Introduction | Integrated Report | Statutory Reports | Financial Statements

(Consolidated)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS for the year ended March 31, 2022

1. CORPORATE transferINFORMATION
of significant risks and rewards of (e) Government grant

Foundedownership
in 1943 in bytheMr.goods
Mohanto the customer,Blue
T Advani, andStar
the Government grants All
accounting policies. are intragroup
recognisedassets,
whereliabilities,
there is
acceptance of the goods by the customer. reasonable assurance
equity, income, thatcash
expense, the grant
flows,will
andbe received
unrealised
Limited (“the parent”) is a public listed company and
India’s
ii. leading
Revenue airfrom
conditioning, commercial
construction contracts: refrigeration, and all attached conditions will be complied
gains / losses relating to transactions between Group with.
and MEP (Mechanical, Electrical, Plumbing, When the
entities grant relates
are eliminated to an expense item, it is
on consolidation.
Contract revenues are recognised based on andthe
Fire-fighting) contracting company. As an expert in recognised as income on a systematic basis over the
stage of completion of the contracting activity. Investments in j oint ventures:
cooling,Revenue
Blue Starisoffers a plethora of cooling solutions period that the related costs, which it is intended to
measured based on the proportion The Group’s interests in joint ventures are accounted
and hasof alsocontract
made inroads compensate are expensed. When the grant relates to
costs into water and
incurred for air purification,
satisfying the for using the
engineering facilities management, an asset, it is equity method,
recognised after initially
as income recognising
in equal amounts
performance obligation to commercial kitchen,
the total estimated investment at cost, andlifethe carrying
and healthcare over the expected useful of the relatedamount
asset. is
contractrefrigeration. The Company’s
costs, there being integrated
a direct relationship increased or decreased to recognise the Group’s
businessbetween
model theofinput a Manufacturer; Engineering,
and the productivity. Claims (f) Employee
share in ofbenefits
profit or loss of the joint venture after the
Procurement, and Construction (EPC) services
are accounted for as income when accepted provider;
by date of acquisition.
Short-term benefits:
and After-sales
the customer.service provider enables it to offer
comprehensive solutions for the residential, commercial, (c) Salaries, wages, short-term
Critical accounting j udgmentscompensated absences,
and key sources of
Expected loss, if any, on a contract is recognised and other short-term benefits, accruing to employees
and infrastructure segments. estimation uncertainty
as an expense in the period in which it is foreseen, are recognised
The financial statements
irrespective of theof the Group
stage were approved
of completion by
of the The preparation atofundiscounted
these financialamounts statements in the in
period
conformityin which
with thethe recognition
employee renders the related
and measurement
its Boardcontract.
of Directors on May 05, 2022. service. of Ind AS requires the management of
principles
2. STATEMENTIncremental costs of obtaining a contract (such
OF COMPLIANCE the Group to make estimates and judgements that
Retirement benefits
as professional
The financial statements fees, have
and commission
been prepared paid to in affect the reported balances of assets and liabilities,
acquire the contract) are recognised as assets (Ind
and Defined contribution plan:
accordance with Indian Accounting Standards disclosures relating to contingent assets and liabilities
amortised over the term of the
AS) notified under the Companies (Indian Accounting contract. Payments to defined contribution
and the reported amounts of income retirement
and expense benefit
for
Contract
Standards) Rules,modifications
2015, as amended are accounted
from timefor,towhen
time plans
the are recognised
periods presented. as expense when employees
and otheradditions,
accounting deletions, or changes
principles generallyare approved
accepted in have rendered the service entitling them to the
Estimates
contribution. and the underlying assumptions are
India. either to the contract scope or contract price. reviewed on an on-going basis. Revisions to
Accounting for modifications of a contract Defined
accounting benefit plan: are recognised in the periods in
estimates
3. SUMMARY OF SIGNIFICANT ACCOUNTING
involves assessing whether the services added which the estimates
Payments to definedare revised and in future
contribution periods
retirement
POLICIES
to an existing contract are distinct and whether affected.
benefit plans are recognised as an expense when
(a) Basisthe
ofpricing
preparation is a standalone selling price. Services
and presentation
employees have rendered the service
Information about significant areas entitling them
of estimation
Theadded that are not
Consolidated distinct
financial are accounted
statements have for on
been to the contribution. Thejudgements
Group makes monthly
a cumulative catch up basis, while those uncertainty and critical in applying
prepared on a historical cost basis, except forthat are
certain contributionspolicies
towardthatthe employees’ provident fund
distinct are accounted accounting have the most significant
financial instruments that arefor prospectively,
measured either
at fair values, which is administered
effect on the amountsbyrecognised
a trust. In the in theevent of an
financial
as as a separate
explained in contract, if the additional
the accounting policies services
below. interest shortfall (between the interest declared by
are priced at the standalone selling price, or asofa statements are disclosed in Note 35.
Historical cost is generally based on the fair value the Government and the interest paid by the fund)
the termination
consideration of given
the existing contractforand
in exchange creation
goods and (d) Revenue recognition
the deficiency is made good by the Group, based
of a new
services. contract
Fair value if not
is the priced
price at the be
that would standalone
received Revenue is recognised
on an actuarial to the
valuation. extent
The that itvalue
present is probable
of the
selling
to sell an price.
asset or paid to transfer a liability in an that the benefit
defined economic benefitsofwill
obligation flow to the
employees’ Group
provident
orderly transaction
iii. Revenue from sale between market participants at
of services: and
fund revenue
is determined can be reliably
using measured.unit
the projected Revenue
credit
the measurement date. is measured
method, with at the fair
actuarial value ofbeing
valuations the consideration
carried out at
Revenue from services rendered over a period of
(b) Basistime, such as annual maintenance contracts, are
of consolidation received
each year end. or receivable.
The Group’sRevenue is net gratuity
liability towards off-trade is
recognised on a straight line basis over the period discounts,
determinedrebates,based onand other similar
the present value of allowances.
the defined
Subsidiaries: Revenue excludes indirect
of the performance obligation. benefit obligation and fair taxes
valuewhich
of plan areassets
collected
and
The Parent consolidates the financial statements of on
thebehalf of theor
net liability Government.
asset is recognised in the balance
all
iv. subsidiaries
Dividend anditinterest controls. Financial statements of
income: sheet. The net liability or asset represents the deficit
i. Revenue from sale of goods:
Group entities
Dividend are consolidated
income is accounted on a line–by–line
for when declared or surplus in the plan (the surplus is limited to the
basis. If a subsidiary
and the right to receive theof the Group
same uses accounting
is established. Revenue
present valuefrom theeconomic
of the sale of goods benefitsis recognised
available at in
policies other
Interest than those
income adopted in
is recognised the consolidated
using the effective the the
form point in timefrom
of refunds whenthe control
plan or is transferred
reductions to in
financial
intereststatements
method. for similar transactions and thecontributions).
future customer. Indicators
The present thatvalue
controlof thehas been
defined
events in similar circumstances, appropriate transferred include, the establishment
benefit obligation is determined using the projected of the
v. Rental income:
adjustments are made to that Group entity’s financial unitGroup’s present right
credit method, with to receive valuations
actuarial payment for the
being
Rental income
statements from operating
in preparing leases is accounted
the consolidated financial goods
carried outsold, transfer
at each of legal
year end. title to
Defined the customer,
benefit costs are
for on a straight-line
statements basis over the
to ensure conformity withlease
theterm.
Group’s transferof:
composed of physical possession to the customer,

196 Blue
Notes to Star Limited
Consolidated Financial Statements BlueFinancial
Notes to Consolidated Star Limited 195
Statements