NOTES OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2018
50 FIRST-TIME ADOPTION OF IND AS
The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2017, with a transition date of 1st April, 2016. The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements for the year ended 31st March, 2018, be applied retrospectively and consistently for all financial years presented. However, in preparing these Ind AS financial statements, the Company has availed of certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity).
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
A. Optional Exemptions
(a) Deemed Cost
Ind AS 101 permits to measure all its property, plant & equipment at their previous GAAP carrying value i.e. being deemed cost represented by Gross Block reduced by accumulated depreciation on 1st April, 2016.
(b) Designation of previously recognised financial instruments
Paragraph D19B of Ind AS 101 gives an option to an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The company has opted to apply this exemption for its investment in equity Investments.
B. Mandatory Exceptions
(a) Estimates
An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).
Ind AS estimates as at 1st April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Group made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:
- Investment in equity instruments carried at FVTPL or FVOCI; and
- Impairment of financial assets based on expected credit loss model.
(b) Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
C. Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:
I. Reconciliation of Balance sheet as at 1st April, 2016 and 31st March, 2017
II. Reconciliation of Statement of total Comprehensive Income for the period ended 31st March, 2017
III. Reconciliation of Equity as at 1st April, 2016 and 31st March, 2017
IV. Impact on cash flow statement for the period ended 31st March, 2017
The presentation requirements under Previous GAAP differs from Ind AS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
I. Reconciliation of Balance sheet as at 1st
|
April, 2016 and 31st March, 2017
|
(Rs. in lacs)
|
|
As At 31st March, 2017
|
As At 1st April, 2016
|
|
(Previous GAAP)*
|
Ind AS adjustments
|
IND AS
|
(Previous GAAP)*
|
Ind AS adjustments
|
IND AS
|
ASSETS
|
|
|
|
|
|
|
(1) NON- CURRENT ASSETS
|
|
|
|
|
|
|
(a) Property, Plant & Equipment
|
1,738.28
|
0.00
|
1,738.28
|
1,818.91
|
(0.02)
|
1,818.89
|
(b) Investment Property
|
901.83
|
0.00
|
901.83
|
918.68
|
0.01
|
918.69
|
(c) Intangible assets
|
83.58
|
0.00
|
83.58
|
110.32
|
0.00
|
110.32
|
(d) Financial assets
|
|
|
|
|
|
|
(i) Investments
|
2,605.57
|
9,957.71
|
12,563.28
|
2,345.00
|
4,352.04
|
6,697.04
|
(ii) Loans
|
11.80
|
-
|
11.80
|
10.85
|
(0.00)
|
10.85
|
(iii) Other financial assets
|
31.47
|
(0.00)
|
31.47
|
34.34
|
0.00
|
34.34
|
(e) Other non-current assets
|
98.21
|
0.00
|
98.21
|
24.39
|
0.00
|
24.39
|
TOTAL NON - CURRENT ASSETS (2) CURRENT ASSETS
|
5,470.73
|
9,957.72
|
15,428.45
|
5,262.49
|
4,352.02
|
9,614.52
|
|
|
|
|
|
|
|
(a) Inventories
|
1,887.52
|
(0.00)
|
1,887.52
|
1,672.71
|
(0.00)
|
1,672.71
|
(b) Financial assets
|
|
|
|
|
|
|
(i) Investments
|
171.26
|
0.24
|
171.50
|
1.80
|
0.02
|
1.82
|
(ii) Trade receivables
|
228.96
|
-
|
228.96
|
812.69
|
0.00
|
812.69
|
(iii) Cash & Cash equivalents
|
78.55
|
(0.01)
|
78.54
|
148.37
|
0.01
|
148.38
|
(iv) Bank Balances other than above
|
3.62
|
-
|
3.62
|
11.88
|
0.00
|
11.88
|
(v) Loans
|
1,355.89
|
-
|
1,355.89
|
1,311.00
|
-
|
1,311.00
|
(vi) Other financial assets
|
21.01
|
-
|
21.01
|
30.58
|
(0.00)
|
30.58
|
(c) Other current assets
|
275.18
|
-
|
275.18
|
347.47
|
(0.00)
|
347.47
|
TOTAL CURRENT ASSETS
|
4,021.99
|
0.23
|
4,022.22
|
4,336.51
|
0.02
|
4,336.53
|
TOTAL ASSETS
|
9,492.71
|
9,957.92
