MS AR 2018 (1)

term loans from banking companies and short-term loans from Directors and their relatives. A reconciliation
between the opening and closing balances of these items is provided in note. 43. Consistent with the transition
provisions of the amendments, the Company has not disclosed comparative information for the prior period.
Apart from the additional disclosure in note. 43, the application of these amendments has had no impact on the
Company’s financial statements.
Amendments to IAS 12 - Income Taxes - Recognition of Deferred Tax Assets for Unrealised Losses
The Company has applied these amendments for the first time in the current year. The amendments clarify
how an entity should evaluate whether there will be sufficient future taxable profits against which it can utilise a
deductible temporary difference. The application of these amendments has had no impact on the Company’s
financial statements as the Company already assesses the sufficiency of future taxable profits in a way that is
consistent with these amendments.
Applicability of Companies Act, 2017
During the year Companies Act, 2017, became effective on these financial statements. The applicability of the
Companies Act, 2017 has not resulted in any change in accounting treatments for the Company. However, the
Company has adopted the revised titles for the components of it financial statements, details of which are as
follows.
Existing titles
Revised titles
- Balance sheet - Statement of financial position
- Profit and loss account - Statement of profit or loss & other
comprehensive income
- Cash flow statement - Statement of cash flows
- Statement of changes in equity - Statement of changes in equity
Further, the third and fourth schedule to the Companies Act, 2017 became applicable to the Company for the first
time for the preparation of these financial statements. The Companies Act, 2017 (including its third and fourth
schedule) forms an integral part of the statutory financial reporting framework applicable to the Company and
amongst others, prescribes the nature and content of disclosures in relation to various elements of the financial
statements. Additional disclosures include but are not limited to summary of significant transactions and events
affecting the Company’s financial position and performance (refer note. 2), particulars of immovable assets of the
Company (refer note. 7.1.3), management assessment of sufficiency of tax provision in the financial statements
(refer note. 36.4), change in threshold for identification of executives (refer note. 44.5), additional disclosure
requirements for related parties (refer note. 42) etc.
6.2 New standards, interpretations and amendments to published approved accounting standards that are
not yet effective and have not been early adopted by the Company
Standards, interpretations and amendments to approved accounting standards, which are not yet effective and
have not been early adopted by the Company but are considered to be relevant to the financial statements of the
Company are detailed below:
New standard - IFRS 9 - Financial Instruments
(Effective for annual periods beginning on or after 1 July 2018)
IASB has published the complete version of IFRS 9, ‘Financial Instruments’, which replaces the guidance in
IAS 39. This final version includes requirements on the classification and measurement of financial assets and
liabilities; it also includes an expected credit losses model that replaces the incurred loss impairment model
currently being used. The standard is not likely to have any material impact on Company’s financial statements,
other than increased disclosures, if any.
Annual Report 2018
103