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ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ JK Tyre & Industries Ltd.
Mar 31, 2026
1.1 The Company overview:
JK Tyre & Industries Limited (JKTIL) is a public limited Company
incorporated and domiciled in India and its shares are publicly
traded on the National Stock Exchange (''NSE'') and the Bombay
Stock Exchange (''BSE'') in India. The registered office of the
Company is situated at Jaykaygram, PO - Tyre Factory, Kankroli -
313 342, Rajasthan, India.
JKTIL develops, manufactures, markets and distributes
automotive Tyres, Tubes, Flaps and Retreads. The Company
sells its Tyres to vehicle manufacturers for fitment in original
equipment and in replacement markets worldwide. The
Company has nine manufacturing plants located in Rajasthan,
Madhya Pradesh, Tamil Nadu, Karnataka and Uttarakhand.
These financial statements were approved and adopted by
board of directors of the Company in their meeting held on
26th May, 2026.
1.2 Basis of preparation and measurement of financial
statements:
The financial statements have been prepared in accordance
with Indian Accounting Standards (Ind AS) as prescribed under
Section 133 of the Companies Act, 2013 read with Companies
(Indian Accounting Standards) Rules 2015, as amended from
time to time and other relevant provisions of the Companies Act,
2013. All accounting policies and applicable IND AS have been
applied consistently for all periods presented.
The functional currency of the Company is Indian rupee ('').
The financial statements have been prepared under historical
cost convention on accrual basis, except for the items that have
been measured at fair value as required by relevant Ind AS. The
financial statements correspond to the classification provisions
contained in Ind AS-1 (Presentation of Financial Statements).
The preparation of these financial statements requires
management judgements, estimates and assumptions that
affect the application of accounting policies, the accounting
disclosures made and the reported amounts of assets,
liabilities, income, and expenses. Estimates and underlying
assumptions are reviewed on a periodic basis. Revisions to
accounting estimates are recognised in the period in which
the estimates are revised if the revision affects only that period
of revision and future periods also if the revisions affects both
current and future periods.
(i) Property, plant and equipment:
a) Property, plant and equipment are measured at
cost less accumulated depreciation and impairment
losses, if any. Cost includes expenses directly
attributable to bringing the asset to the location and
condition necessary for it to be capable of operating
in the manner intended by management.
Expenditure during construction/erection period
is included under capital work-in-progress, which
is allocated to the respective property, plant and
equipment on completion of construction/erection.
b) Depreciation on property, plant and equipment
(including Continuous Process Plants considered
on technical evaluation) has been provided using
Straight line method over their useful lives and in
the manner prescribed under Schedule II of the
Companies Act, 2013. However, in respect of certain
property, plant and equipment, depreciation is
provided as per their useful lives as assessed by the
management supported by technical advice ranging
from 15 to 35 years for plant and machinery and 15
to 70 years for buildings. Accelerated depreciation
in respect of a production accessory is provided
over 6 years.
The carrying amount is eliminated from the financial
statements, upon sale and disposition of the assets
and the resultant gains or losses are recognised in the
statement of profit and loss.
(ii) Lease:
a) The Company, as a lessee, at the inception of contract,
assesses whether the contract is a lease or not. If yes,
the contract conveys in favour of the Company, the
right to control the use of an identified asset for a
period of time in exchange for consideration.
The right-of-use assets are initially recognized at
cost, which comprises of the initial amount of the
lease liability adjusted for any lease payments
made at or prior to the commencement date of
the lease plus any initial direct costs less any lease
incentives. In the Balance Sheet, Right-of-use Assets
are presented under respective items of Property,
Plant and Equipment or Investment Property, as the
case may be. The lease liability is initially measured at
amortized cost at the present value of the future lease
payments. The lease payments are discounted using
the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing
rates of the Lessee. In addition, the carrying amount
of lease liabilities and right-of-use assets are re¬
measured if there is a modification, a change in the
lease term, a change in the lease payments (e.g.,
changes to future payments resulting from a change
in an index or rate used to determine such lease
payments) or a change in the assessment of an option
to purchase the underlying asset.
b) Depreciation on Right-of-use Asset has been provided
using Straight line method over their useful lives or
lease period, whichever is lower. Interest Expense
on Lease Liabilities are provided using discount rate
used to determine Lease Liabilities. Depreciation and
Interest expenses are recognised in the Statement of
Profit and Loss.
c) For short-term leases and leases for which, the
underlying asset value is low, right-of-use assets
and lease liabilities are not recognised. The
lease payments associated with these leases are
recognised as expense over the lease term.
d) The Company, as a lessor, recognises lease payments
from operating leases as income on straight-line basis
over the lease term. The Company has recognised
costs, including depreciation, incurred in earning the
lease income as an expense.
(iii) Inventories:
Inventories are valued at lower of cost and net realisable
value. However, materials and other supplies held for use
in production of inventories are not written down below
cost, if the finished goods are expected to be sold at or
above cost. The cost is computed on weighted average
basis. Finished Goods, Traded Goods and Process Stock
include cost of purchase, cost of conversion and other
costs incurred in bringing the inventories to their present
location and condition. Slow-moving and obsolete items
based upon technical evaluation are provided for.
(iv) Employee benefit:
Employee benefits include wages & salaries, provident
fund, superannuation fund, employee state insurance
scheme, gratuity fund and compensated absences, etc.
(a) Defined-contribution plans
Contributions to the employees'' regional provident
fund, superannuation fund, Employees'' Pension
Scheme and Employees'' State Insurance are
recognised as defined contribution plan and
charged as expenses during the period in which the
employees perform the services.
(b) Defined-benefit plans
Retirement benefits in the form of Gratuity and
Leave Encashment are considered as defined benefit
plan and determined on actuarial valuation using
the Projected Unit Credit Method at the balance
sheet date. Actuarial Gains or Losses through re¬
measurement of the net obligation of a defined
benefit liability or asset is recognised in Other
Comprehensive Income. Such re-measurements
are not reclassified to Statement of Profit and Loss in
subsequent periods.
The Provident Fund Contribution other than
contribution to Employees'' Regional Provident Fund,
is made to trust administered by the trustees. The
interest rate to the members of the trust shall not be
lower than the statutory rate declared by the Central
Government under Employees'' Provident Fund and
Miscellaneous Provision Act, 1952. The Employer shall
make good deficiency, if any.
(c) Short term employee benefits
Short term benefits are charged off at the
undiscounted amount in the year in which the related
service is rendered.
(v) Income tax:
Income tax is comprised of current and deferred tax.
Income tax expense is recognised in the Statement of Profit
and Loss, except to the extent it relates to items directly
recognised in equity or in other comprehensive income.
recognition, are held to collect contractual
cash flows of principal and interest on principal
amount outstanding on specified dates, as
well as held for selling. Therefore, they are
subsequently measured at each reporting
date at fair value, with all fair value movements
recognised in Other Comprehensive Income
(OCI). Interest income calculated using the
effective interest rate (EIR) method on time
proportionate basis, impairment loss or
gain and foreign exchange loss or gain are
recognised in the Statement of Profit and Loss.
On derecognition of the asset, cumulative
gain or loss previously recognised in Other
Comprehensive Income is reclassified from the
OCI to Statement of Profit and Loss.
⢠Financial assets at fair value through profit or
loss: At the date of initial recognition, financial
assets are held for trading, designated financial
assets to be valued through profit or loss or
which are measured neither at Amortised Cost
nor at Fair Value through OCI. Therefore, they
are subsequently measured at each reporting
date at fair value, with all fair value movements
recognised in the Statement of Profit and
Loss. Dividend income on equity shares is
recognised when the right to receive payment
is established, which becomes certain after
shareholders'' approval. Interest and Dividend
Income as well as fair value changes are
disclosed separately in the Statement of Profit
& Loss.
I nvestment in Equity shares of subsidiaries and
associates are valued at cost.
The Company derecognises a financial asset when
the contractual rights to the cash flows from the
financial asset expires or it transfers the financial asset
and the transfer qualifies for derecognition under Ind
AS 109. Upon derecognition the difference between
the carrying amount of a financial asset derecognised
and the sum of the consideration received and
receivable and the cumulative gain or loss that had
been recognised in other comprehensive income
and accumulated in equity is recognised in the
Statement of Profit and Loss.
(a) Current tax: Current Tax is the amount of tax payable
on the estimated taxable income for the current year
as per the provisions of Income Tax Act, 1961.
(b) Deferred tax: Deferred tax liabilities are generally
recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for
all deductible temporary differences, unabsorbed
losses and unabsorbed depreciation to the extent,
it is probable that taxable income will be available
against which the same can be realised. Deferred tax
assets are reviewed at the end of each subsequent
reporting period.
(vi) Financial Instruments:
A financial instrument is any contract that gives rise to a
financial asset of one entity and a financial liability or equity
instrument of another entity.
(a) Financial assets
Financial assets include cash and cash equivalents,
trade and other receivables, investments in securities
and other eligible current and non-current assets.
At initial recognition, all financial assets are measured
at fair value. However, trade receivables that do
not contain a significant financing component are
measured at transaction price. The fi nancia l assets a re
subsequently classified under one of the following
three categories according to the purpose for which
they are held. The classification is reviewed at the end
of each reporting period.
⢠Financial assets at amortised cost: At the
date of initial recognition, are held to collect
contractual cash flows of principal and interest
on principal amount outstanding on specified
dates. These financial assets are intended to
be held until maturity. Therefore, they are
subsequently measured at amortised cost
by applying the Effective Interest Rate (EIR)
method to the gross carrying amount of the
financial asset. The EIR amortisation is included
as interest income in the profit or loss on time
proportionate basis. The losses arising from
impairment are recognised in the profit or loss.
⢠Financial assets at fair value through other
comprehensive income: At the date of initial
The Company assesses impairment based on the
expected credit losses (ECL) model to all its financial
assets measured at amortised cost. ECL is the
difference between all contractual cash flows that are
due to the Company in accordance with the contract
and all the cash flows that entity expects to receive
(i.e. all cash shortfalls) discounted at original effective
interest rate. Impairment loss allowance (or reversal)
for the period is recognised in the Statement of Profit
and Loss.
(b) Financial liabilities
Financial liabilities include long-term and short-term
loans and borrowings, trade and other payables and
other eligible current and non-current liabilities.
All financial liabilities are recognised initially at
fair value and, in the case of loans and borrowings
and other payables, net of directly attributable
transaction costs. After initial recognition, financial
liabilities are classified under one of the following
two categories:
⢠Financial liabilities at amortised cost: After
initial recognition, such financial liabilities
are subsequently measured at amortised
cost by applying the Effective Interest Rate
(EIR) method to the gross carrying amount of
the financial liability. The EIR amortisation is
included in finance expense in the Statement
of Profit or Loss.
⢠Financial liabilities at fair value through profit
or loss: which are designated as such on initial
recognition, or which are held for trading. Fair
value gains/ losses attributable to changes
in own credit risk is recognised in OCI. These
gains/losses are not subsequently transferred
to Statement of Profit and Loss. All other
changes in fair value of such liabilities are
recognised in the Statement of Profit and Loss.
The Company derecognises a financial liability when
the obligation specified in the contract is discharged,
cancelled or expired. The difference between the
carrying amount of a financial liability derecognised
and the sum of consideration paid and payable is
recognised in Statement of Profit and Loss as other
income or finance costs/ other expenses.
(vii) Derivative financial instruments:
Derivative instruments such as forward currency contracts,
interest rate swaps and option contracts are used to
hedge foreign currency risks and interest rate risk. Such
derivatives are initially recognised at their fair values on the
date on which a derivative contract is entered into and are
subsequently re-measured at fair value on each reporting
date. Any gains or losses arising from changes in the fair
value of derivatives are taken directly to Statement of Profit
and Loss. Derivatives are carried as financial assets when
the fair value is positive and as financial liabilities when the
fair value is negative.
(viii) Compulsorily Convertible Debentures - Compound
Financial Instruments:
Compulsorily Convertible Debentures (CCDs) are treated as
compound financial instruments and these are separated
into liability and equity components based on the terms
of the contract. At the inception of the CCDs, the following
two elements are separated: (a) a liability component
arising from the interest payments, if any; and (b) an equity
component representing the delivery of fixed number of
equity shares in future. On issuance of the CCDs, the fair
value of the liability portion is determined using a market
interest rate for an equivalent non-convertible debt. This
amount is recorded as a liability on an amortised cost
basis, till its conversion into equity or payment, whichever
is earlier. The remainder of the proceeds is attributable to
the equity portion of the compound instrument and is not
subsequently remeasured. In addition, the component
classified as equity shall remain in equity till its conversion.
Transaction costs are apportioned between the liability and
equity components of the CCDs based on the allocation of
proceeds to the liability and equity components when the
instruments are initially recognised.
(ix) Revenue:
Revenue is recognised upon transfer of control of
promised goods or services to customers at transaction
price (net of taxes and duties), arrived at by determining
the consideration received or receivable after adjusting
returns, allowances, trade discounts, volume discounts etc.
in exchange of goods or services.
For applying above principle, the Company adopts five
step model, which are: a) Identify the contract(s) with
customer(s); b) Identify the performance obligations
under the contract(s); c) Determine the transaction price;
d) Allocate the transaction price to the performance
obligations in the contract(s); e) recognise revenue, when
or as the entity satisfies a performance obligation.
Contract Liabilities are recognised when there is an entity''s
obligation to transfer goods or services to a customer for
which, the entity has received consideration from the
customer. Revenue in excess of invoicing are classified as
contract assets.
Sale of Goods:
Revenue from the sale of goods is recognised at the point
in time, when control is transferred to the customer.
Interest Income:
Interest income is recognized on time proportion basis
using the effective interest method.
Dividend income:
Dividend income is recognized when the right to receive
payment is established, which becomes certain after
shareholders'' approval.
(x) Business Combination
Business combinations involving entities or businesses
under common control are accounted for using the
"pooling of interests method". Assets, liabilities and
reserves of the transferor entity are recognised at their
carrying amounts as appearing in the books of the
transferor. The difference between the consideration
paid and the net assets acquired is recognised in equity as
Capital Reserve.
Business Combinations which are other than under
common control, are accounted for using the acquisition
method. The cost of acquisition is measured at the
aggregate of the fair values at the date of exchange of
assets given, liabilities incurred or assumed and equity
instruments issued by the Company in exchange for control
of the acquiree. The acquiree''s identifiable assets, liabilities
and contingent liabilities that meet the recognition criteria
are stated at their fair values at the acquisition date except
certain assets and liabilities required to be measured as per
the applicable standard.
The interest of non-controlling shareholders in the
acquiree is initially measured at the non-controlling
shareholders'' proportionate share of the acquiree''s
identifiable net assets.
Transaction costs related to such combinations are
recognised in the Statement of Profit and Loss as incurred.
(xi) Grants:
Grants and subsidies from the Government are recognised
when there is reasonable assurance that the grant/
subsidy will be received and all attaching conditions
will be complied with. Revenue Grants are recognised in
the Statement of Profit and Loss. Capital Grants relating
to specific assets are recognised in the Balance Sheet by
deducting the grant from carrying amount of the asset and
depreciation is charged on reduced carrying value of asset.
Export incentives are recognised in the Statement of Profit
and Loss.
(xii) Impairment:
The carrying amounts of Property, plant and equipment,
Intangible assets, Investment property and Investments
are reviewed at each Balance Sheet date to assess
impairment if any, based on internal/external factors. An
asset is treated as impaired, when the carrying cost of asset
exceeds its recoverable value, being higher of value in use
and net selling price. An impairment loss is recognised as
an expense in the Statement of Profit and Loss in the year
in which an asset is identified as impaired. The impairment
loss recognised in prior accounting period is reversed, if
there has been an improvement in recoverable amount.
(i) Rupee Term Loan of ''231.06 crores and ''10.97 crores from Banks and Foreign Currency Loan of ''59.91 crores (including ''27.05 crores due
to forex reinstatement) from a Financial Institution aggregating to ''301.94 crores, secured by a first pari passu charge on movable and
immovable assets at a Company''s Plant in Tamil Nadu, both present and future and also secured by way of hypothecation on the specified
movable assets at Company''s Plants in Madhya Pradesh and Karnataka are repayable in 30, 6 and 8 equal quarterly instalments respectively.
(ii) Rupee Term Loan of ''178.00 crores from a Bank, secured by a first pari passu charge on movable and immovable assets at a Company''s
Plant in Tamil Nadu, both present and future is repayable in 30 quarterly instalments.
(iii) Rupee Term Loan of ''174.88 crores (out of which ''95.93 crores temporarily converted into Foreign Currency Loan) from Banks and ''106.20
crores from Financial Institution respectively aggregating to ''281.08 crores, secured by a first pari passu charge created on movable and
immovable assets at a Company''s Plant in Madhya Pradesh, both present and future is repayable in 36 equal quarterly instalments.
(iv) Foreign Currency Loan of '' 203.66 crores (including ''10.12 crores due to forex reinstatement) and ''149.88 crores (including ''6.90 crores
due to forex reinstatement) from Global Financial Institutions aggregating to '' 353.54 crores, secured by a first pari passu charge on
movable and immovable assets at a Company''s Plant in Madhya Pradesh (excluding those specifically charged to other banks), both
present and future are repayable in 19 bi-annual equal instalments commencing from March, 2028 and 18 bi-annual unequal instalments
commencing from May, 2028 respectively.
(v) Rupee Term Loan of '' 39.58 crores from a Bank, secured by a first pari passu charge on movable fixed assets at a Company''s Plant in Madhya
Pradesh (excluding those specifically charged to other banks), both present and future is repayable in 10 equal quarterly instalments.
(vi) Rupee Term Loan of '' 66.67 crores from a Bank, secured by a first pari passu charge on movable fixed assets at a Company''s Plant in
Karnataka (excluding those specifically charged to other banks), both present and future is repayable in 16 equal quarterly instalments.
