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Financial
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50 First time adoption of Ind AS
Exemptions applied:
1. Mandatory exceptions;
a) Estimates
The estimates at 1 April 2015 and at 31 March 2016 are consistent with those made for the same dates in accordance
with Previous GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items
where application of Previous GAAP did not require estimation:
• Impairment of financial assets based on expected credit loss model
The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1 April
2015, the date of transition to Ind AS and as of 31 March 2016.
b) De-recognition of financial assets:
The company has applied the de-recognition requirements in Ind AS 109 prospectively for transactions occurring on
or after the date of transition to Ind AS.
c) Classification and measurement of financial assets:
i. Financial Instruments:
Financial assets like security deposits received and security deposits paid, has been classified and measured at
amortised cost on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Since, it is
impracticable for the Company to apply retrospectively the effective interest method in Ind AS 109, the fair value
of the financial asset or the financial liability at the date of transition to Ind AS by applying amortised cost method,
has been considered as the new gross carrying amount of that financial asset or the financial liability at the date
of transition to Ind AS.
d Impairment of financial assets: (Trade receivables and other financial assets)
At the date of transition to Ind AS, the Company has determined that there significant increase in credit risk since the
initial recognition of a financial instrument would require undue cost or effort, the Company has recognised a loss
allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument
is derecognised (unless that financial instrument is low credit risk at a reporting date).
Optional exemptions;
A. Deemed cost-Previous GAAP carrying amount: (PPE and Intangible)
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and
equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous
GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning
liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment
property covered by Ind AS 40 Investment Properties.
Accordingly, the company has elected to measure all of its property, plant and equipment, intangible assets and investment
property at their previous GAAP carrying value
B. Lease:-
Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance
with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides
an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS,
except where the effect is expected to be not material.
The company has elected to apply this exemption for such contracts/arrangements.
Notes on the standalone financial statements
for the year ended 31 March 2017