Mar 31, 2015
1. Basis of Preparation
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP) to comply with the accounting standards specified under
section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013.
Under a composite Scheme of Arrangement between, inter alia, the
Company and Westiife Development Ltd (WDL) duly approved by the Bombay
High Court ("the Court") on 19.07.2013, a part of the undertaking of
Westiife Development Limited (WDL) was demerged into the Company w.e.f.
01.10.2012. All transactions pertaining to the said demerged
undertaking between 01.10.2012 and 22.07.2013 under the Scheme were
treated on account of the Company.
In Lieu of the demerger, the Company had issued
i) Equity Shares to the Shareholders of WDL and resultantly 26,66,669
equity share held by WDL in the Company were treated to be annulled;
and
ii) Preference Shares to the Preference Shareholders of WDL.
The Authorized Capital of the Company was increased by Rs. 46,00,000 to
facilitate issue of the aforesaid Preference Shares under the Scheme.
In accordance with the Scheme, the Company had acquired assets and
liabilities as on 01.10.2012 of the demerged undertaking at the book
values and the consequential difference amounting to Rs. 15,75,87,319
was transferred to Capita! Reserve Account in the books of the Company.
As the Scheme was approved by the Court on 19.07.2013, effect of the
Scheme couldn't be given in the financial statements for the financial
year 2012-13. The effect of the said scheme on the financial statements
was given during the financial year2013-14.
1.1 Significant Accounting Policies
(a) Use of Estimates
Preparation of financial statements in conformity with generally
accepted accounting principles requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and resuits of
operations during the reporting period. Although these estimates are
based upon management's best knowledge of current events and actions,
actual results could differ from these estimates.
(b) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognized when significant risks and rewards of ownership
of goods have passed to the buyer, usually on delivery of the goods.
Sales for the year are shown net of Value Added Tax/Sales Tax, returns
and trade discounts.
Income from Services
Revenue from services is recognised pro-rata over the period of
contracts as and when services are rendered or in accordance with the
terms and conditions of the contracts and recognized net of service
tax.
Interest and Dividend Income
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend income is recognized when the Company's right to receive
dividend is established upto the balance sheet date.
(c) Tangible Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises purchase price and any
directly attributable cost of bringing the asset to its working
condition for its intended use.
(d) Depreciation on Tangible Fixed Assets
Depreciation is charged on written down value basis at useful life
specified in Schedule II of the Companies Act, 2013 pro rata from date
of acquisition.
(e) Impairment of Fixed Assets
Carrying amounts of assets are reviewed at each balance sheet date to
determine if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount.
Recoverable amount is the greater of the asset's net selling price and
the value in use. In assessing value in use, estimated future cash
flows are discounted to their present value at the weighted average
cost of capital.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses so recognized no
longer exist or have decreased.
(f) Inventory
Inventory of traded goods is valued at lower of cost or net realisable
value. Cost includes all expenses incurred to bring the inventory to
its present location and condition.
Cost is determined on a weighted average basis. Net realizable value is
the estimated selling price in ordinary course of business, less
estimated costs of completion of and estimated costs necessary to make,
the sale.
(g) Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date(s) on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
Long-term investments are carried at cost which includes acquisition
charges such as brokerage, stamp duty, taxes etc. However, provision
for diminution in value is made to recognize a decline other than
temporary in value of the investments. Current investments are carried
at lower of cost and fair value.
(h) Foreign Currency Transactions i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
II) Conversion
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in foreign currency are reported using the exchange rate at
the date of the transaction. Non-monetary items which are carried at
fair value or other similar valuation denominated in foreign currency
are reported using exchange rates that existed when the values were
determined.
iii) Exchange Differences
Exchange differences arising on settlement of monetary items, or on
reporting such monetary items at rates different from those at which
they were initially recorded during the year, or reported in previous
financial statements, are recognized as income or as expense in the
year in which they arise. Transactions in foreign currency are recorded
at the exchange rate prevailing on the date of the transaction. Net
exchange gain or loss resulting in respect of foreign exchange
transactions settled during the year is recognised in Statement of
Profit and Loss. Monetary assets and liabilities at year-end are
translated at year-end exchange rates and resulting net gain or loss is
recognised in Statement of Profit and Loss.
(i) Taxation
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961. Deferred income tax reflects
the impact of current year timing difference between taxable income and
accounting income for the year and reversal of timing differences of
earlier years.