(vii) Rupee Term Loan of '' 30.94 crores from a Financial Institution, secured by specific charge over the moveable fixed assets at a Company''s
Plant in Karnataka, both present and future is repayable in 40 equal quarterly instalments commencing from September, 2028.
(viii) Rupee Term Loan of ''30.00 crores from a Bank, secured by a first pari passu charge over the moveable fixed assets at a Company''s Plant
in Rajasthan, both present and future and is repayable in 24 equal quarterly instalments commencing from December, 2026.
(ix) Rupee Term Loans aggregating to '' 816.61 crores from Banks and Foreign Currency Loans of ''438.65 crores (including ''35.89 crores due
to forex reinstatement) from a Global Financial Institution aggregating to ''1255.26 crores are secured with first pari passu charge on
movable and immovable assets at Company''s plants in Uttrakhand, both present & future;
Foreign Currency Term Loans from Global Financial Institution aggregating to ''438.65 crores are repayable in 19 un-equal bi-annual
instalments commencing from March, 2028 and Rupee Term Loans from Banks aggregating to ''796.40 crores are repayable in 18 to 35
unequal quarterly instalments; Rupee term loan amounting to ''20.21 crores from a bank is repayable in 30 equal quarterly instalments.
(x) Rupee Term Loan of ''6.25 crores from banks are secured by subservient charge created on current assets and movable fixed assets at
Company''s plants in Uttrakhand, both present and future. Further, the term loan will be fully repaid by July, 2026.
(xi) Above Term Loans from (i) to (x) carrying first pari passu charge on the movable and immovable assets, are subject to prior charge of banks
on stocks and book debts for working capital borrowings.
(xii) Fixed Deposits of ''20.98 crores, ''15.69 crores and ''7.98 crores (aggregating ''44.65 crores) are due for repayment in 2026-27, 2027-28 and
2028-29 respectively.
Note - 32
Estimated amounts of contracts remaining to be executed on capital account ''771.35 crores (Previous year: ''719.85 crores).
Note - 33
The Company imported certain equipment under Export Promotion Capital Goods (EPCG) Scheme at a concessional custom duty resulting in
cumulative savings of ''108.24 crores (Previous year: ''99.26 crores), against which export obligation fulfilled till 31st March, 2026 ''35.26 crores
(Previous year: ''23.45 crores). Balance obligation yet to be fulfilled is ''72.98 crores (Previous year: ''75.81 crores).
Note - 34
Contingent liabilities in respect of claims not accepted and not provided for ''309.94 crores (Previous year: ''384.75 crores) pertaining to matters
in appeal for Excise, Customs duty & GST ''161.32 crores, Service tax ''4.93 crore, Income tax matters ''27.45 crores & others matters ''116.24 crores
(Previous year: ''237.32 crores, ''4.93 crores, ''27.45 crores & ''115.05 crores respectively).
Note - 35
The Competition Commission of India ("CCI") on 2nd February, 2022 had released an Order dated 31st August, 2018 for alleged contravention
of provisions of the Competition Act, 2002 against the Company, certain other Tyre manufacturers and Automotive Tyre Manufacturers
Association. CCI had imposed a penalty of '' 309.95 crores on the Company. The Company had filed an Appeal before the Hon''ble National
Company Law Appellate Tribunal (NCLAT) against the said CCI Order. The NCLAT, through an order dated 1st December, 2022, has disposed of
the aforementioned appeal, after taking note of the multiple errors in the said CCI Order dated 31st August, 2018, and remanded the matter
back to the CCI, to re-examine the matter on merits and also to consider reviewing the penalty (if violation is established) in accordance with
the provisions of the Competition Act. CCI has since filed an appeal before Hon''ble Supreme Court of India against NCLAT order dated 1st
December 2022. Based on legal advice, the Company continues to believe that it has a strong case, and accordingly, no provision has been
made in the accounts. The Company strongly reiterates that there has been no wrongdoing on the part of the Company and reassures all
the stakeholders that the Company has never indulged in or was part of any cartel or undertook any anti-competitive practices.
Note - 40
Debts/Advances include ''84.04 crores (Previous year ''79.90 crores) for which legal and other necessary action has been taken.
Note - 41
In respect of certain disallowances and additions made by the Income Tax Authorities, appeals are pending before the Appellate Authorities
and adjustment, if any, will be made after the same are finally determined.
Note - 42
The details of amounts outstanding under the Micro, Small and Medium Enterprises Development Act, 2006 to the extent of information
available with the Company are as under:
Principal & Interest amount due and remaining unpaid as at 31.03.2026: Nil (Previous year: Nil), (ii) Payment made beyond the appointed day
during the year: Nil (Previous year: Nil) and (iii) Interest Accrued and unpaid as at 31.03.2026: Nil (Previous year: Nil).
Note - 43
The Company has borrowings from Banks and Financial Institutions on the basis of securities of Current Assets. It has also filed the quarterly
statements of current assets with all consortium banks and Financial Institutions during the year and these statements agree with the salient
relevant items of books of account of the Company.
Note - 44
a) The Company has utilised the borrowings received from banks and financial institutions for the purpose for which it was taken during
the year.
b) I n the FY 2024, the Company had raised ''491.60 crores (net of share issue expenses) through Qualified Institutional Placement of
1,44,92,749 equity shares of ''2 each at a premium of ''343 per share. The same have been fully utilised for the purpose it was intended for.
Note - 48 Business Combination
The Board of Directors at its meeting held on 16th September, 2024, approved the Scheme of Amalgamation of Cavendish Industries Ltd. ("CIL"),
a subsidiary, with the Company. The Appointed Date of the Scheme was 1st April 2025. The Scheme was approved by the Hon''ble National
Company Law Tribunal, Jaipur ("the Tribunal") vide its Order dated 20th November, 2025, the certified copy of which was received on 24th
November, 2025. The Scheme became effective on 22nd December, 2025 upon filing of the said Order of the Tribunal with the Registrar of
Companies, Rajasthan.
Pursuant to the Scheme, the Company has accounted for the amalgamation in accordance with Appendix C of Ind AS 103 - Business
Combinations of Entities under Common Control, applying the pooling of interest method retrospectively from the earliest period presented.
The difference between the Net Identifiable Assets acquired and the consideration paid has been recognised as Capital Reserve in the restated
financial statements. Consequently, the previous year figures for the year ended 31st March, 2025 are presented in these financial statements
after being restated to include the impact of the Scheme of amalgamation.
The Company allotted 1,42,69,484 equity shares of face value ?2/- each to the eligible shareholders of erstwhile CIL, in the swap ratio of 92
equity shares of ?2/- each for every 100 equity shares of ?10/- each held in CIL. Accordingly, the issued and paid-up equity share capital of the
Company has increased from ''54.80 crores to ''57.66 crores. The equity shares issued pursuant to the Scheme have been considered for the
purpose of computing basic and diluted earnings per share for all periods presented.
Note - 47 Exceptional Items include:
a) Unfavorable foreign exchange fluctuation of '' 49.38 crores (Previous Year: ''13.63 crores) and VRS expense ''30.16 crores (Previous Year:
''3.29 crores).
b) Stamp duty expense of '' 32.50 crores pursuant to the Scheme of Amalgamation of Cavendish Industries Ltd.
c) The Government of India notified the four Labour Codes (New Labour Codes) effective from 21st November, 2025. On the basis of draft
Central Rules and FAQs issued by the Ministry of Labour & Employment (MoLE), the Company has assessed the incremental impact
towards retiral obligations at '' 56.75 crores and disclosed the same as Exceptional Item in line with the guidance provided by the
Institute of Chartered Accountants of India. The Company will continue to monitor developments relating to the New Labour Codes
and would provide appropriate accounting effect, as needed.
Note - 54 Other statutory Information
a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
b. The Company has not been declared wilful defaulter by any Banks or any other Financial Institution at any time during the financial year.
c. The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year.
d. The Company did not have any material transactions with companies struck-off under section 248 of the companies Act, 2013 or
section 560 of the companies Act, 1956 during the financial year.
e. The Company has not traded or invested in Crypto Currency or Virtual Currency during the year.
f. The Company does not have any charges or satisfaction, which is yet to be registered with Registrar of Companies (ROC) beyond the
statutory period.
g. During the year, the Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
(Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
h. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
i. The Company has no such transactions which is not recorded in the books of accounts that has been surrendered or disclosed as
income during the year in tax assessments under Income Tax Act, 1961.
j. The Company has not made any Loans or Advances to any promoters, directors, KMPs and the related parties (as defined under the
Companies Act, 2013), either severally or jointly with any other person, that are:
i. repayable on demand; or
ii. without specifying any terms or period of repayment.
Note - 55 Recent Accounting Pronouncements
Ministry of Corporate Affairs ("MCA") has notified following amendments to the existing Ind-AS effective from FY2025-26:
a. Ind AS 21 - The Effects of Changes in Foreign Exchange Rates. The Company has reviewed the amendment and based on its evaluation
has determined that it does not have any impact in its financial statements.
b. Ind AS 1- Presentation of Financial Statements, relating to classification of liabilities as current or non-current and non-current liabilities
with covenants. The Company has reviewed the amendment and based on its evaluation has determined that it does not have any
significant impact in its financial statements.
c. Ind AS 7- Statement of Cash Flows and Ind AS 107- Financial Instruments, require detailed disclosure for Supplier Finance Arrangements
and effect of such arrangements on cash flows. For the current year, this disclosure is not applicable.
d. Ind AS 12- Income Taxes, related to mandatory disclosure of Impact of OECD Pillar Two Model Rules and temporary exemption from
Deferred tax recognition on the same - The Company has reviewed the amendment related to application of Pillar two rules and
determined that the same is not expected to have material financial impact on the Company.
The following dividends were declared and paid by the Company during the year:
1. Cash and short-term deposits, trade receivables, loans, trade payables, and other current financial assets and liabilities approximate
their carrying amounts largely due to the short-term maturities of these instruments.
2. Other non-current receivables are evaluated by the Company, based on parameters such as interest rates, individual creditworthiness
of the counterparty etc. Based on this evaluation, allowances are considered to account for the expected losses of these receivables. As
at end of each reporting year, the carrying amounts of such receivables, net of allowances (if any), are not materially different from their
calculated fair values.
3. Fair value of Investments in quoted mutual funds and equity shares are based on quoted market price at the reporting date. The fair
value of unquoted Investments in preference shares are estimated by discounting future cash flows using rates currently available for
debt on similar terms, credit risk and remaining maturities. The fair value of unquoted Investments in equity shares are estimated on
net assets basis.
4. Fair value of borrowings from banks and other non-current financial liabilities, are estimated by discounting future cash flows using
rates currently available for debt on similar terms and remaining maturities.
5. The fair values of derivatives are calculated using the RBI reference rate as on the reporting date as well as other variable parameters.
Fair Value Hierarchy:
All financial assets and liabilities for which fair value is measured in the financial statements are categorised within the fair value
hierarchy, described as follows: -
There has been no transfer among levels 1, 2 and 3 during the year ended 31st March, 2026.
Note - 59
The fair value of Investment property as per registered valuer report as at 31st March, 2026 is ''13.75 crores (Previous year: ''13.75 crores) after
considering the rental income from current leases and other assumptions that market participants would use while pricing investment
property under current market conditions.
Note - 60
The Company holds more than 20% shareholding in certain companies, namely - Vaayu Renewable Energy (Godavari) Pvt. Ltd., Truere
Galaxy Pvt. Ltd., Solarithic Power SPV Pvt. Ltd., Truere UP 2 Pvt. Ltd., and STTY RE Limited. These investments have been made to qualify only
as a captive user of renewable power facilities operated by these companies and the Company has no role & responsibility in day-to-day
management and operations of the said companies. Accordingly, these entities have not been classified as Associates as per Ind AS 28, as the
Company does not exercise significant influence over their management or operational decision-making processes.
Note - 61 Financial Risk Management Objectives and Policies
The Company''s activities are exposed to a variety of financial risks from its operations. The key financial risks include market risk (including
foreign currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk.
⢠Market Risk: Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises mainly three types of risk: interest rate risk, currency risk and other price risk such as commodity
price risk.
- Foreign Currency Risk: Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company has obtained foreign currency borrowings and has foreign currency trade
payables and receivables and is therefore, exposed to foreign exchange risk.
After taking cognizance of the natural hedge, the Company takes appropriate hedges to mitigate its risk resulting from fluctuations in
foreign currency exchange rate(s).
Foreign Currency Sensitivity: The following table demonstrates the sensitivity to a reasonably possible change in USD with all other
variables held constant. The impact on Company''s profit before tax is due to changes in the foreign exchange rate is as follows:
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.
- Commodity Price Risk: The Company is affected by the price volatility of certain commodities. Its operating activities require the
purchase of raw material and manufacturing of tyres, and therefore, requires a continuous supply of certain raw materials such as
natural rubber, synthetic rubber, carbon black, fabric, crude oil, bead wire rubber chemicals etc. To mitigate the commodity price
risk, the Company has an approved supplier base to get best competitive prices for the commodities and to assess the market to
manage the cost without any compromise on quality.
⢠Credit Risk: Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).
- Trade Receivables: Customer credit risk is managed based on Company''s established policy, procedures and controls. The Company
assesses the credit quality of the counterparties taking into account their financial position, past experience and other factors.
Credit risk is reduced by receiving deposits, pre-payments and export letter of credit to the extent possible. The Company has a
well-defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed.
Impairment analysis is performed based on historical data at each reporting date on an individual basis. However, a large number of
minor receivables are grouped into homogenous groups and assessed for impairment collectively.
Credit Risk Exposure: The allowance for expected credit loss on customer balances for the year ended 31st March, 2026 and
31st March, 2025:
Forward Contracts for hedging Payables: ''96.38 crores- US$ 10.18 Million (Previous year: ''709.58 crores - US $ 82.91 Million) are
outstanding as at 31.03.2026. Option Contracts for hedging Payables: Nil (Previous year: ''266.59 crores - US $ 31.15 Million).
Currency Swap for Long-term rupee loans: ''47.16 crores - US $ 4.98 Million & ''35.15 crores - EUR 3.22 Million (Previous year: ''59.69 Crores
- US $ 6.98 Million & ''37.22 Crores - EUR 4.03 Million).
Foreign currency exposure unhedged net payable is ''951.29 crores - US $100.51 Million (Previous year: ''328.63 crores - US $38.39
Million) as at 31.03.2026.
- Interest Rate Risk: Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. Any changes in the interest rates environment may impact future rates of borrowing. The
Company mitigates this risk by regularly assessing the market scenario, finding appropriate financial instruments, interest rate
negotiations with the lenders for ensuring the cost-effective method of financing.
Interest Rate Sensitivity: The following table demonstrates the sensitivity to a reasonably possible change in interest rates on financial
assets affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on finance cost
with respect to our borrowing, as follows:
Mar 31, 2025
Note - 1 Company Overview, Basis Of Preparation And Material Accounting Policies
1.1 The Company overview:
JK Tyre & Industries Limited (JKTIL) is a public limited company incorporated and domiciled in India and its shares are publicly traded on the National Stock Exchange (''NSE'') and the Bombay Stock Exchange (''BSE'') in India. The registered office of the company is situated at Jaykaygram, PO - Tyre Factory, Kankroli - 313342 Rajasthan, India.
JKTIL develops, manufactures, markets and distributes automotive Tyres, Tubes, Flaps and Retreads. The company sells its Tyres to vehicle manufacturers for fitment in original equipment and in replacement markets worldwide. The company has six manufacturing plants located in Rajasthan, Madhya Pradesh, Tamil Nadu and three plants in Karnataka.
These financial statements were approved and adopted by board of directors of the Company in their meeting held on 20th May, 2025.
1.2 Basis of preparation and measurement of financial statements:
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules 2015, as amended from time to time and other relevant provisions of the Companies Act, 2013. All accounting policies and applicable IND AS have been applied consistently for all periods presented.
The functional currency of the Company is Indian rupee ('').
The financial statements have been prepared under historical cost convention on accrual basis, except for the items that have been measured at fair value as required by relevant Ind AS. The financial statements correspond to the classification provisions contained in Ind AS-1 (Presentation of Financial Statements).
The preparation of these financial statements requires management judgements, estimates and assumptions that affect the application of accounting policies, the accounting disclosures made and the reported amounts of assets, liabilities, income, and expenses. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that
period of revision and future periods also if the revisions affects both current and future periods.
1.3 Material accounting policies:
(i) Property, plant and equipment:
a) Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Expenditure during construction / erection period is included under capital work-in-progress, which is allocated to the respective property, plant and equipment on completion of construction / erection.
b) Depreciation on property, plant and equipment (including Continuous Process Plants considered on technical evaluation) has been provided using Straight line method over their useful lives and in the manner prescribed under Schedule II of the Companies Act, 2013. However, in respect of certain property, plant and equipment, depreciation is provided as per their useful lives as assessed by the management supported by technical advice ranging from 15 to 35 years for plant and machinery and 15 to 70 years for buildings. Accelerated depreciation in respect of a production accessory is provided over 6 years.
The carrying amount is eliminated from the financial statements, upon sale and disposition of the assets and the resultant gains or losses are recognised in the statement of profit and loss.
(ii) Lease:
a) The Company, as a lessee, at the inception of contract, assesses whether the contract is a lease or not. If yes, the contract conveys in favour of the Company, the right to control the use of an identified asset for a period of time in exchange for consideration.
The right-of-use assets are initially recognised at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments
made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. In the Balance Sheet, Right-of-use Assets are presented under respective items of Property, Plant and Equipment or Investment Property, as the case may be. The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates of the Lessee. In addition, the carrying amount of lease liabilities and right-of-use assets are re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
b) Depreciation on Right-of-use Asset has been provided using Straight line method over their useful lives or lease period, whichever is lower. Interest Expense on Lease Liabilities are provided using discount rate used to determine Lease Liabilities. Depreciation and Interest expenses are recognised in the Statement of Profit and Loss.
c) For short-term leases and leases for which, the underlying asset value is low, right-of-use assets and lease liabilities are not recognised. The lease payments associated with these leases are recognised as expense over the lease term.
d) The Company, as a lessor, recognises lease payments from operating leases as income on straight-line basis over the lease term. The Company has recognised costs, including depreciation, incurred in earning the lease income as an expense.