|
19,450.67
|
9,598.99
|
4,352.05
|
13,951.05
|
|
|
|
|
|
(Rs. in lacs)
|
|
As At 31st March, 2017
|
As At 1st April, 2016
|
|
(Previous GAAP)*
|
Ind AS adjustments
|
IND AS
|
(Previous GAAP)*
|
Ind AS adjustments
|
IND AS
|
EQUITY AND LIABILITIES
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
Equity Share Capital
|
136.50
|
-
|
136.50
|
136.50
|
-
|
136.50
|
Other Equity
|
8,203.80
|
9,856.91
|
18,060.71
|
8,067.41
|
4,229.25
|
12,296.66
|
TOTAL EQUITY
|
8,340.30
|
9,856.91
|
18,197.21
|
8,203.91
|
4,229.25
|
12,433.16
|
LIABILITIES
|
|
|
|
|
|
|
(1) NON - CURRENT LIABILITIES
|
|
|
|
|
|
|
(a) Financial liabilities
|
|
|
|
|
|
|
(i) Other financials liabilities
|
49.25
|
-
|
49.25
|
44.00
|
-
|
44.00
|
(b) Provisions
|
75.84
|
-
|
75.84
|
35.41
|
-
|
35.41
|
(c) Deferred tax liabilities (Net)
|
131.75
|
101.02
|
232.77
|
147.96
|
139.24
|
287.20
|
TOTAL NON - CURRENT LIABILITIES
|
256.84
|
101.02
|
357.86
|
227.37
|
139.24
|
366.61
|
|
|
|
|
|
(Rs. in lacs)
|
|
As At 31st March, 2017
|
As At 1st April, 2016
|
|
(Previous GAAP)*
|
Ind AS adjustments
|
INDAS
|
(Previous GAAP)*
|
Ind AS adjustments
|
IND AS
|
(2) CURRENT LIABILITIES
|
|
|
|
|
|
|
(a) Financial liabilities
|
|
|
|
|
|
|
(i) Borrowings
|
134.29
|
_
|
134.29
|
191.38
|
_
|
191.38
|
(ii) Trade Payables
|
475.47
|
-
|
475.47
|
778.91
|
0.01
|
778.91
|
(iii) Other financials liabilities
|
7.66
|
0.00
|
7.66
|
21.39
|
-
|
21.39
|
(b) Other Current liabilities
|
232.36
|
(0.00)
|
232.36
|
104.16
|
(0.00)
|
104.15
|
(c) Provisions TOTAL CURRENT LIABILITIES TOTAL EQUITY AND LIABILITIES
|
45.82
|
-
|
45.82
|
71.87
|
(16.42)
|
55.45
|
895.60
|
(0.00)
|
895.60
|
1,167.71
|
(16.41)
|
1,151.28
|
9,492.71
|
9,957.92
|
19,450.67
|
9,598.99
|
4,352.05
|
13,951.05
|
* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purpose of this note.
II Reconciliation of Statement of Profit and Loss for the vear ended 31- March. 2017
|
|
|
(Rs. in lacs)
|
|
|
|
|
|
Previous GAAP
|
Ind AS adjustments
|
IND AS
|
INCOME
|
|
|
|
Revenue from operations
|
7,938.00
|
(242.22)
|
7,695.78
|
Other income
|
295.57
|
7.07
|
302.64
|
TOTAL INCOME
|
8,233.57
|
(235.15)
|
7,998.42
|
EXPENDITURE
|
|
|
|
Cost of materials consumed
|
777.45
|
0.00
|
777.45
|
Purchases of Traded Goods
|
3,564.85
|
-
|
3,564.85
|
Changes in inventories of finished goods, work-in-
|
(179.84)
|
(0.00)
|
(179.84)
|
progress and traded goods
|
|
|
|
Excise duty paid
|
218.49
|
-
|
218.49
|
Employee benefits expenses
|
1,424.22
|
(13.39)
|
1,410.83
|
Finance costs
|
5.80
|
(0.00)
|
5.80
|
Depreciation and amortisation expense
|
146.74
|
-
|
146.74
|
Advertising and sales promotion expenses
|
565.57
|
0.00
|
565.57
|
Other expenses
|
1,657.74
|
(235.37)
|
1,422.37
|
TOTAL EXPENSES
|
8,181.02
|
(248.77)
|
7,932.26
|
PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS
|
52.55
|
13.62
|
66.16
|
Exceptional Items
|
-
|
-
|
-
|
PROFIT BEFORE TAX
|
52.55
|
13.62
|
66.16
|
TAX EXPENSES
|
|
|
|
Current tax
|
45.60
|
-
|
45.60
|
MAT credit entitlement
|
(35.96)
|
-
|
(35.96)
|
Deferred Tax charge/(credit)
|
(16.22)
|
(38.50)
|
(54.72)
|
Tax credit relating to earlier years
|
(77.27)
|
-
|
(77.27)
|
PROFIT AFTER TAX
|
136.40
|
52.11
|
188.51
|
|
|
|
(Rs. in lacs)
|
|
Previous GAAP
|
Ind AS adjustments
|
IND AS
|
OTHER COMPREHENSIVE INCOME
|
|
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
a) Remeasurements of net defined benefit plans
|
-
|
(13.39)
|
(13.39)
|
b) Changes in fair value of FVOCI equity instruments
|
-
|
5,591.32
|
5,591.32
|
Tax relating to this items
|
-
|
4.14
|
4.14
|
Items that will be reclassified to profit or loss
|
|
|
|
a) Changes in fair value of FVOCI debt instruments
|
-
|
14.33
|
14.33
|
Tax relating to this items
|
-
|
(4.43)
|
(4.43)
|
OTHER COMPREHENSIVE INCOME FOR THE YEAR
|
.
