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Gratex Industries Ltd. కంపెనీ అకౌంటింగ్ విధానాలు
Mar 31, 2025
1 Company Overview
Gratex Industries Limited (the âCompany'') is a public limited Company domiciled in India with its registered office address being Gratex House, A73, TTC Industrial Area, MIDC, Kopar Khairne, Navi Mumbai, Maharashtra, India, 400703. The company is listed on the Bombay Stock Exchange (BSE). The company''s principal business is manufacturing and trading of Wall Papers, Wall Posters, Profiles, Catalogues, Furniture and related products.
2(A) Summary of significant accounting policies2.01 Basis of preparation
a) Compliance with Indian Accounting Standards (Ind AS)
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (âthe Actâ) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.
b) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for following items:
|
Items |
Measurement Basis |
|
Certain financial assets and liabilities |
Fair Value |
|
Net defined benefit (asset)/ liability |
Fair Value of plan assets less present value of defined benefit obligations |
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions, regardless of whether that price is directly observable or estimated using another valuation technique. In determining the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.
c) Current versus non-current classification
All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of the products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (CODM). Chairman and Managing Director of the Company has been identified as CODM who assesses the financial performance and position of the company, and makes strategic decisions.
2.03 Foreign Currency Transactionsa) Functional and presentation currency
The financial statements are presented in Indian Rupees (INR), which is the Company''s functional and presentation currency.
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of profit and loss.Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Non-monetary items that are measured at historical cost in foreign currency are translated using the exchange rate at the date of the transaction.
Revenue is measured at the fair value of consideration received or receivable. Amounts disclosed as revenue is exclusive of excise duty and net of discounts, volume rebates, value added taxes, goods & services tax and amounts collected on behalf of third parties.
a) Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the following conditions are satisfied:
- the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
- the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the Company; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.
b) Export incentives
Benefits on account of entitlement of export incentives are recognized as and when the right to receive is established.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the amortised cost and at the effective interest rate applicable.
Dividend income is recognized when the right to receive is established.
General and specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of such asset till such time the asset is ready for its intended use or sale and borrowing costs are being incurred. Qualifying assets are assets that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.
Leases of property, plant and equipment where the company as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to statement of profit and loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
a) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
b) Post employee obligations
The Company operates the following post-employment schemes:
- defined benefit plans such as gratuity
- defined contribution plans such as provident fund
i) Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is determined at the year end by independent actuary using the projected unit credit method.
The present value of the defined benefit obligation denominated in Indian Rupees is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity. Remeasurements are not reclassified to profit and loss in the subsequent periods.
ii) Defined contribution plans
Provident fundThe Company pays contributions toward provident fund to the regulatory authorities as per local regulations where the Company has no further payment obligations. The contributions are recognised as employee benefit expense when they are due.
The Company recognise a liability and an expense for bonuses. The Company recognise a provision where contractually obliged or where there is a past practice that has created a constructive obligation.
Income tax expense or credit represents the sum of the current tax and deferred tax.
Current and deferred tax is recognised in the Statement of Profit and Loss except to the extent it relates to items recognised in âOther comprehensive income'' or directly in equity, in which case it is recognised in âOther comprehensive income'' or directly in equity, respectively.
Current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the Statement of profit and loss because some items of income or expense are taxable or deductible in different years or may never be taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Current tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority. The Company periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred tax is the tax expected to be payable or recoverable in the future arising from temporary differences between the carrying amounts of assets and liabilities in the balance sheet and the corresponding tax bases used in the computation of taxable profit. It is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised
to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by the reporting date.
A deferred tax asset shall be recognised for the carry-forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.
Deferred income tax assets and liabilities are off-set against each other and the resultant net amount is presented in the Balance sheet, if and only when, (a) the Company currently has a legally enforceable right to set-off the current income tax assets and liabilities, and (b) when the Deferred income tax assets and liabilities relate to income tax levied by the same taxation authority.
Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss).
The carrying amount of deferred tax assets is reviewed at each reporting date and adjusted to reflect changes in probability that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
2.09 Property, plant and equipment
All items of property, plant and equipment (âPPEâ) are stated at historical cost less accumulated depreciation less accumulated impairment losses. The cost of property, plant and equipment includes purchase price including import duties, non-refundable taxes and expenditure that is directly attributable to acquisition and installation, cost of dismantling and removing the item and restoring the site on which it is located.
Capital work in progress is carried at cost, less any recognised impairment loss. Depreciation of these assets commences when the assets are substantially ready for their intended use. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under âOther noncurrent Assetsâ.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.
The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to the statement of profit and loss during the reporting period in which they are incurred.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in statement of profit and loss.
Depreciation methods, estimated useful lives and residual value
Depreciation is provided on a pro-rata basis on the written down value method (WDV) to allocate their cost, net
of their residual values, over their estimated useful lives as per technical evaluation. Estimated useful lives of the assets thereof are as under:
|
Assets class |
Useful life in years |
|
Building |
60 |
|
Plant and Equipment |
15 |
|
Laboratory / Testing |
15 |
|
Furniture and Fixtures |
10 |
|
Electrical Installation |
10 |
|
Office Equipments |
5 |
|
Vehicles |
8 |
|
Computers |
3 |
Estimated useful lives, residual values and depreciation methods are reviewed annually, taking into account commercial and technological obsolescence as well as normal wear and tear and adjusted prospectively, if appropriate.
2.10 Impairment of non-financial assets
Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or group of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
Government grant is recognized only when there is a reasonable assurance that the entity will comply with the conditions attaching to them and the grants will be received. Government grant related to assets is recognized as deferred income which is recognized in the statement of profit & loss on systematic basis over the useful life of the assets.
Inventories are stated at the lower of cost and net realisable value. Cost of raw materials, packing materials and fuels comprises cost of purchases. Cost of work-in progress and finished goods comprises direct materials, direct labour, other direct costs and related production overheads. Cost of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Cost is determined using the first in first out (FIFO). Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. However, these items are considered to be realizable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.
2.13 Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, demand deposits with banks, short-term highly liquid investments with an original maturity of three months or less that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrume nt of another entity.
Financial Assetsi) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss),
- those measured at amortised cost.
The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in statement of profit or loss or other comprehensive income.
