Smartivity - Signed Balance Sheet
Smartivity - Signed Balance Sheet
Smartivity - Signed Balance Sheet
2
3
Smartlvity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Statement of changes in equlty for the year enderl 31 March 2021
Equlty shares
Issued,subscrlbed and fully pald up (ShareofRs. 10each) No. ofshares Amount In Rs.
At 1 Aprl 2019
Increase/(decrease) durlng the year 10,079 100,790
At 31 March 2020
Increase/(decrease) during the year
10,079 100,790
At 31 March 2021
10,079 100,790
B. Convertible Prefrence share capltal:
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Accouhta
Smartlvity labs Pvt Ltd
CIN: 074140DL2015PTC277272
Notes to financial statement as at 31 March 2021
3 Property, plant and equlpment
Plant &
Particulars Furniture & Lease hold Office (Amount In Rs.)
MachineryY Fixtures Improvement Computer Motor Vehicles
Equipments Total
Gross block
As at 1 Aprl 2019 17,785,856 1,489,402
Additions 7,272,070 278,393 2,950,763
L,964 22,504,414
Disposals 1,303,941
6,618 77,548
7,818,200
As at 31 March 2020
23,753,985| 57,623 265,5
Additions 282,236 1,951,366 227,388 2,762,808| 1,627,067
Disposals 28,695,547|
As at 31 March 2021 282,236
24,036,221| 1,951,366 227,388 I 2,762,808 28,977,783
Accumulated depreclation
As at 1 April 2019
Charge for the year 3,596,695 483,358
3,602,501 104,842 1,296,592 5,481,487
Deductions 359,959 78,666 696,007
As at 31 March 2020 569,768 4,737,133
36,007 197,783
Charge for the year 6,629,428 843,317L 147,501
803,558
3,083,604 288,093 L,794,816 9,415,062
Deductions 35,603 382,283 3,789,583|
As at 31 March 2021
9,713,032 1,131,410 183,104L
Net block
2,177,099 13,204,645
As at 1 April 2019 14,189,161
As at 31 March 2020 1,006,044 173,551 1,654,171
17,124,557 1,108,049| 17,022,927
As at 31 March 2021 14,323,189 819,956
79,887 L 967,992 19,280,485
44,284 585,709 15,773,138
4 Intangible assets
(Amount in Rs.)
Particulars Patent Goodwll In-House Product Computer
Total Capltal WIP
Development Software
Gross block
As at 1 Aprll 2019
1,520,411 46,648,090
Purchases/internal development 358,071 17,104,437
2,371,779 50,540,280
Disposals/Transferred to Block 17,462,508
|Ind AS adjustments
As at 31 March 2020
1,878,482 63,752,527I 2,371,779
|Purchases/internal development 44,663 7,044,021
68,002,788
Disposals/Transferred to Block 7,088,684
As at 31 March 2021
1,923,145 70,796,548| 2,371,779| 75,091,472
Accumulated deprecdation
As at 1 Aprll 2019
1,061,900 14,661,305 1,908,278 17,631,485
Amortization for the year
294,015 14,394,052 209,363 14,897,430
Deductions
Ind AS adjustments
As at 31 March 2020
1,355,915| 29,055,357L
Amortization for the year
245,534 15,613,725
2,117,641
116,441
32,528,915
15,975,700
Deductions
As at 31 March 2021
1,601,449 44,669,082 2,234,082 48,504,615
Net block
As at 1 April2019 458,511 31,986,785 463,501 32,908,796
As at 31 March 2020 522,567 34,697,170 254,138 35,473,874
As at31 March2021 321,696 26,127,466|_ 137,697 26,586,858 L
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Smartivity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes to financialstatementas at 31 March 2021
5. Financial Assets
Particulars As at As at
31 March 2021 31 March 2020
Trade receivables
Unsecured, considered good
Doubtful 54,430,146 53,573,722
4,840,177 4,280,949
Net Trade recelvables
Unsecured, considered good
Doubtful 49,589,969 49,292,773
49,589,969 49,292,773
Current
Non-Current_ 49,589,969 49,292,773
Particulars As at As at
31 March 2021_ 31 March 2020
Balance at the beginning of the year
Addition during the year, net
Uncollectable receivables charged against allowance_
Balance at the end of the year
Expected credit
loss: Under the Previous GAAP, loss
provision for trade receivables was created based on credit risk assessment. Under Ind
these provisions are based on assessment of risk of default and timing of collection. AS,
The Company has applied the simplified approach to providing for expected credit losses on trade receivables as described by IFRS 9, which
requires the use of lifetime expected credit loss provision for all trade receivables.
These provisions are based on assessment of risk of default and expected timing of collection. A cumulative
68,08,327/-on March 31st, 2021. impairment provision of Rs.
The Company assesses on a forward-looking basis the expected credit losses associated with its assets carried at
amortised cost. The
impairment methodology applied depends on whether there has been a significant increase in credit risk.
