3.1 Statement of compliance with Indian
Accounting Standards (Ind AS)
The standalone financial statements of the Company
have been prepared in accordance with Ind AS notified
by the Companies (Indian Accounting Standards) Rules,
2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016. Accordingly, the standalone
financial statements for the year ended 31 March 2026
are prepared complying applicable Ind AS.
3.2 Historical cost convention
These standalone financial statements have been
prepared on a historical cost convention except
where certain financial assets and liabilities have been
measured at fair value.
3.3 Business combinations
Business combinations involving entities under
common control are accounted for using the pooling of
interest method. The net assets of the transferor entity
or business are accounted at their carrying amounts
on the date of the acquisition subject to necessary
adjustments required to harmonise accounting policies.
Any excess or shortfall of the consideration paid over
the share capital of transferor entity or business is
recognised as capital reserve under equity.
3.4 Revenue recognition
Revenue from contracts with customers is recognized
on transfer of control of promised goods or services to
a customer at an amount that reflects the consideration
to which the Company is expected to be entitled to in
exchange for those goods or services.
Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation. Revenue is recognized net of
sales reductions such as discounts and sales incentives
granted. This variable consideration is estimated based
on the expected value of outflow.
Sale of products
Revenue from the sale of products is recognized when
the Company has transferred control of the goods
to the buyer and the buyer obtains the benefits from
the goods, the potential cash flows and the amount
of revenue (the transaction price) can be measured
reliably, and it is probable that the Company will collect
the consideration to which it is entitled to in exchange
for the goods.
Sales-related warranties associated with the goods
are integral to sales price and cannot be purchased
separately, hence they serve as an assurance that the
products sold comply with agreed-upon specifications.
Accordingly, the Company accounts for warranties in
accordance with Ind AS 37 Provisions, Contingent
Liabilities and Contingent Assets.
Rendering of services
Revenue from services is recognized over time
by measuring progress towards satisfaction of
performance obligation for the services rendered.
Interest and dividends
Interest income and expenses are reported on an accrual
basis using the effective interest method. Dividends are
recognised at the time the right to receive payment is
established.
The Company's lease asset classes primarily consist of
leases for Land and Buildings. The Company assesses
whether a contract is or contains a lease, at inception
of a contract. A contract is, or contains, a lease if the
contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and
(iii) the Company has the right to direct the use of the
asset.
At the date of commencement of the lease, the
Company recognises a right-of-use asset ("ROU") and
a corresponding lease liability for all lease arrangements
in which it is a lessee, except for leases with a term of
twelve months or less (short term leases) and leases
of low value assets. For these short term and leases of
low value assets, the Company recognises the lease
payments as an operating expense on a straight line
basis over the term of the lease.
The right-of-use assets are initially recognised at
cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They
are subsequently measured at cost less accumulated
depreciation and impairment losses, if any. Right-of-use
assets are depreciated from the commencement date
on a straight-line basis over the shorter of the lease term
and useful life of the underlying asset.
The lease liability is initially measured at the present
value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease
or, if not readily determinable, using the incremental
borrowing rates. The lease liability is subsequently
remeasured by increasing the carrying amount to reflect
interest on the lease liability, reducing the carrying
amount to reflect the lease payments made.
A lease liability is remeasured upon the occurrence of
certain events such as a change in the lease term or
a change in an index or rate used to determine lease
payments. The remeasurement normally also adjusts
the leased assets.
Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments
have been classified as financing cash flows.
3.6 Foreign currency transactions and
translations
Initial recognition
The Company's standalone financial statements
are presented in INR, which is also the Company's
functional currency. Transactions in foreign currencies
are recorded on initial recognition in the functional
currency at the exchange rates prevailing on the date
of the transaction.
Measurement at the balance sheet date
Foreign currency monetary items of the Company,
outstanding at the balance sheet date are restated
at the year-end rates. Non-monetary items which
are carried at historical cost denominated in a foreign
currency are reported using the exchange rate at the
date of the transaction. Non-monetary items measured
at fair value in a foreign currency are translated using
the exchange rates at the date when the fair value
is determined.
