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Redington (India)

BSE: 532805|NSE: REDINGTON|ISIN: INE891D01026|SECTOR: Computers - Hardware
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Notes to Accounts Year End : Mar '19

1. Company overview

Redington (India) Limited (“the Company”), is a public limited Company domiciledin India, incorporated underthe provisions of the Companies Act, 1956 and has its registered office at SPL Guindy House, 95, Mount Road, Guindy, Chennai -600032, Tamil Nadu, India. The Company’s equity shares are listed on the bourses of BSE Limited and National Stock Exchange of India Limited. The Company is engaged in the business of distribution of information technology, mobility and other technology products besides supply chain solutions and after sales services. The Company has an operating branch in Singapore. The Company, its subsidiaries and associate operates in India, Middle East, Turkey, Africa, and South Asian countries.

2. Basis of preparation of standalone financial statements

2. a. Statement of compliance

The standalone financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) to comply with the requirements prescribed under section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time.

2. b. Functional currency and presentation currency

The standalone financial statements are presented in ‘Indian Rupees’ (INR), which is the currency of the primary economic environment in which the Company operates (the functional currency). The functional currency of the Company’s branch in Singapore is United States Dollar (USD). All financial information has been rounded-off to the nearest Crores, unless otherwise indicated.

2. c. Basis of measurement

The standalone financial statements have been prepared on accrual basis under the historical cost convention except for:

2. d. Use of Estimates and judgements

The preparation of the standalone financial statements in conformity with Ind AS requires the management to make estimates, judgements and assumptions considered in the reported amount of assets, liabilities (including contingent assets and contingent liabilities), the reported income and the expenses during the year.

The management believes that these estimates, judgements and assumptions used in the preparation of the standalone financial statements are prudent and reasonable.

Future results could differ from these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise. Estimates, judgements and underlying assumptions are reviewed on an ongoing basis.

Key sources of judgement and estimation uncertainties at the date of the financial statements, which may cause a material adjustment to income and expenditure or the carrying amounts of assets and liabilities, are in respect of useful lives of property, plant and equipment, income taxes, stock appreciation rights, inventory obsolescence, original equipment manufacturer (“OEM”) supplier programs and expected credit losses and have been discussed here.

i) Useful lives of property, plant and equipment

The cost of property, plant and equipment is depreciated over the estimated useful life, which is based on technical evaluation made by the Company considering various factors including expected usage of the asset, expected physical wear and tear, the repair and maintenance program and technological obsolescence arising from changes and the residual value.

ii) Taxation

Significant judgements are involved in determining the provision for income taxes. Judgments are also involved on whether the tax positions are probable of being sustained in tax assessments.

iii) Stock appreciation rights

Compensation costs in respect of stock appreciation rights (SAR) granted during the previous year have been determined using the Black Scholes option valuation model. The said model requires the Company to input certain assumptions / variables to determine the fair value of the SAR granted. The Company has applied appropriate levels of judgements in determining these assumption / variables basis the information available as at the date of grant, the details of which are more fully described in note 43.

iv) Inventory obsolescence

Inventories are measured at the lower of cost and the net realizable value (net of price protection rebates). Adjustments to reduce the cost of inventory to its realisable value, if required, are made at the product level. Factors influencing these adjustments include changes in demand, rapid technological changes, product life cycle, product pricing, physical deterioration and quality issues. Revisions to these adjustments would be required if these factors differ from the estimates.

v) Original Equipment Manufacturer ( “OEM”) supplier programs

OEM suppliers formulate programs for inventory volume promotion programs and price protection rebates. Inventory volume promotion programs and price protection rebates are recorded as a reduction in the cost of purchase of traded goods. The rebates are accrued based on the terms of the program and sales of qualifying products. Some of these programs may extend over one or more quarterly reporting periods. The Company tracks vendor promotional programs for volume discounts on a program-by-program basis. Once the program is implemented, the benefit of the program based on the actual volume is recorded as a receivable from vendors with a corresponding reduction in the cost of purchase of traded goods. Actual rebates may vary based on volume or other sales achievement levels, which could result in an increase or reduction in the estimated amounts previously accrued.

vi) Expected Credit Losses (“ECL”)

The Company creates provision in respect of changes in expected credit losses at each reporting period to reflect changes in credit risk since initial recognition of the financial assets

The Company has adopted a model as permitted under Ind AS 109 for measuring lifetime expected credit loss allowance for trade receivables and other financial assets. Expected Credit Losses is determined as the probability weighted estimate of credit losses based on the historical credit loss experience and adjusted for forward looking information.

