ACADMIC TASK 1

NAME YOGESH SHARMA

COURSE TITLE International Financial Accounting and
Reporting
COURSE CODE ACCM634
ROLL NO. RQ9E55A07
REGISTRATION NO 12115979
SECTION Q2152

SUBMITTED TO – JASNEET KAUR

• Name the CA (Firm) signing the reports.
S N Dhawan & Co. LLP
Chief Financial Officer Mr. Anil Sharma

• List of Holding/joint venture/associate company

a) Holding company
Heidelberg Cement Group, Germany

b) Joint venture
Indo-Rama Cement of the S P Lohia group.

• List of IND-AS being quoted in the annual report

IND AS content
IND AS 101 First-Time adoption of IND AS
IND AS 109 Financial instruments
IND AS 113 Financial intruments
IND AS 18 Revenue
IND AS 107 Financial instruments (presentation and disclosures)
IND AS 115 Revenue from contracts with customers
IND AS 11 Construction contracts(Exposure draft)
IND AS 37 Provisions, contingent liabilities, and contingent assets
IND AS 38 Intangible assets
IND AS 40 Investment Property
IND AS 12 Income taxes
IND AS 13 Statement of cash flow
IND AS 18 Related party transaction

IND AS 1 Presentation of financial statement

• Summarize the notes/comments made in report on IND-AS 2.
Inventories are measured pursuant to IAS 2 (Inventories) at the
lower of cost and net realisable value using the weighted average
cost method. Adequate provisions are made for risks relating to
quality and quantity. Besides direct expenses, the costs for
finished goods and work in progress include production-related
indirect materials and indirect labour costs, as well as production-
related depreciation. The overhead rates are calculated on the
basis of the average operating performance rate. Borrowing costs
are not recognised as part of the costs because the production
period is less than 12 months. Spare parts for equipment are
generally reported under inventories. If they were acquired in
connection with the acquisition of the equipment, or in a separate
acquisition meet the definition of an asset, then they are reported
under fixed assets.
In the reporting year, impairments of inventories and reversals of
impairment were recognised.
PHASES OF ADOPTION

HeidelbergCement India Limited falls under phase II of IND AS,

AS PER THE PHASE II
THE COMPANIES OTHER THAN BANKING, NBFC AND INSURANCE
Its net worth exceeds or equals RS.250cr
These financial statements have been prepared in accordance with the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 as amended by the Companies (Indian Accounting
Standards) (Amendment) Rules, 2016, the relevant provisions of the Companies
Act, 2013 and guidelines issued by the Securities and Exchange Board of India
(SEBI), as applicable. Effective April 1, 2016, the Company has adopted all the
Ind AS standards and the adoption was carried out in accordance with Ind AS 101
First time adoption of Indian Accounting Standards, with April 1, 2015 as the
transition date. The transition was carried out from Indian Accounting Principles
generally accepted in India as prescribed under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the
previous GAAP. The financial statements have been prepared on a historical cost
basis, except for the following assets and liabilities which have been measured at
fair value: - Derivative financial instruments, - Certain financial assets and
liabilities measured at fair value (refer accounting policy regarding financial
instruments), The financial statements are presented in Indian Rupees (INR) and
all values are rounded to the nearest million (INR 000,000) upto one decimal,
except when otherwise indicated.

• Discuss any major changes that the company to make in its reporting in order to
incorporate the IND AS guidelines.
In accordance with IAS 1 (Presentation of Financial Statements), the consolidated financial
statements contain a balance sheet as at the reporting date, an income statement, a statement
of comprehensive income, a statement of changes in equity, and a statement of cash flows in
accordance with the principles of IAS 7 (Statement of Cash Flows). The segment reporting is
prepared in accordance with the regulations of IFRS 8 (Operating Segments).

The individual financial statements of the Group’s foreign subsidiaries are translated into
euro according to IAS 21 (The Effects of Changes in Foreign Exchange Rates) using the
concept of functional currency. In general, for operating companies, the functional currency
is that of the country in which the subsidiary is based, since all foreign subsidiaries are
financially, economically, and organisationally independent in the conduct of
their business.
Property, plant and equipment are accounted for according to IAS 16 (Property, Plant and
Equipment) at cost less accumulated depreciation and impairment. Cost includes all costs that
can be attributed to the manufacturing process and appropriate amounts of production
overheads. Costs for repair and maintenance of property, plant and equipment are generally
expensed as incurred.
In the 2021 financial year, HeidelbergCement applied the following standards and
interpretations of the International Accounting Standards Board (IASB) for the first time.
The amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate
Benchmark Reform – Phase 2 clarify that when determining contractual cash flows as a
result of the IBOR reform, an update to the effective interest rate is sufficient to reflect
the change in the alternative benchmark rate. Furthermore, the amendments provide for
additional time-limited relief with regard to the application of specific hedge accounting
requirements to hedging relationships directly affected by the IBOR reform. The
amendments did not have any significant impact on the assets, financial, and earnings
position of the Group. HeidelbergCement has made all necessary arrangements. The
relevant contracts have been switched to the new benchmark rates or it has already been
contractually agreed to switch to the new benchmark rate when the USD LIBOR ceases
to apply in 2023.
HeidelbergCement will not apply these standards and interpretations until the date when
their application first becomes mandatory and after endorsement by the European
Commission. The amendments to IFRS 3 Business Combinations update the references to
the revised IFRS framework. In addition, they clarify that an acquirer shall apply the
requirements of IAS 37 or IFRIC 21 instead of the framework when identifying
obligations assumed that are within the scope of IAS 37 or IFRIC 21. At the same time,
IFRS 3 is supplemented by an explicit prohibition on recognising acquired contingent
assets. As at the date of transition, the amendments will not have any impact on the
assets, financial, and earnings position of the Group, as they are to be applied to
transactions taking place on or after the date of initial application of these amendments.
The amendments to IAS 16 Property, Plant and Equipment clarify that proceeds from
selling items produced while bringing that asset to the location and condition necessary
for it to be capable of operating in the manner intended by management are recognised in
profit or loss. In addition, sale proceeds and the corresponding costs for items produced
that do not fall within the entity’s ordinary business activity shall be shown separately
and the line items in the income statement and other comprehensive income in which
they were recognised shall be disclosed. The amendments will not have a significant
impact on the assets, financial, and earnings position of the Group. The amendments to
IAS 37 Provisions, Contingent Liabilities and Contingent Assets determine which costs
an entity should consider as the cost of fulfilling a contract when assessing whether a
contract is onerous. The amendments will not have a significant impact on the assets,
financial, and earnings position of the Group. As part of the Annual Improvements to
IFRS Standards 2018–2020 Cycle, the IASB made minor amendments to a total of three
standards. The amendments will not have a significant impact on the assets, financial, and
earnings position of the Group. IFRS 17 Insurance Contracts contains principles for the
recognition, measurement, presentation, and disclosure of insurance contracts and is
applicable to all types of insurance contracts as well as to certain guarantees and financial
instruments with discretionary participation features. With regard to the scope of
application, a few exceptions apply. The impact is currently being examined. We assume
that the application of IFRS 17 will not have a significant impact on the assets, financial,
and earnings position of the Group. The amendments to IAS
1 Presentation of Financial Statements and IFRS Practice Statement
2: Disclosure of Accounting policies clarify that, in the future, only material rather than
significant accounting policies should be disclosed in the Notes. Guidance and examples
on the practical application of the concept of materiality to the disclosures on the
accounting policies were also provided. The impact of these amendments on the
disclosures of the accounting policies is currently being examine.