For investments in debt instruments, this will depend on the business model in which the investment is held.
The Company reclassifies debt investments when and only when its business model for managing those assets changes.
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through statement of profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through statement of profit or loss are expensed in statement of profit or loss.
Debt instruments
Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Company classifies its debt instruments:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a debt investment that is subsequently measured at amortised cost is recognised in statement of profit or
loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using the effective interest rate method.
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to statement of profit or loss and recognised in other income. Interest income from these financial assets is included in other income using the effective interest rate method.
Fair value through statement of profit or loss (FVTPL): Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through statement of profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through statement of profit or loss is recognised in statement of profit or loss in the period in which it arises. Interest income from these financial assets is included in other income.
iii) Impairment of financial assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through statement of profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets,credit risk is considered to be low.For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of the receivables. As a practical expedient, the company uses a provision matrix to determine impairment loss of its trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking estimates. The ECL loss allowance (or reversal) during the year is recognized in the statement of profit and loss.
iv) De-recognition of financial assets
A financial asset is derecognised only when:
- the Company has transferred the rights to receive cash flows from the financial asset or
- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.
Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.
Financial Liabilitiesi) Classification
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Financial liabilities are initially recognised at fair value, reduced by transaction costs (in case of financial liability not at fair value through statement of profit or loss), that are directly attributable to the issue of financial liability. After initial recognition, financial liabilities are measured at amortised cost using effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash outflow (including all fees paid, transaction cost, and other premiums or discounts) through the expected life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. At the time of initial recognition, there is no financial liability irrevocably designated as measured at fair value through statement of profit or loss.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
iv) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in statement of profit or loss over the period of the borrowings using the effective interest method.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in statement of profit or loss.
Trade and other payables represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.
2.15 Provisions and contingent liabilities Provision
Provisions are recognised when the company has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and amount of the obligation can be reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the management''s best estimate of the expenditure required to settle the present obligation at the Balance sheet date. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as an interest expense.
Contingent liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
A contingent asset is disclosed, where an inflow of economic benefits is probable.
Equity shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Basic earnings per share is calculated by dividing the profit or loss attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted earnings per share, adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
2.18 New standards/ amendments to existing standards.
Ind AS 115 Revenue from Contracts with Customers
The Ministry of Corporate Affairs (MCA) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 on March 28, 2018 notifying Ind AS 115 Revenue from Contracts with Customers
These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB).
Ind AS 115 replaces Ind AS 18 which covers contracts for goods and services and Ind AS 11 which covers construction contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer - so the notion of control replaces the existing notion of risks and rewards.
It establishes a five-step model to account for revenue arising from contracts with customer. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Company is in the process of analysing the impact of the new standard. This standard will come into force from accounting period commencing on or after April 01,2018.
There are no other standards, changes in standards and interpretations that are not in force up to reporting period that the Company expects to have a material impact arising from its application in its financial statements.
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
2(B) Critical estimates and judgements
The preparation of financial statements requires the use of accounting estimates. Management also needs to exercise judgement in applying the Company''s accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. The areas involving critical estimates or judgements are:
a) Estimation of Provisions & Contingent Liabilities
The Company exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities which is related to pending litigation or other outstanding claims. If a loss arising from these litigations and/or claims is probable and can be reasonably estimated, the management record the amount of the estimated loss. If a loss is reasonably possible, but not probable, the management discloses the nature of the significant contingency and, if quantifiable, the possible loss that could result from the resolution of the matter. As additional information becomes available, the management reassess any potential liability related to these litigations and claims and may need to revise the estimates. Such revisions or ultimate resolution of these matters could materially impact the results of operations, cash flows or financial statements of the company. (Refer Note-18 )
b) Estimation of current tax expense and deferred tax
The calculation of the Company''s tax charge necessarily involves a degree of estimation and judgement in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. The final resolution of some of these items may give rise to material adjustment to taxable profits/losses (Refer note-11, 15).
Recognition of deferred tax assets/ liabilities
The recognition of deferred tax assets/ liabilities is based upon whether it is more likely than not that sufficient taxable profits will be available in the future against which the reversal of temporary differences will be offset. To determine the future taxable profits, the management considers the nature of the deferred tax assets, recent operating results, future market growth, forecasted earnings and future taxable income in the jurisdictions in which the company operate. (Refer Note 11A).
c) Useful lives of property, plant and equipment
The Company reviews the estimated useful lives of property, plant and equipment at the end of each reporting period or even earlier in case, circumstances change such that the recorded value of an asset may not be recoverable. The estimate of useful life requires significant management judgment and requires assumptions that can include: planned use of equipments, future volume trends, revenue and expense growth rates and annual operating plans, and in addition, external factors such as changes in macroeconomic trends which are developed in connection with the Company''s long-term strategic planning.
The Company''s obligation on account of gratuity and compensated absences is determined based on actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, these liabilities are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. (Refer Note 23A)
2(C) Recent Accounting Pronouncements
Ministry of Corporate Affairs (âMCAâ) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards). Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1,2022, as below:
Ind AS 103 - Reference to Conceptual Framework
The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.
Ind AS 16 - Proceeds before intended use
The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.
Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract
The amendments specify that that the âcost of fulfilling'' a contract comprises the âcosts that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.
Ind AS 109 - Annual Improvements to Ind AS (2021)
The amendment clarifies which fees an entity includes when it applies the â10 percent'' test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.
Ind AS 116 - Annual Improvements to Ind AS (2021)
The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.
Mar 31, 2024
2(A) Summary of significant accounting policies
2.01 Basis of preparation
a) Compliance with Indian Accounting Standards (Ind AS)
The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 (âthe Actâ) [Companies (Indian Accounting Standards)
Rules, 2015] and other relevant provisions of the Act.
b) Historical cost convention
The financial statements have been prepared on a historical cost basis, except for following items:
Items Measurement Basis
Certain financial assets and liabilities Fair Value
Net defined benefit (asset)/ liability Fair Value of plan assets less present value of defined
benefit obligations
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date under current market conditions,
regardless of whether that price is directly observable or estimated using another valuation technique. In
determining the fair value of an asset or a liability, the Company takes into account the characteristics of
the asset or liability if market participants would take those characteristics into account when pricing the
asset or liability at the measurement date.
c) Current versus non-current classification
All the assets and liabilities have been classified as current or non-current as per the company''s normal
operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the
nature of the products and the time between the acquisition of assets for processing and their realisation
in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the
purpose of current and non-current classification of assets and liabilities.
