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Alphageo (India) Ltd. కంపెనీ అకౌంటింగ్ విధానాలు
Mar 31, 2025
1. Corporate Information
1.1 Alphageo (India) Limited (the company or AGIL) is a public limited company incorporated in the year 1987 under the provisions of erstwhile Companies Act, 1956 having its registered office at Hyderabad in the state of Telangana, India. The Equity Shares of the Company are listed with Stock Exchanges in India viz., BSE Limited, Mumbai and the National Stock Exchange of India Limited, Mumbai.
1.2 The company is providing Geophysical Seismic Data Acquisition, Processing and Interpretation Services for exploration of hydrocarbons and minerals.
1.3 These financial statements were approved and authorised for issue by the Board of Directors on May 26, 2025.
2. Basis of Preparation of financial statements
The financial statements have been prepared as a going concern on accrual basis of accounting. The company has adopted historical cost basis for assets and liabilities except for certain items which have been measured on a different basis and such basis is disclosed in the relevant accounting policy. The financial statements are presented in Indian Rupees (INR).
Compliance with Ind AS
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) Companies (Indian Accounting Standards) Rules as amended from time to time and other relevant provisions of the Act and the
guidelines issued by Securities and Exchange Board of India(SEBI).
Current and non-current classification
All assets and liabilities have been classified as current or non-current as per Company''s operating cycle and other criteria set out in Schedule-III of the Companies Act 2013. Based on the nature of business, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.
An asset is classified as current if:
(i) It is expected to be realised or sold or consumed in the company''s normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
A liability is classified as current if:
(i) It is expected to be settled in normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be settled within twelve months after the reporting period;
(iv) It has no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other assets and liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non current only.
2.1 Material accounting policies
The material accounting policies adopted in the preparation of these financial statements are detailed hereafter. These policies have been consistently applied to all the years presented, unless otherwise stated.
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.
The Chairman & Managing Director has been identified as the Chief Operating Decision Maker. Refer Note 38 for the segment information presented.
2.3 Foreign currency transactions
a) Functional and presentation currency
Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the entity operates (the functional currency''). Indian Rupees is the functional currency of the company. The financial statements and all financial information are presented in Indian rupee (INR).
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies
at year end exchange rates are generally recognised in statement of profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign currency, using the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
2.4 Use of estimates, assumptions and judgements
The preparation of financial statements in conformity with Ind AS requires management of the company to make estimates and assumptions and judgements that affect the reported amounts of assets and liabilities and disclosure of contingent assets; liabilities at the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.
Following are the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes
together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgements are:
⢠Variable consideration in accordance with Ind AS 115- Note 18(d)
⢠Estimated useful life of tangible asset -Note 2.7
⢠Estimated useful life of intangible asset - Note 2.8
⢠Estimation of expected credit loss on financial assets in accordance with Ind AS 109 - Note 32
⢠Estimation of defined benefit obligation in accordance with Ind AS 19- Note 29
⢠Estimation of recognition of deferred tax asset: Deferred tax asset (net) balances are recognised for the deductible temporary difference for which there is probability of utilisation against the future taxable profit. The company uses judgement to determine the amount of deferred tax asset that can be recognised based on likely timing and level of future taxable profits.
Sale of services - Recognition & measurement
Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those services.
Revenue from seismic data acquisition, processing and interpretation services are recognised on output basis measured by
milestones reached, units delivered, efforts expended, number of transactions processed, etc.
Revenue on time-and-material contracts are recognised as the related services are performed and revenue from the end of the last invoicing to the reporting date is recognized as unbilled revenue
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions, penalties and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.
The company disaggregates revenue from contracts with customers by geography of services provided.
Dividend income
Dividend income on investments is accounted for when the right to receive the same is established. Dividend income is included in other income in the Statement of Profit and Loss.
Interest income
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a 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 but does not consider the expected credit losses.
2.6 Leases As a lessee
The company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The company recognises a right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the company in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets are subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable.
Impairment loss, if any, is recognised in the statement of profit and loss.
The company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the company uses an incremental borrowing rate. For leases with reasonably similar characteristics, the company, on a lease-bylease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the company, exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest in the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the measurement of the
lease liability, the company recognises any remaining amount of the re-measurement in statement of profit and loss.
As a lessor
At the inception of the lease the company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.
2.7 Property, plant and equipment
i) Recognition and measurement
The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use. It also includes the initial estimate of the costs if any of dismantling and removing the item and restoring the site on which it is located. Items such as spares are capitalized when they meet the definition of property, plant and equipment. If significant parts of an item of property, plant and equipment have
different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Likewise, expenditure towards major inspections and overhauls are identified as a separate component and depreciated over the expected period till the next overhaul expenditure.
ii) Subsequent expenditure
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate in property, plant and equipment the cost of replacing part of such an item when the cost is incurred if the recognised criteria are met. The carrying amount of any component accounted for as separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
iii) Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefit is expected to arise from the continued use of the asset. 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 item) is recognised in profit and loss in the period the item is derecognised.
iv) Depreciation expense
Depreciation is charged on straight line basis so as to write off the depreciable amount of the asset over the useful lives specified in Schedule II to the Act. The useful life of the assets are periodically reviewed and re-determined based on a technical evaluation and expected use. In case
of revision in useful life of an asset, the unamortised depreciable amount is charged over the remaining useful life of such asset. The cases, where the useful life of assets so determined, considering the nature of the asset, estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc., different from the useful life as specified under Part C of Schedule II of the Act as given below:
|
Nature of asset |
Useful life |
|
Machinery in the nature of Geophone strings and cables |
5 Years |
|
Machinery in the nature of equipment used for Seismic Survey |
5 Years |
The company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.
Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ''Capital work-in-progress''
2.8 Intangible assets and amortisation
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
|
Nature of asset |
Useful life |
|
Software |
3 Years |
The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
Classification, initial recognition and measurement
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity. Financial instruments are recognized on the balance sheet when the company becomes a party to the contractual provisions of the instrument.
(i) Financial assets Classification:
The company classifies its financial assets in the following measurement categories:
⢠those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
⢠those measured at amortised cost.
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity
instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.
The company reclassifies debt investments when and only when its business model for managing those assets changes.
At initial recognition
The company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Subsequent measurement - Debt instruments
Subsequent measurement of debt instruments depends on the company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the group classifies its debt instruments:
i. At amortised cost:
Financial assets having contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding and that are held within a business model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently, these are measured at amortized cost using the effective interest method less any impairment losses.
ii. At fair value through other comprehensive income (FVOCI):
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payment of principle and interest on the principle amount outstanding and selling financial assets.
iii. At fair value through profit or loss (FVTPL):
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognised in profit or loss.
Other equity investments
All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the company has elected to present the value changes in ''Other Comprehensive Income''
Investment in subsidiaries
Investment in subsidiaries measured at cost less impairment as per Ind AS 27.
Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand, liquid investments 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 of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts considered an integral part of the company''s cash management.
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
(ii) Financial liabilities
Classification, initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or payables, as appropriate. 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, loans and borrowings including bank overdrafts.
Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Trade and other payables
Trade and other payables represent liabilities for goods and services prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12
months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
Loans and borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Derecognition of financial instruments
The company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On de-recognition of a financial asset the difference between the carrying amount and the consideration received is recognised in the statement of profit and loss.
The company derecognises financial liabilities when, and only when, the company''s obligations are discharged, cancelled or
have expired. On de-recognition of a financial liability the difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the statement of profit and loss.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realised the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.
2.10Impairment of assets Financial assets
The company assesses at each date of balance sheet impairment if any of a financial asset or a group of financial assets. The company uses, in accordance with Ind AS 109, ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL). Expected credit losses are measured through a loss allowance at an amount equal to: The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).
For trade receivables Company applies ''simplified approach'' which requires expected
lifetime losses to be recognised from initial recognition of the receivables. The company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
Non-financial assets
Property, plant and equipment and other intangible assets with definite life are evaluated for recoverability when there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and impairment loss is recognised in the profit or loss.
An equity instrument is a contract that evidences residual interests in the assets of the Company after deducting all of its liabilities. Equity instruments issued by
the company are recorded at the proceeds received, net of direct issue costs.
Stock of stores and spares is valued at lower of cost and net realisable value. Cost is determined considering the cost of purchase and other costs incurred for acquisition and on the basis of first in first out method (FIFO). Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale.
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the prevailing tax laws for the year.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the income taxes are recognised in other comprehensive income or directly in equity, respectively.
Current tax assets and current tax liabilities are presented in the statement of financial position after off-setting the taxes paid or deemed to be paid and current income tax expenses for the year.
Deferred income taxes
Deferred tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities
and their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred income tax asset is recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, the carry forward unused tax credits and the carried forward unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow total or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis
The company recognises interest related to income tax in interest expenses.
2.14Provisions, contingent liabilities and contingent asset
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 any provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as other finance expense.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence 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 measures reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.
A contingent asset is not recognised in the financial statements unless it becomes virtually certain that an inflow of economic benefits will arise and is probable. contingent liabilities and contingent assets are reviewed at each balance sheet date.
