Page 183 - FBL AR 2019-20

CORPORATE STATUTORY FINANCIAL
OVERVIEW STATEMENTS STATEMENTS

Notes to the Consolidated financial statements for the year ended March 31, 2020

1.1 Corporate information
Fermenta Biotech Limited (Formerly Known as DIL Limited or ‘the Parent Company’) is a public company domiciled in India and incorporated
under the provisions of the Companies Act, 1913. Its shares are listed on Bombay Stock Exchange. The registered office of the Company
is located at A- 1501, Thane One, DIL Complex, Ghodbunder Road, Majiwade, Thane (West) 400610. The Parent Company is engaged in
the business of renting properties and manufacturing and marketing of chemicals, bulk drugs, enzymes, pharmaceutical formulations and
environmental solution products. The Parent Company caters to both domestic and international markets. The Parent Company also has
strategic investments in subsidiaries / associate companies primarily dealing in manufacturing and marketing bulk drugs and providing
services of sporting and health awareness activities / education activities.
1.2 Scheme of amalgamation
The National Company Law Tribunal, Mumbai Bench, has approved the Scheme of Amalgamation between the Parent Company and
erstwhile Fermenta Biotech Limited (FBL) and their respective shareholders. The Scheme has become effective from September 26, 2019.
The appointed date of the Scheme is April 01, 2018. Accordingly, the effect of the Scheme has been given in these consolidated financial
statements for the year ended March 31, 2020 and the figures for the corresponding previous year have been restated. The amalgamation has
been accounted as common control transaction in accordance with Appendix C of Ind AS 103 ‘Business Combinations’.
The remaining shareholders of erstwhile FBL (i.e. other than the Parent Company) and the ESOP Trust of erstwhile FBL have been issued on
October 10, 2019, 442,982 equity shares and 194,555 equity shares respectively, in the ratio of 100 shares of H5 each in the Company for every
251 shares of H10 each held in erstwhile FBL.
The name of the amalgamated company has been changed from DIL Limited (Parent Company) to Fermenta Biotech Limited vide Certificate
of Incorporation issued by the Registrar of Companies, Mumbai dated October 17, 2019.
2. Significant accounting policies
2.1 Statement of compliance

The consolidated financial statements are prepared in accordance with and in compliance, in all material aspects, with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies (Indian Accounting Standards) Rules, 2015, as amended and other provisions
of the Act. The financial statements of the Group have been consolidated using uniform accounting policies.
2.2 Basis of preparation and presentation
The consolidated financial statements have been prepared on the historical cost basis, except for: (i) certain financial instruments that are
measured at fair values at the end of each reporting period; and (ii) defined benefit plan – plan assets that are measured at fair values at the
end of each reporting period, as explained in the accounting policies below.
a) Fair Value Measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability
if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair
value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for
leasing transactions that are within the scope of Ind AS 116, share based payment transactions that are within the scope of Ind AS 102
and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use
in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which
the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety,
which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or
indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.

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