1. Corporate Information
Fratelli Vineyards Limited (formerly known as Tinna Trade Limited) ("the Company") is primarily engaged in the trading of agro
commodities such as wheat, yellow peas, chana, lentils, oilseeds, and oilmeals, as well as steel abrasives including steel shots and
steel cut wire shots.
The Company was incorporated and domiciled in India under the provisions of the Companies Act applicable in India on January 5,
2009. The registered office of the Company is located at no.6, Sultanpur Mandi road, Mehrauli, New Delhi, Delhi, India, 110030.
These standalone financial statements are adopted by the Board of Directors during the meeting held on May 28, 2025.
2. Basis of preparation
This note provides a list of the material accounting policies adopted in the preparation of these standalone financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of Preparation and presentation
Compliance with Ind AS
These standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and presentation
requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III). These standalone financial
statements are presented in H and all values are rounded to the nearest lakhs, except when otherwise indicated.
Historical cost convention
The standalone financial statements have been prepared on a historical cost basis except for certain assets and liabilities (including
derivative instruments) that are measured at fair values at the end of each reporting period, as explained in the accounting
policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation
technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or
liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.
The Company has prepared the standalone financial statements on the basis that it will continue to operate as going concern.
2.2 Operating cycle and current, non-current classification
Based on the nature of services and the time between acquisition of assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current/ non-current classification
of assets and liabilities. The Company presents assets and liabilities in the standalone balance sheet based on current/ non¬
current classification.
An Asset is current when:
Ý It is expected to be realised in normal operating cycle.
Ý It is held primarily for the purpose of trading.
Ý It is expected to be realised within twelve months after the reporting period, or
Ý It is cash or cash equivalent.
All other assets are classified as non-current:
A Liability is current when:
Ý It is expected to be settled in normal operating cycle.
Ý It is held primarily for the purpose of trading.
Ý It is due to be settled within twelve months after the reporting period, or
Ý 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 non-current.
Deferred tax assets and liabilities are classified as non-current assets and non-current liabilities respectively.
2.3 Accounting Estimates
The preparation of the standalone financial statements, in conformity with the recognition and measurement principles of Ind AS,
requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent liabilities as at the date of financial statements and the results of operation during the reported period. Although
these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these
estimates which are recognized in the period in which they are determined.
2.4 Key accounting estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year,
are described below. The Company based its assumptions and estimates on parameters available when the standalone financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the standalone
financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the
standalone financial statements.
Uses of Estimates and judgements
Management believes that the estimates used in the preparation of the standalone financial statements are prudent and reasonable.
Examples of such estimates include estimation of useful lives of property plant and equipment, employee costs, assessments
of recoverable amounts of deferred tax assets, trade receivables and cash generating units and provisions against litigations
and contingencies.
Estimates:
a) Useful lives of property, plant and equipment and intangible assets:
The Company has estimated the useful life of each class of assets based on the nature of assets, the estimated usage of the
asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc. The Company
reviews the estimated useful lives and residual values of the assets at each reporting period. This reassessment may result in
change in depreciation and amortisation expense in the future periods.
b) Provision and contingencies:
Contingent Liability may arise from the ordinary course of business in relation to claims against the Company. By their nature,
contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the
existence, and potential quantum, of contingencies inherently involves the exercise of significant judgments and the use of
estimates regarding the outcome of future events.
c) Accounting for defined benefit plans:
In accounting for post-retirement benefits, several statistical and other factors that attempt to anticipate future events are
used to calculate plan expenses and liabilities. These factors include expected discount rate assumptions and rate of future
compensation increases. To estimate these factors, actuarial consultants also use estimates such as withdrawal, turnover, and
mortality rates which require significant judgment. The actuarial assumptions used by the Company may differ materially from
actual results in future periods due to changing market and economic conditions, regulatory events, judicial rulings, higher or
lower withdrawal rates, or longer or shorter participant life spans.
d) Impairment of financial/ non-financial assets:
An impairment loss is recognized for the amount by which an asset's or cash-generating unit's carrying amount exceeds its
recoverable amount to determine the recoverable amount, management estimates expected future cash flows from each asset
or cash generating unit and determines a suitable interest rate in order to calculate the present value of those cash flows. In
the process of measuring expected future cash flows, management makes assumptions about future operating results. These
assumptions relate to future events and circumstances. The actual results may vary and may cause significant adjustments to
the Company's assets. In most cases, determining the applicable discount rate involves estimating the appropriate adjustment
to market risk and the appropriate adjustment to asset-specific risk factors.
2.5 Property, Plant and Equipment Property:
Plant and Equipment are stated at cost of acquisition less accumulated depreciation and accumulated impairment losses, if any. Cost
of an item of property, plant and equipment comprise of its purchase price, including import duties and non-refundable purchase
taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its
intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located. Subsequent
expenditure relating to Property, Plant and Equipment is capitalised only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs
are charged to the standalone statement of profit and loss as incurred. The cost and related accumulated depreciation are eliminated
from the standalone financial statements, either on disposal or when retired from active use and the resultant gain or loss are
recognized in the standalone statement of profit and loss.
