Monika Alcobev Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2026

A] Company Overview

Monika Alcobev Limited (“the Company”) is a public limited Company domiciled in India and incorporated on January 17, 2022 under the provisions of the Companies Act, 2013 by taking over running business, assets and liabilities of M/s Monika Enterprises (“the Firm”), a partnership firm on going concern basis. The Corporate identification Number (CIN) of the Company is L15490MH2022PLC375025. The Company is primarily engaged in business of dealing in sales and marketing and distribution of premium wines and spirits in domestic and international market.

On July 23,2025, the equity shares of the Company got listed on BSE Limited (BSE SME Platform).

B] Statement of Compliance

The financial statements of the Company have been prepared in accordance with the Accounting Standards (AS) as prescribed under the Companies (Accounting Standards) Rules, 2021.

C] Basis of Preparation :

The financial statements of the Company have been prepared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). These financial Statements are prepared to comply in all material respects with the Accounting Standards notified under Section 133 of the Companies Act, 2013, and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties. The accounting policies adopted in the preparation of the financial statements are consistent throughout the year and with the previous financial year.

D] Use of Estimates:

The preparation of financial statements in conformity with the recognition and measurement principles of Generally Accepted Accounting Principles requires the management to make estimates and assumptions to be made that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. The Management believes that the estimates used in preparation of financial statements are prudent and reasonable. Estimates and underlying assumptions are reviewed at each balance sheet date. Actual results could differ from these estimates and differences between actual results and estimates are recognized in the periods in which the results are known/ materialize.

Key areas involving significant estimates include, but are not limited to, provision for taxation (including assessment of applicable tax regimes), deferred tax assets and liabilities, provisions and contingencies, useful lives of property, plant and equipment, and impairment of assets.

Changes in estimates arising from new information, developments, or additional experience are distinguished from prior period errors and are accounted for prospectively. Where such changes have a material effect, the nature and amount of the change is disclosed in the financial statements.

E] Significant Accounting policies:

(1) Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Sale of goods

Revenue is recognised when the significant risks and rewards of ownership of the goods have been passed to the buyer. Sales are disclosed net of VAT, trade discounts and returns, as applicable.

Sale of services

The Company provides sales and marketing support services and earns income by way of fees.

Revenue from service rendered is recognized at the time of completion of the services rendered, when all significant contractual obligations have been satisfied and the service is duly completed.

Interest Income

Interest income is recognised on accrual basis at applicable interest rate on time proportion basis.

Other Income

Other incomes are recognised on the basis of certainty its ultimate collection.

(2) Property, Plant and Equipment & Intangible Assets:

Property, Plant and Equipments are stated at historical cost less accumulated depreciation and impairment losses. Cost includes purchase price and all other attributable cost to bring the assets to its working condition for the intended use. Property, Plant and Equipments have been recorded in the books of the Company at Written Down value (WDV) as per Companies Act, 2013.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future

benefits from the existing asset beyond its previously assessed standard of performance. Items of Property, Plant & Equipment that have been retired from active use and are held for disposal are stated at the lower of their carrying value and net realizable value and are shown separately in the financial statements. Any expected loss is recognized immediately in the statement of profit and losses arising from the retirement from active use. Gains or losses arising from disposal of property, plant & equipment which are carried at cost are recognized in the statement of profit and loss in the year of disposal.

(i) Property, Plant and Equipments

Property, Plant & Equipments are recorded at cost of acquisition less accumlaed depreciation, if any. The Property, Plant and Equipment''s individually valued below Rs. 5,000 are treated as expenditure. Property, Plant and Equipment''s except Land is depreciated on Written Down Value (WDV) method on the basis of useful life prescribed under Schedule II of The Companies Act, 2013.

The estimated useful lives are as follows:

S.no.	Nature of Asset	Useful Life
1	Buildings			30 years/60 years
2	Plant and equipments			15 years
3	Furniture and fixtures			10 years
4	Computers and data processing units			3-6 years
5	Vehicles			8 yea rs
The estimated useful life for leasehold improvements is as follows:
Nature of Asset		Method of Depriciation	Useful Life
Leasehold Improvements		WDV	Over the period of lease term

(ii) Intangible Assets

Intangible assets are recognized only if:

a) It is probable that the future economic benefits attributable to the asset will flow to the enterprise; and

b) The cost of the asset can be measured reliably.

Intangible assets are initially measured at cost and are stated at cost less accumulated amortization and impairment losses, if any.

Amortization is calculated to write off the cost of intangible assets over their estimated useful economic lives and is included in depreciation and amortization in Statement of Profit and Loss. Amortization method and useful lives are reviewed at the end of each financial year and adjusted if appropriate.

