Amal Ltd | Annual Report 2021-22 Note 1 Significant accounting policies (continued) The Ministry of Corporate Affairs (MCA) has amended Schedule III of the Companies Act 2013, on March 24, 2021. Schedule III of the Companies Act 2013, provides the format of financial statements of companies complyingwith Accounting Standards (AS) and Ind AS under its Division I and Division II, respectively. The MCA has notified provisions relating to CSR vide the Companies (Amendment ) Act, 2019, Companies (Amendment ) Act, 2020 and the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, which is effective from January 22, 2021. v) Recent accounting pronouncements effective from April 01, 2022: The MCA notifies new standards or amendment to the existing standards under the Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, the MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, as follows: Ind AS 16 - Property, Plant and Equipment: The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the Standalone Statement of Profit and Loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022. The Company has evaluated the amendment and there is no impact on its Standalone Financial Statements. Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets: The amendment specifies that the cost of fulfilling a contract comprises the costs that relate directly to the contract. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples may be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts (an example may be the allocation of depreciation charge for an item of property, plant and equipment used in fulfilling the contract ). The effective date for adoption of this amendment is the annual periods beginning on or after April 1, 2022, although early adoption is permitted. The Company has evaluated the amendment and the impact is not expected to be material. c) Foreign currency transactions i) Functional and presentation currency: Items included in the Standalone Financial Statements of the Company are measured using the currency of the primary economic environment inwhich the Company operates (functional currency). The Standalone Financial Statements of the Company are presented in Indian currency (`), which is also the functional currency of the Company. ii) Transactions and balances: Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gain | (loss) resulting from the settlement of such
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