The Company assesses on aforward-looking basis theexpected credit losses associated with its assets carrled at
methodologY applied depends on whether there has been a significant increase in credit risk. amortlsed cost. The impalirment
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Smartivitylabs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes to financial statement as at 31 March 2021
SA. Investment
Particulars As at As at
31 March 2021 31 March 2020
|Investment Non Current
Investment - Current 3,000,000
Total Investment
3,000,000
Current
Non-Current
3,000,000
SB. Loans
|Particulars As at As a
31 March 2021 31March2020
|Security deposits Non Current
Security deposits - Current
1,530,000 30,000
Total Loans and Advances
1,530,000 30,0
Current 1,530,000 30,000
Non-Current
AS at As at
Particulars
31 March 2021 31 March 2020
Balances with banks
-In current accounts 4,029,486 11,147,362
Cash in hand
Total Cash and cash equivalents 4,029,486| 11,147,362
Current 4,029,4865 11,147,362
Non-Current
6. Inventorles
As at As at
Particulars
31 March 2021 31 March 2020
Raw materials 16,128,757.97 14,432,270.71
Work in progress 8,105,298.50 8,104,445.69
|Finished goods
Manufactured goods 7,239,986.91 7,990,848.02
Imported goods
Traded goods
31,474,043 30,527,564
Less: Provislon for slow & non moving raw materlals
Total Inventorles 31,474,043 30,527,564
Chartered
EAcoantants
DeMN Sae
|Smartlvlty labs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes tofinanclalstatement as at 31 March 2021
7. Other Assets
Partlculars As at As at
31 March 2021 31 March 2020
Prepaid expenses (Non current)
|Prepaid expenses (Current)
Total Prepaid expenses 48,647 87,025
48,647 |_ 87,025
78. Other assets
Particulars As at As at
8. Deferred taxes
Particulars As at AS at
31 March 2021 31 March 2020
Items leading to creation of deferred tax assets
Impact of expenditure charged to the statement of profit and loss account in the
current year but allowed for tax purposes on payment basis in subsequent years 1,258,446 1,113,047
B(Chatered
a
Aoco ents/
Smartlvity labs Pvt Ltd
CIN: U74140DL2015PTc277272
Notes to financdal statements for the year ended 31 March 2021
5 FInanclal Assets
Particulars Ind AS Ad
IGAAP Ind A
March 2021
Trade recelvables
Secured, considered good
Unsecured, considered good
54,430,146 54,430,146
Doubtful
54,430,146
54,430,146
Less: Allowance for expected credit loss
Unsecured, consldered good 4,840,177 4,340,177
Doubttul
4,840,177 4,840,177
Net Trade recelvables
Unsecured, considered good 49,589,969
Doubtful 49,589,969
49,589,969 49,589,969
Current
49,589,969 49589,969
Non-Current
SB. Loans
Current
Non-CurTent
Particulars Ind AS Ad
IGAAP Ind AS
March 2021
Balances with banks
In current accounts
4,029,436 4,029,4
Cash in hand
Total Cash and cash equlvalents
4,029,486 4,029,4S6
Current
4,029,436
Non-Current 4,029,486
6 nventorles
Particulars lnd AS Ad
IGAAP nd AS
Raw maerial March 2021
Work in progress
16,128.758 128,753
8,105,298 S, 105,298
Finished goods
Manutactured goods 7,239,987 .239,987
imported goods
Traded goods
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Chanered
Accoyntaats
ociale
7B. Prepald expensess
Ind AS Ad
Particulars IGAAP Ind AS
March 2021
Prepaid expenses (Non current)
Prepaid expenses (Current)
Total Prepald expenses
48,647 43,647
48,647 48,647
7C. Other assets
Ind AS Adj
Particulars IGAAP Ind A
March 2021
Balances with government authority
VAT recoverable 91,094.00 91,094
GST Input 8,692,035.29 8,692,035
Import duty & Duty drawback
Others
Advance to Supplier 3,276,968 3,276,968
Deposite with High Court
Advance to employees
TDS Recoverable from Parties 231,992
TCS on Goods Purchased 729
Other advances
8 Deferred taxes
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Smartlvity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes to financlal statement as at 31 March 2021
9. Share Capital
Particulars AS a As at
|Authorised 31 March 2021 31 March 2020
1000000 (31 March 2021: 100000) shares of Rs 10/- each
1,000,000 1,000,000
Issued, subscribed and fully pald up
(31 March 2021: 10079) equity shares of Rs 10/- each
(31 March 2021: 20183) Convertlble preference share shares of 100,790
Rs 10/- each 00,790
201,830 I76,540
302,620 277 330
a. Reconciliation of the shares outstanding at the
beginning and at the end of the reporting year
Equity shares
Issued, subscribed and fully paid up Numbers Amount In Rs. |
As at 1 Aprll 2019
|Increase/(Decrease) during the year 10,079 100,75
As at 31 March 2020
Increase/(Decrease) during the year 10,079 100,790
As at 31 March 2021
10,079 100,790
Convertible Preference Share
Issued, subscribed and fully paid up Numbers Amount in Rs.
|As at 1 April 2019
Increase/(Decrease) during the year 17,654 176,540
As at 31 March 2020
Increase/(Decrease) during the year 17,654 176,540
As at 31 March 2021 2,529 5,290
20,183 201,830
b. Terms/ rights attached to equity shares
The Company has only one class of
equity shares and one class of Preference shares
entitled to one vote per share. In the event having a par value of Rs. 10/- per share. Each holder of equity shares is
of liquidation of the
Company, after Company,
distribution of all preferential amounts. The distribution
the holders of equity shares will be entitled to
receive remaining assets of the
will be in proportion to the number of
equity shares held by the shareholders.