2. e. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting Standards) Amendment Rules, 2018 has notified the following new Ind AS and amendments to Ind AS’s which the Company has not applied in these financial statements as they are effective for annual periods beginning on or after April 1, 2019. The Company plans to apply these standards from their respective applicable dates.

Ind AS 116 - Leases

Ind AS 116 will replace the existing leases standard, Ind AS 17 Leases.

Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lessee accounting model for lessees. A lessee recognises right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. The standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17.

The Company is in the process of assessing the impact of Ind AS 116 on its standalone financial statements.

Ind AS 12 Income taxes

Income-tax consequence of distribution of profits (i.e. dividends), including payments on financial instruments classified as equity, should be recognised when a liability to pay dividend is recognised.

The income tax consequence should be recognised in statement of profit and loss, other comprehensive income (OCI) or equity according to where the past transactions or events that generated distributable profits were originally recognised.

Appendix C has been added to Ind AS 12 which provides that the accounting for uncertainties on income tax treatments that are yet to be accepted by tax authorities and to reflect it in the measurement of current and deferred taxes

The Company is in the process of assessing the impact of the above amemtments on its standalone financial statements.

Ind AS 109 - Prepayment Features with Negative Compensation

The amendments relate to the existing requirements in Ind AS 109 regarding termination rights in order to allow measurementatamortisedcost(or,dependingonthebusiness model, at fair value through other comprehensive income) even in the case of negative compensation payments. The Company doesn’t expect to have any impact of the amendment on its standalone financial statements.

Ind AS 19 - Plan Amendment, Curtailment or Settlement

The amendments provide that if a defined benefit plan amendment, curtailment or settlement occurs, it is mandatory that the current service cost and the net interest for the period after the re-measurement are determined using the assumptions used for the remeasurement. In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling. The Company doesn’t expect to have any impact of the amendment on its standalone financial statements.

Ind AS 23 - Borrowing Costs

The amendments provide that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. The Company doesn’t expect to have any impact of the amendment on its standalone financial statements.

Ind AS 28 - Long-term Interests in Associates and Joint Ventures

The amendments provide that an entity applies Ind AS 109 Financial Instruments, to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. The Company doesn’t expect to have any impact of the amendment on its standalone financial statements.

Ind AS 103 - Business Combinations and Ind AS 111 - Joint Arrangements

The amendments to Ind AS 103 relating to re-measurement clarify that when an entity obtains control of a business that is a joint operation, it re-measures previously held interests in that business. The amendments to Ind AS 111 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not re-measure previously held interests in that business. The Company will apply the pronouncement if and when it obtains control / joint control of a business that is a joint operation.

3. Intangible assets under development represents the cost incurred towards the implementation of a new ERP system (SAP), including the cost of license. These cost would be capitalised as intangible assets in the subsequent year on implementation of the new ERP system (SAP).

4. Investment in subsidiaries and associate

Unquoted investments

Stock Appreciation Rights (SARs)

The Company has included fair value of the Stock Appreciation Rights (Stock compensation expense) as Investments, in respect of the Stock Appreciation Rights granted to the Directors and employees of Indian and overseas subsidiaries, as required under Ind AS 102 “Share-based payment”.

Unrecognised deferred tax assets

Consequent to the sale of the Company’s Investment in its wholly owned subsidiary Easyaccess Financial Services Limited in FY 201314 and a land at Delhi in FY 2017-18, there was a Long Term Capital loss, under Income Tax Act,1961, which resulted in deferred tax asset of Rs. 15.39 Crores. Out of this Rs. 2.49 Crores was recognized against realized long term capital Gain in an earlier year. The balance Deferred Tax Asset of Rs. 12.90 Crores will be recognized as and when there is a Long Term capital Gain. These unrecognized deferred tax assets will expire over a period of 3- 7 years.

Particulars of maximum amount of loans and advances outstanding at any time during the year to Subsidiaries and Associate (disclosed pursuant to Regulation 34(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

Terms/rights attached to equity shares

Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

For details of dividends declared subsequent to balance sheet date refer note 46

Equity Share movement during 5 years preceding March 31, 2019

11,120,000 equity shares of Rs. 2 each were extinguished on buy-back by the Company pursuant to a Letter of Offer made to all eligible shareholders of the Company at Rs. 125 per equity share. The equity shares bought back were extinguished on December 7, 2018.

Capital Management

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximizing the return to shareholder through the optimisation of the debt and equity balance.