2.6 Intangible assets:
Design, development and software costs are included in the standalone balance sheet as intangible assets when it is probable
that associated future economic benefits would flow to the Company. All other costs on the aforementioned are expensed in the
standalone statement of profit and loss as and when incurred. Intangible assets are stated at cost less accumulated amortization
and accumulated impairment. The estimated useful life of an identifiable intangible asset is based on a number of factors including
the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry and known
technological advances). Amortization methods and useful lives are reviewed periodically including at each financial year end.
2.8 Revenue Recognition:
Revenue is recognized either at a point of time or over time, when (or as) the Company satisfies the performance obligation of
promised services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those
services. Revenue is measured based on the consideration specified in a contract with a customer.
In arrangements for sale of services and sale of goods, the Company has applied the guidance in Ind AS 115, Revenue from contract
with customers, by applying the revenue recognition criteria for each distinct performance obligation.
a) Revenue from sale of products:
Revenue from sale of products is recognized at a point in time when control of the product transfers and there is no unfulfilled
obligation that could affect the customer's acceptance of the products. 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, regardless of when the
payment is being made. Taxes or duties collected on behalf of governments are excluded from revenue.
b) Revenue from sale of services:
Revenue from sale of services represents revenue from consultancy services which mainly comprise of consultancy services
related to Indian agricultural market .Revenue is recognized at a point over the time when the services are rendered. Revenue
excludes taxes or duties collected on behalf of the government.
c) Other Income:
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest income is accrued on a time proportion basis, by reference to
the principal outstanding and effective interest rate applicable, which is the rate that exactly discounts estimated future cash
receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably
2.9 Inventories:
Inventories which comprise of stock-in-trade and is carried at the lower of cost or net realizable value. The comparison of cost and
net realizable value is made on an item-by-item basis.
Cost of inventories comprises all costs of purchase and other costs incurred in bringing the inventories to their present location and
condition. Costs of purchased inventory are determined after deducting rebates and discounts. The cost is determined as follows:
Traded goods are valued using the first in first out method.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make
the sale.
2.10 Retirement and other employee benefits
Employee benefits include provident fund, employee state insurance scheme, gratuity and compensated absences.
Long-term employee benefits:
Defined contribution plans: The Company's contribution to provident fund and employee state insurance scheme are considered
as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when
services are rendered by the employees.
Defined benefit plans: The Company has defined benefit plan in the form of gratuity. Liability for defined benefit plans is provided
on the basis of valuations, as at the standalone balance sheet date, carried out by an independent actuary. The defined benefit
obligation is calculated annually by independent actuary using the projected unit credit method. The present value of the defined
benefit obligation is determined by discounting the estimated future cash outflows using discount rate (interest rates of government
bonds) that have terms to maturity approximating to the terms of the gratuity. Remeasurement gains and losses arising from
experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other
comprehensive income. They are included in 'Other Comprehensive Income' (net of taxes) in the standalone statement of changes
in equity and in the standalone balance sheet. Net interest is calculated by applying the discount rate to the net defined benefit
liability or asset.
The Company presents the first two components of defined benefit costs in profit or loss in the line item 'Employee Benefits Expense'.
Short-term employee benefits:
The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by
employees are recognized during the year when the employees render the service. These benefits include performance incentive
and compensated absences which are expected to occur within twelve months after the end of the period in which the employee
renders the related service. The cost of short-term compensated absences is accounted as under:
Ý in case of accumulated compensated absences, when employees render the services that increase their entitlement of future
compensated absences; and
Ý in case of non-accumulating compensated absences, when the absences occur.
2.11 Taxes
1. Current income tax
Current tax is the tax payable on the taxable profit for the year. Taxable profit differs from 'profit before tax' as reported in the
standalone statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items
that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively
enacted by the end of the reporting period, in accordance with the Income Tax Act, 1961.
Current income tax relating to items recognized outside standalone financial statements profit and loss is recognized outside
standalone financial statements profit and loss (either in other comprehensive income or in equity). Current tax items are recognized
in correlation to the underlying transaction either in OCI or directly in equity. 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.
Advance taxes and provisions for current income taxes are presented in the statement of assets and liabilities after off-setting
advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends to
settle the asset and liability on a net basis.
2. Deferred taxes
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values
of assets and liabilities and their respective tax bases. Deferred tax assets are recognized for all deductible temporary differences and
unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
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 is realised, based on the tax rates (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the
Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and where
the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are off set where the entity has a legally enforceable right to offset and intends either to settle on
a net basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
2.12 Earnings per share
Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period. Diluted
earnings per share is computed using the weighted-average number of equity and dilutive equivalent shares outstanding during the
period, except where the results would be anti-dilutive.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any splits
and bonus shares issues including for change effected prior to the approval of the financial Information by the Board of Directors.
2.13 Segment Reporting
An operating segment is a component of the Company that engages in business activities from which it may earn revenues and
incur expenses, including revenues and expenses that relate to transactions with any of the Company's other components, and for
which discrete financial information is available. Operating segments are reported in a manner consistent with the internal reporting
provided to the Chief Operating Decision Maker ("CODM"). Revenues, expenses, assets and liabilities, which are common to the
enterprise as a whole and are not allocable to segments on a reasonable basis, have been treated as "unallocated revenues/ expenses/
assets/ liabilities", as the case may be. The Company is primarily engaged in the business of agro commodities and steel abrasives.
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