The estimated useful lives are as follows:

Nature of Asset	Useful Life
Software	5

(iii) Capital Work In Progress

Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-progress. Property, Plant and Equipment under construction or installation, included in capital work-in-progress are not depreciated.

(iv) Intangible assets under development:

Intangible assets under development which are not yet ready for the intended use are carried at cost comprising direct cost, related incidental expenses and directly attributable expenditure on making the asset ready for intended use. These are capitalised as Intangible assets in the year in which these are ready for intended use.

(v) Depreciation and amortization :

Depreciation on Property, Plant & Equipments is provided on written down value method at the manner specified in Schedule II to the Companies Act, 2013. The useful life as determined under Part C of Schedule II of the Companies Act, 2013 is considered for depreciating the Tangible Property, Plant & Equipments on its remaining useful lives except for leasehold improvements as mentioned above.

Deprecition is not recorded on Capital Work-in-progress until installation are complete and are complete and assets are ready for it''s intended use.

Amortization is calculated to write off the cost of intangible assets over their estimated useful economic lives using straight line method.

Amortization is not recorded on Intangible assets under development until these assets are ready for it''s intended use.

(3) Impairment of Assets:

At each balance sheet date, the Company assess whether there is any indication that the Property, Plant & Equipments have suffered an impairment loss. As per the assessment conducted by the Company at March 31, 2026, there were no indications that the Property, Plant & Equipments has suffered an impairment loss. If the carrying amount of Property, Plant & Equipment exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of future cash flows. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of amount

(4) Inventories :

Inventories are measured at lower of the cost and net realisable value.

Cost of Inventories

Cost of inventories comprises all costs of purchase, including purchase price (net of input credits i.e. VAT) , duties and taxes (other than those subsequently recoverable), freight, handling and other directly attributable costs incurred in bringing the inventories to their present location and condition. Trade discounts, rebates and similar items are deducted in determining the cost of purchase.

The Company maintains inventory records on a batch-wise basis, whereby each batch of inventory is separately identifiable. Accordingly, the cost of inventories is determined using the Specific Identification Method, under which costs are assigned to inventories based on the respective batches from which they originate.

Net Realisable Value (NRV)

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.

Obsolete and Slow-moving Inventories

Provision is made for obsolete and slow-moving inventories based on management''s assessment of their net realisable value and expected future usability.

Disclosure

The accounting policies adopted in measuring inventories, including the cost formula used (Specific Identification Method), are disclosed in accordance with the applicable Accounting Standard.

(5) Employee benefits :

Employee benefits such as salaries, allowances, and other employee benefits are charged as expenses to the profit and loss account in the period in which the service is rendered.

a) Short-term employee benefits:

All short-term employee benefits are accounted on undiscounted basis during the accounting period based on services rendered by employees.

b) Defined contribution plan:

The Company''s contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and these contributions are charged to the statement of profit and loss based on the amount of contribution required to be made and when services are rendered by the employees.

c) Defined benefit plan:

For defined benefit plans in the form of gratuity provisions, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each Balance sheet date. Actuarial gains/ losses are recognized in the Statement of Profit and Loss in the period in which they occur.

d) Post-retirement benefit plans:

Retirement benefits are calculated at the time of retirement on payment basis.

(6) Foreign Currency Transactions: a) Initial Recognition:-

Foreign currency transaction is recorded at Exchange rate prevailing on the date of transaction.

b) Conversion

The foreign currency monetary items consisting of amount received in advance, trade receivable, payable and balance in bank account at the end of the year have been restated at the rate prevailing at the balance sheet date.

c) Exchange difference

The exchange difference arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year or reported in previous financial statement are recognised as income or expense when they arise as per Accounting Standard- 11 (Revised 2005) on "Accounting for the effects in Foreign Exchange rates" issued by the Institute of Chartered Accountants of India, except to the extent of exchange differences which are regarded as adjustment to interest cost on foreign currency borrowing that are directly attributable to the acquisition or construction of qualifying assets which are capitalized as cost of assets ( as per AS 16 "Borrowing Cost").

(7) Borrowing Cost :

The Borrowing cost attributable to the acquisition of qualifying Property, Plant & Equipments as defined in Accounting Standard 16 on "Borrowing Costs" are capitalized as part of the cost of Property, Plant & Equipments. All other borrowing cost are charged to profit and loss account.