(iii) Inventories:
Inventories are valued at lower of cost and net realisable value. However, materials and other supplies held for use in production of inventories are not written down below cost, if the finished goods are expected to be sold at or above cost. The cost is computed on weighted average basis. Finished Goods, Traded Goods and Process Stock
include cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Slow-moving and obsolete items based upon technical evaluation are provided for.
(iv) Employee benefit:
Employee benefits include wages & salaries, provident fund, superannuation fund, employee state insurance scheme, gratuity fund and compensated absences, etc.
(a) Defined-contribution plans
Contributions to the employees'' regional provident fund, superannuation fund, Employees'' Pension Scheme and Employees'' State Insurance are recognised as defined contribution plan and charged as expenses during the period in which the employees perform the services.
(b) Defined-benefit plans
Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date. Actuarial Gains or Losses through re-measurement of the net obligation of a defined benefit liability or asset is recognised in Other Comprehensive Income. Such remeasurements are not reclassified to Statement of Profit and Loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees'' Regional Provident Fund, is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. The Employer shall make good deficiency, if any.
(c) Short term employee benefits
Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered.
(v) Income tax:
I ncome tax is comprised of current and deferred tax. Income tax expense is recognised in the Statement of Profit and Loss, except to the extent it relates to items directly recognised in equity or in other comprehensive income.
(a) Current tax: Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961.
(b) Deferred tax: Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent, it is probable that taxable income will be available against which the same can be realised. Deferred tax assets are reviewed at the end of each subsequent reporting period.
(c) Minimum Alternate Tax (MAT) Credit: MAT credit is recognised when there is convincing evidence that the Company will pay normal income tax during the specified period. It is reviewed at the end of each subsequent reporting period.
(vi) Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial assets
Financial assets include cash and cash equivalents, trade and other receivables, investments in securities and other eligible current and noncurrent assets.
At initial recognition, all financial assets are measured at fair value. However, trade receivables that do not contain a significant financing component are measured at transaction price. The financial assets are subsequently classified under one of the following three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
⢠Financial assets at amortised cost: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset. The EIR amortisation is included as interest income in the profit or loss on time proportionate basis. The losses arising from impairment are recognised in the profit or loss.
⢠Financial assets at fair value through other comprehensive income: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated using the effective interest rate (EIR) method on time proportionate basis, impairment loss or gain and foreign exchange loss or gain are recognised in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from the OCI to Statement of Profit and Loss.
⢠Financial assets at fair value through profit or loss: At the date of initial recognition, financial assets are held for trading, designated financial assets to be valued through profit or loss or which are measured neither at Amortised Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in the Statement of Profit and Loss. Dividend income on equity shares is recognised when the right to receive payment is established, which becomes certain after shareholders'' approval. Interest and Dividend Income as well as fair value changes are disclosed separately in the Statement of Profit & Loss.
Investment in Equity shares of subsidiaries and associates are valued at cost.
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expires or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. Upon derecognition the difference between the carrying amount of a financial asset derecognised and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in the Statement of Profit and Loss.
The company assesses impairment based on the expected credit losses (ECL) model to all its financial assets measured at amortised cost. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that entity expects to receive (i.e. all cash shortfalls) discounted at original effective interest rate. Impairment loss allowance (or reversal) for the period is recognised in the Statement of Profit and Loss.
(b) Financial liabilities
Financial liabilities include long-term and shortterm loans and borrowings, trade and other payables and other eligible current and noncurrent liabilities.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and other payables, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories:
⢠Financial liabilities at amortised cost: After initial recognition, such financial liabilities are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial liability. The EIR amortisation is included in finance expense in the Statement of Profit and Loss.
⢠Financial liabilities at fair value through profit or loss: which are designated as such on initial recognition, or which are held for trading. Fair value gains/ losses attributable to changes in own credit risk is recognised in OCI. These gains / losses are not subsequently transferred to Statement of Profit and Loss. All other changes in fair value of such liabilities are recognised in the Statement of Profit and Loss.
The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability derecognised and the sum of consideration paid and payable is recognised in Statement of Profit and Loss as other income or finance costs/ other expenses.
(vii) Derivative financial instruments:
Derivative instruments such as forward currency contracts, interest rate swaps and option contracts are used to hedge foreign currency risks and interest rate risk. Such derivatives are initially recognised at their fair values on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
(viii) Compulsorily Convertible Debentures -Compound Financial Instruments:
Compulsorily Convertible Debentures (CCDs) are treated as compound financial instruments and these are separated into liability and equity components based on the terms of the contract. At the inception of the CCDs, the following two elements are separated: (a) a liability component arising from the interest payments, if any; and (b) an equity component representing the delivery of fixed number of equity shares in future. On issuance of the CCDs, the fair value of the liability portion is determined using a market interest rate for an equivalent non-convertible debt. This amount is recorded as a liability on an amortised cost basis, till its conversion into equity or payment, whichever is earlier. The remainder of the proceeds is attributable
to the equity portion of the compound instrument and is not subsequently remeasured. In addition, the component classified as equity shall remain in equity till its conversion. Transaction costs are apportioned between the liability and equity components of the CCDs based on the allocation of proceeds to the liability and equity components when the instruments are initially recognised.
(ix) Revenue:
Revenue is recognised upon transfer of control of promised goods or services to customers at transaction price (net of taxes and duties), arrived at by determining the consideration received or receivable after adjusting returns, allowances, trade discounts, volume discounts etc. in exchange of goods or services.
For applying above principle, the Company adopts five step model, which are: a) Identify the contract(s) with customer(s); b) Identify the performance obligations under the contract(s); c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract(s); e) recognise revenue, when or as the entity satisfies a performance obligation.
Contract Liabilities are recognised when there is an entity''s obligation to transfer goods or services to a customer for which, the entity has received consideration from the customer. Revenue in excess of invoicing are classified as contract assets.
Sale of Goods:
Revenue from the sale of goods is recognised at the point in time, when control is transferred to the customer.
Interest Income:
Interest income is recognised on time proportion basis using the effective interest method.
Dividend income:
Dividend income is recognised when the right to receive payment is established, which becomes certain after shareholders'' approval.
(x) Grants:
Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with. Revenue Grants are recognised in the Statement of Profit and Loss. Capital Grants relating to specific assets are recognised in the Balance Sheet by deducting the grant from carrying amount of the asset and depreciation is charged on reduced carrying value of asset.
Export incentives are recognised in the Statement of Profit and Loss.
(xi) Impairment:
The carrying amounts of Property, plant and equipment, Intangible assets, Investment property and Investments are reviewed at each Balance Sheet date to assess impairment if any, based on internal / external factors. An asset is treated as impaired, when the carrying cost of asset exceeds its recoverable value, being higher of value in use and net selling price. An impairment loss is recognised as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed, if there has been an improvement in recoverable amount.
Mar 31, 2024
Note - 1 Company Overview, Basis of Preparation and Material Accounting Policies
1.1 The Company overview:
JK Tyre & Industries Limited (JKTIL) is a public limited company incorporated and domiciled in India and its shares are publicly traded on the National Stock Exchange (''NSE'') and the Bombay Stock Exchange (''BSE'') in India. The registered office of the company is situated at Jaykaygram, PO - Tyre Factory, Kankroli - 313342 Rajasthan, India.
JKTIL develops, manufactures, markets and distributes automotive Tyres, Tubes, Flaps and Retreads. The company sells its Tyres to vehicle manufacturers for fitment in original equipment and in replacement markets worldwide. The company has six manufacturing plants located in Rajasthan, Madhya Pradesh, Tamil Nadu and three plants in Karnataka.
These financial statements were approved and adopted by board of directors of the Company in their meeting held on 21st May, 2024.
1.2 Basis of preparation and measurement of financial statements:
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules 2015, as amended from time to time and other relevant provisions of the Companies Act, 2013. All accounting policies and applicable IND AS have been applied consistently for all periods presented.
The functional currency of the Company is Indian rupee ('').
The financial statements have been prepared under historical cost convention on accrual basis, except for the items that have been measured at fair value as required by relevant Ind AS. The financial statements correspond to the classification provisions contained in Ind AS-1 (Presentation of Financial Statements).
The preparation of these financial statements requires management judgements, estimates and assumptions that affect the application of accounting policies, the accounting disclosures made and the reported amounts of assets, liabilities, income, and expenses. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are made in the period, in which, the estimates are revised and in any future periods, effected pursuant to such revision.
1.3 Material accounting policies:
(i) Property, plant and equipment:
a) Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Expenditure during construction / erection period is included under capital work-in-progress and, which is allocated to the respective property, plant and equipment on completion of construction / erection.
b) Depreciation on property, plant and equipment (including Continuous Process Plants considered on technical evaluation) has been provided using Straight line method over their useful lives and in the manner prescribed under Schedule II of the Companies Act, 2013. However, in respect of certain property, plant and equipment, depreciation is provided as per their useful lives as assessed by the management supported by technical advice ranging from 15 to 35 years for plant and machinery and 15 to 70 years for buildings. Accelerated depreciation in respect of a production accessory is provided over 6 years.
The carrying amount is eliminated from the financial statements, upon sale and disposition of the assets and the resultant gains or losses are recognised in the statement of profit and loss.
(ii) Lease:
a) The Company, as a lessee, at the inception of contract, assesses whether the contract is a lease or not. If yes, the contract conveys in favour of the Company, the right to control the use of an identified asset for a period of time in exchange for consideration.
The right-of-use assets are initially recognized at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. In the Balance Sheet, Right-of-use Asset
are presented under respective items of Property, Plant and Equipment or Investment Property, as the case may be. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates of the Lessee. In addition, the carrying amount of lease liabilities and right-of-use assets are re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
b) Depreciation on Right-of-use Asset has been provided using Straight line method over their useful lives or lease period, whichever is lower. Interest Expense on Lease Liabilities are provided using discount rate used to determine Lease Liabilities. Depreciation and Interest expenses are recognised in the Statement of Profit and Loss.
c) For short-term leases and leases for which, the underlying asset value is low, right-of-use assets and lease liabilities are not recognised. The lease payments associated with these leases are recognised as expense over the lease term.
d) The Company, as a lessor, recognises lease payments from operating leases as income on straight-line basis over the lease term. The Company has recognised costs, including depreciation, incurred in earning the lease income as an expense.
(iii) Inventories:
Inventories are valued at lower of cost and net realisable value. However, materials and other supplies held for use in production of inventories are not written down below cost, if the finished goods are expected to be sold at or above cost. The cost is computed on weighted average basis. Finished Goods, Traded Goods and Process Stock include cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Slow-moving and obsolete items based upon technical evaluation are provided for.
(iv) Employee benefit:
Employee benefits include wages & salaries, provident fund, superannuation fund, employee state insurance scheme, gratuity fund and compensated absences, etc.
(a) Defined-contribution plans
Contributions to the employees'' regional provident fund, superannuation fund, Employees'' Pension Scheme and Employees'' State Insurance are recognised as defined contribution plan and charged as expenses during the period in which the employees perform the services.
(b) Defined-benefit plans
Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date. Actuarial Gains or Losses through re-measurement of the net obligation of a defined benefit liability or asset is recognised in Other Comprehensive Income. Such remeasurements are not reclassified to Statement of Profit and Loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees'' Regional Provident Fund, is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. The Employer shall make good deficiency, if any.
(c) Short term employee benefits
Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered.
(v) Income tax:
I ncome tax is comprised of current and deferred tax. Income tax expense is recognised in the Statement of Profit and Loss, except to the extent it relates to items directly recognised in equity or in other comprehensive income.
(a) Current tax: Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961.
(b) Deferred tax: Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent, it is probable that taxable income will be available against which the same can be realised. Deferred tax assets are reviewed at the end of each subsequent reporting period.
(c) Minimum Alternate Tax (MAT) Credit: MAT credit is recognized when there is convincing evidence that the Company will pay normal income tax during the specified period. It is reviewed at the end of each subsequent reporting period.
(vi) Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial assets
Financial assets include cash and cash equivalents, trade and other receivables, investments in securities and other eligible current and noncurrent assets.
At initial recognition, all financial assets are measured at fair value. However, trade receivables that do not contain a significant financing component are measured at transaction price. The financial assets are subsequently classified under one of the following three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
⢠Financial assets at amortised cost: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates. These financial assets are intended to be held until
maturity. Therefore, they are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset. The EIR amortisation is included as interest income in the profit or loss on time proportionate basis. The losses arising from impairment are recognised in the profit or loss.
⢠Financial assets at fair value through other comprehensive income: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated using the effective interest rate (EIR) method on time proportionate basis, impairment loss or gain and foreign exchange loss or gain are recognised in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from the OCI to Statement of Profit and Loss.
⢠Financial assets at fair value through profit or loss: At the date of initial recognition, financial assets are held for trading, designated financial assets to be valued through profit or loss or which are measured neither at Amortised Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in the Statement of Profit and Loss. Dividend income on equity shares is recognised when the right to receive payment is established, which becomes certain after shareholders'' approval. Interest and Dividend Income as well as fair value changes are disclosed separately in the Statement of Profit & Loss.
Investment in Equity shares of subsidiaries and associates are valued at cost.
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expires or it transfers the financial
asset and the transfer qualifies for derecognition under Ind AS 109. Upon derecognition the difference between the carrying amount of a financial asset derecognised and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in the Statement of Profit and Loss.
The company assesses impairment based on the expected credit losses (ECL) model to all its financial assets measured at amortised cost. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that entity expects to receive (i.e. all cash shortfalls) discounted at original effective interest rate. Impairment loss allowance (or reversal) for the period is recognised in the Statement of Profit and Loss.
(b) Financial liabilities
Financial liabilities include long-term and shortterm loans and borrowings, trade and other payables and other eligible current and noncurrent liabilities.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and other payables, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories:
⢠Financial liabilities at amortised cost: After initial recognition, such financial liabilities are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial liability. The EIR amortisation is included in finance expense in the Statement of Profit or Loss.
⢠Financial liabilities at fair value through profit or loss: which are designated as such on initial recognition, or which are held for trading. Fair value gains/ losses attributable to changes in own credit risk is recognised in OCI. These gains / loss are not subsequently transferred to
Statement of Profit and Loss. All other changes in fair value of such liabilities are recognised in the Statement of Profit and Loss.
The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability derecognised and the sum of consideration paid and payable is recognised in Statement of Profit and Loss as other income or finance costs/ other expenses.
(vii) Derivative financial instruments:
Derivative instruments such as forward currency contracts, interest rate swaps and option contracts are used to hedge foreign currency risks and interest rate risk. Such derivatives are initially recognised at their fair values on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
(viii) Compulsorily Convertible Debentures -Compound Financial Instruments:
Compulsorily Convertible Debentures (CCDs) are treated as compound financial instruments and these are separated into liability and equity components based on the terms of the contract. At the inception of the CCDs, the following two elements are separated: (a) a liability component arising from the interest payments, if any; and (b) an equity component representing the delivery of fixed number of equity shares in future. On issuance of the CCDs, the fair value of the liability portion is determined using a market interest rate for an equivalent non-convertible debt. This amount is recorded as a liability on an amortised cost basis, till its conversion into equity or payment, whichever is earlier. The remainder of the proceeds is attributable to the equity portion of the compound instrument and is not subsequently remeasured. In addition, the component classified as equity shall remain in equity till its conversion. Transaction costs are apportioned between the liability and equity components of the CCDs based on the allocation of proceeds to the liability
and equity components when the instruments are initially recognised.
(ix) Revenue:
Revenue is recognised upon transfer of control of promised goods or services to customers at transaction price (net of taxes and duties), arrived at by determining the consideration received or receivable after adjusting returns, allowances, trade discounts, volume discounts etc. in exchange of goods or services.
For applying above principle, the Company adopts five step model, which are: a) Identify the contract(s) with customer(s); b) Identify the performance obligations under the contract(s); c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract(s); e) recognise revenue, when or as the entity satisfies a performance obligation.
Contract Liabilities are recognised when there is an entity''s obligation to transfer goods or services to a customer for which, the entity has received consideration from the customer. Revenue in excess of invoicing are classified as contract assets.
Sale of Goods:
Revenue from the sale of goods is recognised at the point in time, when control is transferred to the customer.
Interest Income:
Interest income is recognized on time proportion basis using the effective interest method.
Dividend income:
Dividend income is recognized when the right to receive payment is established, which becomes certain after shareholders'' approval.
(x) Grants:
Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with. Revenue Grants are recognised in the Statement of Profit and Loss. Capital Grants relating to specific assets are recognised in the Balance Sheet by deducting the grant from carrying amount of the asset and depreciation is charged on reduced carrying value of asset.
Export incentives are recognised in the Statement of Profit and Loss.
(xi) Impairment:
The carrying amounts of Property, plant and equipment, Intangible assets, Investment property and Investments are reviewed at each Balance Sheet date to assess impairment if any, based on internal / external factors. An asset is treated as impaired, when the carrying cost of asset exceeds its recoverable value, being higher of value in use and net selling price. An impairment loss is recognised as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed, if there has been an improvement in recoverable amount.
Mar 31, 2023
Note - 1 Company Overview, Basis of Preparation and Significant Accounting Policies
1.1 The Company overview:
JK Tyre & Industries Limited (JKTIL) is a public limited company incorporated and domiciled in India and its shares are publicly traded on the National Stock Exchange (''NSE'') and the Bombay Stock Exchange (''BSE'') in India. The registered office of the company is situated at Jaykaygram, PO - Tyre Factory, Kankroli -313342 Rajasthan, India.