(i) Short term employee benefit obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for accumulating compensated absences not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are measured at the present value of expected future payments to be made in respect of services provided using the projected unit credit method. The benefits are discounted using the appropriate market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(iii) Post-employment obligations
The company operates the following post-employment schemes:
(a) Defined benefit plans - gratuity and;
(b) Defined contribution plans - provident fund and state insurance plans.
(a) Defined benefit plans-gratuity obligations
The liability recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and change in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in Other Comprehensive Income in the statement of changes in equity and other equity in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.
(b) Defined contribution plans
Provident fund: The company pays provident fund contributions to publicly administered funds as per local regulations. The company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense as and when they are due.
State insurance plans: Employer''s contribution to Employee State Insurance plan is charged to Statement of Profit and Loss as and when due.
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, and not distributed on or before the end of the reporting period. Dividend is recognised as a liability in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.
Basic earnings per share is calculated by dividing the profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For calculating diluted earnings per share, the profit or loss after tax for the period
attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
2.18Recent accounting pronouncements (Standards issued but not yet effective)
For the year ended March 31,2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any significant impact in its financial statements.
Mar 31, 2024
1. Corporate Information
1.1 Alphageo (India) Limited (the Company or AGIL) is a public limited company incorporated in the year 1987 under the provisions of erstwhile Companies Act, 1956 having its registered office at Hyderabad in the state of Telangana, India. The Equity Shares of the Company are listed with Stock Exchanges in India viz., BSE Limited, Mumbai and the National Stock Exchange of India Limited, Mumbai.
1.2 The Company is providing Geophysical Seismic Data Acquisition, Processing and Interpretation Services for exploration of hydrocarbons and minerals.
1.3 These financial statements were approved and authorised for issue by the Board of Directors on May 20, 2024.
2. Basis of Preparation of financial statements
The financial statements have been prepared as a going concern on accrual basis of accounting. The company has adopted historical cost basis for assets and liabilities except for certain items which have been measured on a different basis and such basis is disclosed in the relevant accounting policy. The financial statements are presented in Indian Rupees (INR).
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) Companies (Indian Accounting Standards) Rules as amended from time to time and other relevant provisions of the Act and the guidelines issued by Securities and Exchange Board of India(SEBI).
Current and non-current classification
All assets and liabilities have been classified as current or non-current as per Company''s operating cycle and other criteria set out in
Schedule-III of the Companies Act 2013. Based on the nature of business, the Company has ascertained its operating cycle as 12 months for the purpose of Current or non-current classification of assets and liabilities.
An asset is classified as current if:
(i) It is expected to be realised or sold or consumed in the Company''s normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
A liability is classified as current if:
(i) It is expected to be settled in normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be settled within twelve months after the reporting period;
(iv) It has no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other assets and liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non current only.
2.1 Material accounting policies
The Material accounting policies adopted in the preparation of these financial statements are detailed hereafter. These policies have been consistently applied to all the years presented, unless otherwise stated.
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.
The Chairman & Managing Director has been identified as the Chief Operating Decision Maker. Refer Note 39 for the segment information presented.
2.3 Foreign currency transactions
a) Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). Indian Rupees is the functional currency of the company. The financial statements and all financial information are presented in Indian rupee (INR).
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in statement of profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign currency, using the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
2.4 Use of estimates, assumptions and judgements
The preparation of financial statements in conformity with Ind AS requires management of the Company to make estimates and assumptions and judgements that affect the reported amounts of assets and liabilities and disclosure of contingent assets; liabilities at the date of the financial statements and the
results of operations during the reporting periods. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.
Following are the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgements are:
⢠Variable Consideration in accordance with Ind AS 115- Note 19(a)
⢠Estimated useful life of tangible asset -Note 2.7
⢠Estimated useful life of intangible asset - Note 2.8
⢠Estimation of expected credit loss on financial assets in accordance with Ind AS 109 - Note 33
⢠Estimation of defined benefit obligation in accordance with Ind AS 19- Note 30
⢠Estimation of Recognition of Deferred Tax Asset: Deferred Tax Asset (net) balances are recognised for the deductible temporary difference for which there is probability of utilisation against the future taxable profit. The company uses judgement to determine the amount of deferred tax asset that can be recognised based on likely timing and level of future taxable profits.
Sale of Services - Recognition & Measurement
Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those services.
Revenue from Seismic Data Acquisition, Processing and Interpretation Services are recognised on output basis measured by milestones reached, units delivered, efforts expended, number of transactions processed, etc.
Revenue on time-and-material contracts are recognised as the related services are performed and revenue from the end of the last invoicing to the reporting date is recognized as unbilled revenue.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions, penalties and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers. The Company disaggregates revenue from contracts with customers by geography of services provided.
Dividend income on investments is accounted for when the right to receive the same is established. Dividend income is included in Other Income in the Statement of Profit and Loss.
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a 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 but does not consider the expected credit losses.
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the company in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the company, exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease.
The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.
2.7 Property, plant and equipment
i) Recognition and measurement
The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use. It also includes the initial estimate of the costs if any of dismantling and removing the item and restoring the site on which it is located. Items such as spares are capitalized when they meet the definition of property, plant and equipment. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Likewise, expenditure towards major inspections and overhauls are identified as a separate component and depreciated over the expected period till the next overhaul expenditure.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate
asset, as appropriate in property, plant and equipment the cost of replacing part of such an item when the cost is incurred if the recognised criteria are met. The carrying amount of any component accounted for as separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
iii) Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefit is expected to arise from the continued use of the asset. 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 item) is recognised in profit and loss in the period the item is derecognised.
iv) Depreciation expense
Depreciation is charged on straight line basis so as to write off the depreciable amount of the asset over the useful lives specified in Schedule II to the Act. The useful life of the assets are periodically reviewed and re-determined based on a technical evaluation and expected use. In case of revision in useful life of an asset, the unamortised depreciable amount is charged over the remaining useful life of such asset. The cases, where the useful life of assets so determined, considering the nature of the asset, estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc., different from the useful life as specified under Part C of Schedule II of the Act as given below:
|
Nature of asset |
Useful life |
|
Machinery in the nature of Geophone strings and cables |
5 Years |
|
Machinery in the nature of equipment used for Seismic Survey |
5 Years |
The Company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis. Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ''Capital work-in-progress''
2.8 Intangible assets and amortisation
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
|
Nature of asset |
Useful life |
|
Software |
3 Years |
The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
2.9 Financial instrumentsClassification, initial recognition and measurement
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity. Financial instruments are recognized on the balance sheet when the Company becomes a party to the contractual provisions of the instrument.
(i) Financial assets Classification:
The Company classifies its financial assets in the following measurement categories:
⢠those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
⢠those measured at amortised cost.
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.
The Company reclassifies debt investments when and only when its business model for managing those assets changes.
The Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Subsequent measurement - Debt instruments
Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the group classifies its debt instruments:
i. At amortised cost:
Financial assets having contractual terms that give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal outstanding and that are held within a business model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently, these are measured at amortized cost using the effective interest method less any impairment losses.
ii. At fair value through other comprehensive income (FVOCI):
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payment of principle and interest on the principle amount outstanding and selling financial assets.
iii. At fair value through profit or loss (FVTPL): Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognised in profit or loss.
All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in ''Other Comprehensive Income''
Investment in subsidiaries
Investment in subsidiaries measured at cost less impairment as per Ind AS 27.
Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand, Liquid Investments 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 of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts considered an integral part of the Company''s cash management.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
(ii) Financial liabilitiesClassification, initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or payables, as appropriate. 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, loans and borrowings including bank overdrafts.
Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Trade and other payables
Trade and other payables represent liabilities for goods and services prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within
12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
Loans and borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Derecognition of financial instruments
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On de-recognition of a financial asset the difference between the carrying amount and the consideration received is recognised in the statement of profit and loss. The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. On de-recognition of a financial liability the difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the statement of profit and loss.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realised the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.
2.10 Impairment of assets Financial assets
The Company assesses at each date of balance sheet impairment if any of a financial asset or a group of financial assets. The company uses, in accordance with Ind AS 109, ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL). Expected credit losses are measured through a loss allowance at an amount equal to: The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).
For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
Non-financial assets
Property, Plant and Equipment and Other intangible assets with definite life are evaluated for recoverability when there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-inuse) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and impairment loss is recognised in the profit or loss.
2.11 Equity instruments
An equity instrument is a contract that evidences residual interests in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
2.12 Inventories
Stock of Stores and spares is valued at lower of cost and net realisable value. Cost is determined considering the cost of purchase and other costs incurred for acquisition and on the basis of first in first out method (FIFO). Net realizable value is the estimated selling price in the ordinary course of business,
less estimated cost necessary to make the sale.
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the prevailing tax laws for the year.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the income taxes are recognised in other comprehensive income or directly in equity, respectively.
Current tax assets and current tax liabilities are presented in the statement of financial position after off-setting the taxes paid or deemed to be paid and current income tax expenses for the year.
Deferred tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred income tax asset is recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, the carry forward unused tax credits and the carried forward unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow total or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax after the tax holiday period.
Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis The Company recognises interest related to income tax in interest expenses.
2.14 Provisions, contingent liabilities and contingent asset
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 any provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as other finance expense.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence 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 measures reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
A contingent asset is not recognised in the financial statements unless it becomes virtually certain that an inflow of economic benefits will arise and is probable. Contingent liabilities and contingent assets are reviewed at each balance sheet date.
