NOTE No. 1SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31st MARCH, 20251. CORPORATE INFORMATION:
Grandma Trading and Agencies Limited ("Company") is a Public Limited Company incorporated under the provisions of the Companies Act, 1956 on 28-01-1981. The Registered Office of the Company is situated at Office No. 117, First Floor, Hubtown Solaris, NS Phadke Marg, Andheri (E), Mumbai - 400069, Maharashtra. The equity shares of the Company are exclusively listed on BSE Limited.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements are prepared in accordance with and in compliance, in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read along with Companies (Indian Accounting Standards) Rules, as amended and other relevant provisions of the Act. The presentation of the Financial Statements is based on Ind AS Schedule III of the Companies Act, 2013.
Financials are prepared on Historical cost basis except few financial assets and financial liabilities that are measured in Fair value.
These financial statements are presented in Indian Rupees, which is the Company's functional currency, and all values are rounded to the nearest lakhs, except otherwise indicated. Due to rounding off, financials statements in a few places may face truncation.
3. USE OF ESTIMATES:
In preparing these Standalone financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Accounting estimates can change from period to period. Actual results may differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis and appropriate changes are made as management becomes aware of changes in circumstances surrounding the estimates. Revisions to accounting estimates are reflected in the period in which such changes are made and if material, their effects are disclosed in the financial statements.
4. PROPERTY, PLANT AND EQUIPEMENT:
Property, plant, and equipment are accounted for on historical cost basis (inclusive of the cost of installation and other incidental costs till commencement of commercial production) net of recoverable taxes, less accumulated depreciation, and impairment loss, if any. Cost comprises the purchase price and any costs of bringing the asset to its working condition for intended use.
Expenditure on renovation / modernization relating to existing fixed assets is added to the cost of such assets where it increases its performance/life significantly.
Depreciation on Property, plant and equipment is provided on a written down value basis over the useful life of the assets estimated by the management, in the manner prescribed in Schedule II of the Companies Act, 2013.
Depreciation on addition or on sale / discard of an assets is provided on pro-rata basis from / up to the date of addition or on sale / discard.
5. REVENUE RECOGNITION:
Sale Revenue is recognized as a net of trade discount, on transfer of the significant risks and rewards of ownership of the goods to the buyer and it is reasonable to expect ultimate collection. Sale revenue excludes the GST which is recoverable from the buyer.
Interest income is recognized on a time proportion basis considering the amount outstanding and the rate applicable.
Dividend is recognized when the right to receive is established.
6. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provisions involving substantial degree of estimation in measurement are recognized at the balance sheet date when:
a) There is a present obligation as an outcome of past events.
b) There is a probability that there will be an outflow of resources.
c) The amount of obligation can be reliably estimated.
Contingent Liabilities are not recognized but are disclosed in the notes in case of:
a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of obligation cannot be made.
b) a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the company.
7. INVESTMENTS:
Long term Investments are valued at cost. Provision for diminution in value of investment is made to recognize a decline other than temporary.
Current Investments are valued at lower cost or fair market value.
8. INVENTORY VALUATION:
Stocks are valued at Cost or Net Realizable Value whichever is lower.
9. IMPAIRMENT OF ASSETS:
a) At each Balance Sheet date, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard (AS)-28 "Impairment of Assets".
b) After Impairment, depreciation is provided on the revised carrying amount of the assets.
c) A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if no impairment loss had been recognized.
10. EMPLOYEE BENEFITS
a) Liability towards Gratuity is considered as the defined benefit scheme and is recognized based on actuarial valuation on projected unit credit method at balance sheet date.
b) Earned Leave which is encashable is considered as long-term benefit and is provided based on actuarial valuation on projected unit credit method at balance sheet date.
c) The benefits in the form of contribution to Provident Fund and Employee State Insurance are considered as the defined contribution schemes and are recognized based on the amount paid or payable for the period during which services are rendered by the employees.
11. TAXES ON INCOME:
Provision for income tax is made based on taxable income for the current year at current rates.
Current Tax represents the amount of Income Tax payable in respect of the taxable income for the reporting period as determined in accordance with the provisions of the Income Tax Act, 1961.
12. CASH FLOW STATEMENT:
Cash flow statement is reported using the indirect method, whereby profit / loss before extraordinary items and tax is adjusted for the effects of transactions of non - cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing, and financing activities of the Company are segregated based on the available information.
13. CASH & CASH EQUIVALENT:
Cash and cash equivalent includes cash on hand, and deposits maintained with banks which can be withdrawn by the company at any point in time.
14. EARNING PER SHARE:
The Company reports basic and diluted Earnings Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end.
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