2.02 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker (CODM). Chairman and Managing Director of the Company has been identified as
CODM who assesses the financial performance and position of the company, and makes strategic decisions.
2.03 Foreign Currency Transactions
a) Functional and presentation currency
The financial statements are presented in Indian Rupees (INR), which is the Company''s functional and
presentation currency.
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the Statement of profit and loss.Non-monetary items
that are measured at fair value in a foreign currency are translated using the exchange rates at the date
when the fair value was determined. Non-monetary items that are measured at historical cost in foreign
currency are translated using the exchange rate at the date of the transaction.
2.04 Revenue Recognition
Revenue is measured at the fair value of consideration received or receivable. Amounts disclosed as revenue
is exclusive of excise duty and net of discounts, volume rebates, value added taxes, goods & services tax and
amounts collected on behalf of third parties.
a) Sale of goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at
which time all the following conditions are satisfied:
- the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
- the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the Company; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.
b) Export incentives
Benefits on account of entitlement of export incentives are recognized as and when the right to receive
is established.
c) Interest income
Interest income from a financial asset is recognised when it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably. Interest income is accrued on
a time basis, by reference to the amortised cost and at the effective interest rate applicable.
d) Dividend income
Dividend income is recognized when the right to receive is established.
2.05 Borrowing costs
General and specific borrowing costs that are attributable to the acquisition, construction or production of a
qualifying asset are capitalised as part of the cost of such asset till such time the asset is ready for its intended
use or sale and borrowing costs are being incurred. Qualifying assets are assets that necessarily takes a
substantial period of time to get ready for its intended use. All other borrowing costs are recognised as an
expense in the period in which they are incurred.
2.06 Leasing - As a lessee
Leases of property, plant and equipment where the company as lessee, has substantially all the risks and
rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease''s inception
at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The
corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities
as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is
charged to the statement of profit and loss over the lease period so as to produce a constant periodic rate of
interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company
as lessee are classified as operating leases. Payments made under operating leases (net of any incentives
received from the lessor) are charged to statement of profit and loss on a straight-line basis over the period of
the lease unless the payments are structured to increase in line with expected general inflation to compensate
for the lessor''s expected inflationary cost increases.
2.07 Employee benefits
a) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees'' services up to the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
b) Post employee obligations
The Company operates the following post-employment schemes:
- defined benefit plans such as gratuity
- defined contribution plans such as provident fund
i) Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value of plan
assets. The defined benefit obligation is determined at the year end by independent actuary using the
projected unit credit method.
The present value of the defined benefit obligation denominated in Indian Rupees is determined by
discounting the estimated future cash outflows by reference to market yields at the end of the reporting
period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the
statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive income.
They are included in retained earnings in the statement of changes in equity. Remeasurements are not
reclassified to profit and loss in the subsequent periods.
ii) Defined contribution plans
Provident fundThe Company pays contributions toward provident fund to the regulatory authorities as
per local regulations where the Company has no further payment obligations. The contributions are
recognised as employee benefit expense when they are due.
c) Bonus plans
The Company recognise a liability and an expense for bonuses. The Company recognise a provision
where contractually obliged or where there is a past practice that has created a constructive obligation.
2.08 Current and deferred tax
Income tax expense or credit represents the sum of the current tax and deferred tax.
Current and deferred tax is recognised in the Statement of Profit and Loss except to the extent it relates to items
recognised in âOther comprehensive income'' or directly in equity, in which case it is recognised in âOther
comprehensive income'' or directly in equity, respectively.
Current tax
Current tax payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the
Statement of profit and loss because some items of income or expense are taxable or deductible in different
years or may never be taxable or deductible. The Company''s current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of the reporting period.
Current tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same taxation authority. The
Company periodically evaluates positions taken in the tax returns with respect to situations in which applicable
tax regulations are subject to interpretation and establishes provisions where appropriate. It establishes provisions
where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable in the future arising from temporary differences
between the carrying amounts of assets and liabilities in the balance sheet and the corresponding tax bases
used in the computation of taxable profit. It is accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised
to the extent that it is probable that taxable profits will be available against which deductible temporary differences
can be utilised. Deferred tax is calculated at the tax rates that are expected to apply in the period when the
liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by
the reporting date.
A deferred tax asset shall be recognised for the carry-forward of unused tax losses and unused tax credits to
the extent that it is probable that future taxable profit will be available against which the unused tax losses and
unused tax credits can be utilised.
Deferred income tax assets and liabilities are off-set against each other and the resultant net amount is
presented in the Balance sheet, if and only when, (a) the Company currently has a legally enforceable right to
set-off the current income tax assets and liabilities, and (b) when the Deferred income tax assets and liabilities
relate to income tax levied by the same taxation authority.
Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction
other than a business combination that at the time of the transaction affects neither accounting profit nor taxable
profit (tax loss).
The carrying amount of deferred tax assets is reviewed at each reporting date and adjusted to reflect changes
in probability that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
2.09 Property, plant and equipment
All items of property, plant and equipment (âPPEâ) are stated at historical cost less accumulated depreciation less
accumulated impairment losses. The cost of property, plant and equipment includes purchase price including
import duties, non-refundable taxes and expenditure that is directly attributable to acquisition and installation,
cost of dismantling and removing the item and restoring the site on which it is located.
Capital work in progress is carried at cost, less any recognised impairment loss. Depreciation of these assets
commences when the assets are substantially ready for their intended use. Advances given towards acquisition
or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under âOther non¬
current Assetsâ.
Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably.
The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All
other repairs and maintenance are charged to the statement of profit and loss during the reporting period in
which they are incurred.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement
of an item of property, plant and equipment is determined as the difference between the sales proceeds and the
carrying amount of the asset and is recognised in statement of profit and loss.
Depreciation methods, estimated useful lives and residual value
Depreciation is provided on a pro-rata basis on the written down value method (WDV) to allocate their cost, net
Estimated useful lives, residual values and depreciation methods are reviewed annually, taking into account
commercial and technological obsolescence as well as normal wear and tear and adjusted prospectively, if
appropriate.