(i) Short term employee benefit obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for accumulating compensated absences not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are measured at the present value of expected future payments to be made in respect of services provided using the projected unit credit method. The benefits are discounted using the appropriate market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(iii) Post-employment obligations
The Company operates the following post-employment schemes:
(a) Defined benefit plans - gratuity and;
(b) Defined contribution plans - provident fund and state insurance plans.
(a) Defined benefit plans-gratuity obligations
The liability recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and change in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in Other Comprehensive Income in the statement of changes in equity and other equity in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.
(b) Defined contribution plans
Provident fund: The Company pays provident fund contributions to publicly administered funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense as and when they are due.
State insurance plans: Employer''s contribution to Employee State Insurance
plan is charged to Statement of Profit and Loss as and when due.
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, and not distributed on or before the end of the reporting period. Dividend is recognised as a liability in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.
Basic earnings per share is calculated by dividing the profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For calculating diluted earnings per share, the profit or loss after tax for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
2.19 Recent accounting pronouncements (Standards issued but not yet effective)
No new amendments to Ind AS has been notified by the Ministry of Corporate Affairs ("MCA") during the current financial year.
Mar 31, 2023
1. Corporate Information
1.1 Alphageo (India) Limited (the Company or AGIL) is a public limited company incorporated in the year 1987 under the provisions of erstwhile Companies Act, 1956 having its registered office at Hyderabad in the state of Telangana, India. The Equity Shares of the Company are listed with Stock Exchanges in India viz., BSE Limited, Mumbai and the National Stock Exchange of India Limited, Mumbai.
1.2 The Company is providing Geophysical Seismic Data Acquisition, Processing and Interpretation Services for exploration of hydrocarbons and minerals.
1.3 These financial statements were approved and authorised for issue by the Board of Directors on May 26, 2023.
2. Basis of Preparation of financial statements
The financial statements have been prepared as a going concern on accrual basis of accounting. The company has adopted historical cost basis for assets and liabilities except for certain items which have been measured on a different basis and such basis is disclosed in the relevant accounting policy. The financial statements are presented in Indian Rupees (INR).
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) Companies (Indian Accounting Standards) Rules as amended from time to time and other relevant provisions of the Act and the guidelines issued by Securities and Exchange Board of India(SEBI).
Current and non-current classification
All assets and liabilities have been classified as current or non-current as per Company''s operating cycle and other criteria set out in Schedule-III of the Companies Act 2013. Based on the nature of business, the Company has ascertained its operating cycle as 12 months for the purpose of Current or non-current classification of assets and liabilities.
An asset is classified as current if:
(i) It is expected to be realised or sold or consumed in the Company''s normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
A liability is classified as current if:
(i) It is expected to be settled in normal operating cycle;
(ii) It is held primarily for the
purpose of trading;
(iii) It is expected to be settled within twelve months after the reporting period;
(iv) It has no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other assets and liabilities are classified as non-current. Deferred tax assets and liabilities are classified as non current only.
2.1 Significant Accounting Policies
The significant accounting policies adopted in the preparation of these financial statements
are detailed hereafter. These policies have been consistently applied to all the years presented, unless otherwise stated.
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.
The Chairman & Managing Director has been identified as the Chief Operating Decision Maker. Refer Note 39 for the segment information presented.
2.3 Foreign currency transactions
a) Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). Indian Rupees is the functional currency of the company. The financial statements and all financial information are presented in Indian rupee (INR).
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in statement of profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign currency, using the exchange rate at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
2.4 Use of estimates, assumptions and judgements
The preparation of financial statements in conformity with Ind AS requires management of the Company to make estimates and assumptions and judgements that affect the reported amounts of assets and liabilities and disclosure of contingent assets; liabilities at the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.
Following are the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgements are:
⢠Variable Consideration in accordance with Ind AS 115- Note 19(a)
⢠Estimated useful life of tangible asset - Note 2.7
⢠Estimated useful life of intangible asset - Note 2.8
⢠Estimation of expected credit loss on financial assets in accordance with Ind AS 109 - Note 33
⢠Estimation of defined benefit obligation in accordance with Ind AS 19- Note 30
⢠Estimation of Recognition of Deferred Tax Asset: Deferred Tax Asset (net) balances are recognised for the deductible temporary difference for which there is probability of utilisation against the future taxable profit. The company uses judgement to determine the amount of deferred tax asset that can be recognised based on likely timing and level of future taxable profits.
Sale of Services - Recognition & Measurement
Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those services.
Revenue from Seismic Data Acquisition, Processing and Interpretation Services are recognised on output basis measured by milestones reached, units delivered, efforts expended, number of transactions processed, etc.
Revenue on time-and-material contracts are recognised as the related services are performed and revenue from the end of the last invoicing to the reporting date is recognized as unbilled revenue.
Revenue is measured based on the transaction price, which is the consideration, adjusted for volume discounts, service level credits, performance bonuses, price concessions, penalties and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.
The Company disaggregates revenue from contracts with customers by geography of services provided.
Dividend income on investments is accounted for when the right to receive the
same is established. Dividend income is included in Other Income in the Statement of Profit and Loss.
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a 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 but does not consider the expected credit losses.
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate standalone price of the non-lease components.
The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the company in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and
adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the company, exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the
re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.
At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.
2.7 Property, Plant and Equipment
i) Recognition and measurement
The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use. It also includes the initial estimate of the costs if any of dismantling and removing the item and restoring the site on which it is located.
Items such as spares are capitalized when they meet the definition of property, plant and equipment. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Likewise, expenditure towards major inspections and overhauls are identified as a separate component and depreciated over the expected period till the next overhaul expenditure.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate in property, plant and equipment the cost of replacing part of such an item when the cost is incurred if the recognised criteria are met. The carrying amount of any component accounted for as separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefit is expected to arise from the continued use of the asset. 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 item) is recognised in profit and loss in the period the item is derecognised.
Depreciation is charged on straight line basis so as to write off the depreciable amount of the asset over the useful lives specified in Schedule II to the Act. The useful life of the assets are periodically reviewed and
re-determined based on a technical evaluation and expected use. In case of revision in useful life of an asset, the unamortised depreciable amount is charged over the remaining useful life of such asset. The cases, where the useful life of assets so determined, considering the nature of the asset, estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc., different from the useful life as specified under Part C of Schedule II of the Act as given below:
|
Nature of Asset |
Useful Life |
|
Machinery in the nature of Geophone strings and cables |
5 Years |
|
Machinery in the nature of equipment used for Seismic Survey |
5 Years |
The Company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.
Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under ''Capital work-in-progress''.
2.8 Intangible assets and amortisation
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
|
Nature of Asset |
Useful Life |
|
Software |
3 Years |
The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
2.9 Financial InstrumentsClassification, initial recognition and measurement
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity. Financial instruments are recognized on the balance sheet when the Company becomes a party to the contractual provisions of the instrument.
(i) Financial Assets Classification:
The Company classifies its financial assets in the following measurement categories:
⢠those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
⢠those measured at amortised cost.
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable selection at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.
The Company reclassifies debt investments when and only when its business model for managing those assets changes.
At initial recognition
The Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Subsequent measurement - Debt
instruments
Subsequent measurement of debt
instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the group classifies its debt instruments:
i. At amortised cost:
Financial assets having contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding and that are held within a business model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently, these are measured at amortized cost using the effective interest method less any impairment losses.
ii. At fair value through other comprehensive income (FVOCI):
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are
solely payment of principle and interest on the principle amount outstanding and selling financial assets.
iii. At fair value through profit or loss (FVTPL):
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognised in profit or loss.
All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has selected to present the value changes in ''Other Comprehensive Income''.
Investment in subsidiaries Investment in subsidiaries measured at cost less impairment as per Ind AS 27.
Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand, Liquid Investments 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 of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts considered an integral part of the Company''s cash management.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
(ii) Financial liabilitiesClassification, initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or payables, as appropriate. 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, loans and borrowings including bank overdrafts.
Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Trade and other payables represent liabilities for goods and services prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
Loans and borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred.
Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Derecognition of financial instruments
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On de-recognition of a financial asset the difference between the carrying amount and the consideration received is recognised in the statement of profit and loss.
The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. On de-recognition of a financial liability the difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the statement of profit and loss.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realised the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.
2.10 Impairment of Assets Financial assets
The Company assesses at each date of balance sheet impairment if any of a financial asset or a group of financial assets. The company uses, in accordance with Ind AS 109, ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL). Expected credit losses are measured through a loss allowance at an amount equal to: The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).
For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
Property, Plant and Equipment and Other intangible assets with definite life are
evaluated for recoverability when there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and impairment loss is recognised in the profit or loss.
An equity instrument is a contract that evidences residual interests in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Stock of Stores and spares is valued at lower of cost and net realisable value. Cost is determined considering the cost of purchase and other costs incurred for acquisition and on the basis of first in first out method (FIFO). Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale.
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the prevailing tax laws for the year.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the income taxes are recognised in other comprehensive income or directly in equity, respectively.
Current tax assets and current tax liabilities are presented in the statement of financial position after off-setting the taxes paid or deemed to be paid and current income tax expenses for the year.
