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moneycontrol.com भारत | लेखांकन नीति > Glass & Glass Products > लेखांकन नीति फॉलोड से नाइल - बीएसई: 530129, NSE: N.A

नाइल

बीएसई: 530129  |  NSE: N.A  |  ISIN: INE445D01013  |  Glass & Glass Products

खोजें नाइल कनेक्शन मार्च 16
लेखांकन नीति साल : मार्च '18

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE FINANCIAL STATEMENTS

Corporate Information

Nile Limited (the company) is a public limited company domiciled in India and was incorporated under the provision of Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange (BSE Ltd.) in India. The registered office of the company is located at Plot No.38 & 40, APIIC Industrial Park, Gajulamandyam Village, Renigunta Mandal, Tirupati, Chittoor District, Andhra Pradesh, India, 517520. The company is primarily engaged in the manufacture of Pure Lead and Lead alloys.

These separate financial statements were authorised for issue in accordance with a resolution of the Directors on 14th May, 2018.

Basis of Preparation of Financial Statements:

For all periods up to and including the year ended March 31, 2017, the Company prepared its Financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These Financial statements for the year ended March 31, 2018 have been prepared in accordance with Indian Accounting Standards (Ind-AS) consequent to the notification of The Companies (Indian Accounting Standards) Rules, 2015 (the Rules) issued by the MCA. These are the First Ind-AS Financial statements of the Company, wherein the Company has restated its financial statements for the year ended March 31, 2017 also as per Ind-AS. The Financial statements have been prepared on a historical cost basis Reconciliation between financial results previously reported (referred to as ''Previous GAAP'') and Ind AS for the quarter / year presented are as under:

(Rs. in Lakhs)

SI. No.

Particulars

Year ended 31st March, 2018

Year ended 31st March, 2017

Net profit under Previous GAAP (After Tax)

2,285.35

2,623.07

L

Deferral of revenue relating to trade incentive schemes as per Ind AS 18

_

_

ii.

Amortisation of Goodwill reversed as per IND AS 103

-

-

iii.

Actuarial Loss on employee defined plan recognised in Other Comprehensive Income as per IND AS 19

(14.30)

(6.75)

iv.

Others

14.42

6.96

Net profit under IND AS (After Tax)

2,285.47

2,623.28

Reconciliation between Total Equity previously reported (referred to as ''Previous GAAP'') and Ind AS for the quarter / year presented are as under:

(Rs. in Lakhs)

SI. No.

Particulars

Total Equity as on 31.03.2017

Total Equity as on 01.04.2016

i.

Total equity as per previous GAAP (After Tax) Deferral of revenue relating to trade incentive schemes as per Ind AS 18

9,858.82

7,344.14

ii.

Amortisation of Goodwill reversed as per IND AS 103

-

-

iii.

Reversal of Proposed Dividend

-

-

iv.

Accounting of Financial asset at fair Value

.

.

V.

Deferred tax liability on Depreciation of Revaluation Reserves

.

.

vi.

Others

105.68

129.70

Total Equity as per IND -AS

9,964.50

7,473.84

Footnotes to the reconciliation of Equity and Balance sheet as at 31.03.2017 and Profit or Loss for the year ended March 31,2017:

Dividend: Under Indian GAAP, proposed final dividends including Dividend Distribution Taxes (DDT) are recognised as a liability in the period to which they relate, irrespective of when they are approved. Under Ind AS, such dividend is recognised as a liability when approved by shareholders.

Reclassification and Other Miscellaneous items:

The Company has done the following reclassifications as per the requirements of Ind-AS:

i) Re-Measurement gain/loss on defined benefit plans are re-classified from Statement of Profit and Loss to Other Comprehensive Income (OCI).

ii) Excise Duty on sale of goods earlier netted off with the sales has been disclosed as a separate item under Sales.

Other Comprehensive Income:

Ind AS requires preparation of Statement of Other Comprehensive Income in addition to Statement of Profit and loss.

IND-AS 101 exemptions applied:

The company has adopted following exemptions from retrospective application of certain requirements under IND-AS 101 - First time adoption of Indian Accounting Standards:

The company has elected to continue with carrying value as recognised in its Indian GAAP Financial statements of Property, Plant and Equipment as deemed cost at transition date, viz, 01st April, 2016 in accordance with Ind-AS 101-First time adoption of Indian Accounting Standards

Significant Accounting Policies : a. Property, Plant and Equipment:

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises of purchase price inclusive of taxes, commissioning expenses, etc. upto the date the asset is ready for its intended use. Fixed assets which were revalued are carried at revalued values. Expenditure directly related to expansion projects has been Capitalised.

Cost includes non-refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the acquisition and installation of the respective assets.

Assets under installation or under construction as at the Balance sheet date are shown as Capital work-in-progress. Advances paid towards acquisition of assets are shown as Capital Advances.

Fixed assets which are found to be not usable or retired from active use or when no further benefits are expected from their use are removed from the books of account and the difference if any, between the cost of such assets and the accumulated depreciation thereon is charged to Statement of Profit & Loss.

Depreciation on tangible assets is provided under Straight-Line Method over the useful lives of assets estimated by the management, except on Office equipment and furniture and fixtures, which are charged under Written Down Value Method (WDV). Depreciation on additions/deletions during a period is charged on pro rata basis from the date of addition or deletion, as the case may be.

The Management estimated the useful life of fixed assets as follows.

Buildings

30 Years

Plant and Machinery

10 Years

Office Equipment

5 Years

Computers

3 Years

Furniture and Fixtures

10 Years

Vehicles - Motor cars

8 Years

Vehicles - Scooters and mopeds

10 Years

b. Impairment of Assets:

In accordance with Ind AS 36, the company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. An asset is treated as impaired when the carrying cost exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in a prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

SI.