2.10 Impairment of non-financial assets
Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value
less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash inflows which are largely independent of the
cash inflows from other assets or group of assets (cash-generating units). Non-financial assets that suffered
an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.
2.11 Government grants
Government grant is recognized only when there is a reasonable assurance that the entity will comply with the
conditions attaching to them and the grants will be received. Government grant related to assets is recognized
as deferred income which is recognized in the statement of profit & loss on systematic basis over the useful life
of the assets.
2.12 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost of raw materials, packing materials and
fuels comprises cost of purchases. Cost of work-in progress and finished goods comprises direct materials,
direct labour, other direct costs and related production overheads. Cost of inventories also include all other
costs incurred in bringing the inventories to their present location and condition. Cost is determined using the
first in first out (FIFO). Costs of purchased inventory are determined after deducting rebates and discounts. Net
realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale. However, these items are considered to be
realizable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.
2.13 Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on
hand, demand deposits with banks, short-term highly liquid investments with an original maturity of three months
or less that are readily convertible into known amounts of cash and which are subject to insignificant risk of
changes in value.
2.14 Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial Assets
i) Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through
profit or loss),
- those measured at amortised cost.
The classification depends on the entity''s business model for managing the financial assets and the
contractual terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in statement of profit or loss
or other comprehensive income.
For investments in debt instruments, this will depend on the business model in which the investment is
held.
The Company reclassifies debt investments when and only when its business model for managing those
assets changes.
ii) Measurement
At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through statement of profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair
value through statement of profit or loss are expensed in statement of profit or loss.
Debt instruments
Subsequent measurement of debt instruments depends on the Company''s business model for managing
the asset and the cash flow characteristics of the asset. There are three measurement categories into
which the Company classifies its debt instruments:
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured at amortised cost. A gain or loss on a
debt investment that is subsequently measured at amortised cost is recognised in statement of profit or
loss when the asset is derecognised or impaired. Interest income from these financial assets is included
in finance income using the effective interest rate method.
Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual
cash flows and for selling the financial assets, where the assets'' cash flows represent solely payments
of principal and interest, are measured at fair value through other comprehensive income (FVOCI).
Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains
or losses, interest revenue and foreign exchange gains and losses which are recognised in profit and
loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI
is reclassified from equity to statement of profit or loss and recognised in other income. Interest income
from these financial assets is included in other income using the effective interest rate method.
Fair value through statement of profit or loss (FVTPL): Assets that do not meet the criteria for amortised
cost or FVOCI are measured at fair value through statement of profit or loss. A gain or loss on a debt
investment that is subsequently measured at fair value through statement of profit or loss is recognised
in statement of profit or loss in the period in which it arises. Interest income from these financial assets is
included in other income.
iii) Impairment of financial assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair valued through statement of profit or loss. Loss allowance for trade receivables
with no significant financing component is measured at an amount equal to lifetime ECL. For all other
financial assets,credit risk is considered to be low.For trade receivables only, the Company applies the
simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime
losses to be recognized from initial recognition of the receivables. As a practical expedient, the company
uses a provision matrix to determine impairment loss of its trade receivables. The provision matrix is
based on its historically observed default rates over the expected life of the trade receivable and is
adjusted for forward looking estimates. The ECL loss allowance (or reversal) during the year is recognized
in the statement of profit and loss.
iv) De-recognition of financial assets
A financial asset is derecognised only when:
- the Company has transferred the rights to receive cash flows from the financial asset or
- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.
Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially
all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised.
Where the entity has not transferred substantially all risks and rewards of ownership of the financial
asset, the financial asset is not derecognised.
Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards
of ownership of the financial asset, the financial asset is derecognised if the Company has not retained
control of the financial asset. Where the Company retains control of the financial asset, the asset is
continued to be recognised to the extent of continuing involvement in the financial asset.
v) Trade Receivable
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method, less provision for impairment.
Financial Liabilities
i) Classification
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity
in accordance with the substance of the contractual arrangements and the definition of a financial liability
and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities.
ii) Measurement
Financial liabilities are initially recognised at fair value, reduced by transaction costs (in case of financial
liability not at fair value through statement of profit or loss), that are directly attributable to the issue of
financial liability. After initial recognition, financial liabilities are measured at amortised cost using effective
interest method. The effective interest rate is the rate that exactly discounts estimated future cash
outflow (including all fees paid, transaction cost, and other premiums or discounts) through the expected
life of the financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial
recognition. At the time of initial recognition, there is no financial liability irrevocably designated as measured
at fair value through statement of profit or loss.
iii) Derecognition:
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the statement of profit or loss.
iv) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in statement of profit or loss over the period of the
borrowings using the effective interest method.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,
cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, is recognised in statement of profit or loss.
v) Trade and other payables
Trade and other payables represent liabilities for goods and services provided to the company prior to the
end of financial year which are unpaid. They are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest method.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business and in the event
of default, insolvency or bankruptcy of the company or the counterparty.
Mar 31, 2015
I. Basis Of Preparation Of Financial Statements
The financial statements have been prepared and presented under the
historical cost convention using the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
and are in accordance with the applicable Accounting Standards,
Guidance Notes and the relevant provisions of the Companies Act, 2013.
II. Use Of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent liabilities on
the date of financial statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognized in the period in which the results
are known / materialized
III. Revenue Recognition
Revenue is recognised to the extend that it is probable that the
economic benefits will accrue to the Company and the revenue can be
reliably measured.
A Income from Operating / Tading Activities:
Revenue from sale of trading materials is recognized on transfer of
significant risks and rewards of ownership to the buyer. Revenue
recognition is postponed to the extent of significant uncertainty.
B Interest:
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
C Others:
Other Revenues / Incomes and Costs / Expenditure are generally
accounted on accrual, as they are earned or incurred.
IV. Tangible Assets and Depreciation / Amortisation
A. Tangible Fixed Assets are stated at cost of acquisition or
construction less accumulated depreciation / amortisation and
accumulated impairment losses, if any.
B. Depreciation is provided on the Written down value Method at the
rates and in the manner specified in Schedule II to the Companies Act,
2013. Depreciation on additions to assets or on sale/disposal of assets
is calculated pro-rata from the date of such addition, or upto the date
of such sale/disposal, as the case may be.