The General reserve is used from time to time to transfer profits from retained earnings for appropriation purpose. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

Capital redemption Reserve is created to the extent of the nominal value of the share capital extinguished on buyback of Company’s purchases its own shares in accordance with Section 69 of the Companies Act, 2013. The reserve is utilized in accordance with provision of Companies Act, 2013.

Retirement benefit obligation reserve represents accumulated balances of actuarial gains/losses, arising out of employee defined benefit obligation and will not to be subsequently reclassified to Profit and Loss. This reserve is not a distributable reserve.

Exchange differences relating to the translation of the results and net assets of the Company’s foreign operations from its functional currency to the presentation currency are recognized directly in other comprehensive income and accumulated in the foreign currency translation reserve.

The above reserve relates to SARs granted by the Company to the employees and Directors of the Company and its subsidiaries, under the Redington Stock Appreciation Right Scheme, 2017. Further information about SAR scheme is set out in note 43.

Gratuity (included as part of employee benefits expense in note 29)

The Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death or termination of employment, of an amount based on the respective employee’s salary and the tenure of employment with the Company. The Company’s obligation towards Gratuity is a defined benefit plan and the details of actuarial valuation as at the year-end are given below:

Sensitivity analysis

The Company applies 1% as the sensitivity rate while ascertaining the impact of change in one of the actuarial assumptions, keeping other assumptions constant, on the defined benefit obligation. Following is the effect on defined benefit obligation:

a. Secured by pari-passu charge on inventories and trade receivables and repayable on demand.

b. The facility is unsecured and the maximum amount outstanding at any time during the year was Rs. 1,900.00 Crores (previous year: Rs. 1,390.00 Cores).

The Company has circulated letters to suppliers and based on confirmations received so far from the parties, necessary disclosures relating to Micro and Small Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006 are made in the financial statements in accordance with the Notification No: GSR 719 (E) dated November 16, 2007 issued by the Ministry of Corporate Affairs. There are no overdue outstanding amounts (including interest) payable to these enterprises.

Note A

Includes similar issues for which the Company has received favourable disposition at the Tribunal level in the past.

iv. Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. 1.88 Crores (previous Year: Rs. 15.57 Crores).

5. Operating leases

The Company has taken various operating leases for its office premises, which is for a period ranging from 8 months to 9 years.

The Company enters into foreign exchange forward contracts with banks. These foreign exchange forward contracts are valued using various inputs including the foreign exchange spot and expected forward rates.

6. Financial risk management

The Company’s activities expose it to a variety of financial risks such as foreign exchange risk, interest rate risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk of the Company is credit and foreign exchange risk.

The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company’s exposure to market risk is primarily on account of foreign currency risk

A. 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’s exposure to the risk of changes in foreign exchange rates is primary on account of payment in foreign exchange for purchase of goods.

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and highly probable forecast transactions.

The un-hedged balances as at March 31, 2019 are primarily on account of purchase of goods where the Company is in the process of hedging and the balance in vendor account which to a larger extent have natural hedge.

Sensitivity analysis:

Sensitivity analysis is carried out for un-hedged foreign exchange risk as at March 31, 2019. For every 1% strengthening of Indian Rupees against all relevant uncovered foreign currency transactions profit before tax would be impacted by loss of Rs. 0.87 Crores ( previous year Rs. 1.10 Crores). Similarly, for every 1% weakening of Indian Rupee against these transactions, there would be an equal and opposite impact on the profit before tax.

B. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company borrows funds to meet its short-term requirements which are at fixed interest rates. Hence, the Company is not exposed to any significant interest rate risk.

C. Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under customer contract, leading to a financial loss. The Company is exposed to credit risk from its sale to small and large format retailers on credit.

The Company mitigates credit risk by strict receivable management, procedures and policies. The Company has a dedicated independent team to review credit and monitor collection of receivables on a pan India basis. Credit insurance is resorted to most of the receivable and in such cases the credit risk is restricted to 15 % of the receivable value.

The concentration of credit risk is limited due to the customer base being large and unrelated. Further, the Company constantly evaluates the quality of trade receivables and provides allowance towards doubtful debts.

D. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset.

The Company has built an appropriate liquidity risk management framework for its short, medium and long-term funding and liquidity requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial liabilities.

7. Related party disclosures (As per Ind AS 24 “Related party disclosures”) 1) Key Management Personnel (KMP)

Mr. Raj Shankar, Managing Director

Mr. E.H. Kasturi Rangan, Whole time Director

Refer note 39 for details of remuneration paid to KMP

Redington Employees Share Purchase Trust administers the Employee Share Purchase Scheme (ESPS), which is in accordance with Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999.