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|Smartlvlty labs Pvt Ltd
CIN: U74140DL2015PTc277272
Notes to financlal statement as at 31 March 2021
11. Borrowings
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Accounfents
Smartivity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes to financialstatement as at 31 March 2021
118. Current borrowings
Particulars Asat As at
31 March 2021 31 March 2020
Secured:
Cash credit from bank
Indian rupee loan from others (HDFC Loan) 199,931
Indian rupee loan from others ( RBL Loan)
Indian rupee loan from others ( Neo Growth)
Unsecured:
Loans from related parties
Other loans and Advances 193,211 216,016
Total 25,588,532 23,717,719
25,981,674 23,933,735
12. Trade payables
Particulars As at As at
31 March 2021 31 March 2020
Total outstanding dues of micro enterprises & small enterprises:
7,821,721 87,238
Total outstanding dues of creditors other than micro enterrprises & small
enterprises 39,294,477 35,295,691
Total Trade payables
47,116,198 35,382,929
Current 47,116,198 35,382,929
Non-Current
Chaered
EAccouinants
-
Smartivity labs Pvt Ltd
CIN: U74140DL2015PTc277272
Notes tofinanclalstatement as at 31 March 2021
13 Other financial liabilities
As at As at
Particulars
31 March 2021 31 March 2020
Expenses Payables 414,871 726,858
Employee salary Payable 6,286,769 3,206,566
Current maturities of long-term Borrowings (refer no 11A) 2,721,463 3,758,341
Other financial liabilities 681,073
Total other financial liabilities
9,423,103 8,372,837
Current 9,423,103 8,372,837
Non current
14 Provisions
Particulars As at As at
31 March 2021 31 March 2020
Provision for retirement benefits
Gratuity
Leave Encashment
Total Provisions
Current
Non current
15 Other liabilities
As at As at
Particulars 31 March 2021 31 March 2020
Other payables:
Statutory dues
TDS Payable 386,455 542,610
Others 157,818 90,153
|Advance from customers
2,694,843
Advances from Employees
Particulars As at As at
Chajtered
Aauntants
Smartivity labs PvtLtd
a N : U74140DL2015PTC277272
9C. Detalls of Equlty shareholders holding more than 5% shares in the company
secured
Unsecured
118. Current borrowing
Chafered
Accountants
12 Trade payables
Ind A dj Ind AS Ad)
IGAAP Ind AS
Particulars
-
April 2013 March 2019
and
Total outstanding dues of micro enterprises & small enterprises:
micro enterrprises & small
Total outstanding dues of creditors other than 47,116,198 47,116,198
enterprises
|Total Trade payables 47,116,198 47,116,198
Current 47,116,198 47,116,198
Non-Current_
13 Other financial liabilities
Current
|Non current
Other liabilities
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Smartivity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes tofinanclalstatements for the yearended 31 March 2021
17 Revenue From Operations
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Smartivity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Traded books
Traded Imported goods/services
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Smartivity labs Pvt Ltd
CIN: U74140DL2015PTC277272
Notes tofinandalstatementsfor theyearended 31 March 2021
22 Employee Benefits Expenses
23 Finance Cost
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Ltd
Smartivity labs Pvt
CIN: U74140DL2015PTC277272
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AcounarMts
27 Earnings pershare number of Equity shares
the year attributable to equity holders by the welghted average
Basic EPS amounts are calculated by dividing the profit for
outstanding during the year.
for the year attributable to equity holders by the welghted average number of equity shares
Diluted EPS amounts are calculated by dividing the profit dilutive potential equity
number of equlity shares that would be issued on conversion of all
outstanding during the year plus the weighted average
shares antidilutive.
into equity shares. Due to entity is In loss dilutive potential equity
seems
shares
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Acofants
clates
CIN. MLI
CIN: U74i40oL201 5/TC277272
Nele to anclel etstemente for the veer ended 31 March 2021
28 Reletd certy
dledosures
Nemes of related parties and releted perty relationship
Rebted partdes wrhere control dsts
Moldina Comoen
UItimate Holding Company
Enterprie over hkch Key Managernal
Pernonned are able to exercee skonificant
Auenc
S Chand and Company Private limited
Vikas
Anvan Pul
expo o s e P t Ltd
chend Itemational
Kev menaaement pernonnel or thelr
reletives Aooorv Gupta (Drector)
Ashwini u rector)
Tushar A
ushar AAm
Amin
(Director
Saurabh Mtal (Director)
Canta Manindra Seneviratne (Director)
Kunal Khettar (Di
eena arun Amin (ushar Honer
Sharon ain 2a
Shikha
and
ushar wfe)
(R
Madhu an
(Rajat
Gaurav ain (Ratat lain
an Hother
Brother)
Ratat tain (head of
Releted oerty treneections Product launch department)
Thefollowna table orovdes the total
amount of trasactons that have been entered
into wkh related partes for he relevant inancial
year
Pertlculen Molding Company ultimate Holding Y management
Company Paonne or thelir
reatve Enterprses over whlch Key
1 Merch| 31 Merch 31 March
Hanagerial Personnel are ableto
(A Trensctions -2921 2020
31 March 31March Xerclse signicant lntluence
2020March
31
Sale of
2021 2021-
Total
31 March 2021 31 March 2020 31 March 2021
products (Net of return & dlecount) 31 March 2020
S.Chend end Compeny imited
Vikas Publlshina House Pvt Ltd
Arvan exports
S Chend Edutech Pvt Ltd
Lovaltv income
S. Chend and
Comoeny Umited
Vikas Publishina House Pvt Ltd
Purchases
S. Ohend and Comoen Umted
Purchas Retum
S. Chand and Comoeny Umited
VMkes Publshina House Pvt Ltd
Loan Receved
Saurabh MIttal
Loan repavment
Saurabh Mtal
Trade pevable
S. Oand and Comoany LUmted
Perticular
Aooory Guota
Rafet Jain
1 Merch 2021 31
Herch 2020
Tushar AArmin 1.057,500 1.492.500
Ashwin Kumar 451.200 200
eneanun Amin 1.594.500 2.249.750
Sharon Femandes 1.425.000 07.5000
Shilha n 360.000 .000
MadhuJein
gaurev jin 0200
103,300
40.000
Totul 211500
Note: In
in dditlon
S14.300 7042230
Note: additlon toto above
above renio rtala au Droonmde lor gretulty, e they ere determined on en ectuarlel bese for the Compeny aee who
transactlons certaln guarantees heve been given by direclon.
