord Biotech Limited (the Company) is a public company incorporated and domiciled in India. The Company is engaged in research and development, manufacturing, marketing and selling of pharmaceutical products. The Company''s API manufacturing facilities are located at Dholka and Limbasi, and its formulations facility at Valthera in the state of Gujarat, India.
The standalone financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.
These standalone financial statements have been prepared for the Company as a going concern on the basis of relevant Ind AS that are effective at the Company''s annual reporting date, March 31,2023. These standalone financial statements were authorised for issuance by the Company''s Board of Directors on 1 July 2023.
3. Basis of Preparation of Standalone financial statements3.1. Functional and Presentation Currency
The standalone financial statements are presented in Indian Rupees, the currency of the primary economic environment in which the Company operates. All the amounts are rounded to the nearest rupee lakhs.
The standalone financial statements have been prepared on the historical cost basis (i.e on accrual basis), except for the following items:
⢠Certain financial assets and liabilities (including derivative instruments) are measured at fair value; and
⢠Net defined benefit assets/(liability) are measured at fair value of plan assets, less present value of defined benefit obligations.
3.3. Measurement of Fair Value
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, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if the market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value measurement and/ or disclosure purposes in the financial statements is determined on such a basis except for leasing transactions that are within the scope of Ind AS 116 Leases, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 Inventories.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
⢠Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
⢠Level 2 inputs are inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly; and
⢠Level 3 inputs are unobservable inputs for the asset or liability.
The preparation of the standalone financial statements in conformity with Ind AS requires Management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the standalone financial statements.
Key source of estimation of uncertainty at the date of standalone financial statements, which may cause material adjustment to the carrying amount of assets and liabilities within the next financial year, is in respect of:
⢠Useful lives of property, plant and equipment (Refer note no. 4.1)
⢠Leases-Company as a lessee (Refer note no. 4.5)
⢠Valuation of Inventories (Refer note no. 4.6)
⢠Employee benefits (refer note no.4.8)
⢠Provisions & Contingent Liabilities (Refer note no. 4.9)
⢠Valuation of deferred tax assets (Refer note no. 4.12)
3.5. Current versus non-current classification:
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and
the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current - noncurrent classification of assets and liabilities.
All assets and liabilities are classified into current and noncurrent.
An asset is classified as current when it satisfies any of the following criteria:
- it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;
- it is held for the purpose of being traded;
- it is expected to be realized within 12 months after the reporting date; or
- it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of noncurrent assets / non-current financial assets. All other assets are classified as non-current.
A liability is classified as current when it satisfies any of the following criteria:
- it is expected to be settled in the Company''s normal operating cycle;
- it is held primarily for the purpose of being traded;
- it is expected to be settled within 12 months after the reporting date; or
- the Company does not have any unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
Current liabilities include the current portion of noncurrent liabilities / non-current financial liabilities. All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
Operating cycle
Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalent. The operating cycle of the Company is less than 12 months.
4. Significant accounting policies4.1. Property, Plant and Equipment
Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and any accumulated impairment losses. The cost of Plant, Property & Equipment comprises of its purchase price, non-refundable taxes & levies, freight and other incidental expenses related to the
acquisition and installation of the respective assets. Borrowing cost attributable to financing of acquisition or construction of the qualifying Property, Plant and Equipment is capitalized to respective assets when the time taken to put the assets to use is substantial.
When major items of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.
The cost of replacement of any property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefit associated with the item will flow to the Company and its cost can be measured reliably.
Capital work-in-progress comprises cost of Property, Plant and Equipment that are not yet installed and ready for their intended use at the Balance sheet date.
Pre-operative expenditure comprising of revenue expenses incurred in connection with project implementation during the period up to commencement of commercial production are treated as part of the project costs and are capitalized. Such expenses are capitalized only if the project to which they relate, involve substantial expansion of capacity or upgradation.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from its use. Difference between the sales proceeds and the carrying amount of the asset is recognized in profit and loss.
Freehold land is carried at historical cost and not depreciated. Depreciation on Property, Plant and Equipment is provided using straight line method (except vehicles which have been depreciated based on written down value method) based as per the useful life prescribed in Schedule II to the Companies Act, 2013. Depreciation on assets added / disposed off during the year is provided on prorata basis with reference to month of addition / disposal. The estimated useful lives, residual values and depreciation method are reviewed at each financial year-end and changes in estimates, if any are accounted for on a prospective basis.
Intangible assets acquired separately are measured at cost of acquisition. Following initial recognition, intangible assets are carried at cost less accumulated amortization and impairment losses if any.