Deferred tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred income tax asset is recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, the carry forward unused tax credits and the carried forward unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow total or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax after the tax holiday period.
Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.
The Company recognises interest related to income tax in interest expenses.
2.14 Provisions, contingent liabilities and contingent asset
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 any provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as other finance expense.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence 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 measures reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
A contingent asset is not recognised in the financial statements unless it becomes virtually certain that an inflow of economic benefits will arise and is probable. Contingent liabilities and contingent assets are reviewed at each balance sheet date.
(i) Short term employee benefit obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for accumulating compensated absences not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are measured at the present value of expected future payments to be made in respect of services provided using the projected unit credit method. The benefits are discounted using the appropriate market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(iii) Post-employment obligations
The Company operates the following postemployment schemes:
(a) Defined benefit plans - gratuity and;
(b) Defined contribution plans - provident fund and state insurance plans.
(a) Defined benefit plans-Gratuity obligations
The liability recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and change in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in Other Comprehensive Income in the statement of changes in equity and other equity in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.
(b) Defined contribution plans
Provident Fund: The Company pays provident fund contributions to publicly administered funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense as and when they are due.
State Insurance Plans: Employer''s contribution to Employee State Insurance plan is charged to Statement of Profit and Loss as and when due.
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, and not distributed on or before the end of the reporting period. Dividend is recognised as a liability in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.
Basic earnings per share is calculated by dividing the profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For calculating diluted earnings per share, the profit or loss after tax for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
All amounts disclosed in the standalone financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
2.19 Recent accounting pronouncements (Standards issued but not yet effective)
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1,2023, as below:
Ind AS 1 - Presentation of Financial Statements
The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to
influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.
The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.
Mar 31, 2018
1.1 Significant Accounting Policies
The significant accounting policies adopted in the preparation of these financial statements are detailed hereafter. These policies have been consistently applied to all the years presented, unless otherwise stated.
1.2 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chairman & Managing Director has been identified as the Chief Operating Decision Maker. Refer Note 36 for the segment information presented.
1.3 Foreign currency transactions
a) Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (âthe functional currencyâ). Indian Rupees is the functional currency of the company. The financial statements and all financial information is presented in Indian rupee (INR).
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised in statement of profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign currency, using the exchange rate at the date of the transaction. Nonmonetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.
1.4 Use of estimates, assumptions and judgements
The preparation of financial statements in conformity with Ind AS requires management of the Company to make estimates and assumptions and judgements that affect the reported amounts of assets and liabilities and disclosure of contingent assets; liabilities at the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon managementâs best knowledge of current events and actions, actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.
Following are the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgements are:
- Estimated useful life of tangible asset - Note 2.7
- Estimation of defined benefit obligation - Note 16
- Estimation of expected credit loss on financial assets - Note 30
1.5 Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates, value added taxes, goods and service tax (GST) and amounts collected on behalf of third parties.
Revenue is recognised when the amount of revenue can be reliably measured: probable that future economic benefits will flow to the entity and specific criteria for each of the activities as described below has been met.
Sale of Services - Recognition & Measurement
Revenue recognition is based on the terms and conditions as per the contracts entered into / understanding with the customers. All revenues from services, rendered, are recognised when persuasive evidence of an arrangement exists, the consideration is fixed or determinable and collectability is reasonably assured. Revenue is reported net of incentives, discounts based on the terms of the contract and applicable indirect taxes.
Liquidated damages and penalties are accounted as per the contract terms wherever there is a delay / default attributable to the Company and when there is a reasonable certainty with which the same can be estimated.
Dividend Income
Dividend income on investments is accounted for when the right to receive the same is established. Dividend income is included in Other Income in the Statement of Profit and Loss.
Interest Income
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a 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 but does not consider the expected credit losses.
1.6 Leases
As a lessee
Leases of property, plant and equipment where the company, as lessee, has substantially owns all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the leaseâs inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding lease obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating leases.
Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessorâs expected inflationary cost increases.
As a lessor
Lease income from operating leases where the company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.
1.7 Property, Plant and Equipment
i) Recognition and measurement
The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use. It also includes the initial estimate of the costs if any of dismantling and removing the item and restoring the site on which it is located. Items such as spares are capitalized when they meet the definition of property, plant and equipment. If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Likewise, expenditure towards major inspections and overhauls are identified as a separate component and depreciated over the expected period till the next overhaul expenditure.
ii) Subsequent expenditure
Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future economic benefits from the existing asset beyond its previously assessed standard of performance/life. All other expenses on existing property, plant and equipment, including day-to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.
iii) Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefit is expected to arise from the continued use of the asset. 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 item) is recognised in profit and loss in the period the item is derecognised.
iv) Depreciation expense
Depreciation is charged on straight line basis so as to write off the depreciable amount of the asset over the useful lives specified in Schedule II to the Act. The useful life of the assets are periodically reviewed and re-determined based on a technical evaluation and expected use. In case of revision in useful life of an asset, the unamortised depreciable amount is charged over the remaining useful life of such asset. The cases, where the useful life of assets so determined, considering the nature of the asset, estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc., different from the useful life as specified under Part C of Schedule II of the Act as given below:
The Company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.
1.8 Intangible assets and amortisation
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.
The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.
1.9 Financial Instruments
Classification, initial recognition and measurement
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument for another entity. Financial instruments are recognized on the balance sheet when the Company becomes a party to the contractual provisions of the instrument.
(i) Financial Assets
Classification:
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
- those measured at amortised cost.
The classification depends on the entityâs business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.
The Company reclassifies debt investments when and only when its business model for managing those assets changes.
At initial recognition
The Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Subsequent measurement - Debt instruments
Subsequent measurement of debt instruments depends on the Companyâs business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the group classifies its debt instruments:
i. At amortised cost:
Financial assets having contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding and that are held within a business model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently, these are measured at amortized cost using the effective interest method less any impairment losses.
ii. At fair value through other comprehensive income (FVOCI):
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payment of principle and interest on the principle amount outstanding and selling financial assets.
iii. At fair value through profit or loss (FVTPL):
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognised in profit or loss.
Other Equity Investments
All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in âOther Comprehensive Incomeâ.
Investment in subsidiaries
Investment in subsidiaries measured at cost less impairment as per Ind AS 27.
Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks, cash 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 of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts considered an integral part of the Companyâs cash management.
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
(ii) Financial liabilities
Classification, initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or payables, as appropriate. 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 Companyâs financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.
Subsequent measurement
Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Trade and other payables
Trade and other payables represent liabilities for goods and services prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
Loans and borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Derecognition of financial instruments
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On de-recognition of a financial asset the difference between the carrying amount and the consideration received is recognised in the statement of profit and loss.
The Company derecognises financial liabilities when, and only when, the Companyâs obligations are discharged, cancelled or have expired. On de-recognition of a financial liability the difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in the statement of profit and loss.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.
1.10 Impairment of Assets
Financial assets
The Company assesses at each date of balance sheet impairment if any of a financial asset or a group of financial assets. The company uses, in accordance with Ind AS 109, âExpected Credit Lossâ (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL). Expected credit losses are measured through a loss allowance at an amount equal to: The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).
For trade receivables Company applies âsimplified approachâ which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.
For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
Non-financial assets
Property, Plant and Equipment and Other intangible assets with finite life are evaluated for recoverability when there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount and impairment loss is recognised in the profit or loss.
1.11 Equity instruments
An equity instrument is a contract that evidences residual interests in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
1.12 Borrowing costs
Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to make it ready for its intended use.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
1.13 Inventories
Stock of Stores and spares is valued at lower of cost and net realisable value. Cost is determined considering the cost of purchase and other costs incurred for acquisition and on the basis of first in first out method (FIFO). Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost necessary to make the sale.
1.14 Tax expenses
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the prevailing tax laws for the year.
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the income taxes are recognised in other comprehensive income or directly in equity, respectively.
Current tax assets and current tax liabilities are presented in the statement of financial position after off-setting the taxes paid or deemed to be paid and current income tax expenses for the year.
Deferred income taxes
Deferred tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred income tax asset is recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, the carry forward unused tax credits and the carried forward unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow total or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax after the tax holiday period.
Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis
The Company recognises interest related to income tax in interest expenses.
1.15 Provisions, contingent liabilities and contingent asset
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 any provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as other finance expense.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence 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 measures reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
A contingent asset is not recognised in the financial statements unless it becomes virtually certain that an inflow of economic benefits will arise and is probable. Contingent liabilities and contingent assets are reviewed at each balance sheet date.
1.16 Employee benefits
(i) Short term employee benefit obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employeesâ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for accumulating compensated absences not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are measured at the present value of expected future payments to be made in respect of services provided using the projected unit credit method. The benefits are discounted using the appropriate market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
(iii) Post-employment obligations
The Company operates the following postemployment schemes:
(a) Defined benefit plans - gratuity and;
(b) Defined contribution plans - provident fund and state insurance plans.
(a) Defined benefit plans-Gratuity obligations
The liability recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligations at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and change in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in Other Comprehensive Income in the statement of changes in equity and other equity in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.
(b) Defined contribution plans
Provident Fund: The Company pays provident fund contributions to publicly administered funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense as and when they are due.