JKTIL develops, manufactures, markets and distributes automotive Tyres, Tubes, Flaps and Retreads. The company sells its Tyres to vehicle manufacturers for fitment in original equipment and in replacement markets worldwide. The company has six manufacturing plants located in Rajasthan, Madhya Pradesh, Tamil Nadu and three plants in Karnataka.
These financial statements were approved and adopted by board of directors of the Company in their meeting held on 17th May, 2023.
1.2 Basis of preparation and measurement of financial statements:
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules 2015, as amended from time to time and other relevant provisions of the Companies Act, 2013. All accounting policies and applicable IND AS have been applied consistently for all periods presented.
The financial statements have been prepared under historical cost convention on accrual basis, except for the items that have been measured at fair value as required by relevant Ind AS. The financial statements correspond to the classification provisions contained in Ind AS-1 (Presentation of Financial Statements).
The preparation of these financial statements requires management judgements, estimates and assumptions that affect the application of accounting policies, the accounting disclosures made and the reported amounts of assets, liabilities, income, and expenses. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are made in the period, in which, the estimates are revised and in any future periods, effected pursuant to such revision.
1.3 Significant accounting policies:
(i) Property, plant and equipment:
a) Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Expenditure during construction / erection period is included under capital work-in-progress and is allocated to the respective property, plant and equipment on completion of construction / erection.
b) Depreciation on property, plant and equipment (including Continuous Process Plants considered on technical evaluation) has been provided using Straight line method over their useful lives and in the manner prescribed under Schedule II of the Companies Act, 2013. However, in respect of certain property, plant and equipment, depreciation is provided as per their useful lives as assessed by the management supported by technical advice ranging from 15 to 35 years for plant and machinery and 15 to 70 years for buildings. Accelerated depreciation in respect of a production accessory is provided over 6 years.
The carrying amount is eliminated from the financial statements, upon sale and disposition of the assets and the resultant gains or losses are recognised in the statement of profit and loss.
(ii) Investment property:
Investment properties are measured at cost less accumulated depreciation and impairment losses, if any. Depreciation on Investment property has been provided using straight line method over their useful lives and in the manner prescribed under Schedule II of the Companies Act, 2013.
The carrying amount is eliminated from the financial statements, upon sale, disposition and withdrawal from permanent use of the assets and when no future economic benefits are expected from its disposal. The resultant gains or losses are recognised in the Statement of Profit and Loss.
(iii) Intangible assets:
Intangible Assets are recognised, if the future economic benefits attributable to the assets are expected to flow to the company and cost of the asset can be measured reliably. The same are amortised over the expected duration of benefits using straight line method. Such intangible assets are measured at cost less any accumulated amortization and impairment losses, if any.
Revenue Expenditure on Research and Development is charged to Statement of Profit and Loss and Capital Expenditure is added to Property, plant and equipment.
Expenditure incurred on intangible asset which are under development is included under Intangible Assets under Development.
The carrying amount is eliminated from the financial statements, upon sale, disposition and withdrawal from permanent use of the assets and when no future economic benefits are expected from its disposal. The resultant gains or losses are recognised in the Statement of Profit and Loss.
(iv) Lease:
a) The Company, as a lessee, at the inception of contract, assesses whether the contract is a lease or not. If yes, the contract conveys in favour of the Company, the right to control the use of an identified asset for a period of time in exchange for consideration.
The right-of-use assets are initially recognized at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. In the Balance Sheet, Right-of-use Asset are presented under respective items of Property, Plant and Equipment or Investment Property, as the case may be. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates of the Lessee. In addition, the carrying amount of lease liabilities and right-of-use assets are re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
b) Depreciation on Right-of-use Asset has been provided using Straight line method over their useful lives or lease period, whichever is lower. Interest Expense on Lease Liabilities are provided using discount rate used to determine Lease Liabilities. Depreciation and Interest expenses are recognised in the Statement of Profit and Loss.
c) For short-term leases and leases for which, the underlying asset value is low, right-of-use assets and lease liabilities are not recognised. The lease payments associated with these leases are recognised as expense over the lease term.
d) The Company, as a lessor, recognises lease payments from operating leases as income on straight-line basis over the lease term. The Company has recognised costs, including depreciation, incurred in earning the lease income as an expense.
(v) Foreign currency transactions and translation:
The functional currency of the company is Indian rupee (''). Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction. Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Exchange differences arising on actual payments / realisations and year end translations including on forward contracts are dealt with in Profit and Loss Statement. NonMonetary Foreign Currency items are stated at cost.
(vi) Inventories:
Inventories are valued at lower of cost and net realisable value. However, materials and other supplies held for use in production of inventories are not written down below cost, if the finished goods are expected to be sold at or above cost. The cost is computed on weighted average basis. Finished Goods, Traded Goods and Process Stock include cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Slow-moving and obsolete items based upon technical evaluation are provided for.
(vii) Borrowing cost:
Borrowing Cost is charged to Statement of Profit and Loss except meant for acquisition of qualifying assets, which is
capitalised, using the effective interest method till the date of commercial use.
(viii) Employee benefit:
Employee benefits include wages & salaries, provident fund, superannuation fund, employee state insurance scheme, gratuity fund and compensated absences, etc.
(a) Defined-contribution plans
Contributions to the employees'' regional provident fund, superannuation fund, Employees'' Pension Scheme and Employees'' State Insurance are recognised as defined contribution plan and charged as expenses during the period in which the employees perform the services.
(b) Defined-benefit plans
Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date. Actuarial Gains or Losses through remeasurement of the net obligation of a defined benefit liability or asset is recognised in Other Comprehensive Income. Such re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees'' Regional Provident Fund, is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. The Employer shall make good deficiency, if any.
(c) Short term employee benefits
Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered.
(ix) Income tax:
Income tax is comprised of current and deferred tax. Income tax expense is recognised in the Statement of Profit and Loss, except to the extent it relates to items directly recognised in equity or in other comprehensive income.
(a) Current tax: Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961.
(b) Deferred tax: Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent, it is probable that taxable income will be available against which the same can be realised. Deferred tax assets are reviewed at the end of each subsequent reporting period.
(c) Minimum Alternate Tax (MAT) Credit: MAT credit is recognized when there is convincing evidence that the Company will pay normal income tax during the specified period. It is reviewed at the end of each subsequent reporting period.
(x) Provisions:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period after taking into account the risks and uncertainties surrounding the obligation.
Contingent Liabilities and Assets:
Contingent liabilities are disclosed after evaluation of facts, uncertainties and possibility of reimbursement. Contingent liabilities are not recognised but are disclosed in the notes.
Contingent assets are not recognised in financial statements but are disclosed, since the former treatment may result in the recognition of income that may or may not be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.
(xi) Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial assets
Financial assets include cash and cash equivalents, trade and other receivables, investments in securities and other eligible current and non-current assets.
At initial recognition, all financial assets are measured at fair value. However, trade receivables that do not contain a significant financing component are measured at transaction price. The financial assets are subsequently classified under one of the following three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
⢠Financial assets at amortised cost: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset. The EIR amortisation is included as interest income in the profit or loss on time proportionate basis. The losses arising from impairment are recognised in the profit or loss.
⢠Financial assets at fair value through other comprehensive income: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated using the effective interest rate (EIR) method on time proportionate basis, impairment loss or gain and foreign exchange loss or gain are recognised in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from the OCI to Statement of Profit and Loss.
⢠Financial assets at fair value through profit or loss: At the date of initial recognition, financial assets are held for trading, designated financial assets to be valued through profit or loss or which are measured neither at Amortised Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in the Statement of Profit and Loss. Dividend income on equity shares is recognised when the right to receive payment is established, which becomes certain after shareholders'' approval. Interest and Dividend Income as well as fair value changes are disclosed separately in the Statement of Profit & Loss.
Investment in Equity shares of subsidiaries and associates are valued at cost.
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expires or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. Upon derecognition the difference between the carrying amount of a financial asset derecognised and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in the Statement of Profit and Loss.
The company assesses impairment based on the expected credit losses (ECL) model to all its financial assets measured at amortised cost. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that entity expects to receive (i.e. all cash shortfalls) discounted at original effective interest rate. Impairment loss allowance (or reversal) for the period is recognised in the Statement of Profit and Loss.
(b) Financial liabilities
Financial liabilities include long-term and short-term loans and borrowings, trade and other payables and other eligible current and non-current liabilities.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and other payables, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories:
(xv) Grants:
Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with. Revenue Grants are recognised in the Statement of Profit and Loss. Capital Grants relating to specific assets are recognised in the Balance Sheet by deducting the grant from carrying amount of the asset and depreciation is charged on reduced carrying value of asset.
Export incentives are recognised in the Statement of Profit and Loss.
(xvi) Impairment:
The carrying amounts of Property, plant and equipment, Intangible assets, Investment property and Investments are reviewed at each Balance Sheet date to assess impairment if any, based on internal / external factors. An asset is treated as impaired, when the carrying cost of asset exceeds its recoverable value, being higher of value in use and net selling price. An impairment loss is recognised as
⢠Financial liabilities at amortised cost: After initial recognition, such financial liabilities are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial liability. The EIR amortisation is included in finance expense in the Statement of Profit or Loss.
⢠Financial liabilities at fair value through profit or loss: which are designated as such on initial recognition, or which are held for trading. Fair value gains/ losses attributable to changes in own credit risk is recognised in OCI. These gains / loss are not subsequently transferred to Statement of Profit and Loss. All other changes in fair value of such liabilities are recognised in the Statement of Profit and Loss.
The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability derecognised and the sum of consideration paid and payable is recognised in Statement of Profit and Loss as other income or finance costs/ other expenses.
(xii) Derivative financial instruments:
Derivative instruments such as forward currency contracts, interest rate swaps and option contracts are used to hedge foreign currency risks and interest rate risk. Such derivatives are initially recognised at their fair values on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
(xiii) Compulsorily Convertible Debentures - Compound Financial Instruments:
Compulsorily Convertible Debentures (CCDs) are treated as compound financial instruments and these are separated into liability and equity components based on the terms of the contract. At the inception of the CCDs, the following two elements are separated: (a) a liability component arising from the interest payments, if any; and (b) an equity component representing the delivery of fixed number of
equity shares in future. On issuance of the CCDs, the fair value of the liability portion is determined using a market interest rate for an equivalent non-convertible debt. This amount is recorded as a liability on an amortised cost basis, till its conversion into equity or payment, whichever is earlier. The remainder of the proceeds is attributable to the equity portion of the compound instrument and is not subsequently remeasured. In addition, the component classified as equity shall remain in equity till its conversion. Transaction costs are apportioned between the liability and equity components of the CCDs based on the allocation of proceeds to the liability and equity components when the instruments are initially recognised.
(xiv) Revenue:
Revenue is recognised upon transfer of control of promised goods or services to customers at transaction price (net of taxes and duties), arrived at by determining the consideration received or receivable after adjusting returns, allowances, trade discounts, volume discounts etc. in exchange of goods or services.
For applying above principle, the Company adopts five step model, which are: a) Identify the contract(s) with customer(s); b) Identify the performance obligations under the contract(s); c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract(s); e) recognise revenue, when or as the entity satisfies a performance obligation.
Contract Liabilities are recognised when there is an entity''s obligation to transfer goods or services to a customer for which, the entity has received consideration from the customer. Revenue in excess of invoicing are classified as contract assets.
Sale of Goods:
Revenue from the sale of goods is recognised at the point in time, when control is transferred to the customer.
Interest Income:
Interest income is recognized on time proportion basis using the effective interest method.
Dividend income:
Dividend income is recognized when the right to receive payment is established, which becomes certain after shareholders'' approval.
an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed, if there has been an improvement in recoverable amount.
(xvii) Earnings per share (EPS):
Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the company by the weighted average number of ordinary shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss 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.
(xviii) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and at bank, Cheques on hand and Remittances in transit for the purpose of meeting short-term cash commitments.
Mar 31, 2022
Note - 1 Company Overview, Basis of Preparation and Significant Accounting Policies
1.1 The Company overview:
JK Tyre & Industries Limited (JKTIL) is a public limited company incorporated and domiciled in India and its shares are publicly traded on the National Stock Exchange (''NSE'') and the Bombay Stock Exchange (''BSE'') in India. The registered office of the company is situated at Jaykaygram, PO - Tyre Factory, Kankroli -313342 Rajasthan, India.
JKTIL develops, manufactures, markets and distributes automotive Tyres, Tubes, Flaps and Retreads. The company sells its Tyres to vehicle manufacturers for fitment in original equipment and in replacement markets worldwide. The company has six manufacturing plants located in Rajasthan, Madhya Pradesh, Tamil Nadu and three plants in Karnataka.
These financial statements were approved and adopted by board of directors of the Company in their meeting held on 20th May, 2022.
1.2 Basis of preparation and measurement of financial statements:
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules 2015, as amended from time to time and other relevant provisions of the Companies Act, 2013. All accounting policies and applicable Ind AS have been applied consistently for all periods presented.
The financial statements have been prepared under historical cost convention on accrual basis, except for the items that have been measured at fair value as required by relevant Ind AS. The financial statements correspond to the classification provisions contained in Ind AS-1 (Presentation of Financial Statements).
The preparation of these financial statements requires management judgements, estimates and assumptions that affect the application of accounting policies, the accounting disclosures made and the reported amounts of assets, liabilities, income, and expenses. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are made in the period, in which, the estimates are revised and in any future periods, effected pursuant to such revision.
1.3 Significant accounting policies:
(i) Property, plant and equipment:
a) Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenses directly
attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Expenditure during construction / erection period is included under capital work-in-progress and is allocated to the respective property, plant and equipment on completion of construction / erection.
b) Depreciation on property, plant and equipment (including Continuous Process Plants considered on technical evaluation) has been provided using Straight line method over their useful lives and in the manner prescribed under Schedule II of the Companies Act, 2013. However, in respect of certain property, plant and equipment, depreciation is provided as per their useful lives as assessed by the management supported by technical advice ranging from 15 to 35 years for plant and machinery and 15 to 70 years for buildings. Accelerated depreciation in respect of a production accessory is provided over 6 years.
The carrying amount is eliminated from the financial statements, upon sale and disposition of the assets and the resultant gains or losses are recognised in the statement of profit and loss.
(ii) Investment property:
Investment properties are measured at cost less accumulated depreciation and impairment losses, if any. Depreciation on Investment property has been provided using straight line method over their useful lives and in the manner prescribed under Schedule II of the Companies Act, 2013.
The carrying amount is eliminated from the financial statements, upon sale, disposition and withdrawal from permanent use of the assets and when no future economic benefits are expected from its disposal. The resultant gains or losses are recognised in the Statement of Profit and Loss.
(iii) Intangible assets:
Intangible Assets are recognised, if the future economic benefits attributable to the assets are expected to flow to the company and cost of the asset can be measured reliably. The same are amortised over the expected duration of benefits using straight line method. Such intangible assets are measured at cost less any accumulated amortization and impairment losses, if any.
Revenue Expenditure on Research and Development is charged to Statement of Profit and Loss and Capital Expenditure is added to Property, plant and equipment.
Expenditure incurred on intangible asset which are under development is included under Intangible Assets under Development.
The carrying amount is eliminated from the financial statements, upon sale, disposition and withdrawal from permanent use of the assets and when no future economic benefits are expected from its disposal. The resultant gains or losses are recognised in the Statement of Profit and Loss.
(iv) Lease:
a) The Company, as a lessee, at the inception of contract, assesses whether the contract is a lease or not. If yes, the contract conveys in favour of the Company, the right to control the use of an identified asset for a period of time in exchange for consideration.
The right-of-use assets are initially recognized at cost, which comprises of the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. In the Balance Sheet, Right-of-use Asset are presented under respective items of Property, Plant and Equipment or Investment Property, as the case may be. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates of the Lessee. In addition, the carrying amount of lease liabilities and right-of-use assets are re-measured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.
b) Depreciation on Right-of-use Asset has been provided using Straight line method over their useful lives or lease period, whichever is lower. Interest Expense on Lease Liabilities are provided using discount rate used to determine Lease Liabilities. Depreciation and Interest expenses are recognised in the Statement of Profit and Loss.
c) For short-term leases and leases for which, the underlying asset value is low, right-of-use assets and lease liabilities are not recognised. The lease payments associated with these leases are recognised as expense over the lease term.
d) The Company, as a lessor, recognises lease payments
from operating leases as income on straight-line basis over the lease term. The Company has recognised costs, including depreciation, incurred in earning the lease income as an expense.
(v) Foreign currency transactions and translation:
The functional currency of the company is Indian rupee (''). Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction. Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Exchange differences arising on actual payments / realisations and year end translations including on forward contracts are dealt with in Profit and Loss Statement. NonMonetary Foreign Currency items are stated at cost.
(vi) Inventories:
Inventories are valued at lower of cost and net realisable value. However, materials and other supplies held for use in production of inventories are not written down below cost, if the finished goods are expected to be sold at or above cost. The cost is computed on weighted average basis. Finished Goods, Traded Goods and Process Stock include cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Slow-moving and obsolete items based upon technical evaluation are provided for.
(vii) Borrowing cost:
Borrowing Cost is charged to Statement of Profit and Loss except meant for acquisition of qualifying assets, which is capitalised, using the effective interest method till the date of commercial use.
(viii) Employee benefit:
Employee benefits include wages & salaries, provident fund, superannuation fund, employee state insurance scheme, gratuity fund and compensated absences, etc.
(a) Defined-contribution plans
Contributions to the employees'' regional provident fund, superannuation fund, Employees'' Pension Scheme and Employees'' State Insurance are recognised as defined contribution plan and charged as expenses during the period in which the employees perform the services.
(b) Defined-benefit plans
Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date. Actuarial Gains or Losses through remeasurement of the net obligation of a defined benefit liability or asset is recognised in Other Comprehensive Income. Such re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees'' Regional Provident Fund, is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. The Employer shall make good deficiency, if any.
(c) Short term employee benefits
Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered.