|
5,591.97
|
5,591.97
|
TOTAL COMPREHENSIVE INCOME
|
136.40
|
5,644.08
|
5,780.48
|
III Reconciliation of Equity
|
|
(Rs. in lacs)
|
|
As at 31st March, 2017
|
As at 1st April, 2016
|
Total equity under local GAAP
|
8,203.80
|
8,067.41
|
Adjustments impact: Gain/ (Loss)
|
|
|
Reversal of proposed ordinary dividends payable
|
-
|
16.43
|
Retained Earnings (Gain on opening Ind As Profit & Loss conversion)
|
9,957.94
|
4,352.05
|
Deferred Tax impact on above adjustments
|
(101.02)
|
(139.24)
|
Total IND AS adjustment
|
9,856.91
|
4,229.25
|
Total equity under Ind AS
|
18,060.71
|
12,296.66
|
IV Impact on cash flow statement for the period ended 31st March, 2017
No material changes in the cash flow statements disclosures. Notes to first time adoption
1) Proposed Dividend
Under the previous GAAP, dividend proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as subsequent events. Accordingly, provision for proposed dividend including dividend distribution tax was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.
2) Remeasurement of post employment benefit obligations
Under the previous GAAP, cost relating to post employment benefit obligations including actuarial gain/losses were recognised in Profit & Loss. Under Ind AS, actuarial gain/losses on the net defined benefit liability are recognised in other comprehensive income instead of profit & loss.
3) Fair Valuation of Investments
Under previous GAAP, investment in equity instruments were classified into long term and current investments. Long term investments were carried at cost less provision other than temporary in nature. Current investments were carried at lower of cost or fair value. Under Ind AS, these investments are require to be measured at fair value either through OCI (FVTOCI) of Through Profit & loss (FVTPL). The company has opted to fair value these investments through other comprehensive income for Debt and equity Instruments. For its investments in Liquid funds, the Company has opted for fair value through P&L
4) Discounts/Incentives
Under previous GAAP, the Company accounted for revenue net of trade discounts, sales taxes and excise duties. Under Ind AS, the Company will recognise revenue at fair value of consideration received or receivable. Any sales incentive, discounts or rebates in any form including cash discounts given to customer will be considered as selling price reductions and accounted as reduction from revenue.
5) Deferred taxes
Under previous GAAP, deferred tax were recognised based on Profit & loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS, deferred tax is recognised by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of asset and liabilities in the books and their respective tax base.
51 The Company is yet to receive balance confirmations in respect of certain financial assets and financial liabilities. The Management does not expect any material difference affecting the current year's financial statements due to the same.
52 The previous year's figures have been re-grouped / re-classified wherever required to conform to current period's classification.
53 The financial statements were approved for issue by the Board of Directors on 26th April, 2018.
54 Amount in Rs. 0.00 denotes less than Rs. 1,000/-
For and on behalf of the Board of Directors
|
|
Sanjay Kothari
|
Sohan Sarda
|
Director
|
Executive Director & CEO
|
DIN: 00258316
|
DIN :00129782
|
Sonal Naik
|
Ravindra Gajelli
|
Company Secretary & Compliance Officer
|
Chief Financial Officer
|
|
Place: Mumbai
|
|
Date: 26th April, 2018
|
|