Treatment of exchange difference
Exchange differences that arise on settlement of
monetary items or on reporting at each balance sheet
date of the Company's monetary items at the closing
rate are recognised as income or expenses in the period
in which they arise.
3.7 Borrowing costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which
are assets that necessarily take a substantial period
of time to get ready for their intended use or sale, are
capitalised during the period of time that is necessary
to complete and prepare the asset for its intended
use or sale.
All other borrowing costs are expensed in the period in
which they are incurred and reported in finance cost.
3.8 Employee benefits
Employee benefits include provident fund, pension
fund, gratuity and compensated absences.
Defined contribution plans
The Company's contribution to provident fund and
pension fund is considered as defined contribution plan
and is charged as an expense as they fall due based on
the amount of contribution required to be made and
when services are rendered by the employees. The
Company has no legal or constructive obligation to pay
contribution in addition to its fixed contribution.
Defined benefit plans
For defined benefit plans in the form of gratuity,
the cost of providing benefits is determined using
'the Projected Unit Credit method', with actuarial
valuations being carried out at each Balance Sheet
date. Re-measurements, comprising of actuarial gains
and losses are recognised immediately in the balance
sheet with a corresponding debit or credit to retained
earnings through other comprehensive income in the
period in which they occur. Re-measurements are
not reclassified to the statement of profit and loss in
subsequent periods. The retirement benefit obligation
recognised in the Balance Sheet represents the present
value of the defined benefit obligation as adjusted for
unrecognised past service cost.
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 recognised 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 such compensated absences is accounted
as under:
(a) in case of accumulated compensated absences,
when employees render the services that increase
their entitlement of future compensated absences;
and
(b) in case of non-accumulating compensated
absences, when the absences occur.
Long-term employee benefits
Compensated absences which are allowed to carried
forward over a period in excess of 12 months after the
end of the period in which the employee renders the
related service are recognised as a liability at the present
value of the defined benefit obligation as at the Balance
Sheet date out of which the obligations are expected to
be settled.
Tax expense recognised in the statement of profit or
loss comprises the sum of deferred tax and current
tax not recognised in other comprehensive income
or directly in equity.
Current tax
Current income tax assets and/or liabilities comprise
those obligations to, or claims from, fiscal authorities
relating to the current or prior reporting periods, that
are unpaid at the reporting date. Current tax is payable
on taxable profit, which differs from profit or loss in the
standalone financial statements. Calculation of current
tax is based on tax rates and tax laws that have been
enacted or substantively enacted by the end of the
reporting period. Deferred income taxes are calculated
using the liability method on temporary differences
between the carrying amounts of assets and liabilities
and their tax bases.
Minimum Alternate Tax (MAT) paid in a year is charged
to the Statement of Profit and Loss as current tax. The
Company recognizes MAT credit available as an asset
only to the extent there is convincing evidence that
the Company will pay normal income tax during the
specified period, i.e., the period for which MAT Credit is
allowed to be carried forward. In the year in which the
Company recognizes MAT Credit as an asset, the said
asset is created by way of credit to the statement of
Profit and Loss and shown as "MAT Credit Entitlement".
The Company reviews the "MAT Credit Entitlement"
asset at each reporting date and writes down the asset
to the extent the Company does not have convincing
evidence that it will pay normal tax during the specified
period. The MAT Credit Entitlement is disclosed under
the head 'Deferred tax assets (net)'.
Deferred tax
Deferred tax assets are recognised to the extent that
it is probable that the underlying tax loss or deductible
temporary difference will be utilised against future
taxable income. This is assessed based on the
Company's forecast of future results, adjusted for
significant non-taxable income and expenses and
specific limits on the use of any unused tax loss or credit.
Deferred tax liabilities are generally recognised in
full, although Ind AS 12, Income Taxes, specifies
limited exemptions.
Changes in deferred tax assets or liabilities are
recognised as a component of tax income or expense in
the statement of profit or loss, except where they relate
to items that are recognised in other comprehensive
income (such as the revaluation of land) or directly
in equity, in which case the related deferred tax is
also recognised in other comprehensive income or
equity, respectively.