(ix) Income tax:
I ncome tax is comprised of current and deferred tax.
Income tax expense is recognised in the Statement of Profit
and Loss, except to the extent it relates to items directly
recognised in equity or in other comprehensive income.
(a) Current tax: Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961.
(b) Deferred tax: Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent, it is probable that taxable income will be available against which the same can be realised. Deferred tax assets are reviewed at the end of each subsequent reporting period.
(c) Minimum Alternate Tax (MAT) Credit: MAT credit is recognized when there is convincing evidence that the Company will pay normal income tax during the specified period. It is reviewed at the end of each subsequent reporting period.
(x) Provisions:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period after taking into account the risks and uncertainties surrounding the obligation.
Contingent Liabilities and Assets:
Contingent liabilities are disclosed after evaluation of facts, uncertainties and possibility of reimbursement. Contingent liabilities are not recognised but are disclosed in the notes.
Contingent assets are not recognised in financial statements but are disclosed, since the former treatment may result in the recognition of income that may or may not be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.
(xi) Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial assets
Financial assets include cash and cash equivalents, trade and other receivables, investments in securities and other eligible current and non-current assets.
At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently classified under one of the following three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
⢠Financial assets at amortised cost: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset. The EIR
amortisation is included as interest income in the profit or loss on time proportionate basis. The losses arising from impairment are recognised in the profit or loss.
⢠Financial assets at fair value through other comprehensive income: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated using the effective interest rate (EIR) method on time proportionate basis, impairment loss or gain and foreign exchange loss or gain are recognised in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from the OCI to Statement of Profit and Loss.
⢠Financial assets at fair value through profit or loss: At the date of initial recognition, financial assets are held for trading, designated financial assets to be valued through profit or loss or which are measured neither at Amortised Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in the Statement of Profit and Loss. Dividend income on equity shares is recognised when the right to receive payment is established, which becomes certain after shareholders'' approval. Interest and Dividend Income as well as fair value changes are disclosed separately in the Statement of Profit & Loss.
I nvestment in Equity shares of subsidiaries and associates are valued at cost.
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expires or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. Upon derecognition the difference between the carrying amount of a financial asset derecognised and the sum of the consideration received and
receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in the Statement of Profit and Loss.
The company assesses impairment based on the expected credit losses (ECL) model to all its financial assets measured at amortised cost. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that entity expects to receive (i.e. all cash shortfalls) discounted at original effective interest rate. Impairment loss allowance (or reversal) for the period is recognised in the Statement of Profit and Loss.
(b) Financial liabilities
Financial liabilities include long-term and short-term loans and borrowings, trade and other payables and other eligible current and non-current liabilities.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and other payables, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories:
⢠Financial liabilities at amortised cost: After initial recognition, such financial liabilities are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial liability. The EIR amortisation is included in finance expense in the Statement of Profit or Loss.
⢠Financial liabilities at fair value through profit or loss: which are designated as such on initial recognition, or which are held for trading. Fair value gains / losses attributable to changes in own credit risk is recognised in OCI. These gains / loss are not subsequently transferred to Statement of Profit and Loss. All other changes in fair value of such liabilities are recognised in the Statement of Profit and Loss.
The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expired. The difference between the
carrying amount of a financial liability derecognised and the sum of consideration paid and payable is recognised in Statement of Profit and Loss as other income or finance costs / other expenses.
(xii) Derivative financial instruments:
Derivative instruments such as forward currency contracts, interest rate swaps and option contracts are used to hedge foreign currency risks and interest rate risk. Such derivatives are initially recognised at their fair values on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
(xiii) Revenue:
Revenue is recognised upon transfer of control of promised goods or services to customers at transaction price (net of taxes and duties), arrived at by determining the fair value of the consideration received or receivable after adjusting returns, allowances, trade discounts, volume discounts etc. in exchange of goods or services.
For applying above principle, the Company adopts five step model, which are: a) Identify the contract(s) with customer(s); b) Identify the performance obligations under the contract(s); c) Determine the transaction price; d) Allocate the transaction price to the performance obligations in the contract(s); e) recognise revenue, when or as the entity satisfies a performance obligation.
Contract Liabilities are recognised when there is an entity''s obligation to transfer goods or services to a customer for which, the entity has received consideration from the customer. Revenue in excess of invoicing are classified as contract assets.
Sale of Goods:
Revenue from the sale of goods is recognised at the point in time, when control is transferred to the customer.
Interest Income:
Interest income is recognized on time proportion basis using the effective interest method.
Dividend income:
Dividend income is recognized when the right to receive payment is established, which becomes certain after shareholders'' approval.
(xiv) Grants:
Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with. Revenue Grants are recognised in the Statement of Profit and Loss. Capital Grants relating to specific assets are recognised in the Balance Sheet by deducting the grant from carrying amount of the asset and depreciation is charged on reduced carrying value of asset.
Export incentives are recognised in the Statement of Profit and Loss.
(xv) Impairment:
The carrying amounts of Property, plant and equipment, Intangible assets, Investment property and Investments are reviewed at each Balance Sheet date to assess impairment if any, based on internal / external factors. An asset is treated as impaired, when the carrying cost of asset exceeds its recoverable value, being higher of value in use and net selling price. An impairment loss is recognised as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed, if there has been an improvement in recoverable amount.
(xvi) Earnings per share (EPS):
Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the company by the weighted average number of ordinary shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss 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.
(xvii) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and at bank, Cheques on hand and Remittances in transit for the purpose of meeting short-term cash commitments.
Mar 31, 2018
NOTE - 1 COMPANY OVERVIEW, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
1.1 The Company overview:
JK Tyre & Industries Limited (JKTIL) is a public limited company incorporated and domiciled in India and its shares are publicly traded on the National Stock Exchange (''NSE'') and the Bombay Stock Exchange (''BSE''), in India. The registered office of the company is situated at Jaykaygram, PO - Tyre Factory, Kankroli -313342 Rajasthan, India.
JKTIL develops, manufactures, markets and distributes automotive Tyres, Tubes, Flaps and Retreads. The company markets its Tyres for sale to vehicle manufacturers for fitment as original equipments and for sale in replacement markets worldwide. The company has six manufacturing plants located at Kankroli (Rajasthan), Banmore (Madhya Pradesh), Sriperumbudur (Chennai) and three plants at Mysore (Karnataka).
These financial statements were approved and adopted by board of directors of the Company in their meeting held on 17th May, 2018.
1.2 Basis of preparation and measurement of financial statements:
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules 2015, as amended from time to time and other relevant provisions of the Companies Act, 2013. All accounting policies and applicable Ind AS have been applied consistently for all periods presented.
The financial statements have been prepared under historical cost convention on accrual basis, except for the items that have been measured at fair value as required by relevant Ind AS. The financial statements correspond to the classification provisions contained in Ind AS-1 (Presentation of Financial Statements).
The preparation of these financial statements requires management judgments, estimates and assumptions that affect the application of accounting policies, the accounting disclosures made and the reported amounts of assets, liabilities, income and expenses. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are made in the period, in which, the estimates are revised and in any future periods, effected pursuant to such revision.
1.3 Significant accounting policies:
(i) Property, plant and equipment:
a) Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Expenditure during construction / erection period is included under capital work-in-progress and is allocated to the respective property, plant and equipment on completion of construction / erection.
b) Depreciation on property, plant and equipment (including Continuous Process Plants considered on technical evaluation) has been provided using straight line method over their useful lives and in the manner prescribed under Schedule II of the Companies Act, 2013. However, in respect of certain property, plant and equipment, depreciation is provided as per their useful lives as assessed by the management supported by technical advice ranging from 15 to 35 years for plant and machinery and 15 to 70 years for buildings. Accelerated depreciation in respect of a production accessory is provided over 6 years. Leasehold land is being amortized over the lease period.
The carrying amount is eliminated from the financial statements, upon sale and disposition of the assets and the resultant gains or losses are recognised in the statement of profit and loss.
(ii) Investment property:
Investment properties are measured at cost less accumulated depreciation and impairment losses, if any. Depreciation on Investment property has been provided using straight line method over their useful lives and in the manner prescribed under Schedule II of the Companies Act, 2013.
The carrying amount is eliminated from the financial statements, upon sale, disposition and withdrawal from permanent use of the assets and when no future economic benefits are expected from its disposal. The resultant gains or losses are recognised in the statement of profit and loss.
(iii) Intangible assets:
Intangible assets are recognised, if the future economic benefits attributable to the assets are expected to flow to the company and cost of the asset can be measured reliably. The same are amortised over the expected duration of benefits. Such intangible assets are measured at cost less any accumulated amortization and impairment losses, if any.
Revenue Expenditure on Research and Development is charged to Statement of Profit and Loss and Capital Expenditure is added to Property, plant and equipment.
Expenditure incurred on intangible asset which are under development is included under Intangible Assets under Development.
The carrying amount is eliminated from the financial statements, upon sale, disposition and withdrawal from permanent use of the assets and when no future economic benefits are expected from its disposal. The resultant gains or losses are recognised in the statement of profit and loss.
(iv) Lease:
Lease is classified as Operating Lease, when substantial risks and rewards of ownership are not transferred - rentals thereon are recognised as expense over the lease term.
Leases under which, the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalised at fair value or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments are apportioned between finance charges and reduction of the lease liability, so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.
(v) Foreign currency transactions and translation:
The functional currency of the company is Indian rupee (''). Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction. Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Exchange differences arising on actual payments / realisations and year end translations including on forward contracts are dealt with in Profit and Loss Statement except exchange differences arising on those Long term foreign currency monetary items, related to acquisition of depreciable capital assets being carried forward from previous GAAP, which are adjusted to cost of such assets till 2020 and depreciated over their balance life pursuant to the option in Notification No.G.S.R 914(E) dated 29th December, 2011 issued by Ministry of Corporate Affairs. Non-Monetary Foreign Currency items are stated at cost.
(vi) Inventories:
Inventories are valued at lower of cost and net realisable value. The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
(vii) Borrowing cost:
Borrowing Cost is charged to Statement of Profit and Loss except meant for acquisition of qualifying assets, which is capitalised, using the effective interest method till the date of commercial use.
(viii) Employee benefit:
Employee benefits include wages & salaries, provident fund, superannuation fund, employee state insurance scheme, gratuity fund and compensated absences, etc.
(a) Defined-contribution plans
Contributions to the employees'' regional provident fund, superannuation fund, Employees'' Pension Scheme and Employees'' State Insurance are recognised as defined contribution plan and charged as expenses during the period in which the employees perform the services.
(b) Defined-benefit plans
Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit plan and determined on actuarial valuation using the Projected Unit Credit Method at the balance sheet date. Actuarial Gains or Losses through re-measurement of the net obligation of a defined benefit liability or asset is recognised in Other Comprehensive Income. Such re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.
The Provident Fund Contribution other than contribution to Employees'' Regional Provident Fund, is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the Central Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. The Employer shall make good deficiency, if any.
(c) Short term employee benefits
Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered.
(ix) Income tax:
Income tax is comprised of current and deferred tax. Income tax expense is recognised in the Statement of Profit and Loss, except to the extent it relates to items directly recognised in equity or in other comprehensive income.
(a) Current tax: Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of Income Tax Act, 1961.
(b) Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences, unabsorbed losses and unabsorbed depreciation to the extent that, it is probable that taxable income will be available against which the same can be realised.
(c) Minimum Alternate Tax: Minimum Alternate Tax credit is recognized when there is convincing evidence that the Company will pay normal income tax during the specified period.
(x) Provisions:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
Contingent Liabilities and Assets:
Contingent liabilities are disclosed after evaluation of facts, uncertainties and possibility of reimbursement. Contingent liabilities are not recognised but are disclosed in notes.
Contingent assets are not recognised in financial statements but are disclosed, since the former treatment may result in the recognition of income that may or may not be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and its recognition is appropriate.
(xi) Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial assets
Financial assets include cash and cash equivalents, trade and other receivables, investments in securities and other eligible current and non-current assets.
At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently classified under one of the following three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
- Financial assets at amortised cost: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial asset. The EIR amortisation is included as interest income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.
- Financial assets at fair value through other comprehensive income: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in Other Comprehensive Income (OCI). Interest income calculated using the effective interest rate (EIR) method, impairment gain or loss and foreign exchange gain or loss are recognised in the Statement of Profit and Loss. On derecognition of the asset, cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from the OCI to Statement of Profit and Loss.
- Financial assets at fair value through profit or loss: At the date of initial recognition, financial assets are held for trading, or which are measured neither at Amortised Cost nor at Fair Value through OCI. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognised in the Statement of Profit and Loss.
Investment in Equity shares of subsidiaries and associates are valued at cost.
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expires or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. Upon derecognition the difference between the carrying amount of a financial asset derecognised and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in the Statement of Profit and Loss.
The company assesses impairment based on the expected credit losses (ECL) model to all its financial assets measured at amortised cost.
(b) Financial liabilities
Financial liabilities include long-term and short-term loans and borrowings, trade and other payables and other eligible current and non-current liabilities.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and other payables, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories:
- Financial liabilities at amortised cost: After initial recognition, such financial liabilities are subsequently measured at amortised cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of the financial liability. The EIR amortisation is included in finance expense in the profit or loss.
- Financial liabilities at fair value through profit or loss: which are designated as such on initial recognition, or which are held for trading. Fair value gains/ losses attributable to changes in own credit risk is recognised in OCI. These gains/ loss are not subsequently transferred to Statement of Profit and Loss. All other changes in fair value of such liabilities are recognised in the Statement of Profit and Loss.
The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability derecognised and the sum of consideration paid and payable is recognised in statement of profit and loss as other income or finance costs/ other expenses.
(xii) Derivative financial instruments:
Derivative instruments such as forward currency contracts, interest rate swaps and option contracts are used to hedge foreign currency risks and interest rate risk. Such derivatives are initially recognised at their fair values on the date on which a derivative contract is entered into and are subsequently remeasured at fair value on each reporting date. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
(xiii) Revenue:
Revenue is recognised when the significant risks and rewards of ownership have been passed on to buyer. Revenue is measured at the fair value of the consideration received or receivable, including Excise Duty (till 30th June, 2017 the period prior to GST implementation date) but net of returns, allowances, trade discounts, volume discounts, sales tax, VAT, GST etc.
Interest income
Interest income is recognized on time proportion basis using the effective interest method.
Dividend income
Dividend income is recognized when the right to receive payment is established, which becomes certain after shareholders approval.
(xiv) Grants:
Grants and subsidies from the Government are recognised when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with. Revenue Grants are recognised in the Statement of Profit and Loss. Capital Grants relating to specific assets are recognised in the balance sheet as deferred income and credited in statement of profit and loss on a systematic basis over the useful life of the related asset.
Export incentives are recognised in the Statement of Profit and Loss.
(xv) Impairment:
The carrying amount of Property, plant and equipment, Intangible assets and Investment property are reviewed at each Balance Sheet date to assess impairment if any, based on internal / external factors. An asset is treated as impaired, when the carrying cost of asset exceeds its recoverable value, being higher of value in use and net selling price. An impairment loss is recognised as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed, if there has been an improvement in recoverable amount.
(xvi) Earnings per share (EPS):
Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the company by the weighted average number of ordinary shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss 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.
(xvii) Cash and cash equivalents:
Cash and cash equivalents include cash on hand and at bank, Cheques on hand and Remittances in transit for the purpose of meeting short-term cash commitments.
Figures in brackets represent amounts pertaining to previous year.
In accordance with the option given under Ind AS, the Property, plant and equipment as on 01.04.2015 were recognised at the carrying value of previous GAAP as deemed cost.
A includes forex reinstatement of Rs,14.92 crores (Previous year: net off Rs,25.23 crores). (Unamortised forex reinstatement as on 31.03.2018 Rs,72.27 crores (Previous year: Rs,59.76 crores))
* Building include Rs,2.05 crores (Previous year: Rs,2.05 crores) constructed on leased land, 32 shares held in co-operative housing societies.
Factory & Service buildings and Plant and Equipments of CompanyRs,s Plant at Jaykaygram were revalued as at 1st January 1985 & 1st April 1991. On 1st April 1997, the revaluation of such assets was updated along with similar assets of Banmore plant. The revaluation of said assets of Jaykaygram and Banmore was further updated alongwith Factory Land and Township building as at 1st April 2002 based on replacement cost by a Valuer. The Gross Value includes revaluation of Rs,423.71 crores (Previous year: Rs,429.11 crores).
(i) Term Loan of Rs,7.15 crores from a Bank, secured by a first pari passu charge created on movable and immovable assets of Company''s Plant in Madhya Pradesh, both present and future is repayable in 5 equal quarterly instalments.
(ii) Term Loan aggregating Rs,3.21 crores from a Bank, secured by a first pari passu charge created on movable and immovable assets at a Company''s Plant in Karnataka, both present and future and also secured by way of hypothecation created on the specified movable assets at Company''s Plants in Rajasthan, Madhya Pradesh and Karnataka is repayable during 2018-19 (since repaid).
(iii) Term Loans aggregating Rs,52.16 crores from Banks, secured by a first pari passu charge created on movable and immovable assets at a Company''s Plant in Karnataka, both present and future are repayable in 20 equal quarterly instalments.
(iv) Term Loans aggregating Rs,430.73 crores (Rs,291.32 crores from Banks and Foreign Currency Loan from a Financial Institution amounting to Rs,139.41 crores including Rs,29.48 crores due to forex reinstatement), secured by a first pari passu charge created on movable and immovable assets at a Company''s Plant in Tamil Nadu, both present and future are repayable in 20 equal quarterly instalments.
(v) Term Loans aggregating Rs,817.77 crores (Rs,567.12 crores from Banks / Financial Institution, Foreign Currency Loan from a Financial Institution amounting to Rs,176.27 crores including Rs,6.46 crores due to forex reinstatement and Buyer''s Credit of Rs,74.38 crores including Rs,3.03 crores due to forex reinstatement availed from Banks, which will be substituted by Term Loans), secured by a first pari passu charge created on movable and immovable assets at a Company''s Plant in Tamil Nadu, both present and future and also secured by way of hypothecation created on the specified movable assets at Company''s Plants in Madhya Pradesh and Karnataka are repayable in 38 equal quarterly instalments.