Intangible assets are amortized over the estimated useful life of three years which reflects the manner in which the economic benefit is expected to be generated. The estimated useful life of amortizable intangibles is reviewed at the end of each reporting period and change in estimates if any are accounted for on a prospective basis.
4.3. Foreign currency Transaction and Translation
Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. The net gain or loss on account of exchange differences arising on settlement of foreign currency transactions are recognized as income or expense of the period in which they arise. Monetary assets and liabilities denominated in foreign currency as at the balance sheet date are translated at the closing rate. The resultant exchange rate differences are recognized in the statement of profit and loss. Non-monetary assets and liabilities are carried at the rates prevailing on the date of transaction.
4.4. Financial Instruments4.4.1. Financial assets
(a) Classification of financial assets:
The Company classifies its financial assets in the following measurement categories:
⢠those to be measured subsequently at fair value (either through other comprehensive income or through profit or loss) and
⢠those measured at amortised cost.
The classification depends on the Company''s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.
Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets (other than financial assets at fair value through profit or loss) are added to or deducted from the fair value of the financial assets, as appropriate, on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets at fair value through profit or loss are recognised immediately in profit or loss.
(c) Subsequent measurement:⢠Amortised Cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.
⢠Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains / (losses). Interest income from these financial assets
is included in other income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains and losses and impairment expenses in other expenses.
⢠Fair value through profit or loss (FVTPL)
Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented net in the statement of profit and loss within other gains / (losses) in the period in which it arises. Interest income from these financial assets is included in other income.
(d) Derecognition of financial assets:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:
⢠The rights to receive cash flows from the asset have expired, or
⢠The Company has transferred its rights to receive cash flows from the asset
When the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is
derecognised. Where the Company has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.
Where the Company has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of financial asset, the financial asset is derecognised if the Company has not retained control over the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.
Dividend is accounted when the right to receive payment is established.
(f) Cash and cash equivalents:
Cash and cash equivalents consists of cash on hand, short demand deposits and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of change in value. Short term means investments with original maturities / holding period of three months or less from the date of investments. Bank overdrafts that are repayable on demand and form an integral part of the Company''s cash management are included as a component of cash and cash equivalent for the purpose of statement of cash flow.
Investments in mutual funds are primarily held for the Company''s temporary cash requirements and can be readily convertible in cash. These investments are initially recorded at fair value and classified as fair value through profit or loss.
Trade receivables are amounts due from customers for sale of goods or services performed in the ordinary course of business. Trade receivables are initially recognized at its transaction price which is considered to be its fair value and are classified as current assets as it is expected to be received within the normal operating cycle of the business.
The Company''s financial liabilities include trade
payables, loans and borrowing and derivative
financial instruments.
All the Company''s financial liabilities, except for financial liabilities at fair value through
profit or loss, are measured at amortized cost.
Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities (other than financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial liabilities, as appropriate, on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
(c) Subsequent measurement:
Financial liabilities are subsequently measured at amortised cost using the Effective Interest Rate Method. The Effective Interest Rate Method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
(d) Derecognition of financial liabilities:
The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or waived off or have expired.
An exchange between the Company and the lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.
Borrowings are initially recorded at fair value and subsequently measured at amortized costs using effective interest rate method. Transaction costs are charged to statement of profit and loss as financial expenses over the term of borrowing.
(f) Trade payables:
Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary course of business and are
classified as current liabilities to the extent it is expected to be paid within the normal operating cycle of the business
4.4.3. Derivative Financial Instruments:
The Company enters into derivative financial instruments to manage its foreign exchange rate risk. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period.
The resulting gain or loss is recognized in profit or loss immediately.
4.5 Leases - Company as lessee
At inception of a contract, the Company assesses whether a contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified assets for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset the Company assesses whether contract involves the use of an identified asset, the Company has a right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use and the Company has the right to direct the use of the asset.
At the inception date, right-of-use asset is recognised at cost which includes present value of lease payments adjusted for any payments made on or before the commencement of lease and initial direct cost, if any.
It is subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. Right-of-use asset is depreciated using the straight-line method from the commencement date over the earlier of useful life of the asset or the lease term. When the Company has purchase option available under lease and cost of right-ofuse assets reflects that purchase option will be exercised, right-of-use asset is depreciated over the useful life of underlying asset. Right-of-use assets 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 statement of profit and loss.
At the inception date, lease liability is recognised at present value of lease payments that are not made at the commencement of lease. Lease liability is subsequently measured by adjusting carrying amount to reflect interest, lease payments and remeasurement, if any.
Lease payments are discounted using the incremental borrowing rate or interest rate implicit in the lease, if the rate can be determined.
