1 Corporate information
M/s.Bharat Textiles and Proofing Industries Ltd (LI7I 1 ITNI990PLC020072), is a public limited company
domiciled in the state of Tamilnadu. The Company is engaged in manufacturing and trading of Tarpaulin, HDPE
and chemically processed canvas.
The financial statements were approved for issue by the Board of Directors on 29th May 2025.
2 Basis of preparation of financial statements
2.1 Basis of preparation and compliance with Ind AS
The Financial Statements of the Company as at and for the year ended 3 1 st March 2025 have been prepared
in accordance with Indian Accounting Standards (‘Ind AS’) notified under Section 133 of the Companies Act,
201 3 (‘Act”), and the Companies (Indian Accounting Standards) Rules issued from time to time and relevant
provisions of the Companies Act, 201 3 (collectively called as Ind AS).
2.2 Basis of measurement
The financial statements have been prepared on a going concern basis, using historical cost convention and
on an accrual method of accounting, except for financial assets, financial liabilities and defined benefit plans
which have been measured at fair value, as required by relevant Ind AS.
2.3 Current and non-current classification
The Company presents assets and liabilities in the Balance Sheet based on current / non-current classification.
An asset is classified as current if it satisfies any of the following criteria:
a) It is expected to be realised or intended to be sold in the Company’s normal operating cycle.
b) It is held primarily for the purpose of trading,
c) It is expected to be realised within twelve months after the reporting period, or
d) It is a cash or cash equivalent unless restricted from being exchanged or used to settle a liability for
atleast twelve months after the reporting period”
All other assets are classified as non-current
A liability is classified as current if it satisfies any of the following criteria:
a) it is expected to be settled in the Company’s normal operating cycle,
b) it is held primarily for the purpose of trading,
c) it is due to be settled within twelve months after the reporting period
d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
The Company classifies all other liabilities as noncurrent. Current liabilities include current portion of
noncurrent financial liabilities
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
2.4 Use of estimates and assumptions
The preparation of the company’s financial statements requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets
or liabilities affected in future periods.
2.5 Property, plant and equipment
Property, plant and equipments are stated at historical cost less accumulated depreciation. Cost comprises
of purchase price and other attributable costs , if any , in bringing the assets to its working condition for its
intended use.
Depreciation
(i) Depreciation on Property, plant and equipment is provided for on Straight Line method in the manner
prescribed in Part C of Schedule II of the Companies Act,2013 and reckoning the maximum residual
value @ 5% of the original cost of the asset.
(ii) In respect of addition of assets during the year, depreciation has been provided on Pro-rata basis.”
2.6 Inventories
“Inventories are valued as under :
(I) Raw Materials, Stores & Consumables* - at lower of cost or net realisable value.
(ii) Work In progress** - at cost.
(iii) Finished Goods1 - at lower of cost or net realizable value.
Costs are arrived at by using FIFO method and it includes the followings :
* Cost of raw materials includes purchase price plus transportation charges, insurance charges, handling
charges and other direct attributable costs to bring the material to the present location as on the
reporting date.
** Cost of Work in progress includes landed cost of raw material plus proportionate labour and overheads
on absorption costing basis.
(b) Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The
Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in the current and prior periods,
discounting that amount and deducting the fair value of any plan assets.
Post employment benefits are recognized as an expense in the statement of profit and loss for the year in
which the employee has rendered services. The calculation of defined benefit obligation is performed by the
management under projected unit credit method.
2.9 Financial instruments
Financial instruments are recognised when the Company becomes a party to the contractual provisions of
the instrument. Regular way purchases and sales of financial assets are recognised on trade-date, the date on
which the Company commits to purchase or sell the asset.
(A) Financial Assets
The Company determines the classification of its financial assets at initial recognition. The classification
depends on the Company’s business model for managing the financial assets and the contractual terms of the
cash flows.
The financial assets are classified in the following measurement categories:
a) Those to be measured subsequently at fair value (either through other comprehensive income, or
through profit or loss), and
b) Those to be measured at amortised cost.
For assets measured at fair value, gains and losses will either be recorded in 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. 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. 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 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 profit or loss are expensed in profit or loss as incurred.
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.”
(i) Amortised Cost
The Company classifies its financial assets as at amortised cost only if both of the following criteria are met:
a) The asset is held within a business model with the objective of collecting the contractual cash flows, and
b) The contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal outstanding.
Financial assets at amortised cost include loans receivable, trade and other receivables, and other financial
assets that are held with the objective of collecting contractual cash flows. After initial measurement at fair
value, the financial assets are measured at amortised cost using the effective interest rate (EIR) method, less
impairment.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of
profit or loss. The losses arising from impairment are recognised in the Statement of Profit or Loss in other
income.
(ii) Fair value through other comprehensive income
Financial assets that are held for collection of contractual cash flows and for selling the financial assets,
where the asset’s cash flows represent solely payments of principal and interest, are measured at fair
value through other comprehensive income. Movements in the carrying amount are taken through other
comprehensive income, except for the recognition of impairment gains or losses, and interest revenue
which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or
loss previously recognised in other comprehensive income is reclassified from equity to profit or loss
and recognised in other gains/(losses). Interest income from these financial assets is included in other
income using the effective interest rate method.
(iii) Financial assets at fair value through profit or loss
The Company classifies the following financial assets at fair value through profit or loss:
a) Debt investments that do not qualify for measurement at amortised cost;
b) Debt investments that do not qualify for measurement at fair value through other comprehensive
income; and
c) Debt investments that have been designated at fair value through profit or loss.
Derecognition of financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the assets
expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of
the asset to another party.
(B) Financial Liabilities
The Company determines the classification of its financial liabilities at initial recognition.
Classification
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for
financial liabilities at fair value through profit or loss.
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or
loss. Loans and borrowings, payables are subsequently measured at amortised cost.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires.
2.10 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in
value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short¬
term deposits, as defined above.
2.1 1 Taxation
A. Current Tax
Current income tax is measured at the amount of tax expected to be payable on the taxable income for the
year.
B. Deferred Tax
“Deferred tax is recognised on temporary differences between carrying amounts of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally
recognised for all deductible temporary differences to the extend that it is probable that taxable profits will
be available against which those deductible temporary differences can be utilised.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset realised, based on the tax rates (and tax laws) that have been
enacted or substantially enacted by the end of the reporting period.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in
other comprehensive income or directly in equity, respectively. “
2.12 Segment accounting
“The Company operates in a single segment i.e manufacturing and marketing of cotton canvas and hence not
call for segmentwise disclosure of assets, liabilities, revenues or expenses as prescribed under Indian
Accounting Standard 108 on “’’Operating Segments””.
The Company operated mainly in Indian market during the year and there are no reportable geographical
segments.”
1
Cost of finished goods includes landed cost of raw material plus proportionate labour and overheads on
absorption costing basis.”
2.7 Revenue recognition
“Sale of goods
Revenue is recognised at the fair value of the consideration received or receivable, after deduction of any
trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as sales
tax, value added tax and Goods & Service Tax except excise duty. “
“Others
All other incomes are recognised when no significant uncertainty as to its subsequent realisation exists.”
2.8 Employee benefits
(i) Short-term employee benefits
Short term employee benefits are recognized as an expense at the undiscounted amount in the statement
of profit and loss of the year in which the related service is rendered.
(ii) Post Employment benefits
(a) Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions
into a separate entity and will have no legal or constructive obligation to pay further amounts. Contributions
paid/payable for Provident Fund of eligible employees is recognized in the statement of Profit and Loss each
year.
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