Chartepd
Acoountants
ates
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Smartlvity Iabs Pt Ltd
CIN: U74140DL2015PTCc277272
In respect of Gratuity, the Company makes annual contribution to the emplovee group gratulty scheme of the life Insurance Corporation of India, funded defined benefts plan for ualilted employes.Theschemeprovidedfor lump
sum payments to vested employees at retirement, death whle in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of servce or part thereof in exces of sk months.
Vesting occurs upon completion of five years of service.
The Company has provided for gratuity based on the actuarial valuation done as per Project Unit Credit Method. The following table sets out for the status of gratuity plan:
Experience adjustment:E
Particulars March 31,2021 March 31, 2020
EXperience adjustment on plan liability
Experience adjustment on plan asset
Net experience adjustment
ASsumptions
Particular March 31,2021 March 31, 2020
Expected return on plan assets
Salary escalaton rate
Discounting rate
Employee attrition rate
|Mortality rate
Composition of plan assets
Sensitivity analysls:
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate, expected salary Increase and employee turnover. The sensitivity analysis below, have been determined based on reasonaby
possible changes of the assumptions occuring at the end of the reporting period, whlle holding all other assumptlons constant. The result of Sensitivity analysis is given below:
Parie in rate of discounting (delta effect of +/- 0.5%) ear ended March, 2021 Yearended March, 2020
Change rate
Change In of salary increase (delta effect of +/. 0.59%)
Change in rate of employee turnover (delta eifect of +/- 0.5%
These plans tvoically expose the Group to actuarial risks such as: Investment risk, interest risk, longevity risk and salaryrisk
Investment risk-The present value of the defined benefit plan liablity is calculated usinga dlscount rate which Is determined by reference to market yields at the end of the reporting period on government bonds
Interest risk -A decrease in the bond interest rate will Increase the plan liablity; however, thls will be partlally offset by an Increase In the return on the
plan debt investments.
Longevity rsk-The present value of the defined beneflit plan llability is calculated by reference to the best estimate of the mortality of plan participants both during and arter thelr employment. An Increase in the life expectancy of the
plan partddpants will Increase the plan's liability.
LOBn aSK 1hepresentvalue ofthedefined plan labilityl5 calculated by relerence tothe future salaries of plan particlpants.As such, an increasein the salaryof the plan particlpants willincroasethe plan'sliablityY
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Aecounant
Smartivity labs Pvt Ltd
CIN: U7414ODL2015PTC277272
other Commitments
Trade payable_
Value ofimportscalculatedon CIFbasis Particulars
31 March 2021 31 March 2020
(Rupees Rupees
Raw Materials
47,097,844 57.26% 41,224,242
Indigenously &Import Goods obtalned 85 80%
47 097844
of dues due
to mlcro,smali andsmall
medlum enterprlses as defined under thee MSMED Act, 2006
33 Detalls
The Amoumnt to Micro and Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such partles have
31st December 2020 are as under:
Micro and Small Enterprises as at
availa ble with the Compamy. The disclosures relating
to
been identified on the basis of information
Operating Lease The total lease rentals recognized as an expense during the year under the above lease
The Company has not taken premises for office use under cancella ble operating lease greements.
the lease agreements. There are no sub leases.
Rs. 0). There are no restrictions Imposed by
agreements aggregates to Rs. /- (31 March 2021:
31 March 2020
35 Expendliture In forelgn currency (accrual basis)
31 March 2021
(Rupees) Rupees)
Travelling expense
and exhibition 8,443,853 5,507,294
Advertlsement, publicity
Import of goods/services
843,853 S,507,294
Royalty
DeMY
37 Financlal Instruments - Accounting classificatlons and falr value measurements
The fair value of the assets and Iabilties are included at the amount at which the Instrument could be exchanged In a current transaction between wiling parties, other than in forced or
liquidation sale.