Deferred tax is measured based on tax rates and tax Jaws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realised. In situations where the
Company has unabsorbed depreciation or carry forward tax losses,
deferred tax assets are recognised only if there is virtual certainty
supported by convincing evidence that they can be realised against
future taxable profits.
At each balance sheet date the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
that sufficient future taxable income will be available against which
such deferred tax assets can be realised. The Company writes-down the
carrying amount of a deferred tax asset to the extent that it is no
longer reasonably certain or virtually certain, that sufficient future
taxable income will be available against which the deferred tax asset
can be realised. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain, that sufficient future
taxable income will be available.
Minimum Alternative Tax (MAT) paid in a year is charged to the
statement of profit and loss as current tax. The Company recognizes MAT
credit available as an asset only to the extent that there is
convincing evidence that the Company will pay normal income tax during
the specified period, i.e., the period for which MAT credit is allowed
to be carried forward. In the year in which the Company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
Statement of Profit and Loss and shown as "MAT Credit Entitlement." The
Company reviews the "MAT Credit Entitlement" asset at each reporting
date and writes down the asset to the extent the Company does not have
convincing evidence that it will pay normal tax during the specified
period.
(j) Employee Benefits
The Company is not covered under the Payment of Gratuity Act, 1972 and
the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
The liability towards employee benefits is provided based on
contractual terms with employees.
(k) Leases
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of leased items, are classified as
operating leases. Operating lease payments are recognized as an expense
in Statement of Profit and Loss on a straight-line basis over the lease
term.
(i) Earnings Per Share
Earnings per share is calculated by dividing net profit or loss for the
year attributable to equity shareholders by weighted average number of
equity shares outstanding during the year.
(m) Provisions and Contingencies
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on best estimate required to
settle the obligations at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect current best estimates.
(n) Contingent Liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the
Notes to Financial Statements.
(o) Cash & Cash Equivalents
Cash and cash equivalents for the purpose of cash flow statement
comprise of cash at bank and in hand and short-term investments with an
original maturity of three months or less.
(p) Segment Reporting Identification of Segments
The Company's operating businesses are organized and managed separately
according to the nature of products and services provided, with each
segment representing a strategic business unit that offers different
products and serves different markets. Analysis of geographical
segments is based on the areas in which major operating divisions of
the Company operate.
Allocation of Common Costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated Items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment.
Segment Accounting Policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting financial
statements of the Company as a whole.
Mar 31, 2014
(a) Use of Estimates
Preparation of financial statements in conformity with generally
accepted accounting principles requires management to make judgments,
estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and disclosure of contingent
liabilities at the date of the financial statements and results of
operations during the reporting period. Although these estimates are
based upon management's best knowledge of current events and actions,
actual results could differ from these estimates.
(b) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sale of Goods
Revenue is recognized when significant risks and rewards of ownership
of goods have passed to the buyer, usually on delivery of the goods.
Sales for the year are shown net of Value Added Tax/Sales Tax, returns
and trade discounts.
Income from Services
Revenue from services is recognised pro-rata over the period of
contracts as and when services are rendered or in accordance with the
terms and conditions of the contracts and recognized net of service
tax.
Interest and Dividend Income
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend income is recognized when the Company's right to receive
dividend is established upto the balance sheet date.
(c) Tangible Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises purchase price and any
directly attributable cost of bringing the asset to its working
condition for its intended use.
(d) Depreciation on Tangible Fixed Assets
Depreciation on fixed assets is provided on the written down value
method in the manner and at the rates prescribed in Schedule XIV of the
Companies Act, 1956 or based on the useful life of the assets as
estimated by the management, whichever is higher.
(e) Impairment of Fixed Assets
Carrying amounts of assets are reviewed at each balance sheet date to
determine if there is any indication of impairment based on
internal/extemal factors. An impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. Recoverable
amount is the greater of the asset's net selling price and the value in
use. In assessing value in use, estimated future cash flows are
discounted to their present value at the weighted average cost of
capital.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses so recognized no
longer exist or have decreased.
(f) Inventory
Inventory of traded goods is valued at lower of cost or net realisable
value. Cost includes all expenses incurred to bring the Inventory to
its present location and condition.