(8) Taxes on Income :

The accounting treatment for the Income Tax in respect of the Company''s income is based on the Accounting Standard on ‘Accounting for Taxes on Income'' (AS-22). The provision made for Income Tax in Accounts comprises both, the current tax and deferred tax. Provision for Current Tax is made on the assessable Income Tax rate applicable to the relevant assessment year after considering various deductions available under the Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that been enacted or substantially enacted at the balance sheet date on timing difference between accounting income and taxable income that originate in one year and are capable of being reversal in one or more subsequent year. In respect of unabsorbed depreciation / carry forward of losses (if any) under the tax , laws deferred tax asset are recognized only to the extent that there is virtual certainty that future taxable income will be available against such deferred tax asset can be realized.

(9) Provisions, Contingent Liabilities and Contingent Assets :

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with the AS 29. Provisions represent liabilities for which the amount or timing is uncertain. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably and are disclosed by way of notes.

Contingent assets are neither provided nor disclosed in the financial statements.

(10) Earnings per share

The Earnings per share is calculated in accordance with the requirements prescribed in Accounting Standard 20,"Earnings Per Share ".

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

If the number of equity or potential equity shares outstanding increases as a result of a bonus issue or share split or decreases as a result of a reverse share split (consolidation of shares), the calculation of basic and diluted earnings per share is adjusted for all the periods presented. If these changes occur after the balance sheet date but before the date on which the financial statements are approved by the board of directors, the per share calculations for those financial statements and any prior period financial statements presented is based on the new number of shares.

(11) Cash Flow Statement

Cash flows are reported using the indirect method as prescribed in Accounting Standard 3 "Cash Flow Statements" specified under section 133 of Companies Act, 2013 read with Companies (Accounts) Rules, 2014, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

(12) Cash and Cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

(13) Segment Information

For management purpose, the Company has determined reportable segment as "Wines and Spirits " since the Board of Directors evaluates the Company''s performance as a single segment.

(14) Extraordinary, Exceptional, Prior Period Items and Changes In Accounting Policies

All items of income and expense which are recognised in a period are included in the determination of the net profit or loss for the period unless an Accounting Standard requires or permits otherwise.

(a) Prior Period Items

Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods. Such items are separately disclosed in the Statement of Profit and Loss in a manner that their impact on the current profit or loss can be perceived.

(b) Changes in Accounting Policies

Accounting policies are the specific accounting principles and methods applied by the Company in the preparation and presentation of financial statements. A change in an accounting policy is made only if:

- it is required by statute; or

- it is required for compliance with an Accounting Standard; or

- it results in a more appropriate presentation of the financial statements.

Changes in accounting policies are applied retrospectively unless otherwise required by the relevant Accounting Standard. The impact of such changes, if material, is disclosed showing the effect on the financial statements of the current period and, where practicable, on prior periods.

(c) Extraordinary items and exceptional items

(i) Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

(ii) On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the Company, is such that its disclosure improves an understanding of the performance of the Company. Such income or expense is classified as an exceptional item and accordingly disclosed in the notes to accounts.

(15) Leases

Leases are classified as finance leases or operating leases based on the substance of the arrangement and the extent to which risks and rewards incidental to ownership of an asset lie with the lessor or the lessee in accordance with AS-19 “Leases”.

The Company is a lessee in all its lease arrangements. The Company has entered into lease contracts for office premises, warehouses and guest houses.

(a) Operating Leases

Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases. The Company''s lease arrangements are primarily shortterm and cancellable in nature, generally having a tenure of 11 months.

Lease rentals under operating leases are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term, unless the payments are structured to increase in line with expected general inflation so as to compensate for the lessor''s expected inflationary cost increases.

(b) Finance Leases

Leases that transfer substantially all the risks and rewards incidental to ownership of the leased asset to the Company are classified as finance leases. Assets acquired under finance leases are recognised at the inception of the lease at the lower of the fair value of the asset and the present value of minimum lease payments, with a corresponding liability recognised for the lease obligation.

Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant periodic rate of interest on the outstanding balance. Finance charges are recognised in the Statement of Profit and Loss.

All the lease contracts entered into by the Company are operating leases.

Lease Modifications and Renewals

Lease arrangements are periodically reviewed for renewals and modifications. Any changes are accounted for in accordance with the substance of the revised arrangement.

Disclosures

Leases are disclosed in accordance with the requirements of the AS-19.

(16) Operating cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non- current.

(17) Events after the Reporting period

Adjusting events (providing additional evidence of conditions existing at the Balance Sheet date) are accounted for in the financial statements.

Non-adjusting events (significant events occuring after Balance Sheet date) are disclosed in the notes to accounts.

(18) Figures have been rounded off to the multiple of lakhs.