The following methods and assumptions were used to estimate the falr values:
Fair Value of cash and short-term deposits, trade and other short term recalva bles, trade payables, other current labiltles, and other financlal instruments approxlmate thelr cárrying amounts
largely due to the short term maturltles of these Instruments.
Financial instruments with fixed and varlable Interest rates are evaluated by the company based on parameters such as Interest rates and indivldual credit worthiness of the counterparty. Based
on this evaluation, allowances are taken to the account for the expected losses of these receivables.
The company uses the following hierarchy for determining and disclosing the fair value of fi nanclal Instruments by valuatlon technlque:
Level Quoted (unadjusted) prlces in actve markets for ldentlcal assets or labilities
Other technlques for whichallInputs which have a significant effect on the recorded fair value are observable, either directy or indirectly
Level-I
techniques which use Inputs that have a significant effect on the recorded flr value that are not based on observable market data
Level-l
Total
55,149,455 60,470,135
Financial liabilities at amortised cost
Bortowing5
Trade payables
28,156,305 27,334,478
35,382,929
47,116,198
Other financial liabilities 9,423,103 8,372,837
Borrowings
Trade payables
25,981,673.71 23,933,734.71
47,116,198.45 35,382,929.00
Other financial liabilties 9,423,102.71 8,372,837.18
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Acuntyhts8
37 Financlal Instruments- Accounting class/ficatlons and falr value measurements
The falr value of the assets and liablitles are Included at the amount at which the Instrument could be exchanged In a current transactlon between wlling parties, other than in forced or
liquldation sale.
The following methods and assumptions were used to estimate the fair values:
Fair Value of cash and short-term deposits, trade and other short term recelvables, trade payables, other current liablities, and other financlal instruments approximate thelr carrylng amounts
largely due to the short term maturlties of these Instruments.
Financlal instruments with fixed and varlable Interest rates are evaluated by the company based on parameters such as Interest rates and Indlvidual credit worthiness of the counterparty. Based
on this evaluation, allowances are taken to the account for the expected losses of these recelvables.
The company uses the following hierarchy for determining and disclosing the falr value of fi nancial instruments by valuation technique:
Level- Quoted (unadjusted) prlces In active markets for ldentlcal assets or llabilitles
Other techniques for which allinputs which have a signficant effect on the recorded fair vatue are observable, either drecty or indirecty
Level-
techniques which use inputs that have a significant efect on the recorded falr value that are not based on observable market data
Level
Borrowing 28,156,305
Trade payables 27,334,478
Other financial liabillties 47,116,198 35,382,929
9,423,103 8,372,837
Total
84,695,606 71,090,244
Carrying amount Carrying amount
Financdal assets at amortised cost As at 31st 2021 As at 31st 2020
Total 55,149,455
Financlal liabllitles at amortised cost
60,470,135
Borrowings 25,981,673.71
Trade payables 23,933,734.71
Other financlal liabilities 47,116,198.45 35,382,929.00
9,423,102.71 8,372,837.18
Total
82 520,975 D 67,689,501
Prevlous Figures
Previous year figures have been regrouped/ reclassified, where necessary, to confirm to this year's classification.
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Ja
/ Charten
Acecunthts
ociates
Smartivity labs Pvt Ltd
CIN: U74140DL2015PTC277272
The core principl of 1Ind AS 115 Is that entity should recognise revenue to deplct the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be entitled lin exchange for those goods or services. Under Ind AS 115, an entity
recognize revenue when (or as) a performance obligation is satisfied, l.e. when 'control' of the goods or services underlying the particular
performance obligation is transferred to the customer
The company is currently evaluating the impact that the adoption of this new standard wll have on its financial statements
Anura
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Chartere
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|Smartivity labs Pvt Ltd Applicable Rate 26.000%
CIN: U74140DL2015PTC2n272
Deferred Tax Calculation as per Ind AS 12 as at 31.03.2021
27,049,510 27,049,5100
25,791,064
Deferred tax asset/ (liability) as per Ind AS as on 31.03.2021 27,049,510
Deferred tax asset/ (liability) as per Ind AS as on 31.03.2020 33,353,869
Net DTA except DTA on (gain)/ loss on defined benefit plans 6,304,359)
Chatered
Accodnt nts
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Smartivity labs Pvt Ltd
CIN: U74140DL2015PTC277272
the Income Tax Act, 1961 in respect of each asset or block of asset as the case may be.
Particulars of Depreciation allowable as per
WDV as on 01-04- Addition during the year Deductions during Depreciation WDV as on 31-03-
Total Amount
S No. Particulars Rate of Dep. More than 180 days Less than 180 days the year allowable
20
An
Chaered
Accoyintants
Smartivity labs Pvt Ltd
Computation of Income Tax
S.NO Particular Amount
Net Profit/loss as per profit and loss account (25,045,223
Add:- Depriciation as per companies act 19,765,283
Less-Depriciation as perincometax act 6,8 376
Add-Interest and panelties and expenses disallowed 582,404
Add-Disallowance of Expenditure of 30% in case of TDS not dedcuted
Add-Expected credit loss (not allwed to deducted as perincome tax) 559,228
Add- Cash payment exceeding Rs. 20,000/-
Add-Cash payment exceeding Rs.Penalty Paid/-
Less:-Expenses allowed(notallowed capitalization as perincome tax) 7,044,021
Less:- Short Term Capital Gain
Income U/h PGBP(A) (17,982,704
Short Term Capital Gain(B)_
GROSS TAXABLE INCOME{A+B) (17,982,704
Less- Deduction under Section 80C (Tution fees, investment etc)
Less- Deduction under Section 80 D(Medical insurance)
Less- Deduction under section 80 TTA(Interest on saving bank)
(17,982,704)
Net Taxable Income
Tax Payable on Profit chargeableto tax
Less- Advance taX paid
Less-TOS Receivable
Cherseed
Aceounsants
S o j e
SMARTIVITY LABS PVT. LTD.
