1.1 Corporate Information
The standalone financial statements comprise of financial statements of Chandrima Mercantiles Limited for the year ended March 31, 2026. The
Company is a public company in India and is incorporated under the provisions of the Companies Act applicable in India. The Company's shares
are listed on BSE and CSE, a recognised stock exchange, in India. The registered office of the company is located at: F-806, Titanium City Center,
Anandnagar Road, Satelite, Jodhpur Char Rasta,Ahmedabad, Ahmedabad City, Gujarat, India, 380015. The company is currently engaged in
Trading Activity of agriculture commodities. These Financial Statements have been approved for issue by the Board of Directors at their meeting
held on 26th May, 2026.
1.2 Basis of preparation
i Statement of Compliance with IND AS
The standalone financial statements for the year ended March 31,2026 of the Company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and as amended time to time.
ii Accounting Convention and Basis of measurement
The standalone financial statements have been prepared on a historical cost basis, on the accrual basis of accounting except for certain financial
assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).
(A) Significant accounting policies and key accounting estimates
The accounting policies set out below have been applied consistently to all periods presented in the financial statements unless otherwise
stated.
i Inventories
Inventories are valued at lower of cost and net realisable value. Cost is determined on a First in First out (FIFO). Cost includes cost of conversion
and other costs incurred in bringing the inventories to their present location and condition. Obsolete, slow moving and defective inventories are
identified and provided for.
Net Realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated costs
necessary to make sale.
ii Finance Cost
Borrowing Costs that are 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 a substantial periost of time to get ready for its intended use or sale.All other borrowing costs are
charged to the Statement of Profit and Loss for the period for which they are incurred.
iii Revenue Recognition
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably
measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company
has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has
pricing latitude and is also exposed to inventory and credit risks.
iv Employee Benefit Expenses
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are
recognised as an expense during the period when the employees render the services.
v Sale of products
Revenue from the sale of products is recognised when the significant risks and rewards of ownership of the products have passed to the buyer,
usually on delivery of the products. Revenue from the sale of products is measured at the fair value of the consideration received or receivable,
net of returns and allowances, trade discounts and volume rebates.
vl Interest Income
For all financial assets measured either atamortised cost or at fair value through other comprehensive income, interest income is recorded using
the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the
financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortised cost of a
financial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual
terms of the financial instrument but does not consider the expected credit losses.
vu Taxes on Income
Tax on Income comprises current tax. It is recognised in statement of profit and loss except to the extent that it relates to a business
combination, or items recognised directly in equity or in other comprehensive income.
Current tax
Tax on income for the current period is determined on the basis on estimated taxable income and tax credits computed in accordance with the
provisions of the relevant tax laws and based on the expected outcome of assessments / appeals. Current income tax assets and liabilities are
measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the
amount are those that are enacted or substantively enacted, at the reporting date. Management 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.
Deferred tax
Deferred tax is recognized for the future tax consequences of deductible temporary differences between the carrying values of assets and
liabilities and their respective tax bases at the reporting date, using the tax rates and laws that are enacted or substantively enacted as on
reporting date. Deferred tax liability are generally recorded for all temporary timing differences.
|