Cost is determined on a weighted average basis. Net realizable value is
the estimated selling price In ordinary course of business, less
estimated costs of completion of and estimated costs necessary to make,
the sale.
(g) Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date(s) on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
Long-term investments are carried at cost which includes acquisition
charges such as brokerage, stamp duty, taxes etc. However, provision
for diminution in value is made to recognize a decline other than
temporary in value of the investments. Current investments are carried
at lower of cost and fair value.
(h) Foreign Currency Transactions
i) Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
ii) Conversion
Foreign currency monetary items are reported using the closing rate.
Non-monetary items which are carried in terms of historical cost
denominated in foreign currency are reported using the exchange rate at
the date of the transaction. Non-monetary Items which are carried at
fair value or other similar valuation denominated in foreign currency
are reported using exchange rates that existed when the values were
determined.
iii) Exchange Differences
Exchange differences arising on settlement of monetary items, or on
reporting such monetary items at rates different from those at which
they were initially recorded during the year, or reported in previous
financial statements, are recognized as income or as expense in the
year in which they arise. Transactions in foreign currency are recorded
at the exchange rate prevailing on the date of the transaction. Net
exchange gain or loss resulting in respect of foreign exchange
transactions settled during the year is recognised in Statement of
Profit and Loss. Monetary assets and liabilities at year- end are
translated at year-end exchange rates and resulting net gain or loss is
recognised in Statement of Profit and Loss.
(i) Taxation
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income- tax Act, 1961. Deferred income tax reflects
the impact of current year timing difference between taxable income and
accounting income for the year and reversal of timing differences of
earlier years.
Deferred tax is measured based on tax rates and tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realised. In situations where the
Company has unabsorbed depreciation or carry forward tax losses,
deferred tax assets are recognised only if there is virtual certainty
supported by convincing evidence that they can be realised against
future taxable profits.
At each balance sheet date the Company re-assesses unrecognised
deferred tax assets It recognises unrecognised deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
that sufficient future taxable income will be available against which
such deferred tax assets can be realised. The Company writes down the
carrying amount of a deferred tax asset to the extent that it is no
longer reasonably certain or virtually certain, that sufficient future
taxable income will be available against which the deferred tax asset
can be realised. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain, that sufficient future
taxable income will be available.
Minimum Alternative Tax (MAT) paid in a year is charged to the
statement of profit and loss as current tax. The Company recognizes MAT
credit available as an asset only to the extent that there is
convincing evidence that the Company will pay normal income tax during
the specified period, i.e., the period for which MAT credit is allowed
to be carried forward. In the year in which the Company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by the statement of
Profit and Loss and shown as "MAT Credit Entitlement. The Company
reviews the "MAT Credit Entitlement" asset at each reporting date and
writes down the assetthe extent the Company does not have convincing
evidence that it will pay normal tax during the specified period.
(j) Employee Benefits
The Company is not covered under the Payment of Gratuity Act, 1972 and
the Employees Provident Funds and Miscellaneous Provisions Act, 1952
The liability towards employee benefits is provided based on
contractual terms with employees.
(k) Leases
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of leased items, are classified as
operating leases. Operating lease payments are recognized as an expense
in Statement of Profit and Loss on a straight-line basis over the lease
term.
(l) Earnings Per Share
Earnings per share is calculated by dividing net profit or loss for the
year attributable to The year Shareholders by weighted average number
of equity shares outstanding during
(m) Provisions and Contingencies
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on best estimate required
settle the at the balance sheet date. These are reviewed at each
balance sheet date and adjusted to reflect current best estimates.
(n) Contingent Liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its existence in the
Notes to financial statements.
(o) Cash & Cash Equivalents
Cash and cash equivalents for the purpose of cash flow statement
compose of cash at bank and in hand and short-term investments with an
original maturity of three months or less.
(p) Segment Reporting
Identification of Segments
The Company's operating businesses are organized and managed separately
according to the nature of products and services provided, with each
segment representing a strategic business unit that offers different
products and serves different markets. Analysis of geographical
segments is based on the areas In which major operating divisions of
the Company operate.
Allocation of Common Costs
Common allocable costs are allocated to each segment according to the
relative contribution of each segment to the total common costs.
Unallocated Items
Unallocated items include general corporate income and expense items
which are not allocated to any business segment.
Segment Accounting Policies
The Company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting financial
statements of the Company as a whole.
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