A. The following explain the material adjustments made while transition from previous Accounting Standards to Ind AS.
a. Fair value of security deposits:
Under the previous GAAP, interest free security deposits are recorded at transactions value. Under Ind AS, all financial assets are required to be fair valued.
b. Other comprehensive income:
Under Ind AS all items of income and expenses recognised in the period should be included in the profit & loss for the period, unless a Standard requires or permits otherwise.
Items of income and expenses that are not recognised in the statement of profit & loss but are shown in the statement of profit or loss as other comprehensive income includes re-measurement of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.
c. Deferred tax :
Deferred tax impact on the above adjustments.
d. Retained earnings:
Retained earnings as at 1st April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.
B. Summary of the Company’s exposure to credit risk by age of the outstanding from various customers is as follows:
The Ageing analysis of Account receivables has been considered from the date the invoice falls due:
C. Capital Management
The company’s objectives when managing capital are to
i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity.
D. Balance of Trade Receivables and Trade payable are subject to confirmations
I. SEGMENT INFORMATION_
Based on the guiding principles given in the Accounting Standard 17 on “Segment Reporting” issued by The Institute of Chartered Accountants of India, the Company is a single segment Company engaged in the business of Bulk Drugs.
II. Previous year’s figures have been regrouped, rearranged and reclassified wherever necessary.
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