CIN: U74140DL2015PTC277272
Notes to financial statements for the year ended 31 March 2021
(Amounts inIndian Rupees, unless otherwise stated)
1. Corporate information
Smartivity Labs Private Limited (the company) is a private company incorporated under the
provisions of the Companies Act, 2013.
The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification.
Transactions in foreign currencies are initially recorded by the Company at the functional currency
spot rates at the date the transaction first
qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional
currency spot rates of exchange at the reporting date.
Exchange differences arising on settlement or translation of monetary items are recognised in profit or
loss
The Company measures certain financial instruments at fair value at each reporting date.
The principal or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.
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A fair value measurement of a non-financial asset
takes into account a market
generate economic benefits by using the asset in its highest and best use or
participant's ability to
market by selling it to another
participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
and
maximising the use of relevant observable
inputs
minimising the use of unobservable inputs.
All and liabilities for which fair value is measured
assets
or disclosed in the financial statements are
categorised within the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:
External valuers are involved for valuation of significant assets such as valuation of
unquoted
investments and significant liabilities such as contingent. consideration, where ever
applicable.
Involvement of external valuers is decided upon annually by the Company's management. Selection
criteria include market knowledge, reputation, independence and whether professional standards are
maintained.
At each reporting date, the Company's management analyses the movements in the values of assets
and liabilities which are required to be re-measured or re-assessed as per the Company's accounting
policies. For this analysis, the Company's management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation computation to contracts and other relevant
documents.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is received.
Revenue is measured at the fair value of the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the
government.
The specific recognition criteria described below must also be met before revenue is recognised.
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Accuniants
Sale of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of
the goods have passed to the buyer. Revenue from the sale of goods is measured at the fair value of the
consideration received or receivable, net of sales returns, turnover discounts and cash discounts.
The provision for anticipated returns, turnover discount and cash discount is primarily made on
estimated basis based on historical trends, wherever applicable.
Job Work
Revenue from Job work is recognized when printing and binding job is complete and accepted by the
customer and all significant risk and rewards relating to job work are transferred to customer
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured.
Interest income
Interest income is recognized on time proportion basis taking into account the amount outstand ing and
the rate applicable. Interest income is included under the head "other income" in the statement of
profit or loss.
For all financial instruments measured at amortised cost and other interest-bearing financial assets,
interest income is recorded using the effective interest rate (EIR). The EIR is the rate that exactly
discounts the estimated future cash receipts over the expected life of the financial instrument or a
shorter period, where appropriate, to the net carrying amount of the financial asset. When calculating
the effective interest rate, the Company estimates the expected cash flows by considering all the
contractual terms of the financial instrument (for example, prepayment, extension, call and similar
Deferred tax
bases of
Deferred tax is provided using the liability method on temporary differences between the tax
at the reporting date.
assets and liabilities and their carrying amounts for financial reporting purposes
Deferred tax liabilities are recognised for all taxable temporary differences, except:
an asset or
When the deferred tax liability arises from the initial recognition of goodwill or
transaction that is not a business combination and, at the
time of the transaction,
liability in a
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation to the underlying transaction either in other
comprehensive income or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Property, plant and equipment represent a significant proportion of the asset base of the Company.
The charge in respect of periodic depreciation is derived after determining an estimate of an asset's
expected useful life and the expected residual value at the end of its life. The useful lives and residual
values of Company's assets are determined by the management at the time the asset is acquired and
reviewed
Capital work in progress, plant and equipment are stated at cost, net of accumulated depreciation
and/or accumulated impairment losses, if any. Such cost includes the cost of replacing parts of the
property, plant and equipment and borrowing costs for long-term construction projects if the
recognition criteria are met.
When significant parts of property, plant and equipment are required to be replaced at intervals, the
Company recognises such parts as individual assets with specific useful lives and depreciates them
accordingly. Likewise, when a major inspection is performed, its cost is recognised in the carrying
amount of the plant and equipment as a replacement if the recognition criteria are satisfied.
All other repair and maintenance costs are recognised in the profit or loss as incurred. The present
value of the expected cost for the decommissioning of the asset after its use, is included in the cost of
the respective asset if the recognition criteria for a provision are met.
An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognising of the asset (calculated as the difference between
the net disposal proceeds and the carrying amount of the asset) is included in the income statement
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when the asset is derecognised.
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Depreciation
Depreciation on property, plant and equipment, other than leasehold improvements, have been
provided on basis of companies act 2013, on the written down value method, using rates determined
based on management's technical assessment of useful economic life of the assets.
Followings are the estimated useful lives of various category of assets used.