State Insurance Plans: Employerâs contribution to Employee State Insurance plan is charged to Statement of Profit and Loss as and when due.
1.17 Dividends
Provision is made for the amount of any dividend declared, being appropriately authorized and no longer at the discretion of the entity, and not distributed on or before the end of the reporting period. Proposed dividend is recognised as a liability in the period in which it is approved by shareholders in a general meeting or in the period in which it is paid.
1.18 Earnings per share
Basic earnings per share is calculated by dividing the profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For calculating diluted earnings per share, the profit or loss after tax for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
1.19 Recent accounting pronouncements
Ind AS 115- Revenue from Contract with Customers:
On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers.
The standard permits two possible methods of transition:
- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors
- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.
The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The effect on adoption of Ind AS 115 is expected to be insignificant.
Ind AS 21-The effect of changes in exchange rates:
On March 28,2018, Ministry of Corporate Affairs (âMCAâ) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from 1st April, 2018. The effect on adoption of Ind AS 21 is expected to be insignificant.
Mar 31, 2016
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of preparation
The financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on an accrual basis in compliance with all material aspects of the Accounting Standards specified under Section 133 of the Companies Act, 2013 ("the Act"), read with Rule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Institute of Chartered Accountants of India and the relevant provisions of the Act and also the guidelines issued by the Securities and Exchange Board of India (SEBI).
The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. The financial statements are presented in Indian rupees rounded off to the nearest rupee.
All assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in Schedule III to the Act. Being service provider, the Company has assumed its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.
B. Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amounts of revenues and expenses for the year. Although these estimates are based upon managementâs best knowledge of current events and actions, actual results could differ from these estimates. Difference between actual results and estimates are recognized in the period in which the results are known / materialized and the difference is classified in statement of Profit and Loss using the same classification as was used previously for the estimate.
C. Tangible assets and depreciation
i) Tangible fixed assets are stated at historical cost less accumulated depreciation thereon and impairment losses, if any. Historical cost is inclusive of freight, duties and taxes and incidental expenses related to acquisition.
ii) Depreciation is charged on straight line basis so as to write off the depreciable amount of the asset over the useful lives specified in Schedule II to the Act. The useful life of the assets are periodically reviewed and re-determined based on a technical evaluation and expected use and the unamortized depreciable amount is charged over the remaining useful life of such assets. In certain cases, the useful life of assets so determined being different from the useful life as specified under Part C of Schedule II of the Act, are as given below:
D. Intangible assets and amortization
Cost relating to an acquired Intangible asset is being capitalized and being amortized over the period of its estimated useful life.
E. Impairment of assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of amortized historical cost.
F. Foreign exchange transactions
Transactions in Foreign Exchange, other than those covered by forward contracts are accounted for at the exchange rate prevailing on the date of transactions. Exchange differences arising on foreign currency transactions settled during the year are recognized in the Statement of Profit and Loss.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date other than those covered by forward contracts are translated at the yearend rates. The resultant exchange differences are recognized in the Statement of Profit and Loss. Non-monetary assets and liabilities are recorded at the rates prevailing on the date of the transaction.
G. Investments
i. Investments that are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.
ii. Current investments are carried at lower of cost and fair value determined on individual investment basis.
iii. Long-term investments are carried at cost of acquisition. Provision is made for diminution, other than temporary, in the value of investments.
iv. 0n disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.
H. Inventories
Stock of Stores is valued at lower of cost and net realizable value. Cost is determined considering the cost of purchase and other costs incurred for acquisition and on the basis of first in first out method (FIF0).
I. Taxes on income
i. Tax expenses is the aggregate of current income tax, MAT credit entitlement/utilization and deferred income tax charge / (credit) for the year.
ii. Current income tax:
The provision for taxation is based on assessable profits of the Company as determined under the Income Tax Act, 1961. The Company also provides for such disallowances made on completion of assessment pending appeals, as considered appropriate depending on the merits of each case.
iii. Deferred income tax:
Deferred income taxes are recognized for the future tax consequences attributable to timing differences between the financial statement determination of income and their recognition for tax purposes. The effect on deferred tax assets and liabilities of a change in tax rates is recognized using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty or virtual certainty, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
iv. Minimum Alternate Tax (MAT) Credit:
MAT credit is recognized, as an Asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the Minimum Alternative tax (MAT) credit becomes eligible to be recognized as an asset in accordance with the recommendation contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the Statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.
J. Proposed dividend
Proposed Dividend as proposed by the Board of Directors is provided in the books of account, pending approval at the Annual General Meeting.
K. Leases
Lease of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognized as an expense on straight line basis over the period of lease.
L. Borrowing costs
Borrowing costs attributable to the acquisition of qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use. 0ther borrowing costs are recognized as expense for the period.
M. Earnings per share
i) The basic earnings per share (EPS) is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
ii) For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
N. Employee benefits
Defined contribution plans:
Provident Fund: Contribution to Provident Fund is made at the prescribed rates to the Employees Provident Fund Scheme by the Central Government and is charged to the Statement of Profit and Loss
Defined benefit plans:
i) Gratuity: The Company makes contribution to a scheme administered by the Life Insurance Corporation of India (''LICâ) to discharge its gratuity liabilities to the employees. Annual contribution to the fund as determined by the LIC is expensed in the year of contribution. The shortfall between the accumulated funds available with LIC and liability as determined on the basis of an actuarial valuation using projected unit credit method is provided for at the year end. The Actuarial gains/losses are immediately taken to Statement of Profit and Loss.
ii) Leave encashment: The Company records its unveiled leave liability based on actuarial valuation using projected unit credit method. Short term employee benefits
Short term employee benefits are recognized as an expense as per the Companyâs scheme based on expected obligation on undiscounted basis.
State Plans: Employerâs contribution to Employeeâs State Insurance is charged to Statement of Profit and Loss.
O. Revenue recognition
Revenue from services is recognized as per the terms of the contracts with customers when the related services are performed or the agreed milestones are achieved.
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
Dividend on investments is recognized as and when the right to receive the same is established.
P. Provisions, Contingent liabilities and Contingent assets
Provision, involving substantial degree of estimation in measurement, are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities, which are possible or present obligations that may but probably will not require outflow of resources, are not recognized but are disclosed in the explanatory information to the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.
Q. Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and
Mar 31, 2015
A. Basis of preparation
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on an accrual basis in compliance with all material
aspects of the Accounting Standards specified under Section 133 of the
Companies Act, 2013 ("the Act"), read with Rule 7 of the Companies
(Accounts) Rules, 2014, other pronouncements of the Institute of
Chartered Accountants of India and the relevant provisions of the Act
and also the guidelines issued by the Securities and Exchange Board of
India (SEBI).
The accounting policies have been consistently applied by the Company
and are consistent with those used in the previous year. The financial
statements are presented in Indian rupees rounded off to the nearest
rupee.
All assets and liabilities have been classified as current or
non-current as per the company's normal operating cycle and other
criteria set out in Schedule III to the Act. Being service provider,
the company has assumed its operating cycle as 12 months for the
purpose of current/non-current classification of assets and
liabilities.
B. Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities on the date of
financial statements and reported amounts of revenues and expenses for
the year. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between actual results and estimates
are recognized in the period in which the results are known /
materialized and the difference is classified in statement of Profit
and Loss using the same classification as was used previously for the
estimate.
C. Tangible assets and depreciation
i) Tangible fixed assets are stated at historical cost less accumulated
depreciation thereon and impairment losses, if any. Historical cost is
inclusive of freight, duties and taxes and incidental expenses related
to acquisition.
ii) Depreciation is charged on straight line basis so as to write off
the depreciable amount of the asset over the useful lives specified in
Schedule II to the Act. The useful life of the assets are periodically
reviewed and re-determined based on a technical evaluation and expected
use and the unamortized depreciable amount is charged over the
remaining useful life of such assets. In certain cases, the useful life
of assets so determined being different from the useful life as
specified under Part C of Schedule II of the Act, are as given below:
Nature of Asset Useful Life
Machinery in the nature of Geophone strings and cables 5 Years
Machinery in the nature of equipment used for Seismic Survey 5 Years
D. Intangible assets and amortization
Cost relating to an acquired Intangible asset is being capitalized and
being amortized over the period of its estimated useful life.
E. Impairment of assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the statement of profit and loss. If at the balance sheet
date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
amortized historical cost.
F. Foreign exchange transactions
Transactions in Foreign Exchange, other than those covered by forward
contracts are accounted for at the exchange rate prevailing on the date
of transactions. Exchange differences arising on foreign currency
transactions settled during the year are recognized in the Statement of
Profit and Loss.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date other than those covered by forward contracts
are translated at the yearend rates. The resultant exchange differences
are recognized in the Statement of Profit and Loss.
Non-monetary assets and liabilities are recorded at the rates
prevailing on the date of the transaction.
G. Investments
i. Investments that are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments.
ii. Current investments are carried at lower of cost and fair value
determined on individual investment basis.
iii. Long-term investments are carried at cost of acquisition.
Provision is made for diminution, other than temporary, in the value of
investments.
iv. On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
Statement of Profit and Loss.
H. Inventories
Stock of Stores and spares is valued at lower of cost and net
realizable value. Cost is determined considering the cost of purchase
and other costs incurred for acquisition and on the basis of first in
first out method (FIFO).
