1.1 CORPORATE INFORMATION:
Alexander Stamps and Coin Limited is Public Limited Company incorporated
in India under the provisions of the Companies Act. The Company's strength
lies in the business of philatelic and numismatic activity.
The Board of Directors approved the standalone financial statements for the
year ended March 31, 2025 and authorized for issue on May 22th, 2025.
Significant Accounting policies followed by the Company.
1.2 BASIS OF PREPARATION
i.Compliance with 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 ("the Act"), Companies (Indian Accounting Standards) Rules, 2015 as
amended by Companies (Indian Accounting Standards) (Amendment) Rules,
2016 and other relevant provisions of the Act as applicable.
The accounting policies are applied consistently to all the periods presented
in the financial statements.
ALEXANDER STAMPS AND COIN LIMITED
1.1 SIGNIFICANT ACCOUNTING POLICIES
A.Property, Plant and Equipment:
i. Recognition and measurement
Freehold land is carried at cost. All other items of property, plant and
equipment are measured at cost less accumulated depreciation and any
accumulated impairment losses. Cost includes expenditure that is directly
attributable to the acquisition of the items.
Income and expenses related to the incidental operations, not necessary to
bring the item to the location and condition necessary for it to be capable of
operating in the manner intended by management, are recognized in the
Statement of Profit and Loss.
If significant parts of an item of property, plant and equipment have different
useful life, then they are accounted and depreciated for as separate items
(major components) of property, plant and equipment.
Any gain or loss on disposal of an item of property, plant and equipment is
recognized in the Statement of Profit and Loss.
Capital work in progress is stated at cost and includes the cost of the assets
that are not ready for their intended use at the Balance Sheet date.
On transition to Ind AS, the Company has elected to continue with the
carrying value of all of its property, plant and equipment recognized as at
April 1, 2016 measured as per the Previous GAAP and use that carrying value as
the deemed cost (except to the extent of any adjustment permissible under
other accounting standard) of the property, plant and equipment.
ii. Subsequent Expenditure
Subsequent expenditure is capitalized only if it is probable that the future
economic benefits associated with the expenditure will flow to the Company.
iii. Depreciation
Depreciation on tangible fixed assets is provided in accordance with the
provisions of Schedule II of the Companies Act 2013. Depreciation on additions
/ deductions is calculated on pro rata basis from/up to the month of
additions/deductions. The estimated useful life, residual values and
depreciation method are reviewed at the end of each reporting period, with
the effect of any changes in estimate accounted for on a prospective basis.
B. Intangible Assets:
i.Intangible assets are recorded at the consideration paid for acquisition of
such assets and are carried at cost less accumulated amortization and
impairment, if any.
C. Impairment:
i.Non - financial assets
At each balance sheet date, the Company assesses whether there is any
indication that any property, plant and equipment and intangible assets with
finite life may be impaired. If any such impairment exists, the recoverable
amount of an asset is estimated to determine the extent of impairment, if any.
Where it is not possible to estimate the recoverable amount of an individual
asset, the Company estimates the recoverable amount of the cash¬
generating unit to which the asset belongs.
D. Inventories:
i. Finished and Semi-Finished Products produced and purchased by the
company are carried at Cost and net realizable value, whichever is lower.
ii. Work in Progress is carried at lower of cost and net realizable value.
iii. Raw Material is carried at lower of cost and net realizable value.
iv. Stores and Spares parts are carried at cost. Necessary provision is made
and expensed in case of identified obsolete and nonmoving items.
Cost of Inventory is generally ascertained on the 'Weighted average' basis.
Work in progress, Finished and semi-finished products are valued at on full
absorption cost basis.
Cost Comprises expenditure incurred in the normal course of business in
bringing such inventories to its location and includes, where applicable,
appropriate overheads based on normal level of activity. Packing Material is
considered as finished goods. Consumable stores are written off in the year of
Purchase.
A. Foreign Currency Transactions
Transactions in Foreign Currency and Non-Monetary Assets are accounted for
at the Exchange Rate prevailing on the date of the transaction. All monetary
items denominated in Foreign Currency are converted at the Year-End
Exchange Rate. The Exchange Differences arising on such conversion and on
settlement of the transactions are recognized as income or as expenses in the
year in which they arise.
B. Investments and Other Financial Assets:
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 Statement of Profit and Loss), and
• Those measured at amortized cost.
The classification depends on the Company'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 and Loss or other comprehensive income. For investments in debt
instruments, this will depend on the business model in which the investment is
held. For investments in equity instruments, this will depend on whether the
Company has made an irrevocable election at the time of initial recognition
to account for the equity investment at fair value through other
comprehensive income.
The Company reclassifies debt or equity investments when and only when its
business model for managing those assets changes.
Measurement
At initial recognition, in case of a financial asset not at fair value through profit
and loss, the Company measures a financial asset at its fair value plus,
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 and Loss are expensed in Statement
of Profit and Loss.
(a) Amortized 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 amortized cost.
(b) 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 FVOCI. Movements in the carrying amount are
taken through Other Comprehensive Income (OCI), except for the recognition
of impairment gains or losses, interest revenue and foreign exchange gains
and losses which are recognized in Statement of Profit and Loss. When the
financial asset is derecognized, the cumulative gain or loss previously
recognized in OCI is reclassified from equity to profit and loss and recognized
in other gains/ losses. Interest income from these financial assets is included
in other income using the effective interest rate method.
