Investor Presentaiton
178
9)
resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of
the amount of the obligation. Such provisions are determined
based on management estimate of the amount required to
settle the obligation at the balance sheet date. When the
Group expects some or all of a provision to be reimbursed, the
reimbursement is recognised as a standalone asset only when
the reimbursement is virtually certain.
If the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is
recognised as a finance cost.
Present obligations arising under onerous contracts are
recognised and measured as provisions. An onerous
contract is considered to exist when a contract under
which the unavoidable costs of meeting the obligations
exceed the economic benefits expected to be received
from it. Unavoidable cost are determined based on cost
that are directly attributable to having and executing the
contracts.
Contingent liabilities are disclosed on the basis of judgment
of management / independent experts. These are reviewed at
each balance sheet date and are adjusted to reflect the current
management estimate.
Provisions for warranty-related costs are recognized when the
product is sold to the customer. Initial recognition is based on
scientific basis as per past trends of such claims. The initial
estimate of warranty-related costs is revised annually.
Contingent Assets are not recognized, however, disclosed
in financial statement when inflow of economic benefits is
probable.
Foreign Currency Transactions:
The Financial Statements of Group are presented in INR, which
is also the functional currency. In preparing the Financial
Statements, transactions in currencies other than the entity's
functional currency are recognised at the rates of exchange
prevailing at the dates of the transactions. At the end of each
reporting period, monetary items denominated in foreign
currencies are translated at the rates prevailing at that date.
Non-monetary items denominated in foreign currency are
reported at the exchange rate ruling on the date of transaction.
On consolidation, the assets and liabilities of foreign
operations are translated into INR at the exchange rate
prevailing at the reporting date and their statement of profit
and loss are translated at the exchange rate prevailing on the
date of transactions. For practical reasons, the group uses an
average rate to translate income and expense items, if they
average rate approximates the exchange rates at the dates
of the transactions. The exchange differences arising on the
translation for consolidation are recognised in consolidated
statement of OCI. On disposal of foreign operation, the
relevant component of OCI is reclassified to consolidated
statement of profit and loss.
10) Share Capital and Securities Premium:
Ordinary shares are classified as equity, incremental costs
directly attributable to the issue of new shares are shown in
equity as a deduction net of tax from the proceeds. Par value
of the equity share is recorded as share capital and the amount
received in excess of the par value is classified as securities
premium.
11) Dividend Distribution to Equity Shareholders:
The Group recognizes a liability to make cash distributions
to equity holders when the distribution is authorized and
the distribution is no longer at the discretion of the group.
A distribution is authorized when it is approved by the
shareholders. A corresponding amount is recognized directly
in other equity along with any tax thereon.
12) Cash Flows and Cash and Cash Equivalents:
Statement of cash flows is prepared in accordance with
the indirect method prescribed in the relevant IND AS. For
the purpose of presentation in the statement of cash flows,View entire presentation