(vi) Foreign Currency Loan from a Bank amounting to Rs,97.74 crores including Rs,5.53 crores due to forex reinstatement, secured by charge by way of hypothecation of specified assets at Company''s Plants in Rajasthan, Karnataka and Tamil Nadu, is repayable in 24 equal quarterly instalments.
(vii) Foreign Currency Loan from a Bank amounting to Rs,215.76 crores net of Rs,1.29 crores due to forex reinstatement is secured by first pari passu charge on movable fixed assets at Company''s Plants at Rajasthan and Karnataka (excluding those specifically charged to other banks), both present & future. Loan of Tranche - I, Rs,88.64 crores and Tranche - II, Rs,127.12 crores are repayable in 24 and 27 quarterly instalments respectively.
(viii) Term Loan of Rs,233.33 crores from a Bank is repayable in 12 equal monthly instalments commencing from April 2018.
(ix) Term Loan of Rs,16.35 crores from a body corporate is repayable in 8 equal quarterly instalments.
(x) Term Loans carrying first pari passu charge on the movable and immovable assets, are subject to prior charge of banks on stocks and book debts for working capital borrowings.
(xi) Fixed Deposits of Rs,38.80 crores, Rs,43.10 crores and Rs,24.63 crores (aggregating Rs,106.53 crores) are due for repayment in 2018-19, 2019-20 and 2020-21 respectively.
* Working Capital borrowings secured by hypothecation of stocks and book debts etc. of the Company, both present and future and second charge created on movable and immovable assets of the Company''s Plants in Rajasthan, Madhya Pradesh, Karnataka and Tamil Nadu.
Mar 31, 2017
1.1 The Company overview:
JK Tyre and Industries Limited (JKTIL) is a public limited company incorporated and domiciled in India and its shares are publicly traded on the National Stock Exchange (''NSE'') and the Bombay Stock Exchange (''BSE''), in India. The registered office of the company is situated at Jaykaygram, PO - Tyre Factory, Kankroli - 313342 Rajasthan, India.
JKTiL develops, manufactures, markets and distributes automotive Tyres, Tubes, Flaps and Retreads. The company markets its tyres for sale to vehicle manufacturers for fitment as original equipments and for sale in replacement markets worldwide. The company has six manufacturing plants located in India at Kankroli (Rajasthan), Banmore (Madhya Pradesh), Sriperumbudur (chennai) and three plants at Mysore (Karnataka).
These financial statements were approved and adopted by board of directors of the company in their meeting held on May 15, 2017.
1.2 Basis of preparation of financial statements:
(i) Statement of compliance:
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the companies Act, 2013 read with companies (Indian Accounting Standards) Rules, 2015 and companies (Indian Accounting Standards) (Amendment) Rules, 2016 and relevant provisions of the companies Act, 2013.
(ii) Basis of preparation:
These financial statements have been prepared in accordance with Ind AS 101, "First Time Adoption of Ind AS", as these are the company''s first Ind AS compliant financial statements for the year ended 31st March, 2017.
The financial statements correspond to the classification provisions contained in Ind AS-1 (Presentation of Financial Statements). The transition to Ind AS has been carried out from the accounting principles generally accepted in India (Indian GAAP), which is considered as the "Previous GAAP", for purposes of Ind AS - 1.
The preparation of these financial statements resulted in changes to the company''s accounting policies as compared to the most recent annual financial statements prepared under Previous GAAP, wherever necessary. All accounting policies and applicable Ind AS have been applied consistently and retrospectively to all periods , including the previous financial year presented and the Ind AS opening balance sheet as at 1st April, 2015 (Transition Date). The resulting difference between the carrying amounts under Ind AS and Previous GAAP as on the Transition Date has been recognized directly in Retained Earnings. An explanation of the effect of the transition from Previous GAAP to Ind AS on the company''s equity and profit is provided in Note No. 56. in preparing these financial statements, the company has availed certain exemptions and exceptions from retrospective application of certain requirements under Ind AS, as explained below:
a) Exemptions from retrospective application:
- Deemed cost of property, plant and equipment: The company has opted to continue with the carrying value for all of its property, plant and equipment as recognized in the previous GAAP financial statements as their deemed cost at the transition date to Ind AS (i.e. 1st April, 2015).
- Exchange difference on long term foreign currency monetary items: For those Long Term Foreign currency Monetary items relating to acquisition of depreciable capital assets, which were already recognized before the beginning of the first Ind AS Financial Statements, the company has opted to continue with the previous GAAP option of capitalizing the exchange differences in the cost of such assets till 2020, pursuant to the option in Notification No. G.S.R 914(E) dated 29th December, 2011 issued by Ministry of corporate Affairs.
- Business combinations: The company has opted to apply Ind AS 103 prospectively from the date of transition to Ind AS, i.e. 1st April, 2015 onwards. However, previous GAAP balances relating to assets and liabilities acquired under business combinations entered into before transition date, have been carried forward without any adjustments.
- investment in equity shares of subsidiaries and associates: On the transition date, the company has opted to carry investments in Equity shares of subsidiaries and associates at their deemed cost, i.e. previous GAAP carrying amount.
- Leases: For arrangements entered into prior to 1st April, 2015, the company has assessed all arrangements for Embedded Leases based on conditions prevailing as at the date of transition (i.e. 1st April, 2015).
b) Exceptions from full retrospective application:
- Government loans: The Company has adopted previous GAAP carrying amount of Unsecured Deferred Sales Tax Loan at the date of transition to Ind AS as the carrying amount of the loan in the Opening Ind AS Balance sheet and applied Ind AS 109 (Financial instruments) and Ind AS 20 (Accounting for Government Grants and Disclosure of Government Assistance) prospectively.
- Estimates: Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where revision in estimates was necessitated as required by Ind AS. The estimates used by the Company to present the amounts in accordance with Ind AS reflect conditions existing as at 1st April, 2015, the date of transition to Ind AS and as at 31st March, 2016 and 31st March, 2017.
(iii) Basis of measurement:
The financial statements have been prepared under historical cost convention on accrual basis, except for the items that have been measured at fair value as required by relevant Ind AS.
(iv) Significant accounting judgments, estimates and assumptions:
The preparation of these financial statements requires management judgments, estimates and assumptions that affect the application of accounting policies, the accounting disclosures made and the reported amounts of assets, liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are made in the period, in which, the estimates are revised and in any future periods, effected pursuant to such revision.
1.3 Significant accounting policies:
(i) Property, plant and equipment:
a) Recognition and measurement: Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenses directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Expenditure during construction / erection period is included under capital work-in-progress and is allocated to the respective property, plant and equipment on completion of construction / erection.
b) Depreciation: Depreciation on property, plant and equipment (including Continuous Process Plants considered on technical evaluation) has been provided using straight line method over their useful lives and in the manner prescribed under Schedule ii of the Companies Act, 2013. However, in respect of certain property, plant and equipment, depreciation is provided as per their useful lives as assessed by the management supported by technical advice ranging from 15 to 35 years for plant and machinery and 15 to 70 years for buildings. Accelerated depreciation in respect of a production accessory is provided over 6 years.
The cost and related accumulated depreciation are eliminated from the financial statements, upon sale and disposition of the assets and the resultant gains or losses are recognized in the statement of profit and loss.
(ii) Investment property:
Investment properties are measured at cost less accumulated depreciation and impairment losses, if any.
The cost and related accumulated depreciation are eliminated from the financial statements, upon sale, disposition and withdrawal from permanent use of the assets and when no future economic benefits are expected from its disposal. The resultant gains or losses are recognized in the statement of profit and loss.
(iii) Intangible assets:
Intangible assets are recognized, if the future economic benefits attributable to the assets are expected to flow to the Company and cost of the asset can be measured reliably. The same are amortized over the expected duration of benefits. Such intangible assets are measured at cost less any accumulated amortization and impairment losses, if any.
Revenue Expenditure on Research and Development is charged to Statement of Profit and Loss and capital Expenditure is added to Property, plant and equipment.
(iv) Lease:
Lease is classified as Operating Lease, when substantial risks and rewards of ownership are not transferred - rentals thereon are recognized as expense over the lease term.
Leases under which, the company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments are apportioned between finance charges and reduction of the lease liability, so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the statement of profit and loss.
(v) Foreign currency transactions and translation:
The functional currency of the company is Indian rupee (H). Foreign currency transactions are recorded at exchange rates prevailing on the date of transaction. Monetary assets and liabilities in foreign currencies as at the Balance Sheet date are translated at exchange rate prevailing at the year end. Exchange differences arising on actual payments / realizations and year end translations including on forward contracts are dealt with in Profit and Loss Statement except exchange differences arising on those Long term foreign currency monetary items, related to acquisition of depreciable capital assets being carried forward from previous GAAP which are adjusted to cost of such assets and depreciated over their balance life pursuant to the option in Notification No. G.S.R 914(E) dated 29th December, 2011 issued by Ministry of corporate Affairs. Non Monetary Foreign currency items are stated at cost.
(vi) Inventories:
inventories are valued at lower of cost and net realizable value. The cost is computed on weighted average basis. Finished Goods and Process Stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
(vii) Borrowing cost:
Borrowing cost is charged to Statement of Profit and Loss statement except meant for acquisition of qualifying assets, which is capitalized, using the effective interest method till the date of commercial use.
(viii) Employee benefit:
(a) Defined-contribution plans
Contributions to the employees'' regional provident fund, superannuation fund, Employees Pension Scheme and Employees'' State insurance are recognized as defined contribution plan and charged as expenses during the period in which the employees perform the services.
(b) Defined-benefit plans
Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit plan and determined on actuarial valuation using the Projected Unit credit Method at the balance sheet date. Actuarial Gains or Losses through re-measurement of the net obligation of a defined benefit liability or asset is recognized in Other comprehensive income. Such re-measurements are not reclassified to Statement of Profit and Loss in subsequent periods.
The Provident Fund contribution other than contribution to Employees'' Regional Provident Fund, is made to trust administered by the trustees. The interest rate to the members of the trust shall not be lower than the statutory rate declared by the central Government under Employees'' Provident Fund and Miscellaneous Provision Act, 1952. The Employer shall make good deficiency, if any.
(c) Short term employee benefits
Short term benefits are charged off at the undiscounted amount in the year in which the related service is rendered.
(ix) Income tax:
Income tax is comprised of current and deferred tax. income tax expense is recognized in the Statement of Profit and Loss, except to the extent it relates to items directly recognized in equity or in other comprehensive income.
a) Current tax: Current Tax is the amount of tax payable on the estimated taxable income for the current year as per the provisions of income Tax Act, 1961.
b) Deferred tax: Deferred Tax is recognized for temporary differences. However, Deferred Tax Asset is recognized to the extent that, it is probable that taxable income will be available against which the same can be realized.
(x) Provisions:
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
(xi) Financial Instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
(a) Financial assets
Financial assets include cash and cash equivalents, trade and other receivables, investments in securities and other eligible current and non-current assets.
At initial recognition, all financial assets are measured at fair value. Such financial assets are subsequently classified under one of the following three categories according to the purpose for which they are held. The classification is reviewed at the end of each reporting period.
- Financial assets at amortized cost: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates. These financial assets are intended to be held until maturity. Therefore, they are subsequently measured at amortized cost by applying the Effective interest Rate (EIR) method to the gross carrying amount of the financial asset. The EIR amortization is included as interest income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.
- Financial assets at fair value through other comprehensive income: At the date of initial recognition, are held to collect contractual cash flows of principal and interest on principal amount outstanding on specified dates, as well as held for selling. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognized in Other Comprehensive income (OCI). interest income calculated using the Effective interest Rate (EiR) method, impairment gain or loss and foreign exchange gain or loss are recognized in the Statement of Profit and Loss. On de-recognition of the asset, cumulative gain or loss previously recognized in Other Comprehensive income is reclassified from the OCi to Statement of Profit and Loss.
- Financial assets at fair value through profit or loss: At the date of initial recognition, Financial assets are held for trading, or which are measured neither at Amortized Cost nor at Fair Value through OCi. Therefore, they are subsequently measured at each reporting date at fair value, with all fair value movements recognized in the Statement of Profit and Loss.
Investment in Equity shares of subsidiaries and associates are valued at cost.
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109.
The company assesses impairment based on the expected credit losses (ECL) model to all its financial assets measured at amortized cost.
(b) Financial liabilities
Financial liabilities include long-term and short-term loans and borrowings, trade and other payables and other eligible current and non-current liabilities.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and other payables, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories:
- Financial liabilities at amortized cost: After initial recognition, such financial liabilities are subsequently measured at amortized cost by applying the Effective interest Rate (EIR) method to the gross carrying amount of the financial liability. The EIR amortization is included in finance expense in the profit or loss.
- Financial liabilities at fair value through profit or loss: which are designated as such on initial recognition, or which are held for trading. Fair value gains / losses attributable to changes in own credit risk is recognized in OCI. These gains / losses are not subsequently transferred to Statement of Profit and Loss. All other changes in fair value of such liabilities are recognized in the Statement of Profit and Loss.
The company de-recognizes a financial liability when the obligation specified in the contract is discharged, cancelled or expires.
(xii) Derivative financial instruments:
Derivative instruments such as forward currency contracts, interest rate swaps and option contracts are used to hedge foreign currency risks and interest rate risk. Such derivatives are initially recognized at their fair values on the date on which a derivative contract is entered into and are subsequently re-measured at fair value on each reporting date. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.
(xiii) Revenue:
Revenue is recognized when the significant risks and rewards of ownership have been passed on to buyer. Revenue is measured at the fair value of the consideration received or receivable, including Excise Duty, but net of returns, allowances, trade discounts and volume discounts and sales tax / VAT etc.
(xiv) Grants:
Grants and subsidies from the Government are recognized when there is reasonable assurance that the grant / subsidy will be received and all attaching conditions will be complied with. Revenue Grants are recognized in the Statement of Profit and Loss. capital Grants relating to specific assets are recognized in the balance sheet as deferred income and credited in statement of profit and loss on a systematic basis over the useful life of the related asset.
Export incentives are recognized in the Statement of Profit and Loss.
(xv) Impairment:
The carrying amount of Property, plant and equipments, intangible assets and investment property are reviewed at each Balance Sheet date to assess impairment if any, based on internal / external factors. An asset is treated as impaired, when the carrying cost of asset exceeds its recoverable value, being higher of value in use and net selling price. An impairment loss is recognized as an expense in the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been an improvement in recoverable amount.
(xvi) Earnings per share (EPS):
Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity holders of the company by the weighted average number of ordinary shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss 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.
(xvii) Cash and cash equivalents:
cash and cash equivalents include cash on hand and at bank, cheques on hand and Remittances in transit for the purpose of meeting short-term cash commitments.
Mar 31, 2016
1.1 The financial statements have been prepared under historical cost
convention (except for certain fixed assets which were revalued) on
accrual basis in compliance with applicable Accounting Standards as
prescribed under Section 133 of the Companies Act, 2013 read with Rule
7 of the Companies (Accounts) Rules, 2014 and relevant provisions of
the Companies Act, 2013.
1.2 Fixed assets are stated at cost adjusted by revaluation of certain
assets.
1.3 Expenditure during construction / erection period is included under
capital work-in-progress and is allocated to the respective fixed
assets on completion of construction / erection.
1.4 Depreciation on fixed assets (including on Continuous process
plants considered on technical evaluation) has been provided using
Straight Line Method over their useful lives and in the manner
prescribed under Schedule II of the Companies Act, 2013. However, in
respect of certain assets, depreciation is provided as per their useful
lives as assessed by the management supported by technical advice
ranging from 15 to 35 years for plant and machinery and 15 to 70 years
for buildings. Accelerated depreciation in respect of a production
accessory is provided over 6 years.
Leasehold land is being amortised over the lease period.
1.5 Lease is classified as Operating Lease when substantial risks &
rewards of ownership are not transferred - rentals thereon are
recognised as expense over the lease term.
1.6 Foreign currency transactions are recorded at exchange rates
prevailing on the date of transaction. Monetary assets and liabilities
in foreign currencies as at the Balance Sheet date are translated at
exchange rate prevailing at the year end. Premium in respect of forward
contracts is recognised over the life of contract. Exchange differences
arising on actual payments / realisations and year end translations
including on forward contracts are dealt with in Profit and Loss
Statement except exchange differences arising on Long term foreign
currency monetary items, related to acquisition of depreciable capital
assets, which are adjusted to cost of such assets and depreciated over
their balance life pursuant to the option in Notification No.G.S.R
914(E) dated 29th December, 2011 issued by Ministry of Corporate
Affairs. Non Monetary Foreign Currency items are stated at cost.
1.7 Long Term Investments are stated at cost. Provision for diminution
in the value of long term Investments is made only if, such a decline
is other than temporary. The Current Investments are stated at lower of
cost or quoted / fair value computed category- wise.
1.8 Inventories are valued at lower of cost and net realisable value.
The cost is computed on weighted average basis. Finished Goods and
Process Stock include cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
1.9 Revenue Expenditure on Research and Development is charged to
Profit & Loss Statement and Capital Expenditure is added to Fixed
Assets.
1.10 Borrowing Cost is charged to Profit & Loss Statement except meant
for acquisition of qualifying assets, which is capitalised till the
date of commercial use.
1.11 The carrying amount of Assets are reviewed at each Balance Sheet
date to assess impairment, if any based on internal / external factors.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value being higher of value in use and net selling
price. An impairment loss is recognised as an expense in the Profit &
Loss Statement in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed,
if there has been an improvement in recoverable amount.