C. Leasehold Land, being held under a very long lease and in the
nature of a perpetual asset has not been amortised.
D The Company has not been maintaining proper records to show full
particulars including quantitative details and situation of the fixed
assets and has also not maintained Fixed Assets Register Item Wise .
V. Inventories
Inventories are stated at Cost or Net Realizable Value, whichever is
lower.
Cost of Inventory includes Invoice rate as increased by related
government duties and charges and other related direct costs.
Method of valuation is first in first out (FIFO) basis.
VI. Employee Benefits
Employee benefits in the nature of short term employee benefits as well
as post term employee benefits are recognised as an expence in the
statement of Profit & Loss for the year in which thery are incurred.
VII. Borrowing Costs
Interests and other borrowing costs attributable to qualifying assets
are allocated as part of the cost of development of such assets. Such
allocation is suspended during extended periods in which active
development is interrupted. Other borrowing costs are charged to the
Profit and Loss Statement.
VIII. Foreign Currency Transactions
A. All transaction in foreign currency are recorded in the reporting
currency, at the rates of exchange prevailing on the dates the relevant
transactions take place.
B. Monetary Assets and Liabilities in foreign currency, outstanding at
the close of the year are converted in Indian Currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted during the year.
IX. Segment Reporting
The company is engaged in the business of Trading of Wall Papers and
Related Products, which as per Accounting Standards AS-17-'Segment
Reporting' is considered to be the only reportable business segment.
The Company is also operating within the same geographical segment.
Hence, disclosures under AS-17 are not applicable.
X. Taxations
Income tax expense comprises Current Tax and Deferred Tax charge or
credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets arising mainly
on account of brought forward losses and unabsorbed depreciation under
tax laws, are recognized, only if there is a virtual certainty of its
realization, supported by convincing evidence. Deferred tax assets on
account of other timing differences are recognized only to the extent
there is a reasonable certainty of its realization. At each Balance
Sheet date, the carrying amounts of deferred tax assets are reviewed to
reassure realization.
XI. Impairment of Assets
The carrying amount of assets is reviewed at each Balance Sheet date.
If there is any indication of impairment based on internal/external
factors, i.e. when the carrying amount of the assets exceeds the
recoverable amount, an impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
An impairment loss recognised in prior accounting periods is reversed
or reduced if there has been a favourable change in the estimate of the
recoverable amount.
XII. Provisions, Contingent Liability and Contingent Assets
Provisions involving a substantial degree of estimation in measurement
are recognised when there is present obligation as a result of past
events and its probable there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
financial statement. Contingent assets are neither recognised not
disclosed in the financial statements.
Mar 31, 2014
I. Basis Of Preparation Of Financial Statements
The financial statements have been prepared and presented under the
historical cost convention using the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
and are in accordance with the applicable Accounting Standards,
Guidance Notes and the relevant provisions of the Companies Act, 1956.
II. Use Of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent liabilities on
the date of financial statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognized in the period in which the results
are known / materialized
III. Revenue Recognition
Revenue is recognised to the extend that it is probable that the
economic benefits will accrue to the Company and the revenue can be
reliably measured.
A Income from Operating / Tading Activities:
Revenue from sale of trading materials is recognized on transfer of
significant risks and rewards of ownership to the buyer. Revenue
recognition is postponed to the extent of significant uncertainty.
B Interest:
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
C Others:
Other Revenues / Incomes and Costs / Expenditure are generally
accounted on accrual, as they are earned or incurred.
IV. Tangible Assets and Depreciation / Amortisation
A. Tangible Fixed Assets are stated at cost of acquisition or
construction less accumulated depreciation / amortisation and
accumulated impairment losses, if any.
B. Depreciation is provided on the Written down value Method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956. Depreciation on additions to assets or on sale/disposal of assets
is calculated pro-rata from the date of such addition, or upto the date
of such sale/disposal, as the case may be.
C. Leasehold Land, being held under a very long lease and in the
nature of a perpetual asset has not been amortised.
D. The Company has not been maintaining proper records to show full
particulars including quantitative details and situation of the fixed
assets and has also not maintained Fixed Assets Register Item Wise.
V. Inventories
Inventories are stated at Cost or Net Realizable Value, whichever is
lower.
Cost of Inventory includes Invoice rate as increased by related
government duties and charges and other related direct costs.
Method of valuation is first in first out (FIFO) basis
VI. Employee Benefits
Employee benefits in the nature of short term employee benifits as well
as post term employee benefits are recognised as an expence in the
statement of Profit & Loss for the year in which thery are incurred.
VII. Borrowing Costs
Interests and other borrowing costs attributable to qualifying assets
are allocated as part of the cost of development of such assets. Such
allocation is suspended during extended periods in which active
development is interrupted. Other borrowing costs are charged to the
Profit and Loss Statement.
VIII. Foreign Currency Transactions
A. All transaction in foreign currency are recorded in the reporting
currency, at the rates of exchange prevailing on the dates the relevant
transactions take place.
B. Monetary Assets and Liabilities in foreign currency, outstanding at
the close of the year are converted in Indian Currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted during the year.
IX. Segment Reporting
The company is engaged in the business of Trading of Wall Papers and
Related Products, which as per Accounting Standards AS-17-''Segment
Reporting'' is considered to be the only reportable business segment.
The Company is also operating within the same geographical segment.
Hence, disclosures under AS-17 are not applicable.
X. Taxations
Income tax expense comprises Current Tax and Deferred Tax charge or
credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets arising mainly
on account of brought forward losses and unabsorbed depreciation under
tax laws, are recognized, only if there is a virtual certainty of its
realization, supported by convincing evidence. Deferred tax assets on
account of other timing differences are recognized only to the extent
there is a reasonable certainty of its realization. At each Balance
Sheet date, the carrying amounts of deferred tax assets are reviewed to
reassure realization.
XI. Impairment of Assets
The carrying amount of assets is reviewed at each Balance Sheet date.
If there is any indication of impairment based on internal/external
factors, i.e. when the carrying amount of the assets exceeds the
recoverable amount, an impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
An impairment loss recognised in prior accounting periods is reversed
or reduced if there has been a favourable change in the estimate of the
recoverable amount.