I. Employee stock option scheme
In accordance with the Securities and Exchange Board of India
guidelines, the excess of the market price of the shares, at the date
of grant of option under the employee stock option scheme, over the
exercise price is treated as employee compensation and the same is
being amortized over the vesting period of the stock options.
J. Taxes on income
i. Tax expenses is the aggregate of current income tax, MAT credit
entitlement/utilization and deferred income tax charge / (credit) for
the year.
ii. Current income tax:
The provision for taxation is based on assessable profits of the
company as determined under the Income Tax Act, 1961. The Company also
provides for such disallowances made on completion of assessment
pending appeals, as considered appropriate depending on the merits of
each case.
iii. Deferred income tax:
Deferred income taxes are recognized for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes. The
effect on deferred tax assets and liabilities of a change in tax rates
is recognized using the tax rates and tax laws that have been enacted
or substantively enacted by the balance sheet date. Deferred tax assets
are recognized and carried forward only to the extent that there is a
reasonable certainty or virtual certainty, as the case may be, that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
iv. Minimum Alternate Tax (MAT) Credit:
MAT credit is recognized, as an Asset only when and to the extent there
is convincing evidence that the Company will pay normal income tax
during the specified period, in the year in which the Minimum
Alternative tax (MAT) credit becomes eligible to be recognized as an
asset in accordance with the recommendation contained in Guidance Note
issued by the Institute of Chartered Accountants of India, the said
asset is created by way of a credit to the Statement of profit and loss
and shown as MAT Credit Entitlement. The Company reviews the same at
each balance sheet date and writes down the carrying amount of MAT
Credit Entitlement to the extent there is no longer convincing evidence
to the effect that Company will pay normal Income Tax during the
specified period.
K. Proposed dividend
Proposed Dividend as proposed by the Board of Directors is provided in
the books of account, pending approval at the Annual General Meeting.
L. Leases
Lease of assets under which all the risks and rewards of ownership are
effectively retained by the lessor are classified as operating leases.
Lease payments under operating leases are recognized as an expense on
straight line basis over the period of lease.
M. Borrowing costs
Borrowing costs attributable to the acquisition of qualifying asset are
capitalized as part of cost of such asset till such time as the asset
is ready for its intended use. Other borrowing costs are recognized as
expense for the period.
N. Earnings per share
i) The basic earnings per share (EPS) is calculated by dividing the net
profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
ii) For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of equity shares outstanding during the year
are adjusted for the effects of all dilutive potential equity shares.
O. Employee benefits
Defined contribution plans:
Provident Fund: Contribution to Provident Fund is made at the
prescribed rates to the Employees Provident Fund Scheme by
the Central Government and is charged to the Statement of Profit and
Loss
Defined benefit plans:
i) Gratuity: The Company makes contribution to a scheme administered by
the Life Insurance Corporation of India ('LIC') to discharge major part
of its gratuity liabilities to the employees. Annual contribution to
the fund as determined by the LIC is expensed in the year of
contribution. The shortfall between the accumulated funds available
with LIC and liability as determined on the basis of an actuarial
valuation using projected unit credit method is provided for at the
year end. The Actuarial gains/losses are immediately taken to
Statement of Profit and Loss.
ii) Leave encashment: The company records its unveiled leave liability
based on actuarial valuation using projected unit credit method.
Short term employee benefits
Short term employee benefits are recognized as an expense as per the
company's scheme based on expected obligation on undiscounted basis.
State Plans: Employer's contribution to Employee's State Insurance is
charged to Statement of Profit and Loss.
P. Revenue recognition
Revenue from services is recognized as per the terms of the contracts
with customers when the related services are performed or the agreed
milestones are achieved.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend on investment is recognized as and when the right to receive
the same is established.
Q. Provisions, Contingent liabilities and Contingent assets
Provision, involving substantial degree of estimation in measurement,
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities, which are possible or present obligations that
may but probably will not require outflow of resources, are not
recognized but are disclosed in the explanatory information to the
financial statements. Contingent Assets are neither recognized nor
disclosed in the financial statements.
R. Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
Mar 31, 2014
A. Basis of preparation
The financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on an accrual basis to comply in all material respects
with the notified Accounting Standards by the Companies (Accounting
Standards) Rules, 2006 (as amended), other pronouncements of the
Institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 1956 and also the guidelines issued by the
Securities and Exchange Board of India (SEBI). The accounting policies
have been consistently applied by the Company and are consistent with
those used in the previous year. The financial statements are presented
in Indian rupees rounded off to the nearest rupee.
All assets and liabilities have been classified as current or
non-current as per the company''s normal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
Being service provider, the company has assumed its operating cycle as
12 months for the purpose of current/non-current classification of
assets and liabilities.
B. Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities on the date of
financial statements and reported amounts of revenues and expenses for
the year. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between actual results and estimates
are recognised in the period in which the results are
known/materialised.
C. Fixed assets and depreciation
i) Fixed Assets are stated at cost of acquisition inclusive of inland
freight, duties and taxes and incidental expenses related to
acquisition.
ii) Depreciation of Fixed Assets is being provided under Straight Line
Method prorata at the rates mentioned below:
a) Machinery in the nature of Geophone strings and cables @ 19.00% per
annum.
b) Machinery in the nature of equipment used for 3D Seismic Survey @
19.00% per annum
c) In case of all other assets at the rates specified in Schedule XIV
of the Companies Act, 1956.
D. Intangible assets and amortisation
Cost relating to Intangible assets, which are acquired, are capitalised
and amortised over the period of 3 years, which is based on their
estimated useful life.
E. Impairment of assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognised in the statement of profit and loss. If at the balance sheet
date there is an indication that if a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
amortised historical cost.
F. Foreign exchange transactions
Transactions in Foreign Exchange, other than those covered by forward
contracts are accounted for at the exchange rate prevailing on the date
of transactions. Exchange differences arising on foreign currency
transactions settled during the year are recognised in the Statement of
Profit and Loss.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date other than those covered by forward contracts
are translated at the year end rates. The resultant exchange
differences are recognised in the Statement of Profit and Loss.
Non-monetary assets and liabilities are recorded at the rates
prevailing on the date of the transaction.
G. Investments
i. Investments that are readily realisable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments.
ii. Current investments are carried at lower of cost and fair value
determined on individual investment basis.
iii. Long-term investments are carried at cost of acquisition.
Provision is made for decline, other than temporary, in the value of
investments.
iv. On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
H. Inventories
Stock of Stores and spares is valued at lower of cost and net
realisable value. Cost is determined considering the cost of purchase
and other costs incurred for acquisition and on the basis of first in
first out method (FIFO).
I. Employee stock option scheme
In accordance with the Securities and Exchange Board of India
guidelines, the excess of the market price of the shares, at the date
of grant of option under the employee stock option scheme, over the
exercise price is treated as employee compensation and the same is
amortised over the vesting period of the stock options.
J. Taxes on income
i. Tax expenses is the aggregate of current income tax and deferred
income tax charge / (credit) for the year.
ii. Current income tax:
The provision for taxation is based on assessable profits of the
company as determined under the Income Tax Act, 1961. The Company also
provides for such disallowances made on completion of assessment
pending appeals, as considered appropriate depending on the merits of
each case.
iii. Deferred income tax:
Deferred income taxes are recognised for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes. The
effect on deferred tax assets and liabilities of a change in tax rates
is recognised in income using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax assets are recognised and carried forward only to the extent that
there is a reasonable certainty or virtual certainty, as the case may
be, that sufficient future taxable income will be available against
which such deferred tax assets can be realised.
iv. Minimum Alternate Tax (MAT) Credit:
MAT credit is recognised, as an Asset only when and to the extent there
is convincing evidence that the Company will pay normal income tax
during the specified year. In the year in which the Minimum Alternative
tax (MAT) credit becomes eligible to be recognised as an asset in
accordance with the recommendation contained in Guidance Note issued by
the Institute of Chartered Accountants of India, the said asset is
created by way of a credit to the Statement of profit and loss and
shown as MAT Credit Entitlement. The Company reviews the same at each
balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extent there is no longer convincing evidence to the
effect that Company will pay normal Income Tax during the specified
period.
K. Proposed dividend
Proposed Dividend as proposed by the Board of Directors is provided in
the books of account, pending approval at the Annual General Meeting.
L. Leases
Lease of assets under which all the risks and rewards of ownership are
effectively retained by the lessor are classified as operating leases.
Lease payments under operating leases are recognised as an expense on
straight line basis over the period of lease.
M. Borrowing costs
Borrowing costs attributable to the acquisition of qualifying asset are
capitalised as part of cost of such asset till such time as the asset
is ready for its intended use. Other borrowing costs are recognised as
expense for the period.
N. Earnings per share
i) The basic earnings per share (EPS) is calculated by dividing the net
profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
ii) For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of equity shares outstanding during the year
are adjusted for the effects of all dilutive potential equity shares.