8. Corporate social responsibility

For the year 2018-19, the Company was required to spend ‘5.75 Crores (previous year: ‘5.74 Crores) on “Corporate Social Responsibility (CSR)” against which the Company has spent ‘5.75 Crores (previous year: ‘5.75 Crores), being the contribution made by the Company to a Trust formed for the purposes of carrying out CSR activities.

9. Segment Reporting

Since the Company prepares consolidated financial statements, segment information has been disclosed in consolidated financial statements as per Ind AS-108 “Operating Segment”.

10. Employee Stock Option Plan 2008 (ESOP 2008)

The Company followed intrinsic value method as per pervious GAAP for accounting of employee stock options and had availed the exemption under Ind AS 101 “First time adoption of Indian Accounting Standards” at the time of transition to Ind AS from retrospective application of accounting requirements prescribed under Ind AS 102 “Share-based payment” for outstanding options as on the transition date. Accordingly, no compensation costs had been recognized in these accounts as the options have been granted at the prevailing market prices at the time of each grant.

The variables / assumption used for calculating the fair value of Grant V using the Black Scholes model and their rationale were as follows:

A. Stock price

The closing market price of the Company’s share on the date prior to the date of grant as quoted on the National Stock Exchange (NSE) has been considered for the purpose of option valuation.

B. Volatility

Volatility is a measure of the amount by which the stock price has fluctuated or is expected to fluctuate during a period. The measure of volatility used in the Black-Scholes option-pricing model is the annualized standard deviation of the continuously compounded rates of return on the stock over a period of time.

In determining volatility, the Company considers the historical volatility of the stock over the most recent period that is generally commensurate with the expected life of the option being valued.

Given that the Company’s stock is publicly traded on NSE and BSE, for the purpose of calculating volatility, the Company has considered the daily volatility of the stock prices on NSE, over a period prior to the date of grant, corresponding with the expected life of the options being valued.

C. Risk free interest rate

The risk-free interest rate being considered for the calculation is the interest rate applicable for maturity equal to the expected life of the options based on the zero-coupon yield curve for Government Securities.

D. Exercise Price

Options have been granted primarily at a price of ‘348.05 on February 29, 2008. Subsequently, 1,959,830 and 75,000 options were re-priced at a market price of ‘130/- and ‘165/- on January 28, 2009 and May 22, 2009 respectively. On December 5, 2011 173,212 options were granted at a price of ‘396.50 per option.

E. Expected Life of options

Expected Life of options is the period over which the Company expects the options to be exercised. The minimum life of a stock option is the minimum period before which the options cannot be exercised and the maximum life is the period after which the options cannot be exercised.

The fair value of each award has been determined based on different expected lives of the options that vest each year, as it would be if the award were viewed as several separate awards, each with a different vesting date. A weighted average of all vests has been calculated to arrive at the value of the options. The expected life of option is calculated as the average of the minimum life (vesting period) and the maximum life (i.e. vesting period exercise period). Expected life of option has been estimated on a similar basis for the remaining vests.

Expected Dividend yield: Expected dividend yield has been calculated as an average of dividend yields for the preceding two years to the date of the grant.

11. Stock Appreciation Rights

A. Details of Stock Appreciation Rights

The Company has formulated ‘REDINGTON STOCK APPRECIATION RIGHT SCHEME 2017’ (“SAR Scheme 2017”) with an intent to reward the employees of the Company and its subsidiaries for their performance and to motivate them to contribute to the growth and profitability of the Company. The maximum number of shares to be issued against the Stock Appreciation Rights (SARs) shall not exceed 8,681,681 equity shares of Rs. 2/- each as adjusted for any changes in the capital structure of the Company. Pursuant to the approval of SAR Scheme 2017 by the members of the Company, the Nomination and Remuneration Committee of the Board of Redington (India) Limited on 30th December 2017 approved the grant of 8,179,000 SARs to the employees of the Company and its subsidiaries.

Each SAR entitles the eligible employees and directors to receive equity shares of the Company equivalent to the increase in value of one equity share (‘Appreciation’). Appreciation is calculated by reducing the issue price / base price from the reported closing price of the equity shares in the NSE / BSE where there is highest trading, on the day prior to the date of exercising of these SARs and multiplying the resultant with the number of SARs exercised.

These SARs vest over a period of 3 years from the date of the grant in the following manner:

10% of the SARs vest after a period of one year from the grant date, 20% of the SARs vest after a period of two years from the grant date and 70% of the SARs vest after a period of three years from the grant date. These SARs are exercisable within a period of three years from the respective date of vesting.