XII. Provisions, Contingent Liability and Contingent Assets
Provisions involving a substantial degree of estimation in measurement
are recognised when there is present obligation as a result of past
events and its probable there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
financial statement. Contingent assets are neither recognised not
disclosed in the financial statements.
Mar 31, 2012
I. Basis Of Preparation Of Financial Statements
The financial statements have been prepared and presented under the
historical cost convention using the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
and are in accordance with the applicable Accounting Standards,
Guidance Notes and the relevant provisions of the Companies Act, 1956.
II. Use Of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent liabilities on
the date of financial statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognized in the period in which the results
are known / materialized
III. Revenue Recognition
Revenue is recognised to the extend that it is probable that the
economic benefits will accrue to the Company and the revenue can be
reliably measured.
A Income from Operating / Trading Activities :
Revenue from sale of trading materials is recognized on transfer of
significant risks and rewards of ownership to the buyer. Revenue
recognition is postponed to the extent of significant uncertainty.
B Interest:
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
C Others:
Other Revenues / Incomes and Costs / Expenditure are generally
accounted on accrual, as they are earned or incurred.
IV. Tangible Assets and Depreciation / Amortisation
A. Tangible Fixed Assets are stated at cost of acquisition or
construction less accumulated depreciation / amortisation and
accumulated impairment losses, if any.
B. Depreciation is provided on the Straight Line Method at the rates
and in the manner specified in Schedule XIV to the Companies Act, 1956.
Depreciation on additions to assets or on sale/disposal of assets is
calculated pro-rata from the date of such addition, or upto the date of
such sale/disposal, as the case may be.
C. Leasehold Land, being held under a very long lease and in the
nature of a perpetual asset has not been amortised.
V. Inventories
Inventories are stated at Cost or Net Realizable Value, whichever is
lower.
Cost of Inventory includes Invoice rate as increased by related
government duties and charges and other related direct costs.
Method of valuation is first in first out (FIFO) basis.
VI. Employee Benefits
Employee benefits in the nature of short term employee benifits as well
as post term employee benefits are recognised as an expence in the
statement of Profit & Loss for the year in which thery are incurred.
VII. Borrowing Costs
Interests and other borrowing costs attributable to qualifying assets
are allocated as part of the cost of development of such assets. Such
allocation is suspended during extended periods in which active
development is interrupted. Other borrowing costs are charged to the
Profit and Loss Statement.
VIII. Foreign Currency Transactions
A. All transaction in foreign currency are recorded in the reporting
currency, at the rates of exchange prevailing on the dates the relevant
transactions take place.
B. Monetary Assets and Liabilities in foreign currency, outstanding at
the close of the year are converted in Indian Currency at the
appropriate rates of exchange prevailing on the date of Balance Sheet.
Resultant gain or loss is accounted during the year.
IX. Segment Reporting
The company is engaged in the business of Trading of Wall Papers and
Related Products, which as per Accounting Standards AS-17-'Segment
Reporting' is considered to be the only reportable business segment.
The Company is also operating within the same geographical segment.
Hence, disclosures under AS-17 are not applicable.
X. Taxations
Income tax expense comprises Current Tax and Deferred Tax charge or
credit. Provision for current tax is made on the basis of the
assessable income at the tax rate applicable to the relevant assessment
year. The deferred tax asset and deferred tax liability is calculated
by applying tax rate and laws that have been enacted or substantively
enacted by the Balance Sheet date. Deferred tax assets arising mainly
on account of brought forward losses and unabsorbed depreciation under
tax laws, are recognized, only if there is a virtual certainty of its
realization, supported by convincing evidence. Deferred tax assets on
account of other timing differences are recognized only to the extent
there is a reasonable certainty of its realization. At each Balance
Sheet date, the carrying amounts of deferred tax assets are reviewed to
reassure realization.
XI. Impairment of Assets
The carrying amount of assets is reviewed at each Balance Sheet date.
If there is any indication of impairment based on internal/external
factors, i.e. when the carrying amount of the assets exceeds the
recoverable amount, an impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
An impairment loss recognised in prior accounting periods is reversed
or reduced if there has been a favourable change in the estimate of the
recoverable amount.
XII. Provisions, Contingent Liability and Contingent Assets
Provisions involving a substantial degree of estimation in measurement
are recognised when there is present obligation as a result of past
events and its probable there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
financial statement. Contingent assets are neither recognised not
disclosed in the financial statements.
Mar 31, 2011
The Accounts are prepared on a Historical Cost Convention and complies
with the Mandatory Accounting Standards issued by the Institute of
Chartered Accountants of India. Company follows mercantile system of
Accounting.
The significant accounting policies followed by the Company are as
under:
2. FIXED ASSETS :
1. Expenditure which are of a capital nature are capitalised at a cost
which comprises of purchase price (Net of rebates & discounts), import
duties, levies and any directly attributable cost of bringing the
assets to its working condition for the intended use.
Depreciation is provided from the day of asset put to use on written
down value method (WDV) at the rates and in the manner specified under
Schedule XIV of the Companies Act, 1956.
2. Investments are valued at it's acquisition cost.
3. We understand from the management that manufacture activities is
stopped from 24th August 2008 and therefore depreciation on Plant &
Machinery under the Income Tax is not claimed.
3. INVENTORIES :
Since we are traders, Stock is valued as cost or as per market price
whichever is lower.
4. The Company has paid PF regularly of all employees.
5. PENDING FRAUD CASE : Rs. 616,436/- The Company has reflected the
following amount under the head "Miscellaneous Expenses Not Written
Off".
The Company had C C A/c (Cash Credit Account) bearing Account No. 109
with Punjab National Bank, Shivaji Park Branch, Mumbai. during the
financial year 1993-94 and 1994-95 Mr. Jatin M. Chhaya an Accountant
had forged the signature of Director, Mrs. Promila Sharma and
misappropriated the above stated sum. The Company on detection of above
fraud lodged a complaint with the Registrar, Consumer Redressed
Commission, Mumbai, Maharashtra on 11.8.l994 bearing Suit No.222/94.
An Ex-parte Order had been issued by the High Court in favour of the
Company for the Civil Suit filed in the High Court vide Suit No. 2647
of 1996 against Punjab National Bank and Others.
