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ANNUAL REPORT 2018 - 2019
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3 1ST MARCH 201 9
purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its
working condition for the intended use, net charges on foreign exchange contracts and
adjustmentsarisingfromexchangeratevariationsattributabletotheintangibleassets.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,as
appropriate, only when it is probable that future economic benefits associated with the item will
flowtotheentityandthecostcanbemeasuredreliably.
Gains or losses arising from derecognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in the
StatementofProfitandLosswhentheassetisderecognised.
iii. Depreciation/Amortization
Depreciation on all property,plant and equipment are provided for,from the date of put to use for
commercial production on a pro-rata basis on the straight-line method based on at the useful life
prescribedunderScheduleIItotheCompaniesAct,2013.Freeholdlandisnotdepreciated.
Depreciation commences when the assets are ready for their intended use.Depreciated assets in
property and accumulated depreciation accounts are retained fully until they are removed from
service.

The residual values, useful lives and method of depreciation of property, plant and equipment is
reviewedateachfinancialyearendandadjustedprospectively,ifappropriate.
Intangible assets with a finite useful life are amortised in a straight-line basis over their
estimatedusefullife
e. DisposalofAssets

An item of property,plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between net disposal proceeds and the carrying amount of the asset and is recognised in the
StatementofProfitandLoss.

f. Leases
Leasesareclassifiedasfinanceleaseswheneverthetermsofthelease,transferssubstantiallyalltherisks
andrewardsofownershiptothelessee.Allotherleasesareclassifiedasoperatingleases.
Where the Company has substantially acquired all risks and rewards of ownership of the assets,leases
are classified as financial lease.Such assets are capitalized at the inception of the lease,at the lower of
thefairvalueorpresentvalueofminimumleasepaymentandliabilityiscreatedforequivalentamount.
Eachleasepaymentisallocatedbetweenliabilityandfinancecostsoastoobtainconstantperiodicrate
of interest on the outstanding liability for each year.Finance expenses are recognised immediately in
StatementofProfitandLoss,unlesstheyaredirectlyattributabletoqualifyingassets,inwhichcasethey
arecapitalized.Contingentrentalsarerecognisedasexpensesintheperiodsinwhichtheyareincurred.
A leased asset is depreciated over the useful life of the asset.However,if there is no reasonable certainty
that the Company will obtain ownership by the end of the lease term,the asset is depreciated over the
shorteroftheestimatedusefullifeoftheassetandtheleaseterm.

Operating lease payments/receivable are recognised as an expense/income in the Statement of Profit
and Loss on a straight-line basis over the lease term except where another systematic basis is more
representativeoftimepatterninwhicheconomicbenefitsfromtheleasedassetsareconsumed.

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NOTES TO THE ACCOUNTS