1.12 Employee Benefits:
a) Defined-contribution plans:
Contributions to the Employees'' Regional Provident Fund, Superannuation
Fund and Employees Pension Scheme are recognised as defined
contribution plan and charged as expenses during the period in which
the employees perform the services.
b) Defined-benefit plans:
Retirement benefits in the form of Gratuity and Leave Encashment are
considered as defined benefit plan and determined on actuarial
valuation using the Projected Unit Credit Method at the balance sheet
date. Actuarial Gains and Losses are recognised immediately in the
Profit & Loss Statement.
The Provident Fund Contribution other than contribution to Employees''
Regional Provident Fund, is made to trust administered by the trustees.
The interest rate to the members of the trust shall not be lower than
the statutory rate declared by the Central Government under Employees''
Provident Fund and Miscellaneous Provision Act, 1952. The Employer
shall make good deficiency, if any.
c) Short term employee benefits:
Short term benefits are charged off at the undiscounted amount in the
year in which the related service is rendered.
1.13 Revenue is recognised when significant risks and rewards of
ownership have been passed to buyer.
1.14 Grants and subsidies from the Government are recognised when there
is reasonable certainty that the grant / subsidy will be received and
all attaching conditions will be complied with. Revenue Grants are
recognised in the Profit & Loss Statement. Capital Grants relating to
specific fixed assets are reduced from the gross value of respective
fixed assets. Other Capital Grants are credited to Capital Reserve.
Export incentives are recognized in the Profit & Loss Statement.
1.15 Current Tax is the amount of tax payable on the estimated taxable
income for the current year as per the provisions of Income Tax Act,
1961. Deferred Tax is recognised for timing differences. However,
Deferred Tax Asset is recognised on the basis of reasonable / virtual
certainty that sufficient future taxable income will be available
against which the same can be realised.
1.16 Intangible Assets are being recognised, if the future economic
benefits attributable to the assets are expected to flow to the Company
and cost of the asset can be measured reliably. The same are being
amortised over the expected duration of benefits.
Mar 31, 2015
1.1 The financial statements have been prepared under historical cost
convention (except for certain fixed assets which were revalued) on
accrual basis in compliance with applicable Accounting Standards as
prescribed under Section 133 of the Companies Act, 2013 read with Rule
7 of the Companies (Accounts) Rules, 2014 and relevant provisions of
the Companies Act, 2013.
1.2 Fixed assets are stated at cost adjusted by revaluation of certain
assets.
1.3 Expenditure during construction / erection period is included under
capital work-in-progress and is allocated to the respective fixed
assets on completion of construction / erection.
1.4 Depreciation on fixed assets has been provided using Straight Line
Method over their useful lives and in the manner prescribed under
Schedule II of the Companies Act, 2013. Continuous process plants as
defined in Schedule II have been considered on technical evaluation.
However, in respect of certain assets, depreciation is provided as per
their useful lives as assessed by the valuer ranging from 15 to 43
years for plant and machinery and 18 to 80 years for buildings.
Accelerated depreciation in respect of a production accessory is
provided over 6 years.
Leasehold land is being amortised over the lease period.
1.5 Lease is classified as Operating Lease when substantial risks &
rewards of ownership are not transferred - rentals thereon are
recognised as expense over the lease term.
1.6 Foreign currency transactions are recorded at exchange rates
prevailing on the date of transaction. Monetary assets and iabilities
in foreign currencies as at the Balance Sheet date are translated at
exchange rate prevailing at the year end. Premium in respect of forward
contracts is recognised over the life of contract. Exchange differences
arising on actual payments / realisations and year end translations
including on forward contracts are dealt with in Profit and Loss
Statement except exchange differences arising on Long term foreign
currency monetary items, related to acquisition of depreciable capital
assets, which are adjusted to cost of such assets and depreciated over
their balance life pursuant to the option in Notification No.G.S.R
914(E) dated 29th December, 2011 issued by Ministry of Corporate
Affairs. Non Monetary Foreign Currency items are stated at cost.
1.7 Long Term Investments are stated at cost. Provision for diminution
in the value of long term Investments is made only if, such a decline
is other than temporary. The Current Investments are stated at lower of
cost or quoted / fair value computed category- wise.
1.8 Inventories are valued at lower of cost and net realisable value.
The cost is computed on weighted average basis. Finished Goods and
Process Stock include cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
1.9 Revenue Expenditure on Research and Development is charged to
Profit & Loss Statement and Capital Expenditure is added to Fixed
Assets.
1.10 Borrowing Cost is charged to Profit & Loss Statement except meant
for acquisition of qualifying assets, which is capitalised till the
date of commercial use.
1.11 The carrying amount of Assets are reviewed at each Balance Sheet
date to assess impairment, if any based on internal / externa factors.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value being higher of value in use and net selling
price. An impairment loss is recognised as an expense in the Profit &
Loss Statement in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed,
if there has been an improvement in recoverable amount.
1.12 Employee Benefits:
a) Defined-contribution plans:
Contributions to the Employees'' Regional Provident Fund, Superannuation
Fund and Employees Pension Scheme are recognised as defined
contribution plan and charged as expenses during the period in which
the employees perform the services.
b) Defined-benefit plans:
Retirement benefits in the form of Gratuity and Leave Encashment are
considered as defined benefit plan and determined on actuarial
valuation using the Projected Unit Credit Method at the balance sheet
date. Actuarial Gains and Losses are recognised immediately in the
Profit & Loss Statement.
The Provident Fund Contribution other than contribution to Employees''
Regional Provident Fund, is made to trust administered by the trustees.
The interest rate to the members of the trust shall not be lower than
the statutory rate declared by the Central Government under Employees''
Provident Fund and Miscellaneous Provision Act, 1952. The Employer
shall make good deficiency, if any.
c) Short term employee benefits:
Short term benefits are charged off at the undiscounted amount in the
year in which the related service is rendered.
1.13 Revenue is recognised when significant risks and rewards of
ownership have been passed to buyer.
1.14 Grants and subsidies from the Government are recognised when there
is reasonable certainty that the grant / subsidy will be received and
all attaching conditions will be complied with. Revenue Grants are
recognised in the Profit & Loss Statement. Capital Grants relating to
specific fixed assets are reduced from the gross value of respective
fixed assets. Other Capital Grants are credited to Capital Reserve.
Export incentives are recognised in the Profit & Loss Statement.
1.15 Current Tax is the amount of tax payable on the estimated taxable
income for the current year as per the provisions of Income Tax Act,
1961. Deferred Tax is recognised for timing differences. However,
Deferred Ta x Asset is recognised on the basis of reasonable / virtual
certainty that sufficient future taxable income will be available
against which the same can be realised.
1.16 Intangible Assets are being recognised, if the future economic
benefits attributable to the assets are expected to flow to the company
and cost of the asset can be measured reliably. The same are being
amortised over the expected duration of benefits.
Mar 31, 2014
1.1 The financial statements have been prepared under historical cost
convention (except for certain fixed assets which were revalued) on
accrual basis in compliance with applicable Accounting Standards
notified by the Companies (Accounting Standards) Rules, 2006 (as
amended) and relevant provisions of the Companies Act, 1956.
1.2 Fixed assets are stated at cost adjusted by revaluation of certain
assets.
1.3 Expenditure during construction / erection period is included under
capital work-in-progress and is allocated to the respective fixed
assets on completion of construction / erection.
1.4 a) Depreciation on fixed assets has been provided using Straight
Line Method at rates and in the manner prescribed under Schedule XIV of
the Companies Act, 1956. Continuous process Plants as defined in
Schedule XIV have been considered on technical evaluation.
b) Leasehold Land is being amortised over the lease period.
c) Depreciation on the increased amount of assets due to revaluation is
computed on the basis of residual life of the assets as estimated by
the valuer on straight line method.
1.5 Lease is classified as Operating Lease when substantial risks &
rewards of ownership are not transferred - rentals thereon are
recognised as expense over the lease term.
1.6 Foreign currency transactions are recorded at exchange rates
prevailing on the date of transaction. Monetary assets and liabilities
in foreign currencies as at the Balance Sheet date are translated at
exchange rate prevailing at the year end. Premium in respect of
forward contracts is recognised over the life of contract. Exchange
differences arising on actual payments / realisations and year end
translations including on forward contracts are dealt with in Profit
and Loss Statement except exchange differences arising on Long term
foreign currency monetary items, related to acquisition of depreciable
capital assets, which are adjusted to cost of such assets and
depreciated over their balance life pursuant to the option in
Notification No.G.S.R 914(E) dated 29th December, 2011 issued by
Ministry of Corporate Affairs. Non Monetary Foreign Currency items are
stated at cost.
1.7 Long Term Investments are stated at cost. Provision for diminution
in the value of long term Investments is made only if, such a decline
is other than temporary. The Current Investments are stated at lower of
cost or quoted / fair value computed category-wise.
1.8 Inventories are valued at lower of cost and net realisable value.
The cost is computed on weighted average basis. Finished Goods and
Process Stock include cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
1.9 Revenue Expenditure on Research and Development is charged to
Profit & Loss Statement and Capital Expenditure is added to Fixed
Assets.
1.10 Borrowing Cost is charged to Profit & Loss Statement except meant
for acquisition of qualifying assets, which is capitalised till the
date of commercial use.
1.11 The carrying amount of Assets are reviewed at each Balance Sheet
date to assess impairment, if any based on internal / external factors.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value being higher of value in use and net selling
price. An impairment loss is recognised as an expense in the Profit &
Loss Statement in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed,
if there has been an improvement in recoverable amount.
1.12 Employee Benefits:
a) Defined-contribution plans:
Contributions to the Employees'' Regional Provident Fund, Superannuation
Fund and Employees Pension Scheme are recognised as defined
contribution plan and charged as expenses during the period in which
the employees perform the services.
b) Defined-benefit plans:
Retirement benefits in the form of Gratuity and Leave Encashment are
considered as defined benefit plan and determined on actuarial
valuation using the Projected Unit Credit Method at the balance sheet
date. Actuarial Gains and Losses are recognised immediately in the
Profit & Loss Statement.
The Provident Fund Contribution other than contribution to Employees''
Regional Provident Fund, is made to trust administered by the trustees.
The interest rate to the members of the trust shall not be lower than
the statutory rate declared by the Central Government under Employees''
Provident Fund and Miscellaneous Provision Act, 1952. The Employer
shall make good deficiency, if any.
c) Short term employee benefits:
Short term benefits are charged off at the undiscounted amount in the
year in which the related service is rendered.
1.13 Revenue is recognised when significant risks and rewards of
ownership have been passed to buyer.
1.14 Grants and subsidies from the Government are recognised when there
is reasonable certainty that the grant / subsidy will be received and
all attaching conditions will be complied with. Revenue Grants are
recognised in the Profit & Loss Statement. Capital Grants relating to
specific fixed assets are reduced from the gross value of respective
fixed assets. Other Capital Grants are credited to Capital Reserve.
Export incentives are recognised in the Profit & Loss Statement.
1.15 Current Tax is the amount of tax payable on the estimated taxable
income for the current year as per the provisions of Income Tax Act,
1961. Deferred Tax is recognised for timing differences. However,
Deferred Tax Asset is recognised on the basis of reasonable / virtual
certainty that sufficient future taxable income will be available
against which the same can be realised.
1.16 Intangible Assets are being recognised, if the future economic
benefits attributable to the assets are expected to flow to the company
and cost of the asset can be measured reliably. The same are being
amortised over the expected duration of benefits.
Mar 31, 2013
1.1 The financial statements have been prepared under historical cost
convention (except for certain fixed assets which were revalued) on
accrual basis in compliance with applicable Accounting Standards
notified by the Companies (Accounting Standards) Rules, 2006 (as
amended) and relevant provisions of the Companies Act, 1956.
1.2 Fixed assets are stated at cost adjusted by revaluation of certain
assets.
1.3 Expenditure during construction / erection period is included under
capital work-in-progress and is allocated to the respective fixed
assets on completion of construction / erection.
1.4 a) Depreciation on fixed assets has been provided using Straight
Line Method at rates and in the manner prescribed under Schedule XIV of
the Companies Act, 1956. Continuous process Plants as defined in
Schedule XIV have been considered on technical evaluation.
b) Leasehold Land is being amortised over the lease period.
c) Depreciation on the increased amount of assets due to revaluation is
computed on the basis of residual life of the assets as estimated by
the valuer on straight line method.
1.5 Lease is classified as Operating Lease when substantial risks &
rewards of ownership are not transferred - rentals thereon are
recognised as expense over the lease term.
1.6 Foreign currency transactions are recorded at exchange rates
prevailing on the date of transaction. Monetary assets and liabilities
in foreign currencies as at the Balance Sheet date are translated at
exchange rate prevailing at the year end. Premium in respect of
forward contracts is recognised over the life of contract. Exchange
differences arising on actual payments / realisations and year end
translations including on forward contracts are dealt with in Profit
and Loss Statement except exchange differences arising on Long term
foreign currency monetary items, related to acquisition of depreciable
capital assets, which are adjusted to cost of such assets and
depreciated over their balance life pursuant to the option in
Notification No.G.S.R 914(E) dated 29th December, 2011 issued by
Ministry of Corporate Affairs. Non Monetary Foreign Currency items are
stated at cost.
1.7 Long Term Investments are stated at cost. Provision for diminution
in the value of long term Investments is made only if, such a decline
is other than temporary. The Current Investments are stated at lower of
cost or quoted / fair value computed category-wise.
1.8 Inventories are valued at lower of cost and net realisable value.
The cost is computed on weighted average basis. Finished Goods and
Process Stock include cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
1.9 Revenue Expenditure on Research and Development is charged to
Profit & Loss Statement and Capital Expenditure is added to Fixed
Assets.
1.10 Borrowing Cost is charged to Profit & Loss Statement except meant
for acquisition of qualifying assets which is capitalised till the date
of commercial use.
1.11 The carrying amount of Assets are reviewed at each Balance Sheet
date to assess impairment, if any based on internal / external factors.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value being higher of value in use and net selling
price. An impairment loss is recognised as an expense in the Profit &
Loss Statement in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed,
if there has been an improvement in recoverable amount.
1.12 Employee Benefits:
a) Defined-contribution plans
Contributions to the Employees'' Regional Provident Fund, Superannuation
Fund and Employees Pension Scheme are recognised as defined
contribution plan and charged as expenses during the period in which
the employees perform the services.
b) Defined-benefit plans
Retirement benefits in the form of gratuity and Leave Encashment are
considered as defined benefit plan and determined on actuarial
valuation using the Projected Unit Credit Method at the balance sheet
date. Actuarial Gains and Losses are recognised immediately in the
Profit & Loss Statement.
The Provident Fund Contribution other than contribution to Employees''
Regional Provident Fund, is made to trust administered by the trustees.
The interest rate to the members of the trust shall not be lower than
the statutory rate declared by the Central Government under Employees''
Provident Fund and Miscellaneous Provision Act, 1952. The Employer
shall make good deficiency, if any.
c) Short term employee benefits:
Short term benefits are charged off at the undiscounted amount in the
year in which the related service is rendered.
1.13 Revenue is recognised when significant risks and rewards of
ownership have been passed to buyer.
1.14 Export incentives are recognised in the Profit & Loss Statement.
Project subsidy is credited to Capital Reserve.
1.15 Current Tax is the amount of tax payable on the estimated taxable
income for the current year as per the provisions of Income Tax Act,
1961. Deferred Tax is recognised for timing differences. However,
Deferred Tax Asset is recognised on the basis of reasonable / virtual
certainty that sufficient future taxable income will be available
against which the same can be realised.
1.16 Intangible Assets are being recognised, if the future economic
benefits attributable to the assets are expected to flow to the company
and cost of the asset can be measured reliably. The same are being
amortised over the expected duration of benefits.
Mar 31, 2012
1.1 The financial statements have been prepared under historical cost
convention (except for certain fixed assets which were revalued) on
accrual basis in compliance with applicable Accounting Standards
notified by the Companies (Accounting Standards) Rules, 2006 and
relevant provisions of the Companies Act, 1956.
1.2 Fixed assets are stated at cost adjusted by revaluation of certain
assets.
1.3 Expenditure during construction / erection period is included under
capital work-in-progress and is allocated to the respective fixed
assets on completion of construction / erection.
1.4 a) Depreciation on fixed assets has been provided using Straight
Line Method at rates and manner prescribed under Schedule XIV of the
Companies Act, 1956. Continuous process Plants as defined in Schedule
XIV have been considered on technical evaluation.
b) Leasehold Land is being amortised over the lease period.
c) Depreciation on the increased amount of assets due to revaluation is
computed on the basis of residual life of the assets as estimated by
the valuer on straight line method.
1.5 Lease which does not transfer substantially all the risks and
rewards of ownership is classified as Operating Lease and is recognized
as expense as and when incurred over the lease-term.
1.6 Foreign currency transactions are recorded at exchange rates
prevailing on the date of transaction. Monetary assets and liabilities
in foreign currencies as at the Balance Sheet date are translated at
exchange rate prevailing at the year end. Premium in respect of forward
contracts is recognised over the life of contract. Exchange differences
arising on actual payments / realizations and year end translations
including on forward contracts are dealt with in Profit and Loss
Account except exchange differences arising on Long term foreign
currency monetary items, related to acquisition of depreciable capital
assets, which are adjusted to cost of such assets pursuant to the
option in Notification No.G.S.R 914(E) Dated: 29th December, 2011
issued by Ministry of Corporate Affairs. Non Monetary Foreign Currency
items are stated at cost.
1.7 Long Term Investments are stated at cost. Provision for diminution
in the value of long term Investments is made only if, such a decline
is other than temporary. The Current Investments are stated at lower of
cost or quoted / fair value computed category- wise.
1.8 Inventories are valued at lower of cost and net realisable value.
The cost is computed on weighted average basis. Finished Goods and
Process Stock include cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
1.9 Revenue Expenditure on Research and Development is charged to
Profit & Loss Account and Capital Expenditure is added to Fixed Assets.