CIVIL SUIT NO. 2647 OF 1996 : PUNJAB NATIONAL BANK & OTHERS
From the information passed by the Company, the High Court has passed
the Order to withdraw the amount of Rs. 5,06,000/- deposited in the
High Court by the Punjab National Bank with a condition that the
Company submits a Bank Guarantee. The Bank Guarantee has been submitted
by the Company. The said matter will be on the High Court Board after
3 to 4 years for contesting and till then the matter is pending.
PRIVATE COMPLAINT NO. 990/P/1995 : MR. JATIN CHHAYA V/S STATE OF
MAHARASHTRA.
We understand from the Management that the hand-writing expert report
other documents are received in the Court by the Mahim Police Station.
The original cheques are yet to be received in the Court. The Trial is
posted to proceed.
6. We understand from the management that the case filed by the
Company against the Managing Director Mr. Prabodh Agarwal of M/s. Elar
Fashions Ltd., Sukhsagar Building, Opera House, Mumbai-400 007 in the
Economic Offences Wing had been revived and fresh proceedings under the
Indian Penal Code had been activated against the Managing Director, his
wife Mrs. Deepti Rani Agarwal and Mr. Mansingha for issue of false
Invoices and Duplicate Share Certificates.
Mr. Mansingha was jailed for 2 days and released on Bail. The
management will appear when the summons are issued to it and the matter
comes up on Board.
The Red Corner Notice against the Accused was also issued by the
Economic Offences Wing.
We understand from the Management that there has been no progress on
the various cases filed against the Managing Director Mr. Prabodh
Agarwal and Mrs. Deepti Rani Agarwal, Director of the Company. They
are absconding for more than 6 years and hence the case is pending.
In view of pending litigation for a long time, management has decided
to account for due interest on cash basis i.e. year in which the actual
interest is received.
7. We understand from the management that in the case filed by the
Company against Consortex Kal Doelitzsch (India) Ltd. formerly known as
Andhra Pradesh Power Tools Ltd., against whom the Company was
successful in getting an Order under the Summary Suit but the said case
papers are misplaced in the record room of High Court and hence the
said matter will be reconstructed in the High Court. The process will
take at least two months for getting the decree copy of the case and
till then the matter is pending in the High Court.
Execution Petition had filed in City Civil Court at Hyderabad and the
Honorable Court had issued show cause Notice. Against respondent and
the said respondent refused to accept the notice and the matter is kept
for further process.
The matter under section 138 is pending in High Court Mumbai the said
matter lastly on 18.06.2010 and honorable Court had given time to serve
notice upon the accused respondent.
In view of pending litigation for a long time, management has decided
to account for due interest on cash basis i.e. year in which the actual
interest is received.
We suggested the management to make a provision for the Bad debts
stated in clause no. 5,6, & 7. However the management is of the
opinion that as per the advice of solicitor, provision for bad debts
has not been keeping in view the litigation pending in court of law.
Mar 31, 2010
The Accounts are prepared on a Historical Cost Convention and complies
with the Mandatory Accounting Standards issued by the Institute of
Chartered Accountants of India. Company follows mercantile system of
Accounting.
The significant accounting policies followed by the Company are as
under:
2. FIXED ASSETS :
1. Expenditure which are of a capital nature are capitalised at a cost
which comprises of purchase price (Net of rebates & discounts), import
duties, levies and any directly attributable cost of bringing the
assets to its working condition for the intended use.
Depreciation is provided from the day of asset put to use on written
down value method (WDV) at the rates and in the manner specified under
Schedule XIV of the Companies Act, 1956.
2. Investments are valued at its acquisition cost.
3. We understand from the management that manufacture activities is
stoped from 24th August 2008 and therefore depreciation on Plant &
Machinery under the Income Tax is not claimed.
3. INVENTORIES :
Since we are traders, Stock is valued as cost as per market price which
is even in lower
4. The Company has paid PF regularly of all employees.
5. PENDING FRAUD CASE : Rs.6,16,436/-The Company has reflected the
following amount under the head "Miscellaneous Expenses Not Written
Off".
Misappropriation from Bank to be recovered
from Punjab National Bank Rs. 5.0l,000/-
Provision of interest upto 31.03.95 Rs. 1,15,436/-
Total Rs. 6,16,436/-
The Company had C C A/c (Cash Credit Account) bearing Account No. 109
with Punjab National Bank, Shivaji Park Branch, Mumbai. during the
financial year 1993-94 and 1994-95 Mr. Jatin M. Chhaya an Accountant
had forged the signature of Director, Mrs. Promila Sharma and
misappropriated the above stated sum. The Company on detection of above
fraud lodged a complaint with the Registrar, Consumer Redressed
Commission, Mumbai, Maharashtra on 11.8.l994 bearing Suit No.222/94.
An Ex-parte Order had been issued by the High Court in favour of the
Company for the Civil Suit filed in the High Court vide Suit No. 2647
of 1996 against Punjab National Bank and Others.
CIVIL SUIT NO. 2647 OF 1996 : PUNJAB NATIONAL BANK & OTHERS
From the information passed by the Company, the High Court has passed
the Order to withdraw the amount of Rs. 5,06,000/- deposited in the
High Court by the Punjab National Bank with a condition that the
Company submits a Bank Guarantee. The Bank Guarantee has been submitted
by the Company. The said matter will be on the High Court Board after 3
to 4 years for contesting and till then the matter is pending.
PRIVATE COMPLAINT NO. 990/P/1995 : MR. JATIN CHHAYA V/S STATE OF
MAHARASHTRA.
We understand from the Management that the hand-writing expert report +
other documents are received in the Court by the Mahim Police Station.
The original cheques areyet to be received in the Court. The Trial is
posted to proceed.
6. We understand from the management that the case filed by the
Company against the Managing Director Mr. Prabodh Agarwal of M/s. Elar
Fashions Ltd., Sukhsagar Building, Opera House, Mumbai-400 007 in the
Economic Offences Wing had been revived and fresh proceedings under the
Indian Penal Code had been activated against the Managing Director, his
wife Mrs. Deepti Rani Agarwal and Mr. Mansingha for issue of false
Invoices and Duplicate Share Certificates.
