1 COMPANY OVERVIEW AND MATERIAL ACCOUNTING POLICIES
A Corporate Information :
Black Rose Industries Limited (the Company) is a Public Limited Company incorporated in India having its registered office at
Mumbai, Maharashtra, India. The Company is primarily engaged in manufacturing and distribution of chemicals.
B Basis of Preparation
i) Statement of Compliance:
These Separate financial statements (also known as Standalone Financial Statements) have been prepared in accordance
with Ind AS as prescribed under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting
Standards) Rules, 2015 and subsequent amendments thereto.
ii) Basis of Measurement
The financial statements have been prepared on the historical cost basis except for following assets and liabilities which
have been measured at fair value amount:
i) Certain financial assets and liabilities (including derivative instruments), and
ii) Employee's Defined Benefit Plan as per actuarial valuation
Whenever the Company changes the presentation or classification of items in its financial statements materially, the
Company reclassifies comparative amounts, unless impracticable. No such material reclassification has been made during
the year.
iii) Rounding Off
The financial statements are presented in Indian Rupees, which is the functional currency of the Company and all values are
rounded to nearest lakhs ('00,000), except when indicated other wise.
The financial statements of the Company for the year ended 31st March, 2025 were authorised for issue in accordance with
a resolution of the board of directors on 20th May, 2025.
C Summary of Material Accounting Policies:
a) Property, Plant and Equipment (PPE)
The Company has elected to continue with the carrying value of Property, Plant and Equipment ('PPE') recognised as of
transition date measured as per the Previous GAAP and use that carrying value as its deemed cost of the PPE.
The initial cost of PPE comprises its purchase price, including import duties and non-refundable purchase taxes, and any
directly attributable costs of bringing an asset to working condition and location for its intended use, including relevant
borrowing costs and any expected costs of decommissioning, less accumulated depreciation and accumulated impairment
losses, if any. Expenditure incurred after the PPE have been put into operation, such as repairs and maintenance, are
charged to the Statement of Profit and Loss in the period in which the costs are incurred.
I f significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major
components) of PPE.
Material items such as spare parts, stand-by equipment and service equipment are classified as PPE when they meet the
definition of PPE as specified in Ind AS 16 - Property, Plant and Equipment.
Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use,
are considered as pre - operative expenses and disclosed under Capital Work - in - Progress.
b) Depreciation
Depreciation on property, plant and equipment is provided using straight line method based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.
The depreciable amount of an asset is determined after deducting its residual value. Where the residual value of an asset
increases to an amount equal to or greater than the asset's carrying amount, no depreciation charge is recognised till the
asset's residual value decreases below the asset's carrying amount.
Depreciation of an asset begins when it is available for use, i.e., when it is in the location and condition necessary for it to
be capable of operating in the intended manner. Depreciation of an asset ceases at the earlier of the date that the asset is
classified as held for sale in accordance with IND AS 105 and the date that the asset is derecognised.
Depreciation on property plant and equipment added/disposed off during the year is provided on pro rata basis with
reference to the date of addition/disposal.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when
the asset is derecognised.
c) Intangible Assets
(i) Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discount and rebates less accumulated
amortisation/depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs, and any
cost directly attributable to bringing the asset to its working condition for the intended use, net charges on foreign
exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.
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 entity and the cost can be
measured reliably.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when
the asset is derecognised.
(ii) Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation
and accumulated impairment, if any. The Company determines the amortisation period as the period over which the
future economic benefits will flow to the Company after taking into account all relevant facts and circumstances. The
estimated useful life and amortisation method are reviewed periodically, with the effect of any changes in estimate
being accounted for on a prospective basis.
(iii) Licensed Software & Technical Know-how are amortised on straight line basis over the estimated useful life of the
asset which is estimated at 5 years and License Fees are amortised pro-rata, on SLM basis over the useful life of 10
years.
d) Impairment of non-financial assets - property, plant and equipment and intangible assets
The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment
and intangible assets or group of assets, called cash generating units (CGU) may be impaired. If any such indication exists
the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
CGU to which the asset belongs.
An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset's carrying amount exceeds its
recoverable amount. The recoverable amount is higher of an asset's fair value less cost of disposal and value in use. Value in
use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects
current market assessments of the time value of money and risk specific to the assets.
The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of
recoverable amount.
e) Inventories
Raw materials, components, stores and spares are valued at lower of cost and net realisable value. However materials and
other items held for use in the production of inventories are not written down below cost if the finished products in which
they will be incorporated are expected to be sold at or above cost. Cost of raw materials, components and stores and spares
is determined on a first in first out (FIFO) method.
Work-in-progress and finished goods are valued at lower of cost and net realisable value. Cost includes direct materials and
labour and a proportion of manufacturing overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.
f) Borrowing Costs
Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded
as an adjustment to the interest cost. Borrowing costs that are directly attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying
assets is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
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