The Company has elected not to apply requirements of Ind AS 116 to leases that has a term of 12 months or less and leases for which the underlying asset is of low value. Lease payments of such lease are recognised as an expense on straight line basis over the lease term.
Inventories are carried at the lower of cost and net
realizable value.
The cost incurred in bringing the inventory to their
existing location and conditions are determined as
follows:
(a) Raw Material and Packing Material - Purchase cost of materials on FIFO basis.
(b) Finished Goods (Manufactured) and work in progress - Cost of purchase, conversion cost, and other costs attributable to inventories.
(c) Trading goods - Purchase cost on FIFO basis.
The cost of purchase of inventories comprise the purchase price, import duties and other taxes (other than those subsequently recovered by the Company from taxing authorities), and transport, handling and other costs directly attributable to the bringing the inventory to their existing location and conditions. Trade discounts, rebates and other similar items are deducted in determining the costs of purchase.
Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sales.
4.7. Impairment of Assets4.7.1. Financial Assets
At each balance sheet date, the company assesses whether a financial asset is to be impaired. Ind AS 109 requires expected credit losses to be measured through loss allowance. The Company measures the loss allowance for financial assets at an amount equal to lifetime expected credit losses if the credit risk on that financial asset has increased significantly since initial recognition. If the credit risk on a financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for financial assets at an amount equal to 12-month expected credit losses.
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying
amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the profit or loss to such extent. When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, such that the increase in the carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
4.8. Employee Benefits4.8.1. Short term employee benefits
Short term benefits payable before twelve months after the end of the reporting period in which the employees have rendered service are accounted as expense in profit and loss account.
4.8.2. Long term employment benefits Defined Contribution Plans
Contributions to defined contribution plans (provident fund and other social security schemes) are recognized as expense when employees have rendered services entitling them to such benefits.
The Company''s net obligation in respect of an approved gratuity plan, which is defined benefit plan, is calculated using the projected unit credit method and the same is carried out by qualified actuary. The current service cost and net interest on the net defined benefit liability (asset) is recognized in the statement of profit and loss. Past service cost are immediately recognized in the statement of profit and loss. Actuarial gains and losses net of deferred taxes arising from experience adjustment and changes in actuarial assumptions are recognized in other comprehensive income in the period in which they arise.
Compensated absences and earned leaves
The Company''s current policy permit eligible employees to accumulate compensated absences up to a prescribed limit and receive cash in lieu thereof in accordance with the terms of the policy. The Company measures the expected cost of accumulating compensated absences as the additional amount that the Company expects to pay as a result of unused entitlement that has accumulated as at the reporting date. The expected cost of these benefits is calculated using the projected unit credit method by qualified actuary every year. Actuarial gains and losses arising from experience adjustment and changes in actuarial assumptions are recognized in the statement of profit and loss in the period in which they arise.
4.9. Contingent liabilities, contingent assets and provisions
(a) Contingent liabilities:
A possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the enterprise are disclosed as Contingent liability and not provided for.
Such liability is not disclosed if the possibility of outflow of resources is remote.
(b) Contingent assets:
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the entity. Contingent assets are not recognised and disclosed only when an inflow of economic benefits is probable.
A provision is recognized when as a result of a past event, the Company has a present obligation whether 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 obligation is expected to be settled more than 12 months after the end of reporting date or has no definite settlement date, the provision is recorded as non-current liabilities after giving effect for time value of money, if material. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
The Company recognises government grants at their fair value only when there is reasonable assurance that the conditions attached to them will be complied with, and the grants will be received.
Government grants received in relation to assets are recognised directly to respective assets for which it is received. Government grants, which are revenue in nature are either recognised as income or deducted in reporting the related expense based on the terms of the grant, as applicable.
Revenue is measured based on the transaction price adjusted for discounts and rebates, which is specified in a contract with customer. Revenue are net of estimated returns and taxes collected from customers.
Revenue from sale of goods is recognized at point in time when control is transferred to the customer and it is probable that consideration will be collected. Control of goods is transferred upon the shipment of the goods to the customer or when goods is made available to the customer.
The transaction price is documented on the sales invoice and payment is generally due as per agreed credit terms with customer.
The consideration can be fixed or variable. Variable consideration is only recognised when it is highly probable that a significant reversal will not occur.
Sales return is variable consideration that is recognised and recorded based on historical experience, market conditions and provided for in the year of sale as reduction from revenue. The methodology and assumptions used to estimate returns are monitored and adjusted regularly in line with trade practices, historical trends, past experience and projected market conditions.
Revenue from services are recognised as the related services are performed, the contractual performance obligations are satisfied and there is no uncertainty related to the collection of the said revenue.
Profit share earned through a collaboration partners is recognised as the underlying sales are recorded by the collaboration partners.