(c) Fair value through profit and loss: Assets that do not meet the criteria for
amortized cost or FVOCI are measured at fair value through Statement of
Profit and Loss. Interest income from these financial assets is included in other
income.
Equity Instruments
The Company subsequently measures all equity investments at fair value.
Where the Company's management has elected to present fair value gains
and losses on equity investments in OCI, there is no subsequent
reclassification of fair value gains and losses to Statement of Profit and Loss.
Dividends from such investments are recognized in Statement of Profit and
Loss as other income when the Company's right to receive payment is
established.
Changes in the fair value of financial assets at fair value through profit and
loss are recognized in other gain/losses in the Statement of Profit and Loss.
Impairment losses (and reversal of impairment losses) on equity investments
measured at FVOCI are not reported separately from other changes in fair
value.
Derecognition
A financial asset is derecognized only when
(a) The Company has transferred the rights to receive cash flows from the
financial asset or
(b) 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.
G. Cash and Cash Equivalents:
Cash and cash equivalents in the balance sheet comprise cash at banks and
on hand and highly liquid investments with an original maturity of three
months or less, which are subject to an insignificant risk of changes in value.
H. Financial Liabilities:
Measurement
All financial liabilities are recognized initially at fair value and in the case of
loans, borrowings and payables recognized net of directly attributable
transaction costs.
The Company's financial liabilities include trade and other payables, loans
and borrowings and derivative financial instruments.
Derecognition
A financial liability is derecognized when the obligation under the liability is
discharged or cancelled or expires. Gains and losses are recognized in
Statement of Profit and Loss when the liabilities are derecognized as well as
through the EIR amortization process.
I. Revenue recognition:
Revenue from contracts with customers is recognised when control of the
goods or services are transferred to the customer at an amount that reflects
the consideration to which the Company expects to be entitled in exchange
for those goods or services.
Revenue from the sale of goods is recognized at the point in time when
control of the asset is transferred to the customer, generally on the delivery of
the goods. Revenue is recognisable to the extent of the amount that reflects
the consideration (i.e. the transaction price) to which the Company is
expected to be entitled in exchange for those goods or services excluding any
amount received on behalf of third party (such as indirect taxes).
J. Other Income:
Other income is comprised primarily of interest income, dividend income,
gain/loss on investments and exchange gain/loss on forward and options
contracts and on translation of other assets and liabilities. Interest income is
recognized using the effective interest method. Claims for export incentives/
duty drawbacks, duty refunds and insurance are accounted when the right to
receive payment is established. Dividend Income is recognized when the right
to receive dividend is established.
K. Employee benefits:
A. Short term employee benefits:
All employee benefits payable wholly within twelve months of rendering the
service are classified as short term employee benefits. Benefits such as
salaries, wages, performance incentives, etc. are recognized at actual
amounts due in the period in which the employee renders the related service.
B. Contribution towards defined benefit contribution Schemes
Gratuity plan
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service is eligible for gratuity on post¬
employment at 15 days salary (last drawn salary) for each completed year of
service as per the rules of the Company. The aforesaid liability is provided for
on the basis of an actuarial valuation on projected unit credit method made
at the end of the financial year. Current service cost, Past-service costs are
recognized immediately in Statement of profit or loss.
Re-measurement gains and losses arising from experience adjustments and
changes in actuarial assumptions are charged or credited to equity in other
comprehensive income in the period in which they arise. They are included in
retained earnings in the statement of changes in equity and in the balance
sheet. Re measurements are not reclassified to profit or loss in subsequent
periods.
L. Borrowing costs:
Borrowing costs directly attributable to the acquisition, construction or
production of a qualifying asset that necessarily takes a substantial period of
time to get ready for its intended use or sale are capitalized as part of the cost
of the asset. All other borrowing costs are expensed in the period in which they
occur.
M. Taxes on Income:
Income Tax expense comprises of current and deferred tax. Income Tax
expense is recognized in net profit in the Statement of Profit and Loss except
to the extent that it relates to items recognized directly in equity, in which case
it is recognized in other comprehensive income.
(i) Current Tax
Current Tax is the amount of income taxes payable (recoverable) in respect
of the taxable profit (tax loss) for a period. Current tax for current and prior
periods is recognized at the amount expected to be paid to or recovered from
the tax authorities, using the tax rate and tax laws that have been enacted or
substantively enacted by the Balance Sheet date
Current tax assets and liabilities are offset if, and only if, the Company:
a) has a legally enforceable right to set off the recognized amounts; and
b) intends either to settle on a net basis, or to realize the asset and settle the
liability simultaneously.
Deferred tax is recognized in respect of temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and
the amounts used for taxation purposes.
Deferred tax assets are recognized for unused tax losses, unused tax credits
and deductible temporary differences to the extent that it is probable that
future taxable profits will be available against which they can be used.
Deferred tax assets are reviewed at each reporting date and are reduced to
the extent that it is no longer probable that the related tax benefit will be
realized; such reductions are reversed when the probability of future taxable
profits improves. Unrecognized deferred tax assets are reassessed at each
reporting date and recognized to the extent that it has become probable that
future taxable profits will be available against which they can be used.
The measurement of deferred tax reflects the tax consequences that would
follow from the manner in which the Company expects, at the reporting date,
to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset only if:
a) the entity has a legally enforceable right to set off current tax assets
against current tax liabilities; and
b) the deferred tax assets and the deferred tax liabilities relate to income
taxes levied by the same taxation authority on the same taxable entity.
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