Annual Report, 2016-17

231

annual

report

16-17

kajaria

ceramics

corporate

overview

management

reports

Financial

statements

Reconciliation of profit or loss for the year ended 31 March 2016

(contd...)

3 Other income

Security Deposit Interest unwinding- Interest on present value of security deposit is recognised as income at the average

borrowing rate for the corresponding period. Impact of the same is

0.42 Crore.

4 Finance expense

Interest expense on interest free government loan has been recognised at the average borrowing rate of the Company.

Additional interest expense amounting to

0.0008 crore has been recognised for the year ended 31 March 2016

5 Rent expense

Rent expense: Deffered lease expense has been recognized on a straight line basis over the life of security deposits for the

term of the deposit. Impact

0.40 Crore for FY ended 31 March 2016.

6 Defined benefit liabilities

Both under Previous GAAP and Ind AS, the company recognised costs related to its post-employment defined benefit plan

on an actuarial basis. Under Previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit &

loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, 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.

7 Share-based payments

Under Previous GAAP, the Company recognised only the intrinsic value for the long-term incentive plan as an expense. Ind

AS requires the fair value of the share options to be determined using an appropriate pricing model recognised over the

vesting period. An additional expense of

0.66 crore has been recognised in profit & loss for the year ended 31 March

2016 .

8 ECL for trade receivables

Under the previous GAAP, provision for bad debt was recognised for the doubtful debtors on a case to case basis.

However, under Ind AS, the Company assesses impairment based on expected credit losses (ECL) model for measurement

and recognition of impairment loss on the financial assets that are trade receivables accounting for both nonpayment and

delay of receivable. According to the past estimates, the Company has recognised 0.1% of good debtors as the additional

provision under ECL model. Impact on trade receivables due to extra provision is

0.06 crore

9 Other comprehensive income

Under Previous GAAP, the company has not presented other comprehensive income (OCI) separately. Hence, it has

reconciled Previous GAAP profit & loss to profit or profit & loss as per Ind AS. Further, Previous GAAP profit & loss is

reconciled to total comprehensive income as per Ind AS.

10 Re-classification

The company has reclassified previous year figures to conform to Ind AS classification.

Notes on the consolidated financial statements

for the year ended 31 March 2017