No.

Particulars

Current Year Rs.

Previous year Rs.

(a)

Amount of impairment losses recognized in the Statement of Profit & Loss.

-Nil-

-Nil-

(b)

Amount of reversal of impairment losses recognized in the Statement of Profit & Loss.

-Nil-

-Nil-

(c)

Amount of impairment losses recognized directly against revaluation surplus

-Nil-

-Nil-

(d)

Amount of reversals of impairment losses recognized directly in revaluation surplus

-Nil-

-Nil-

c. Employee Benefits:

Retirement benefits to employees comprise of payments under Defined Contribution Plans like Provident Fund and payments under Defined Benefit Schemes like Gratuity and Leave encashment.

Payments under defined contribution plans are charged to revenue on accrual. The liability in respect of defined benefit schemes is arrived based on actuarial valuation made at the end of the year by using projected unit credit method.

Short-term employee benefits such as wages, salaries and short-term compensated absences like bonus and other non-monetary benefits are provided for as per Company''s Rules on best estimate basis.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts

included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

d. Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value.

Cost is arrived at by using weighted average method and includes all costs of purchases, conversion and other costs incurred in bringing the inventories to their present location and condition.

e. Investments:

Investments intended to be held for more than one year are treated as long term and others as short-term. Short-term investments are carried at the lower of cost or quoted / fair value, computed category wise and long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary. As there are no investments made by the company in any subsidiary or equity instruments, provisions of IND-AS 27 are not applied.

f. Prior period expenses / Income:

The Company follows the practice of making adjustments through expenses/income under/over provided in previous years in respect of material transactions pertaining to that period prior to the current accounting year.

g. Government grants:

Government grants available to the company are recognized when there is a reasonable assurance that the conditions attached to the grant will be complied with and reasonably certain that grants will be received.

h. Tax Expense:

Deferred tax resulting from Timing Difference between book and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

Provision is made for tax on Income as perthe applicable provisions of Income Tax Act, 1961.

For items recognised in OCI or equity, deferred / current tax is also recognised in OCI or equity.

i. Foreign Exchange Transactions:

Transactions denominated in foreign currency are accounted for initially at the exchange rate prevailing on the date of transaction. Foreign Currency monetary Assets and Liabilities are translated at year end exchange rates. Fluctuations, if any, due to change in exchange rates between the dates of transactions and the dates of crystallisation are debited / credited to Statement of Profit & Loss.

j. Derivative instruments and hedge accounting:

The company''s activities expose it to price fluctuation risks in Lead prices on International Commodity Exchanges. The company uses Futures/Options contracts to hedge these risks. The company does not use derivative financial instruments for trading or speculative purposes. The use of financial derivatives is governed by the company''s policies approved by the Board of Directors, which provide written principles on the use of financial derivatives. The gains or losses on hedging activities are recognised in Statement of Profit and Loss.

k. Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sale of products is recognized on dispatch of products. Revenue from export sales is recognized on shipment of products. Revenue from products is stated inclusive of excise duty but exclusive of returns and applicable trade discounts and allowances.

Revenue from services is recognized as per the terms of contract with customers when the related services are performed or the agreed milestones are achieved.

Revenue from sale of Wind Power is recognized as per terms of PPA on supply of power.

Interest income on general deposits with Bank and others is recognized on time proportion basis.

I. Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

m. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes on accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

n. Earnings per Share:

The basic Earnings Per Share (EPS) is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit after tax but before OCI for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential of equity shares.

SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Preparation of the financial statements requires management to make judgements, estimates and assumptions, as described below, that affect the reported amounts and the disclosures. The Company based its assumptions and estimates on parameters available when the financial statements were prepared and reviewed at each Balance Sheet date. Uncertainty about these assumptions and estimates could result in outcomes that may require a material adjustment to the reported amounts and disclosures.

I. Employee Benefits (Ind AS-19):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans: Provident Fund:

Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. This fund is recognized by Income tax authorities. The company has recognized the following amounts in the Statement of Profit and Loss for the year:

(Rs. in Lakhs)

Particulars

2017-18 (Rs. in Lakhs)

2016-17 (Rs. in Lakhs)

Contribution to provident fund

37.16

30.09

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Company''s policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an independent actuary as at the Balance Sheet date and the details are as under:

SI.

No.

Particulars

Gratuity

Leave Encashment

Current Year

Previous Year

Current Year

Previous Year

i)

Discount Rate

8.00%

8.00%

8.00%

8.00%

Salary Escalation

4.00%

4.00%

4.00%

4.00%

Rate of return on Plan assets

7.25%

8.25%

0.00%

0.00%

Expected average remaining working lives of employees

14 years

1 5 years

14 years

1 5 years

ii)

Changes in present value of obligation

Rs. in Lakhs

Rs. in Lakhs

Rs. in Lakhs

Rs. in Lakhs

Present value of obligations as at beginning of year

90.90

79.50

11.61

8.73

Interest cost

7.26

6.36

0.71

0.70

Current Service Cost

6.72

4.74

1.11

0.86

Past Service Cost

-

-

-

-

Benefits Paid

(0.36)

(1.22)

(5.37)

(3.90)

Actuarial (gain)/ loss on obligations

7.13

1.53

7.17

5.23

Present value of obligations as at end of year

111.65

90.90

15.23

11.61

iii)

Changes in fair value of plan assets

Fair value of plan assets at beginning of year

149.45

138.67

-

-

Expected return on plan assets

11.94

11.46

-

-

Contributions

0.36

0.54

-

-

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