1.10 Borrowing Cost is charged to Profit & Loss Account except cost of
borrowings for acquisition of qualifying assets which is capitalised
till the date of commercial use of the asset.
1.11 The carrying amount of Assets are reviewed at each Balance Sheet
date to assess impairment, if any based on internal / external factors.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value being higher of value in use and net selling
price. An impairment loss is recognised as an expense in the Profit &
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed,
if there has been an improvement in recoverable amount.
1.12 Employee Benefits:
a) Defined-contribution plans
Contributions to the Employees' Regional Provident Fund, Superannuation
Fund, Employees Pension Scheme and Employees' State Insurance are
recognised as defined contribution plan and charged as expenses during
the period in which the employees perform the services.
b) Defined-benefit plans
Retirement benefits in the form of gratuity and Leave Encashment are
considered as defined benefit plan and determined on actuarial
valuation using the Projected Unit Credit Method at the balance sheet
date. Actuarial Gains and Losses are recognised immediately in the
Profit & Loss Account.
The Provident Fund Contribution other than contribution to Employees'
Regional Provident Fund, is made to trust administered by the trustees.
The interest rate to the members of the trust shall not be lower than
the statutory rate declared by the Central Government under Employees'
Provident Fund and Miscellaneous Provision Act, 1952. The Employer
shall make good deficiency, if any.
c) Short term employee benefits:
Short term benefits are charged off at the undiscounted amount in the
year in which the related service is rendered.
1.13 Export incentives and other benefits are recognised in the Profit
& Loss Account. Project subsidy is credited to Capital Reserve.
1.14 Current Tax is the amount of tax payable on the estimated taxable
income for the current year as per the provisions of Income Tax Act,
1961. Deferred Tax is recognised for timing differences. However,
Deferred Tax Asset is recognised on the basis of reasonable / virtual
certainty that sufficient future taxable income will be available
against which the same can be realised.
1.15 Intangible Assets are being recognised if the future economic
benefits attributable to the assets are expected to flow to the company
and cost of the asset can be measured reliably. The same are being
amortised over the expected duration of benefits.
Mar 31, 2011
1. The financial statements have been prepared under historical cost
convention (except for certain fixed assets which were revalued) on
accrual basis in compliance with applicable Accounting Standards
notified by the Companies (Accounting Standards) Rules, 2006 and
relevant provisions of the Companies Act, 1956.
2. Fixed assets are stated at cost adjusted by revaluation of certain
assets.
3. Expenditure during construction / erection period is included under
capital work-in-progress and is allocated to the respective fixed
assets on completion of construction / erection.
4. a) Depreciation on fixed assets has been provided using Straight
Line Method at rates and manner prescribed under Schedule XIV of
the Companies Act, 1956. Continuous Process Plants as defined in
Schedule XIV have been considered on technical evaluation.
b) Leasehold Land is being amortised over the lease period.
c) Depreciation on the increased amount of assets due to revaluation is
computed on the basis of residual life of the assets as estimated by
the valuer on Straight Line Method.
5. Foreign currency transactions are recorded at exchange rates
prevailing on the date of transaction. Monetary assets and liabilities
in foreign currencies as at the Balance Sheet date are translated at
exchange rate prevailing at the year end. Premium in respect of forward
contracts is recognised over the life of contract. Exchange differences
arising on actual payments / realizations and year end translations
including on forward contracts are dealt with in Profit and Loss
Account. Non Monetary Foreign Currency items are stated at cost.
6. Long Term Investments are stated at cost. Provision for diminution
in the value of long term Investments is made only if, such a decline
is other than temporary. The Current Investments are stated at lower of
cost or quoted / fair value computed category-wise.
7. Inventories are valued at lower of cost and net realisable value.
The cost is computed on weighted average basis. Finished Goods and
Process Stock include cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
8. Revenue Expenditure on Research and Development is charged to
Profit & Loss Account and Capital Expenditure is added to Fixed Assets.
9. Borrowing Cost is charged to Profit & Loss Account except cost of
borrowings for acquisition of qualifying assets which is capitalised
till the date of commercial use of the asset.
10. The carrying amount of assets are reviewed at each Balance Sheet
date to assess impairment, if any based on internal / external factors.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value being higher of value in use and net selling
price. An impairment loss is recognised as an expense in the Profit &
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed,
if there has been an improvement in recoverable amount.
11. Employee Benefits:
(a) Defined-contribution plans:
Contributions to the Employees Regional Provident Fund, Superannuation
fund, Employees Pension Scheme and Employees State Insurance are
recognised as defined contribution plan and charged as expenses during
the period in which the employees perform the services.
(b) Defined-benefit plans:
Retirement benefits in the form of Gratuity and Leave Encashment are
considered as defined benefit plan and determined on actuarial
valuation using the Projected Unit Credit Method at the Balance Sheet
date. Actuarial Gains and Losses are recognised immediately in the
Profit & Loss Account.
The Provident Fund Contribution other than contribution to Employees
Regional Provident Fund, is made to trust administered by the trustees.
The interest rate to the members of the trust shall not be lower than
the statutory rate declared by the Central Government under Employees
Provident Fund and Miscellaneous Provision Act, 1952. The Employer
shall make good deficiency, if any.
(c ) Short term employee benefits:
Short term benefits are charged off at the undiscounted amount in the
year in which the related service is rendered.
12. Export incentives and other benefits are recognised in the Profit
& Loss Account. Project subsidy is credited to Capital Reserve.
13. Current Tax is the amount of tax payable on the estimated taxable
income for the current year as per the provisions of Income Tax Act,
1961. Deferred Tax is recognised for timing differences. However,
Deferred Tax Asset is recognised on the basis of reasonable / virtual
certainty that sufficient future taxable income will be available
against which the same can be realised.
14. Intangible Assets are being recognised if the future economic
benefits attributable to the assets are expected to flow to the company
and cost of the asset can be measured reliably. The same are being
amortised over the expected duration of benefits.
Mar 31, 2010
1. The financial statements have been prepared under historical cost
convention (except for certain fixed assets which were revalued) on
accrual basis in compliance with applicable Accounting Standards
notified by the Companies (Accounting Standards) Rules, 2006 and
relevant provisions of the Companies Act, 1956.
2. Fixed assets are stated at cost adjusted by revaluation of certain
assets.
3. Expenditure during construction / erection period is included under
capital work-in-progress and is allocated to the respective fixed
assets on completion of construction / erection.
4. a) Depreciation on fixed assets is calculated on straight line
method. Depreciation on the assets purchased prior to 2nd April, 1987
is provided at the rates in force at the time of respective additions
to the assets, and on the assets purchased on or after 2nd April, 1987
on the basis of Schedule XIV of the Companies Act, 1956. Continuous
process plants as defined in Schedule XIV have been considered on
technical evaluation.
b) Leasehold Land is being amortised over the lease period.
c) Depreciation on the increased amount of assets due to revaluation is
computed on the basis of residual life of the assets as estimated by
the valuer on straight line method.
5. Foreign currency transactions are recorded at exchange rates
prevailing on the date of transaction. Monetary assets and liabilities
in foreign currencies as at the Balance Sheet date are translated at
exchange rate prevailing at the year end. Premium in respect of
forward contracts is recognised over the life of contract. Exchange
differences arising on actual payments / realizations and year end
translations including on forward contracts are dealt with in Profit
and Loss Account. Non Monetary Foreign Currency items are stated at
cost.
6. Long Term Investments are stated at cost. Provision for diminution
in the value of long term investments is made only if, such a decline
is other than temporary. The Current Investments are stated at lower of
cost or quoted / fair value computed category-wise.
7. Inventories are valued at lower of cost and net realisable value.
The cost is computed on weighted average basis. Finished Goods and
Process Stock include cost of conversion and other costs incurred in
bringing the inventories to their present location and condition.
8. Revenue Expenditure on Research and Development is charged to
Profit & Loss Account and Capital Expenditure is added to Fixed Assets.
9. Borrowing Cost is charged to Profit & Loss Account except cost of
borrowings for acquisition of qualifying assets which is capitalised
till the date of commercial use of the asset.
10. The carrying amount of Assets are reviewed at each Balance Sheet
date to assess impairment, if any based on internal / external factors.
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value being higher of value in use and net selling
price. An impairment loss is recognised as an expense in the Profit &
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed,
if there has been an improvement in recoverable amount.
11. Employee Benefits:
(a) Defined-contribution plans:
Contributions to the Employees provident fund. Superannuation fund,
Employees pension scheme and Employees state insurance are recognised
as defined contribution plan and charged as expenses during the period
in which the employees perform the services.
(b) Defined-benefit plans:
Retirement benefit in form of gratuity and leave encashment are
considered as defined benefit plans and determined on actuarial
valuation using the Projected Unit Credit Method at the balance sheet
date. Actuarial gains and losses are recognised immediately in the
Profit & Loss Account.
The provident fund contribution is made to trust administered by the
trustees. The interest rate to the members of the trust shall not be
lower than the statutory rate declared by the Central Government under
Employees Provident Fund and Miscellaneous Provision Act, 1952. The
Employer shall make good deficiency, if any
(c) Short term employee benefits:
Short term benefits are charged off at the undiscounted amount in the
year in which the related service is rendered,
12. Voluntary Retirement Scheme (VRS) compensation incurred after
31.03.2009 is charged to Profit & Loss Account in the same year.
13. Export incentives and other benefits are recognised in the Profit
& Loss Account. Project subsidy is credited to Capital Reserve.
14. Current Tax is the amount of tax payable on the estimated taxable
income for the current year as per the provisions of Income Tax Act,
1961. Deferred Tax is recognised for timing differences. However,
Deferred Tax Asset is recognised on the basis of reasonable / virtual
certainty that sufficient future taxable income will be available
against which the same can be realised.
15. Intangible Assets are being recognised if the future economic
benefits attributable to the assets are expected to flow to the Company
and cost of the asset can be measured reliably. The same are being
amortised over the expected duration of benefits.
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JK Tyre & Industries Ltd. ಹೆಚ್ಚಿನ ಮಾಹಿತಿ
-
JK Tyre & Industries Ltd. ಟೂಲ್ಸ್
- ಬಲ್ಕ್ ಡೀಲ್ಸ್
- ಬ್ಲಾಕ್ ಡೀಲ್ಸ್
-
JK Tyre & Industries Ltd. ಕಂಪನಿಯ ವಿವರಗಳು
- ಕಂಪನಿ ಪ್ರೋಫೈಲ್
- ಕಂಪನಿ ಇತಿಹಾಸ
- ಆಡಳಿತ ಮಂಡಳಿ
- ಬಂಡವಾಳದ ಬಗೆ
- ಉತ್ಪನ್ನ
- ಬ್ಯಾಂಕರ್ಸ್/ಅಡಿಟರ್ಸ್/ರೆಜಿಸ್ಟರ್ಸ್
-
ಕಂಪನಿ ಇತಿಹಾಸ
- ಹಕ್ಕುಗಳು
- ಬಿಎಸ್ಇ ಧಾರಣೆ ಇತಿಹಾಸ
- ಎನ್ಎಸ್ಇ ಧಾರಣೆ ಇತಿಹಾಸ
-
JK Tyre & Industries Ltd. ಹಣಕಾಸು ಅನುಪಾತದ ಲೆಕ್ಕ
- ಅನುಪಾತ
-
JK Tyre & Industries Ltd. ಫಲಿತಾಂಶ
- ತ್ರೈಮಾಸಿಕ ಫಲಿತಾಂಶ
- ಅರ್ಧವಾರ್ಷಿಕ ಫಲಿತಾಂಶ
- ಒಂಭತ್ತು ತಿಂಗಳ ಫಲಿತಾಂಶ
- ವಾರ್ಷಿಕ ವರದಿ
-
JK Tyre & Industries Ltd. ಹಣಕಾಸು ಡಾಟಾ
- ಅಡಿಟ್ ಫಲಿತಾಂಶ
- ಹಣದ ಹರಿವು
- ಬ್ಯಾಲೆನ್ಸ್ ಶೀಟ್
-
JK Tyre & Industries Ltd. ವರದಿಗಳು
- ಅಕೌಂಟಿಂಗ್ ಪಾಲಿಸಿ
- ಅಡಿಟರ್ಸ್ ವರದಿ
- ನಿರ್ದೇಶಕರ ವರದಿ
- ಖಾತೆಗೆ ಮುಖ್ಯ ವಿಚಾರ
-
JK Tyre & Industries Ltd. ಕಾರ್ಪೋರೇಟ್ ವರದಿಗಳು
- ಬುಕ್ ಕ್ಲೋಸರ್
- ಡಿವಿಡೆಂಡ್
- ಬೋರ್ಡ್ ಮೀಟಿಂಗ್
-
ಫೆಡ್ ನಿರ್ಧಾರದ ಬಿಸಿ: ಇಂದಿನ ವಾರದ ಎಕ್ಸ್ಪೈರಿಯಲ್ಲಿ ಷೇರು ಮಾರುಕಟ್ಟೆ ಏರಿಳಿತದ ಭೀತಿ! -
ನಿಫ್ಟಿ ಕುಸಿತ: ಮಾರುಕಟ್ಟೆಯ ಈ ಅಸ್ಥಿರತೆಯಲ್ಲೂ ಲಾಭ ಗಳಿಸಲು ಇಲ್ಲಿವೆ ಬೆಸ್ಟ್ ಇನ್ವೆಸ್ಟ್ಮೆಂಟ್ ಟಿಪ್ಸ್ -
ಬ್ಯಾಂಕ್ ನಿಫ್ಟಿ ಎಕ್ಸ್ಪೈರಿ: ಇಂದಿನ ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ಭಾರಿ ಏರಿಳಿತದ ಸುಳಿವು, ಹೂಡಿಕೆದಾರರು ಎಚ್ಚರ ವಹಿಸಬೇಕಾದ್ದು ಏಕೆ? -
ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ಇಂದು ಭಾರಿ ಸಂಚಲನ: ನಿಫ್ಟಿ ಮತ್ತು ಈ ವಲಯಗಳ ಮೇಲೆ ಹೂಡಿಕೆದಾರರ ಕಣ್ಣು! -
ಬೆಳ್ಳಿ ಆಮದು ನಿಯಮದಲ್ಲಿ ದಿಢೀರ್ ಬದಲಾವಣೆ: ಇಂದಿನ ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ಈ ಷೇರುಗಳ ಮೇಲೆ ಕಣ್ಣಿಡಲೇಬೇಕು! -
ಸೋಮವಾರದ ಮಾರುಕಟ್ಟೆ: ನಿಫ್ಟಿ ಮೇಲೆ Q4 ಫಲಿತಾಂಶಗಳ ಅಬ್ಬರ, ಹೂಡಿಕೆದಾರರು ಎಚ್ಚರ ವಹಿಸಬೇಕಾದ ಸಮಯ! -
ತೈಲ ಬೆಲೆ ಏರಿಕೆ ಬಿಸಿ: ಇಂದಿನ ಷೇರು ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ಹೂಡಿಕೆದಾರರಿಗೆ ಕಾದಿದೆ ಅಗ್ನಿಪರೀಕ್ಷೆ! -
ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ಇಂದೇ 'ರೋಲರ್-ಕೋಸ್ಟರ್' ರೈಡ್: ಸಿಪಿಐ ದತ್ತಾಂಶದ ಮುನ್ನ ಹೂಡಿಕೆದಾರರು ಎಚ್ಚರ ವಹಿಸಬೇಕೇಕೆ? -
ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ಏರಿಳಿತದ ಆತಂಕ: ಇಂದಿನ ವಹಿವಾಟಿನಲ್ಲಿ ಹೂಡಿಕೆದಾರರು ಎಚ್ಚರ ವಹಿಸಬೇಕಾದ ಪ್ರಮುಖ ಅಂಶಗಳಿವು! -
ಷೇರು ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ಇಂದು ಅನಿಶ್ಚಿತತೆ: ತೈಲ ಬೆಲೆ ಏರಿಕೆಯ ಬಿಸಿ ಯಾರಿಗೆ ತಟ್ಟಲಿದೆ? -
ಷೇರು ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ಭರ್ಜರಿ ಆರಂಭದ ನಿರೀಕ್ಷೆ: ಹೂಡಿಕೆದಾರರ ಪಾಲಿಗೆ ಇಂದು ಅದೃಷ್ಟದ ದಿನವೇ? -
ಇಂದಿನ ಷೇರು ಮಾರುಕಟ್ಟೆ: ಎಕ್ಸ್ಪೈರಿ ದಿನದಂದು ನಿಮ್ಮ ಹಣಕ್ಕೆ ಕಾದಿದೆ ದೊಡ್ಡ ತಿರುವು! -
ರಿಲಯನ್ಸ್ ಫಲಿತಾಂಶದ ಹೊಸ್ತಿಲಲ್ಲಿ ನಿಫ್ಟಿ: ಇಂದಿನ ಮಾರುಕಟ್ಟೆ ಏರಿಳಿತಕ್ಕೆ ನೀವೇ ಸಿದ್ಧರಿದ್ದೀರಾ? -
ಷೇರು ಮಾರುಕಟ್ಟೆ ರಜೆ ಮುಗಿದು ಬುಧವಾರವೇ ಭರ್ಜರಿ ಏರಿಳಿತ? -
Stock Market Crash: ವಾರಾಂತ್ಯದಲ್ಲೂ ಷೇರು ಮಾರುಕಟ್ಟೆ ಕುಸಿತ; ಹೂಡಿಕೆದಾರರ ನಿದ್ದೆಗೆಡಿಸಿದ ಮಧ್ಯಪ್ರಾಚ್ಯದ ಯುದ್ಧ -
Stock Market Crash: ಮತ್ತೆ ಷೇರು ಮಾರುಕಟ್ಟೆಯಲ್ಲಿ ತಲ್ಲಣ; ಸೆನ್ಸೆಕ್ಸ್ 1000 ಪಾಯಿಂಟ್ಸ್ ಕುಸಿತ
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