O. Employee benefits
Defined contribution plans:
Provident Fund: Contribution to Provident Fund is made at the
prescribed rates to the Employees Provident Fund Scheme by the Central
Government and is charged to the Statement of Profit and Loss Defined
benefit plans:
i) Gratuity: The Company makes contribution to a scheme administered by
the Life Insurance Corporation of India (''LIC'') to discharge gratuity
liabilities to the employees. Annual contribution to the fund as
determined by the LIC is expensed in the year of contribution. The
shortfall between the accumulated funds available with LIC and
liability as determined on the basis of an actuarial valuation is
provided for at the year end. The Actuarial gains/losses are
immediately taken to Statement of Profit and Loss.
ii) Leave encashment: The company records its unavailed leave liability
based on actuarial valuation using projected unit credit method.
Short term employee benefits
Short term employee benefits are recognised as an expense as per the
company''s scheme based on expected obligation on undiscounted basis.
State Plans: Employer''s contribution to Employee''s State Insurance is
charged to Statement of Profit and Loss.
P. Revenue recognition
Revenue from services is recognised as per the terms of the contracts
with customers when the related services are performed or the agreed
milestones are achieved.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Q. Provisions, Contingent liabilities and Contingent assets
Provision, involving substantial degree of estimation in measurement,
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources,
Contingent Liabilities, which are possible or present obligations that
may but probably will not require outflow of resources, are not
recognised but are disclosed in the explanatory information to the
financial statements. Contingent Assets are neither recognised nor
disclosed in the financial statements.
R. Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
Mar 31, 2012
A. Accounting Convention:
The financial statements are prepared under historical cost convention
on the accrual basis of accounting in accordance with generally
accepted accounting principles in India and the Accounting Standards
notified under the Companies Act, 1956.
B. Fixed Assets and Depreciation
i) Fixed Assets are stated at cost of acquisition inclusive of inland
freight, duties and taxes and incidental expenses related to
acquisition.
ii) Depreciation on Fixed Assets is being provided under Straight Line
Method prorata at the rates mentioned below:
a) Machinery in the nature of Geophone strings and cables @ 19.00% per
annum.
b) Machinery in the nature of equipment used for 3D Seismic Survey @
19.00% per annum
c) In case of all other assets at the rates specified in Schedule XIV
of the Companies Act, 1956.
C. Intangible Assets and Amortisation
Cost relating to Intangible assets, which are acquired, are capitalised
and amortised over the period of 3 years, which is based on their
estimated useful life.
D. Foreign Exchange Transactions
Transactions in Foreign Exchange, other than those covered by forward
contracts are accounted for at the exchange rate prevailing on the date
of transactions. Exchange differences arising on foreign currency
transactions settled during the year are recognised in the Statement of
Profit and Loss.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date other than those covered by forward contracts
are translated at the year end rates. The resultant exchange
differences are recognised in the Statement of Profit and Loss.
Non-monetary assets and liabilities are recorded at the rates
prevailing on the date of the transaction.
E. Investments
i. Investments are classified into Current and Long-term investments.
ii. Current investments are valued at lower of cost and fair value.
iii. Long-term investments are valued at cost of acquisition. Provision
is made for decline, other than temporary, in the value of investments.
iv. On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
F. Inventories:
i. Stock of Stores and spares is valued at lower of cost and net
realisable value. Cost is determined considering the cost of purchase
and other costs incurred for acquisition and on the basis of first in
first out method (FIFO)
ii. Stationery, medical and mess expenses are charged off to the
revenue at the time of purchase.
G. Employee Stock Option Scheme
In accordance with the Securities and Exchange Board of India
guidelines, the excess of the market price of the shares, at the date
of grant of option under the employee stock option scheme, over the
exercise price is treated as employee compensation and the same is
amortised over the vesting period of the stock options.
H. Taxes on Income:
i. Provision for Taxation is the aggregate of current income tax,
deferred income tax charge / (credit) for the year.
ii. Current Income Tax:
The provision for taxation is based on assessable profits of the
Company as determined under the Income Tax Act, 1961. The Company also
provides for such disallowances made on completion of assessment
pending appeals, as considered appropriate depending on the merits of
each case.
iii. Deferred Income Tax
Deferred Income taxes are recognised for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes. The
effect on deferred tax assets and liabilities of a change in tax rates
is recognised in income using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax assets are recognised and carried forward only to the extent that
there is a reasonable certain or virtually certain, as the case may be,
that sufficient future taxable income will be available against which
such deferred tax assets can be realised.
I. Proposed Dividend:
Proposed Dividend as proposed by the Board of Directors is provided in
the books of account, pending approval at the Annual General Meeting.
J. Leases:
Lease of assets under which all the risks and rewards of ownership are
effectively retained by the lessor are classified as operating leases.
Lease payments under operating leases are recognised as an expense on
straight line basis over the period of lease.
K. Borrowing Costs:
Borrowing costs are attributable to the acquisition of qualifying asset
are capitalised as part of cost of such asset till such time as the
asset is ready for its intended use. Other borrowing costs are
recognised as expense for the period.
L. Earnings Per Share:
i) Basic earnings per share are calculated considering the weighted
average number of equity shares outstanding during the year.
ii) Diluted earnings per share is calculated considering the effects of
potential equity shares on net profits after tax for the year and
weighted average number of equity shares outstanding during the year.
M. Employee Benefits
Defined contribution plans:
Provident Fund: Contribution to Provident Fund is made at the
prescribed rates to the Employees Provident Fund Scheme by the Central
Government and is charged to the Statement of Profit and Loss
Defined benefit plans:
i) Gratuity: The Company makes contribution to a scheme administered by
the Life Insurance Corporation of India ('LIC') to discharge gratuity
liabilities to the employees. Annual contribution to the fund as
determined by the LIC is expensed in the year of contribution. The
shortfall between the accumulated funds available with LIC and
liability as determined on the basis of an actuarial valuation is
provided for at the year end. The Actuarial gains/losses are
immediately taken to Statement of Profit and Loss.
ii) Leave encashment: The Company records its unavailed leave liability
based on actuarial valuation using projected unit credit method. Short
term employee benefits
Short term employee benefits are recognised as an expense as per the
Company's scheme based on expected obligation on undiscounted basis.
State Plans: Employer's contribution to Employee's State Insurance is
charged to Statement of Profit and Loss.
N. Contingent liabilities
These are disclosed by way of Notes on the Balance sheet. Provision is
made in the accounts in respect of those contingencies which are likely
to materialise into liability after the year end, till the finalisation
of accounts and have material effect on the position stated in the
Balance Sheet.
O. Provisions
A provision is recognised when there is a present obligation as a
result of past event. It is probable that an outflow of resources will
be required to settle the obligation and in respect of which a reliable
estimate can be made. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.
P. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known/materialised.
Q. Cash and Cash Equivalents:
Cash and cash equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
Mar 31, 2010
A. Accounting Convention
The financial statements are prepared under historical cost convention
on the accrual basis of accounting in accordance with generally
accepted accounting principles in India and the Accounting Standards
notified under the Companies Act, 1956.
B. Fixed Assets and Depreciation
i) Fixed Assets are stated at cost of acquisition inclusive of inland
freight, duties and taxes and incidental expenses related to
acquisition.
ii) Depreciation on Fixed Assets is being provided under Straight Line
Method prorata at the rates mentioned below:
a) Machinery in the nature of Geophone strings and cables @ 19.00% per
annum.
b) Machinery in the nature equipment used for 3D Seismic Survey @
19.00% per annum
c) In case of all other assets at the rates specified in Schedule XIV
of the Companies Act, 1956.
C. Foreign Exchange Transactions
Transactions in foreign exchange, other than those covered by forward
contracts are accounted for at the exchange rate prevailing on the date
of transactions. Exchange differences arising on foreign currency
transactions settled during the year are recognised in the Profit and
Loss Account.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date other than those covered by forward contracts
are translated at the year end rates. The resultant exchange
differences are recognised in the profit and loss account.
Non-monetary assets and liabilities are recorded at the rates
prevailing on the date of the transaction.
D. Investments
i. Investments are classified into current and long term investments.
ii. Current investments are valued at lower of cost and fair value
iii. Long-term investments are valued at cost of acquisition.
Provision is made for decline, other than temporary, in the value of
investments
E. Inventories
i. Stock of Stores and spares is valued at lower of cost and net
realisable value. Cost is determined considering the cost of purchase
and other costs incurred for acquisition and on the basis of first in
first out method (FIFO)
ii. Stationery, medical and mess expenses are charged off to the
revenue at the time of purchase.
F. Employee Stock Option Scheme
In accordance with the Securities and Exchange Board of India
guidelines, the excess of the market price of the shares, at the date
of grant of option under the employee stock option scheme, over the
exercise price is treated as employee compensation and the same is
amortised over the vesting period of the stock options.
G. Taxes on Income
i. Provision for Taxation is the aggregate of current income tax,
deferred income tax charge / (credit) for the year.
ii. Current Income Tax:
The provision for taxation is based on assessable profits of the
Company as determined under the Income Tax Act, 1961. The Company also
provides for such disallowances made on completion of assessment
pending appeals, as considered appropriate depending on the merits of
each case.
iii. Deferred Income Tax
Deferred Income taxes are recognised for the future tax consequences
attributable to timing differences between the financial statement
determination of income and their recognition for tax purposes. The
effect on deferred tax assets and liabilities of a change in tax rates
is recognised in income using the tax rates and tax laws that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax assets are recognised and carried forward only to the extent that
there is a reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realised.
