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measured reliably, and it is probable that the future Amendment Rules, 2018 containing Appendix B to Ind AS
economic benefit associated with the asset will be 21, Foreign currency transactions and advance consideration
realised. which clarifies the date of the transaction for the purpose of
determining the exchange rate to use on initial recognition
2.22 Provisions and contingencies
of the related asset, expense or income, when an entity has
A provision is recognised when the Company has a received or paid advance consideration in a foreign currency.
present obligation as a result of past events and it is
The amendment will come into force from 1 April, 2018. The
probable that an outflow of resources will be required
Company is evaluating the requirements of the amendment
to settle the obligation, in respect of which a reliable
estimate of the amount can be made. Provisions are and its effect on the financial statements.
determined based on best estimate required to settle Ind AS 115- Revenue from contracts with customers:
the obligation at the Balance Sheet date. When a
On 28 March, 2018, Ministry of Corporate Affairs (‘MCA’)
provision is measured using the cash flows estimated
has notified the Ind AS 115, Revenue from contracts with
to settle the present obligation, its carrying amount is customers. The core principle of the new standard is that an
the present value of those cash flows (when the effect entity should recognise revenue to depict the transfer of
of the time value of the money is material). The increase promised goods or services to customers in an amount that Integrated Report
in the provisions due to passage of time is recognised
reflects the consideration to which the entity expects to be
as interest expense. Provisions are reviewed as at each
entitled in exchange for those goods or services. Further the
reporting date and adjusted to reflect the current new standard requires enhanced disclosures about the nature,
estimate.
amount, timing and uncertainty of revenue and cash flows
Contingent liabilities are disclosed when there is arising from the entity’s contracts with customers.
a possible obligation arising from past events, the
The standard permits two possible methods of transition:
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more ʀ Retrospective approach - Under this approach the standard
uncertain future events not wholly within the control will be applied retrospectively to each prior reporting
of the Company or a present obligation that arises period presented in accordance with Ind AS 8- Accounting
from past events where it is either not probable that Policies, Changes in Accounting Estimates and Errors
an outflow of resources will be required to settle or a ʀ Retrospectively with cumulative effect of initially applying
reliable estimate of the amount cannot be made. the standard recognised at the date of initial application
Contingent assets are not disclosed in the financial (Cumulative catch-up approach) Statutory Reports
statements unless an inflow of economic benefits is The effective date for adoption of Ind AS 115 is financial
probable. periods beginning on or after 1 April, 2018. The Company is
2.23 Dividend evaluating the requirements of the amendment and its effect
on the financial statements.
Final dividend on shares is recorded as a liability on
the date of approval by the shareholders and interim 3.2 Business combination
dividends are recorded as a liability on the date of Subsequent to balance sheet date, the Company has signed
declaration by the Company’s Board of Directors. a Business Transfer Agreement with M/s. Allied Silica Limited
to acquire their business of precipated silica, on a slump sale
3. Recent accounting pronouncements and business basis for a consideration of ` 123 crore (subject to fulfilment
combination of certain agreed conditions and milestones). The effect of
the transfer will be reflected in the financial information of the
3.1 Recent accounting pronouncements
period in which the deal is consummated post fulfilment of
Appendix B to Ind AS 21, Foreign currency transactions agreed conditions.
and advance consideration: Financial Statements
On 28 March, 2018, Ministry of Corporate Affairs (‘MCA’)
has notified the Companies (Indian Accounting Standards)

Standalone Financial Statements 153