Heritage Foods Limited

Heritage Foods Limited 234 and subsequently measured at amortised cost using the e ff ective interest method. De-recognition A fi nancial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing fi nancial liability is replaced by another from the same lender on substantially di ff erent terms, or the terms of an existing liability are substantially modi fi ed, such an exchange or modi fi cation is treated as the de-recognition of the original liability and the recognition of a new liability. The di ff erence in the respective carrying amounts is recognised in the consolidated statement of pro fi t and loss. O ff setting of fi nancial instruments Financial assets and fi nancial liabilities are o ff set and the net amount is reported in the consolidated balance sheet if there is a currently enforceable legal right to o ff set the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. Derivative fi nancial instrument - Initial recognition and subsequent measurement Derivative fi nancial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as fi nancial assets when the fair value is positive and as fi nancial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to the consolidated statement of pro fi t and loss. s. Earnings per share Basic earnings per share are calculated by dividing the net pro fi t or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net pro fi t or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the e ff ects of all dilutive potential equity shares. t. Cash fl ow statement The consolidated cash fl ow statement is prepared in accordance with the Indirect method. Consolidated Cash Flow Statement presents the cash fl ows by operating, fi nancing and investing activities of the Group. Operating cash fl ows are arrived by adjusting pro fi t or loss before tax for the e ff ects of transactions of a non-cash nature, any deferrals or accruals of past or futureoperating cash receipts or payments, and items of income or expense associated with investing or fi nancing cash fl ows. For the purpose of Consolidated Cash fl ow statement, cash and cash equivalents consist of cash on hand and balances with banks in current accounts and short-term deposits with an original maturity of three months or less, and excludes balances maintained in cash credit accounts, as they are not considered to be an integral part of the Group’s cash management. u. Cash and cash equivalents Cash and cash equivalent in the consolidated balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, whichare subject toan insigni fi cant riskof changes invalue. v. Cash dividends to equity holders The Company recognises a liability to make cash distributions to equity holders when the dividend distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding reduction is recognised directly in equity. w. Operating segments Operating segments are reported in a manner consistent with the internal reporting provided to Chief Operating Decision Maker. Vice Chairperson and Managing Director, Executive Director, President and Chief Financial O ffi cer have been identi fi ed as Chief Operating Decision Maker. Refer note 50 for segment information. 4. Key accounting estimates, judgements and assumptions The preparation of the consolidated fi nancial statements requires management tomake judgements, estimates and assumptions thata ff ect thereportedamountsof revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities a ff ected in future periods. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a signi fi cant risk of causing amaterial adjustment to the carrying amounts of assets and liabilities within the next fi nancial year, are described below.