H. Proposed Dividend
Proposed dividend as proposed by the Board of Directors is provided in
the books of account, pending approval at the Annual General Meeting.
I. Leases
Lease of assets under which all the risks and rewards of ownership are
effectively retained by the lesser, are classified as operating leases.
Lease payments under operating leases are recognised as an expense on a
straight line basis over the period of lease.
J. Borrowing Costs
Borrowing costs are attributable to the acquisition of qualifying asset
are capitalised as part of cost of such asset till such time as the
asset is ready for its intended use. Other borrowing costs are
recognised as expense for the period.
K. Earnings Per Share
i. Basic earnings per share are calculated considering the weighted
average number of equity shares outstanding during the year.
ii. Diluted earnings per share is calculated considering the effects of
potential equity shares on net profits after tax for the year and
weighted average number of equity shares outstanding during the year.
L. Employee Benefits
Defined Contribution Plans:
Provident Fund: Contribution to Provident Fund is made at the
prescribed rates to the Employees Provident Fund Scheme by the Central
Government and is charged to the Profit and Loss Account.
Defined Benefit Plans:
i. Gratuity: The Company makes contribution to a scheme administered by
the Life Insurance Corporation of India (ÃLICÃ) to discharge gratuity
liabilities to the employees. Annual contribution to the fund as
determined by the LIC is expensed in the year of contribution. The
shortfall between the accumulated funds available with LIC and
liability as determined on the basis of an actuarial valuation is
provided for at the year end. The Actuarial gains/losses are
immediately taken to profit and loss account.
ii. Leave encashment: The Company records its unavailed leave
liability based on actuarial valuation using projected unit credit
method.
Short-term Employee Benefits
Short term employee benefits are recognised as an expense as per the
CompanyÃs scheme based on expected obligation on undiscounted basis.
State Plans: EmployerÃs contribution to EmployeeÃs State Insurance is
charged to Profit and Loss Account.
M. Contingent Liabilities
These are disclosed by way of notes on the Balance Sheet. Provision is
made in the accounts in respect of those contingencies which are likely
to materialise into liability after the year end, till the finalization
of accounts and have material effect on the position stated in the
Balance Sheet.
N. Provisions
A provision is recognised when there is a present obligation as a
result of past event. It is probable that an outflow of resources will
be required to settle the obligation and in respect of which a reliable
estimate can be made. These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.
O. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known/materialised.
Mar 31, 2000
A. FIXED ASSETS AND DEPRECIATION :
i) Fixed Assets are stated at cost of acquisition inclusive of inland
freight, duties and taxes and incidental expenses related to
acquisition.
ii) Depreciation has been provided on fixed assets under Straight Line
Method at the rates specified in Schedule XIV of the Companies Act,
1956.
iii) Gain or loss on translation and reduced gain or loss on foreign
exchange transactions in respect of liabilities incurred to acquire
fixed assets are adjusted to carrying cost of fixed assets.
b. FOREIGN EXCHANGE TRANSACTIONS :
Transactions in foreign exchange, other than those covered by forward
contracts, are accounted for at the exchange rate prevailing on the
date of transactions. Assets and Liabilities remaining unsettled at the
end of the year other than those covered by forward contracts are
translated at the year end rate except in respect of disputed items.
Realised gains and losses on foreign exchange transactions other than
those relating to fixed assets are recognised in the Profit and Loss
Account. Gain or Loss on translation and reduced gain or loss in
respect of liabilities incurred to acquire fixed assets are adjusted to
the carrying cost of fixed assets.
c. RETIREMENT BENEFITS :
i) Accruing liability towards Gratuity is provided on the basis of
acturial valuation made by an independent actuary.
ii) Contribution to provident fund and statutory funds are being
accounted on accrual basis.
iii) Leave encashment benefits are provided in the books as per
companys rules.
d. INVENTORIES :
i. Cost of stores and spares is determined on the basis of First in
First Out method. (FIFO) ii. Stationery, Medical, Mess, and Stores are
charged off to the revenue at the time of purchase.
e. MISCELLANEOUS EXPENDITURE :
Preliminary expenses and public issue expenses are being written off
over a period of 10 years from the year in which the company commences
the commercial operations or from the year in which the shares are
allotted as the case may be. Accordingly, in the current accounting
year 10% of the said expenditures have been written off.
f. REVENUE RECOGNITION :
Interest on arrears of allotment money from allottees of the shares is
accounted for on cash basis on account of uncertainity of its
collection.
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మరింత సమాచారం Alphageo (India) Ltd.
-
Alphageo (India) Ltd. టూల్స్
- బల్క్ డీల్స్
- బ్లాక్ డీల్స్
-
Alphageo (India) Ltd. కంపెనీ వివరాలు
- కంపెనీ ప్రొఫైల్
- కంపెనీ చరిత్ర
- నిర్వహణ బృందం
- క్యాపిటల్ స్ట్రక్చర్
- ప్రొడక్ట్ మిక్స్
- బ్యాంకర్/ఆడిటర్/రిజిస్ట్రార్
-
కంపెనీ చరిత్ర
- బిఎస్ఇ ధర చరిత్ర
- ఎన్ఎస్ఇ ధర చరిత్ర
-
Alphageo (India) Ltd. ముఖ్య ఆర్థిక నిష్పత్తులు
- నిష్పత్తులు
-
Alphageo (India) Ltd. ఫలితాలు
- క్వార్టర్లీ ఫలితాలు
- హాఫ్ ఇయర్లీ ఫలితాలు
- 9నెలల ఫలితాలు
- వార్షిక ఫలితాలు
-
Alphageo (India) Ltd. ఆర్థిక డేటా
- ఆడిట్ ఫలితాలు
- క్యాష్ ఫ్లో
- బ్యాలెన్స్ షీట్
-
Alphageo (India) Ltd. నివేదికలు
- అకౌంటింగ్ విధానాలు
- ఆడిటర్స్ నివేదిక
- డైరక్టర్స్ నివేదిక
- ఖాతాకు గమనికలు
-
Alphageo (India) Ltd. కార్పొరేట్ ప్రకటనలు
- బుక్ క్లోజర్
- డివిడెండ్
- బోర్డు సమావేశాలు
-
భారత స్టాక్ మార్కెట్లు పతనం.. చమురు ధరలు పెరగడంతో కుప్పకూలిన మార్కెట్ -
ఇరాన్ యుద్ధంతో స్టాక్ మార్కెట్లో భయాందోళన..728 పాయింట్లు పడిపోయిన గిఫ్ట్ నిఫ్టీ.. భారీగా పెరిగిన ఇండియా VIX.. -
Stock market: స్టాక్ మార్కెట్ ఇన్వెస్టర్లకు అలర్ట్.. సోమవారం భారీ పతనం తప్పదా? -
Sensex today: సెన్సెక్స్ సంచలనం: 20 నిమిషాల్లో 900 పాయింట్లు జంప్.. కారణం ఇదే! -
BSE: స్టాక్ మార్కెట్లో సరికొత్త ట్రెండ్.. సెన్సెక్స్లోనే కాకుండా ఇకపై వీటిలోనూ ట్రేడింగ్ చేయెచ్చు! -
మూడో రోజూ కుప్పకూలిన స్టాక్ మార్కెట్..రికార్డు కనిష్టానికి రూపాయి.. పెట్టుబడిదారుల్లో తీవ్ర ఆందోళన.. -
కుప్పకూలిన ఆసియా స్టాక్ మార్కెట్.. దెబ్బకు దక్షిణ కొరియా మార్కెట్లో నిలిచినపోయిన ట్రేడింగ్.. -
భారీ నష్టాలతో ప్రారంభమైన భారత స్టాక్ మార్కెట్..రూ. 9 లక్షల కోట్ల నష్టం.. సెన్సెక్స్, నిఫ్టీ పతనం.. -
Iran Israel war: ఇరాన్-ఇజ్రాయెల్ యుద్ధం! భారత ఆర్థిక వ్యవస్థకు, స్టాక్ మార్కెట్లకు ముప్పు తప్పదా? -
Buy or Sell: ఇరాన్-ఇజ్రాయెల్ యుద్ధం: మార్కెట్ పడినా లాభాలు ఇచ్చే 3 కీలక స్టాక్స్ ఇవే! -
స్టాక్ మార్కెట్లో భారీ కుదుపు: ఒక్క రోజులో రూ.4 లక్షల కోట్ల ఇన్వెస్టర్ల సంపద ఆవిరి -
Sensex: ఐటీ షేర్ల దెబ్బకు విలవిలలాడిన మార్కెట్.. పతనానికి ప్రధాన కారణాలివే! -
Stock market: భారీగా పతనమైన స్టాక్ మార్కెట్! ఇప్పట్లో కోలుకుంటుందా? నిపుణులు ఏమంటున్నారు? -
కుప్పకూలిన స్టాక్ మార్కెట్..భారీగా పతనమైన ఐటీ కంపెనీల షేర్లు.. కారణం ఏంటంటే.. -
Silver ETF: భారీగా తగ్గిన వెండి ధరలు.. కొత్తగా కొనేవారికి ఇదే మంచి ఛాన్స్? -
ట్రంప్ టారిఫ్ కట్.. స్టాక్ మార్కెట్ సునామి..పెట్టుబడిదారులకు కాసుల పంట..
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