Mr. Mansingha was jailed for 2 days and released on Bail. The
management will appear when the summons are issued to it and the matter
comes up on Board
The Red Corner Notice against the Accused was also issued by the
Economic Offences Wing.
We understand from the Management that there has been no progress on
the various cases filed against the Managing Director Mr. Prabodh
Agarwal and Mrs. Deepti Rani Agarwal, Director of the Company. They are
absconding for more than 6 years and hence the case is pending.
In view of pending litigation for a long time, management has decided
to account for due interest on cash basis i.e. year in which the actual
interest is received.
7. We understand from the management that in the case filed by the
Company against Consortex Kal Doelitzsch (India) Ltd. formerly known as
Andhra Pradesh Power Tools Ltd., against whom the Company was
successful in getting an Order under the Summary Suit but the said case
papers are misplaced in the record room of High Court and hence the
said matter will be reconstructed in the High Court. The process will
take at least two months for getting the decree copy of the case and
till then the matter is pending in the High Court.
Execution Petition had filed in City Civil Court at Hyderabad and the
Honorable Court had issued show cause Notice. Against respondent and
the said respondent refused to accept the notice and the matter is kept
for further process.
The matter under section 138 is pending in High Court Mumbai the said
matter lastly on 18.06.2010 and honorable Court had given time to serve
notice upon the accused respondent.
In view of pending litigation for a long time, management has decided
to account for due interest on cash basis i.e. year in which the actual
interest is received.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
మరింత సమాచారం Gratex Industries Ltd.
-
Gratex Industries Ltd. టూల్స్
- బల్క్ డీల్స్
-
Gratex Industries Ltd. కంపెనీ వివరాలు
- కంపెనీ ప్రొఫైల్
- కంపెనీ చరిత్ర
- నిర్వహణ బృందం
- క్యాపిటల్ స్ట్రక్చర్
- ప్రొడక్ట్ మిక్స్
- బ్యాంకర్/ఆడిటర్/రిజిస్ట్రార్
-
కంపెనీ చరిత్ర
- బిఎస్ఇ ధర చరిత్ర
-
Gratex Industries Ltd. ముఖ్య ఆర్థిక నిష్పత్తులు
- నిష్పత్తులు
-
Gratex Industries Ltd. ఫలితాలు
- క్వార్టర్లీ ఫలితాలు
- హాఫ్ ఇయర్లీ ఫలితాలు
- 9నెలల ఫలితాలు
- వార్షిక ఫలితాలు
-
Gratex Industries Ltd. ఆర్థిక డేటా
- ఆడిట్ ఫలితాలు
- క్యాష్ ఫ్లో
- బ్యాలెన్స్ షీట్
-
Gratex Industries Ltd. నివేదికలు
- అకౌంటింగ్ విధానాలు
- ఆడిటర్స్ నివేదిక
- డైరక్టర్స్ నివేదిక
- ఖాతాకు గమనికలు
-
Gratex Industries Ltd. కార్పొరేట్ ప్రకటనలు
- బుక్ క్లోజర్
- బోర్డు సమావేశాలు
-
బ్లూ-చిప్ స్టాక్లలో కొనుగోళ్ల జోరు.. 609 పాయింట్లు ఎగబాకిన సెన్సెక్స్.. 24177 పాయింట్ల వద్ద ముగిసిన నిఫ్టీ.. -
నష్టాల్లో ముగిసిన సూచీలు.. 24 వేల మార్క్ దిగువకు నిఫ్టీ.. 417 పాయింట్లు కోల్పోయిన సెన్సెక్స్.. -
HCL share: స్టాక్ పడిపోతుంటే ఇన్వెస్టర్లు ఎందుకు కొంటున్నారు? HCL టెక్ వెనుక ఉన్న అసలు సీక్రెట్ ఇదే! -
నిఫ్టీ టార్గెట్ తగ్గింపు.. భారత మార్కెట్కు జేపీ మోర్గాన్ షాక్! -
స్టాక్ మార్కెట్ భారీ క్రాష్.. రూ. 6 లక్షల కోట్లు ఆవిరి.. మూడు రోజుల్లో సెన్సెక్స్ 2,600 పాయింట్లు ఢమాల్.. -
మూడో రోజు కూడా కుప్పకూలిన స్టాక్ మార్కెట్.. భారీ నష్టాలతో ఇన్వెస్టర్లు విలవిల -
కుప్పకూలిన స్టాక్ మార్కెట్.. భారీ నష్టాల్లో ఐటీ రంగం షేర్లు.. ఇన్వెస్టర్లు లబోదిబో.. -
Stock market: పెరుగుతున్న స్టాక్ మార్కెట్! చమురు ధరలు తగ్గడమే కారణమా? ఇన్వెస్టర్లు ఇప్పుడేం చేయాలంటే.. -
ఇన్వెస్టర్లు డబ్బుతో రెడీగా ఉండండి.. రేపు బలంగా ర్యాలీ చేయనున్న నిఫ్టీ.. కారణాలు ఇవే.. -
IPO: స్టాక్ మార్కెట్ చరిత్రలోనే కీలక అడుగు.. ఏప్రిల్ 20న ఏం జరగబోతోంది? -
బలంగా ప్రారంభమై యూ-టర్న్ తీసుకున్న మార్కెట్..సెన్సెక్స్ 300 పాయింట్లు ఢమాల్.. కారణం ఏంటంటే.. -
Stock market: వర్షం పడితేనే స్టాక్ మార్కెట్లో లాభాల పంట! మాన్సూన్ ఎఫెక్ట్ వెనుక ఉన్న అసలు రహస్యం ఇదే! -
Stock Market: సెన్సెక్స్ టాప్ లూజర్స్ ఇవే.. ఇన్వెస్టర్లు అప్రమత్తంగా ఉండాలా, లేక ఇన్వెస్ట్ చేయాలా? -
Stock market: ఐటీ స్టాక్స్ క్రాష్! నిఫ్టీ ఐటీ ఇండెక్స్ డౌన్.. భారీ నష్టాల్లో టాప్ కంపెనీలు! -
Stock market: సెన్సెక్స్ పతనం.. కానీ రికవరీ మొదలైందా? నేటి మార్కెట్ టాప్ విన్నర్స్ వీరే!
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