Export entitlements
Export entitlements are recognised as income when right to receive credit as per the terms of the scheme is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.
Interest Income
Interest income is recognized using effective interest rate method.
The ''effective interest rate'' is the rate that exactly discounts estimated future cash payments or receipts through the expected life of financial instrument to:
- The gross carrying amount of the financial assets; or
- The amortized cost of the financial liabilities
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financial assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest income reverts to the gross basis.
Income tax expense comprises current and deferred tax expense. Income tax expenses are recognized in statement of profit or loss, except when they relates to items recognized in other comprehensive income or directly in equity, in which case, income tax expenses are also recognized in other comprehensive income or directly in equity respectively.
Current tax is the tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by the end of reporting period by the governing taxation laws, and any adjustment to tax payable in respect of previous periods. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred taxes arising from deductible and taxable temporary differences between the tax base of assets and liabilities and their carrying amount in the standalone financial statements are recognized using substantively enacted tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax asset are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences 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 income tax assets to be utilized.
Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to do the same.
Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.
4.14. Research and development
Revenue expenditure on research and development activities is recognized as expense in the period in which it is incurred.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of these assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). The CODM of the Company is responsible for allocating resources and assessing performance of the operating segments and accordingly is identified as the Chief Operating Decision Maker (CODM). All operating segments'' operating results are reviewed regularly by the CODM to make decisions about resources to be allocated to the segments and assess their performance.
4.17. Recent Accounting Pronouncements:
On 31 March 2023, the Ministry of Corporate Affairs (MCA) has notified Companies (Indian Accounting Standards) Amendment Rules, 2023. This notification has resulted into amendments in the following existing accounting standards which are applicable to company from 1 April 2023.
i. Ind AS 101 - First-time Adoption of Indian Accounting Standards
ii Ind AS 102 - Share-based Payment
iii Ind AS 103 - Business Combinations
iv Ind AS 107 - Financial Instruments Disclosures
v Ind AS 109 - Financial Instruments
vi Ind AS 115 - Revenue from Contracts with Customers
vii Ind AS 1 - Presentation of Financial Statements
viii Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
ix Ind AS 12 - Income Taxes
x Ind AS 34 - Interim Financial Reporting
Application of above standards are not expected to have any significant impact on the company''s financial statements.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Concord Biotech Ltd.
-
Concord Biotech Ltd. Tools
- Bulk Deals
- Block Deals
-
Concord Biotech Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- BSE Price History
- NSE Price History
-
Concord Biotech Ltd. Key Financial Ratios
- Ratios
-
Concord Biotech Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Concord Biotech Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Concord Biotech Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Concord Biotech Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
-
FY26 Market Review: Inside Nifty-Sensex's Sharpest Yearly Crash Since COVID; What's Next For Investors? -
Intraday Stocks To Buy Today, March 27: Top Picks By Anand James of Geojit Investments On Friday -
Indian equities open higher as Nifty tops 23,100 and Sensex climbs over 700 points -
Intraday Stocks To Buy Today, March 25: Top Picks By Anand James of Geojit Investments On Wednesday
-
Stock Market Today: Nifty Closes Near 23,000, Sensex Up 1.8%: IndiGo, L&T, Eternal, Asian Paints Top Gainers -
Steel Stock Gains 5.14% On Getting NCLT Nod For Key Merger; Do You Own? -
Stock Market Opens Strong: Nifty Up 1.5%, Sensex Rallies 1,516 Pts; Rupee Recovers as Trump Delays Iran Strike -
D-Street Mayhem: Rs 15 Lakh Cr Wiped Out As Nifty-Sensex Close 2.5% Lower, Rupee In Free-Fall Amid Iran-US War -
Indian equities outlook today as Bank Nifty remains weak and Nifty tests support -
Stock Market Crash: Sensex, Nifty Hit 1-Year Low; How US-Israel-Iran War Wiped Out Rs 4,753,333 Crore -
Intraday Stocks To Buy Today, March 23: Top Picks By Anand James of Geojit Investments On Monday
-
Nifty, Sensex Down 8% Amid Iran-US War, Crude Oil At Sky High: How Past Geopolitical Crises Have Shaped Market -
Stock Market Weekly Wrap: Sensex, Nifty End In Green Amid Iran-US War, Crude Surge, Rupee Slide -
Nifty Falls as Global Cues Persist and Gulf Tensions Weigh on Indian Markets -
Intraday Stocks To Buy Today, March 20: Top Picks By Anand James of Geojit Investments On Friday
-
Nifty, Sensex Stage Sharp Rebound After Biggest Crash; IT Stocks in Green | Why Is Stock Market Rising Today?
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+