Group 4 – Batch 1

ANALYSIS OF THE ANIRUDH RAVISHANKAR- 20PGDM012

ACCOUNTING POLICIES OF AYUSH MITTAL- 20PGDM017

AYUSHI SHARMA- 20PGDM018
THE COMPANIES IN PAINT DIKSHIT GOYAL- 20PGDM024

INDUSTRY ABHISHEK JAIN- 20PGDMBFS04

NIKITA JOSHI- 20PGDMBFS24
 What criteria companies have used to determine:
1. Whether to recognize investment in financial securities at amortized cost or at fair value.

• Non-Current investments
(note 6, page 222)

Berger Paints
• FVTPL : Equity shares
• At AC: Equity shares,
Investment in subsidiaries,
Shalimar Paints Inv in JV
• Investment in wholly owned • Current investments(Page
subsidiary Companies at 224 , note 12)
Amortized Cost
• FVTPL- Investment in
• Investment in Debentures Mutual funds
carried at Amortized Cost
• Investment in Preference Shares
in wholly owned subsidiary
The debt instruments
companies at Fair value through
are recorded at
Profit & Loss account
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Amortised Cost or
Fair Value and the
equity instruments
are recorded at Fair
Value.
 What criteria companies have used to determine:
2. Whether to account for investment in financial securities as passive investment or as per
equity method or as per acquisition method?

Shalimar Paints • Business combinations

• If the group has more than 50% accounted using

Berger Paints
shareholding in a company it accounts acquisition method.
for the investment in the company as • Investment in JV using
per consolidation method. equity method at cost
• The companies in which the initially. Carrying amount
Company, directly or indirectly, can changed as group’s share
exercise control are fully in net assets change.
consolidated.
• As the company holds 100% stake in
both its subsidiaries, they have used
• The passive investments be it in debt or equity and be it current investments or non-
acquisition method or the
current investments are accounted at FairValue through Profit and Loss (FVTPL).
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consolidation method to account for
• The company does not have Associates or Joint Ventures, so no equity method has been
the investments.
used.
• The company accounts for the investments in subsidiaries as per the acquisition method
and thus prepares the consolidated financial statements.
 Policy on measuring the non-controlling interest

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Berger Paints
Shalimar Paints
 Details of holding, subsidiary and associate companies
mentioned in the annual reports

Shalimar Paints
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Berger Paints
 In which of the consolidated financial statements, gains
and losses on foreign currency translations are reported?

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Berger Paints
Shalimar Paints
Method to calculate the foreign currency translation
gains or losses

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Shalimar Paints

Berger Paints
 Disclosure of Deferred taxes

Shalimar Paints

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• Deferred Tax Liabilities are generally recognised for all taxable
temporary difference
• Deferred tax assets are recognised for all deductible temporary
differences, the carry forward of unused tax credits and any unused
tax losses to the extent that it is probable that taxable profits will be
available against which the deductible temporary differences and
carry forward of unused tax credits and tax losses can be utilized
• If temporary differences arise from the initial recognition of assets
and liabilities in a transaction (other than in a business combination)
that affects neither the taxable profits nor the accounting profits, then
deferred taxes will not be recognized
• The carrying amount of deferred tax asset is reviewed at each
reporting date and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of

Berger Paints
the deferred tax asset to be utilized
• Unrecognized deferred tax assets are re-assessed at each reporting
date and are recognized to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to be recovered
• Deferred tax asset and liabilities are measured at the tax rates that are
expected to apply in the year when the asset is realized or the
liability is settled
 Impact of Ind-AS 116

(i) Right-of-use Assets (ROU Assets)

 Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct
costs incurred, and lease payments made at or before the commencement date less any lease incentives received.
 If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase
option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment.
(ii) Lease Liabilities
 At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments
to be made over the lease term .After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made.
 In addition, the carrying amount of lease liabilities is remeasured 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.
 Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as
financing cash flows.
(iii) Short-term leases and leases of low-value assets
 The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those
leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also
applies the lease of low-value assets recognition exemption to leases of office equipment that are low value. Lease payments on
short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
 Reporting and disclosure of long-term borrowings

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Berger Paints
Shalimar Paints
THANKYOU