Category of assets Useful life as adopted by Useful life as per Schedule II
management
Plant and equipment 15years 15 years
Furniture and fixture 10 years 10years
Intangible Assets 5 years
5 years
Office Equipment 5 years 5 years
Other (Specify Nature) 6 years 6 years
Leasehold improvements are amortised over economic useful life or unexpired period of lease
whichever is less. Assets costing 5,000 or less are
depreciated entirely in the year of purchase.
Second hand machinery purchased during the year is depreciated considering its useful life based
upon management's assessment is 15 years.
The Company, based on technical assessment made by technical expert and management estimate,
depreciates certain items of plant and machinery, vehicles, computers and building over estimated
useful lives wihich are different from useful life prescribed in Schedule lI to the Companies Act, 2013.
The management believes that these estimated useful lives are realistic and reflect fair
approximation of the period over which the assets are likely to be used.
An item of property, plant and equipment and any significant part initially recognised is
derecognised upon disposal or when no future economic benefits are expected from its useor
disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between
the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit
or loss when the asset is derecognised.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each reporting date and adjusted prospectively, if appropriate.
g) Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost less accumulated amortisation and accumulated
impairment losses if any, internally generated intangible assets, excluding capitalised development
costs, are not capitalised and expenditure is recognised in the statement of profit or loss when it is
incurred.
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Gains or losses arising from de-recognition 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
statement of profit or loss when the asset is derecognised.
Amortisation
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over their useful economic lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset with ä finite useful life are
reviewed at least at the end of each reporting period.
Changes in the expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset are accounted for by changing the amortisation period or method, as
appropriate, and are treated as changes in accounting estimates. The amortisation expense on
intangible assets with finite lives is recognised in the statement of profit or loss in the expense
Borrowing costs consist of interest and other costs that an entity incurs in connection with the
borrowing of funds. It also includes exchanges differences to the extent regarded as an adjustment to
the borrowing costs.
i.) Leases
Operating lease payments are recognised as an expense in the statement of profit and loss on a
straight-line basis over the lease term.
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) Inventories
Inventories are valued at the lower of cost and net realisable valu
Costs incurred in bringing each product to its present location and condition is accounted for as
follows:
Finished goods and work in progress: cost includes cost of direct materials and labour
and a
proportion of mamufacturing overheads based on the normal operating capacity, but excluding
borrowing costs. Cost is determined on First in first out (FIFO) basis.
The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an
asset's or cash-generating unit's (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets. When the
carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired
and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. In determining fair value less costs of disposal, recent market transactions
are taken into account. If no such transactions can be identified, an appropriate valuation model is
used. These calculations are corroborated by valuation multiples, quoted share prices for publicly
traded companies or other available fair value indicators.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether
there is an indication that previously recognised impairment losses no longer exist or have
decreased. If such indication exists, the Company estimates the asset's or CGU's recoverable amount.
A previously recognised impairment loss is reversed only if there has been a change in the
assumptions used to determine the asset's recoverable amount since the last impairment loss was
recognised. The reversal is limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is
recognised in the statement of profit or loss unless the asset is carried at a revalue amount, inwhi
case, the reversal is treated as a revaluation increase.
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Goodwill is tested for impairment annually and when circumstances indicate that the carrying value
may be impaired.
1) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
Financial assets
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
After initial measurement, such financial assets are subsequently measured at amortised cost using
the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included in finance income in the profit or loss. The losses arising from impairment
are recognised in the profit or loss.
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Debt instruments included within the FVTOCI category are measured initially as well as at each
reporting date at fair value. Fair value movements are recognized in the other comprehensive
income (OCI). However, the Company recognizes interest income, impairment losses & reversals and
foreign exchange gain or loss in the P&L. On de-recognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the equity to P&L. Interest earned whilst holding
FVTOCI debt instrument is reported as interest income using the EIR method.
In addition, the Company may elect to classify a debt instrument, which otherwise meets amortized
cost or FVTOCI criteria, as at FVTPL. Hovwever, such election is allowed only if doing so reduces or
eliminates a measurement or recognition inconsistency (referred to as 'accounting mismatch).
Debt instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.
Equity investments
All equity instruments in scope of Ind AS 109 are measured at fair value. Equity instruments which
are held for trading and contingent consideration recognised by an acquirer in a business
combination to which Ind AS 103 applies are classified as at FVTPL. For all other equity instruments,
the company may make an irrevocable election to present subsequent changes in the fair value in
other comprehensive income. The group makes such election on an instrument-by-instrument basis.
The classification is made on initial recognition and is irrevocable.
If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on
the instrument, excluding dividends, are recognized in the OCl. There is no recycling of the amounts
from OCI to P&L, even on sale of investment. However, the company may transfer the cumulative
gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.
De-recognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
when:
assets) is primarily derecognised (i.e. removed from the Company's standalone balance sheet)
The rights to receive cash flows from the asset have expired, or
.The Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a thitd party
under a
Company has transferred substantially all the risks
pass-through' arrangement; and either (a) the
and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred control of the asset.
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Continuing involvement that takes the form of a
the lower of the original guarantee over the transferred asset is
carrying amount of the asset and the maximum measured at
that the Company could be amount of consideration
required to repay.