3.10 Operating cycle
Based on the nature of products/activities of the
Company and the normal time between purchase
of raw materials and their realisation in cash or cash
equivalents, the Company has determined its operation
cycle as 12 months for the purpose of classification of its
assets and liabilities as current and non-current.
3.11 Operating expenses
Operating expenses are recognised in statement
of profit or loss upon utilisation of the service or as
incurred. Expenditure for warranties is recognised when
the Company incurs an obligation, which is usually
when the related goods are sold.
3.12 (a) Property, plant and equipment
Property, plant and equipment are stated at cost
less accumulated depreciation and impairment
losses, if any. Property, plant and equipment are
stated at their original cost including freight, duties,
taxes and other incidental expenses relating to
acquisition and installation.
The carrying amount of assets, including those
assets that are not yet available for use, are
reviewed at each balance sheet date to determine
whether there is any indication of impairment. If
any such indication exists, recoverable amount
of asset is determined. An impairment loss is
recognised in the statement of profit and loss
whenever the carrying amount of an asset
exceeds its recoverable amount. An impairment
loss is reversed only to the extent that the carrying
amount of asset does not exceed the net book
value that would have been determined if no
impairment loss had been recognised.
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.
(b) Intangible assets
I ntangible Assets are recognised, if the future
economic benefits attributable to the assets
are expected to flow to the Company and cost
of the asset can be measured reliably. All other
expenditure is expensed as incurred. The same
are amortised over the expected duration of
benefits. Such intangible assets are measured
at cost less any accumulated amortisation and
impairment losses, if any and are amortised over
their respective individual estimated useful life
on straight line method. The amortisation period
and the amortisation method for an intangible
asset with a finite useful life are reviewed at least
at the end of each reporting period and adjusted
prospectively, if appropriate
(c) Capital work-in-progress
Expenditure incurred during the period of
construction, including all direct and indirect
expenses, incidental and related to construction,
is carried forward and on completion, the costs
are allocated to the respective property, plant and
equipment. Capital work-in-progress includes
capital inventory.
3.13 Depreciation and amortisation
Depreciation is charged on a pro-rata basis on
the straight line method at rates prescribed in
Schedule II to the Companies Act, 2013 and is charged
to the statement of profit and loss. Freehold land is
not depreciated.
The estimated useful life of the items of property, plant
and equipment are as follows:
*Moulds are parts of consumer products business of the Company,
included in plant and machinery, are depreciated over a life of 10
years, which is different from life prescribed in schedule II of the Act,
based on independent chartered engineer certificate
**Vehicles are being depreciated using written down value method
as per life of 8 years mentioned in Schedule II of the Act
AWooden pallets are parts of consumer products business of the
Company, included in furniture and fixtures, are depreciated over a
life of upto 5 years which is lesser than life prescribed in schedule II of
the Act, depending on the actual use of the asset.
3.14 Impairment of property, plant and equipment
and Intangible assets
Assets are tested for impairment whenever events or
changes in circumstances indicate that the carrying
amount may not be recoverable and impairment loss
is recognised for the amount by which the asset's
carrying amount exceeds its recoverable amount. The
recoverable amount is higher of an asset's fair value
less costs of disposal and value in use. For the purpose
of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable
cash inflows which are largely independent of the cash
inflows from other assets or group of assets (cash
generating units). If at the balance sheet date, there is an
indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount
subject to a maximum of depreciated historical cost
and the same is accordingly reversed in the statement
of profit and loss.
3.15 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and
demand deposits, together with other short-term,
highly liquid investments maturing within 90 days from
the date of acquisition. Cash and cash equivalent are
readily convertible into known amounts of cash and are
subject to an insignificant risk of changes in value.
3.16 Cash flow statement
Cash flows are reported using the indirect method,
whereby profit/loss before 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.
3.17 Inventories
Inventories are stated at the lower of cost and net
realisable value. The cost of inventories comprises of all
costs of purchase, costs of conversion and other costs
incurred in bringing the inventories to their present
location and condition.
Costs of inventories are determined on weighted
average basis. Net realisable value is the estimated
selling price in the ordinary course of business less any
applicable selling expenses.
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