Amal Ltd 2016-17

91 Notes to the Financial Statements Notes Regrouped IGAAP* Adjustments Ind AS Profit for the Year 37,189 (23,709) 13,480 Other comprehensive income 4 - 161 161 Total comprehensive income for the year 37,189 (23,548) 13,641 * The IGAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purposes of this note. v) Impact of Ind AS adoption on the statements of cash flows for the year ended March 31, 2016 ( ` 000) Notes Regrouped IGAAP* Adjustments Ind AS Net cash flow from operating activities 2,423 - 2,423 Net cash flow from investing activities (4,340) - (4,340) Net cash flow from financing activities - - - Net increase |(decrease) in cash and cash equivalents (1,917) - (1,917) Cash and cash equivalents as at April 01, 2015 2,993 - 2,993 Cash and cash equivalents as at March 31, 2016 1,076 - 1,076 * The IGAAP figures have been reclassified to confirm to Ind AS presentation requirements for the purposes of this note. C Notes to the reconciliations 1. Under previous GAAP, preference shares were shown as part of equity and carried at cost. Redeemable preference shares contain a contractual obligation to deliver cash to the holders. Under Ind AS the same is classified as liability and current portion of preference shares amounting to ` 8,617 thousand has been classified as part of other financial liability. 2. As per Modified Sanctioned Scheme (MS-10 and MS-13) approved by the Board for Industrial and Financial Reconstruction (BIFR), the Company had issued 0% redeemable Preference shares of ` 1,00,000 thousand to Atul Ltd (Promoter) and received interest free secured loan of ` 1,12,900 thousand and interest free unsecured loan of ` 53,900 thousand from Atul Ltd. Under the Previous GAAP, borrowings are measured at the transaction price. Under IND AS, the initial recognition of all financial liabilities is at fair value and subsequantly at amortised cost. As the Company has obtained interest free borrowings from the Holding company (Atul Limited) which had resulted in the fair value at initial recognition of these interest free borrowings to be lower than transaction price. This Day 1 gain has been recognised by the company as a deemed capital contribution from the holding company (Atul Ltd) under IND AS since it is a transaction with the parent in its capacity as such. Subsequently, the interest free borrowings has been recognised at amortised cost resulting in recognition of interest expense based on market rate of interest determined at inception of the transaction. The net effect of this is an increase in other equity as at March 31, 2016 of ` 112,428 thousand, increase as at April 01, 2015 of ` 135,975 thousand, and an increase in loss (finance cost) for the year ended March 31, 2016 of ` 23,548 thousand.” 3. Excise duty Under IGAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2016 by ` 26,500 thousand. There is no impact on the total equity and profit.