Impairment of financial assets
In accordance with Ind-AS
109, the Company applies expected credit loss (ECL)
measurement and model for
recognition of impairment loss on the following financial assets and
exposure: credit risk
Financial assets that are measured at
amortised cost e.g., loans, debt securities, deposits, trade
receivables and bank balance
Financial assets that are measured as at
FVTOCI
Lease receivables under
Ind-AS 17.
Contract assets and trade receivables under
Ind-AS 18.
Loan
commitments which measured as at FVTPL.
are not
Financial guarantee contracts which are not
measured as at FVTPL
The Company follows 'simplified approach' for recognition of
Trade receivables, and impairment loss allowance on:
Security Deposits.
For recognition of impairment loss on other financial assets and
risk exposure, the Company
determines that whether there has been a
significant increase in the credit risk since initial
recognition. If credit risk has not increased significantly, 12-month ECL is used to
provide
impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.
for
If, in a
subsequent period, credit quality. of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to
impairment loss allowance based on 12-month ECL.
recognising
Lifetime ECL are the expected credit losses resulting from all
possible default events over the
expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which
results from default events on a financial instrument that are
possible within 12 months after the
reporting date.
ECL is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls).
discounted at the original EIR. When estimating the cash flows, an entity is required to consider:
All contractual terms of the financial instrument (including prepayment extension, call and similar
options) over the expected life of the financial instrument. However, in rare cases when the
expected life of the financial instrument cannot be estimated reliably, then the entity is required
to use the remaining contractual term of the financial instrument.
Cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms.
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ECL impairment loss allowance (or reversal) recognized during the
period is recognized as
income/expense in the statement of profit and loss (P&L). This amount is reflected under the head
other expenses' in the P&L. The balance sheet presentation for various financial instruments is
described below:
The balance sheet presentation for various financial instruments is described below:
a) For financial assets measured as at amortised cost and lease receivables: ECL is presented
as an allowance, i.e. as an integral part of the measurement of those assets in the balance shet.
The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the
Company does not reduce impairment allowance from the gross carrying amount.
bLoan commitments and financial guarantee contracts: ECL is presented as a provision in the
balance sheet, i.e. as a liability.
cDebt instruments measured at FVTOCI: Since financial assets are already reflected at fair
value, impairment allowance is not further reduced from its value. Rather, ECL amount is
presented as 'accumulated impairment amount' in the OCI.
For assessing increase in credit risk and impairment loss, the Company combines financial
instruments on the basis of shared credit risk characteristics with the objective of facilitating an
analysis that is designed to enable significant increases in credit risk to be identified on a timely
basis.
The Company does not have any purchased or originated credit-impaired (POC) financial assets, i.e.
financial assets which are credit impaired on purchase/ origination.
Financial liabilities
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables and loans and borrowings
including bank overdrafts.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
De-recognition
the liability is discharged or cancelled
A financial liability is derecognised when the obligation under the same lender on
or expires. When an existing
financial liability is replaced by another from
terms of an existing liability are substantially
modified, such an
substantially different terms, or the and the recognition
as the de-recognition of the original liability
exchange or modification is treated
in the statement of
the respective carrying amounts is recognised
of a new liability. The difference in
profit or loss
If the contribution
payable to the scheme for service received before the balance sheet date exceeds
the contribution
already paid, the deficit payable to the scheme is recognized as a liability after
deducting the contribution already paid. If the contribution already paid exceeds the contribution
due for services received before the balance
sheet date, then excess is recognized as an asset to the
extent that the will lead
pre-payment to, for example, a reduction in future
payment or a cash refund.
The Company operates a defined benefit
gratuity plan in India, which requires contributions to be
made to a separately administered fund. The cost of
providing benefits under the defined benefit
plan is determined using actuarial valuation at each reporting date.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset
amounts included in net interest on the net defined benefit
ceiling, excluding
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 cur. Re-measurements are not reclassified to
profit or loss in
subsequent periods.
Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-
term employee benefit. The Company measures the expected cost of such absences as the additional
amount that it expects to pay as a result of the unused entitlement that has accumulated at the
reporting date.
n.) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
The expense relating to a provision is presented in the statement of profit or loss net of any
reimbursement.
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If the effect of the time value of money is material, provisions are discounted using a current
pre-tax
rate that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost.
o.) Contingencies
A contingent liability is a possible obligation that arises from past events whose existence will be
confirmed by the ocurrence or non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized because it is not probable that
an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be
measured reliably. The company does not recognize a contingent liability but discloses its existence
in the financial statements.
The company records a provision for decommissioning costs of a leased facility. Decommissioning
costs are provided at the present value of expected costs to the settle the obligation using estimated
cash flow and recognised as part of the cost of the particular asset. The cash flow are discounted at a
current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of
the discount is expensed as incurred and recognised in the statement of profit and loss as a finance
cost. The estimated future costs of decommissioning are reviewed annually and adjusted as
appropriate. Changes in the estimated future costs or in the discount rate applied are added or
deducted from the cost of the asset.
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits with an original maturity of three months or less, which are subject to an insignificant risk
of changes in value.
For the purpose statement of cash flows, cash and cash equivalents consist of cash at bank and in
hand and short term investments with an original maturity of three months or less.
S Charred
Accouhtents
Aates
as dajustec Cnarges o expenSe or income relating to the dilutive potential
equity shares by the weighted average number of equity shares outstanding during the year as
adjusted for the effects of all dilutive potential equity shares.