P. Provisions:
Provisions are recognized when the
Company has a present obligation (legal
or constructive) as a result of a past
event, it is probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation
and a reliable estimate can be made of
the amount of the obligation.
If the effect of the time value of money
is material, provisions are discounted.
Contingent liabilities and contingent
assets are not recognized in the financial
statements but are disclosed in the
notes.
Warranty provisions:
Provision for warranty related costs are
recognized on sale of product or service
rendered based on historical experience
and technical assessment and reviewed
annually.
Onerous contracts:
A provision for onerous contracts
other than construction contracts is
recognized when the expected benefits
to be derived by the Company from a
contract are lower than the unavoidable
cost of meeting its obligations under
the contract. The provision is measured
at the present value of the lower of the
expected cost of terminating the contract
and the expected net cost of continuing
with the contract.
Q. Financial Assets:
Recognition and measurement:
All financial assets are recognized
initially at fair value. Subsequently,
financial assets are measured at fair
value or amortized cost based on their
classification.
Embedded derivative:
If the hybrid contract contains a host
that is a financial asset within the scope
of Ind-AS 109, the Company does not
separate embedded derivatives. Rather,
it applies the classification requirements
contained in Ind AS 109 to the entire
hybrid contract. If the hybrid contains a
host that is not an asset within the scope
of Ind AS 109, the embedded derivative
is separated and accounted at fair value.
Derecognition:
A financial asset or part of a financial
asset is derecognized when the rights to
receive cash flows from the asset have
expired.
Trade and other receivables:
Receivables are initially recognized at fair
value, which in most cases approximates
the nominal value. If there is any
subsequent indication that those assets
may be impaired, they are reviewed for
impairment.
Cash and cash equivalents:
Cash comprises of cash on hand and
demand deposits. Cash equivalents are
short-term highly liquid investments with
original maturities of three months or
less that are readily convertible to known
amounts of cash, which are subject to an
insignificant risk of change in value.
Impairment of financial assets:
The recognition and measurement of
impairment loss for certain financial
assets within the scope of IND AS 109
is based on the concept of expected
credit loss (ECL). The company follows
simplified approach for recognition of
impairment loss allowance on Trade
Receivables. Impairment loss on
contract assets are recognised only when
the customer is billed in accordance with
IND AS 115.
R. Financial Liabilities:
Recognition and measurement:
Financial liabilities are classified, at
initial recognition, at fair value through
statement of profit and loss as loans,
borrowings, payables, or derivatives, as
appropriate.
Financial liabilities are measured based
on their classification at fair value
through statement of profit and loss,
amortized cost or fair value through other
comprehensive income.
Derecognition:
A financial liability is derecognized
when the obligation under the liability is
discharged or cancelled or expires.
Trade and other payables:
Liabilities are recognized for amounts to
be paid in future for goods or services
received, whether billed by the supplier
or not.
S. Financial Assets and Liabilities
Reclassification:
Reclassification of financial Assets and
Liabilities:
After initial recognition, no
reclassification is made for financial
assets which are equity instruments and
financial liabilities. For other financial
assets, a reclassification is made
prospectively only if there is a change in
the business model for managing those
assets.
Offsetting of financial Assets and
Liabilities:
Financial assets and financial liabilities
are offset and the net amount is reported
in the balance sheet if there is a currently
enforceable legal right to offset the
recognized amounts and there is an
intention to settle on a net basis.
T. Earnings per share:
The Company presents basic and diluted
earnings per share data for its ordinary
shares. Basic earnings per share is
calculated by dividing the profit or loss
attributable to ordinary shareholders of
the Company by the weighted average
number of ordinary shares outstanding
during the year, adjusted for own shares
held.
Diluted earnings per share is determined
by adjusting profit or loss attributable to
ordinary shareholders and the weighted
average number of ordinary shares
outstanding, adjusted for own shares
held, for the effects of all dilutive potential
ordinary shares.
U. Cash dividend and non¬
cash distribution to equity
shareholders:
The Company recognizes a liability to
make cash or non-cash distributions
to equity holders when the distribution
is authorized and the distribution is no
longer at the discretion of the Company.
V. Events after the reporting
period:
Adjusting events are events that provide
further evidence of conditions that
existed at the end of the reporting period.
The financial statements are adjusted
for such events before authorization for
issue.
Non-adjusting events are events that are
indicative of conditions that arose after
the end of the reporting period. Non¬
adjusting events after the reporting date
are not accounted, but disclosed.
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