Certain SARs granted to the members of senior management team as identified by the Nomination and Remuneration committee have an associated performance condition. Of the total SARs granted to senior management team, 35% of the SARs that would vest at the end of 3 years from the date of the grant are subject to these performance conditions.

The Company has used the Black-Scholes Option Pricing Model to determine the fair value of the SARs based on which the compensation cost for the current year has been computed.

The said SAR Scheme is in compliance with the provisions of Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014.

The variables / assumptions used at the time of the grant for calculating the fair value using the above model and their rationale are as follows:

i. Stock price

The closing market price of the Company’s share on the date prior to the date of grant as quoted on the National Stock Exchange (NSE) has been considered for the purposes of right valuation.

ii. Volatility

Volatility is a measure of the amount by which the stock price has fluctuated or is expected to fluctuate during a period. The measure of volatility used in the Black-Scholes right pricing model is the annualized standard deviation of the continuously compounded rates of return on the stock over a period of time.

In determining volatility, the Company considers the historical volatility of the stock over the most recent period that is generally commensurate with the expected life of the right being valued. Volatility has been calculated based on the daily closing market price of the Company’s stock price on NSE over these years.

iii. Risk free interest rate

The risk-free interest rate is considered for the calculation is the interest rate applicable for maturity equal to the expected life of the rights based on the zero-coupon yield curve for Government Securities

iv. Exercise / base price

Exercise / base price of ‘148.50 is considered in the above valuation.

v. Expected Life of SAR’s

Expected Life of SAR is the period over which the Company expects the SAR to be exercised. The minimum life of SAR is the minimum period before which the SAR cannot be exercised. The maximum life is the period after which the SAR cannot be exercised.

The expected life of rights is calculated as the average of the minimum life (vesting period) and the maximum life (i.e. vesting period exercise period).

vi. Expected dividend yield:

Expected dividend yield has been calculated based on the final dividend declared during the preceding financial year.

F. Expense recognized in Statement of profit and loss

The Company has recognized costs with respect to those SARs which were issued to the employees and directors of the Company in the statement of profit and loss under employee benefit expenses.

G. Amount recognized as cost of investments in subsidiaries

The Company has recognized the cost of those SARs which were issued to the employees and directors of the subsidiaries as the cost of investments.

12. Buy Back of equity shares

The Board of Directors at its meeting held on September 17, 2018, considered and approved the proposal for buy-back of up to 11,120,000 fully paid up equity shares of the Company (representing 2.78 % of the total paid-up equity share capital of the Company as on March 31, 2018) of the face value of Rs. 2 each at a price of Rs. 125 per equity share for an aggregate amount not exceeding Rs. 139 Crores from the members of the Company, as on September 28, 2018 (the record date determined by the Board), on a proportionate basis through “Tender Offer” route as prescribed under the SEBI (Buy-back of Securities) Regulations, 2018. A Letter of Offer was made to all eligible shareholders and the Company completed the buy-back of 11,120,000 equity shares resulting in a reduction in the share capital and securities premium of the Company by Rs. 2.22 Crores and Rs. 136.78 Crores respectively.

Further, pursuant to the buy-back, the Company has also transferred an amount of Rs. 2.22 Crores from general reserve to capital redemption reserve in accordance with the provisions of the Companies Act, 2013. The transaction costs relating to buy-back amounting to Rs. 2.29 Crores was charged to Surplus in the statement of profit and loss (Retained earnings) under other Equity.

13. Adoption of Ind AS 115 - Revenue from contracts with customers

The Company has adopted Ind AS 115, Revenue from Contracts with Customers (which replaces earlier revenue recognition standards) with effect from April 1, 2018. The core principle of this standard is that the Company shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Under Ind AS 115, the Company recognizes revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer.

The Company has applied Ind AS 115 retrospectively. Accordingly, the information presented for year ended March 31, 2018 has been restated. Upon adoption of Ind AS 115, the Company has changed the accounting policy with respect to income from supplier schemes. Income from supplier schemes was hitherto classified as part of revenue from operations. The Company has adjusted rebate earning from supplier schemes against purchase of traded goods.

14. Events after the Reporting period (Non-adjusting)

The Board of Directors at its meeting held on May 22, 2019 has recommended a dividend of Rs. 3.30/- per equity share of Rs. 2/- each (i.e., 165 % of face value) for the financial year ended March 31, 2019 (previous year Rs. 2.40 per equity share of Rs. 2/- each (i.e., 120% of face value) subject to the approval of shareholders in the ensuing Annual General Meeting.

15. These standalone financial statements were approved for issue by the Board of Directors on May 22, 2019.

Source : Dion Global Solutions Limited
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