Integra Essentia Limited ("the Company") is a public limited company, incorporated and domiciled in India which mainly deals in trading of
essential items like Cashew, Rice etc . The registered office of the Company is located at 607, 6th Floor, Pearls Best Height -II,Netaji Subhash
Place,North West Delhi, Delhi, India, 110034. The Company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange
(NSE).
The standalone financial statements for the year ended 31 March 2025 were approved by the Board of Directors and authorised for issue
on 27 May 2025.
? NOTE NO. 2: Significant Accounting Policies
(a) Basis of Preparation of Financial Statements
(i) Statement of Compliance with Indian Accounting Standards (Ind AS)
These financial statements comply, in all material respects, with Ind AS notified under section 133 of the Companies Act,
2013 ("the Act"), Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other relevant provisions of the
Act.
(ii) Historical Cost Convention
The financial statements have been prepared on a historical cost basis, except for the following assets and
liabilities:
a) Certain financial assets and liabilities that are measured at fair value
b) Derivative financial instruments
(iii) Functional and Presentation Currency
These financial statements are presented in Indian Rupees, which is also the functional currency of the Company."
(iv) Current and Non-current Classification
All assets and liabilities have been classified as current and non-current as per the Company's normal operating cycle
(Twelve months) and other criteria set out in Schedule III to the Act.
(b) Property, Plant and Equipment (PPE) and Depreciation
All items of PPE are stated at cost less depreciation and impairment, if any. Historical cost includes expenditure that is directly
attributable to the acquisition of the items. Cost includes its purchase price including non- refundable taxes and duties, directly
attributable costs of bringing the asset to its present location and condition and initial estimate of costs of dismantling and
removing the item and restoring the site on which it is located.
Subsequent costs are included in the carrying amount of PPE or recognised as a separate PPE, as appropriate, 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.
The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and
maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.
Machinery spares and servicing equipment are recognised as PPE when they meet the definition of PPE. Otherwise, such items are
classified as inventory.
Capital work- in- progress includes cost of PPE under installation / under development as at the Balance Sheet date.
The Company depreciates its PPE over the useful life in the manner prescribed under Part C of Schedule II to the Act
Depreciation commences when the assets are ready for their intended use and is computed on pro-rata basis from the date of
installation/ acquisition till the date of sale/ disposal. Management believes that useful life of assets are same as those prescribed
in Schedule II to the Act, except for machinery spares wherein based on technical evaluation, useful life has been estimated to be
different from that prescribed in Schedule II of the Act
Gains and losses on disposals are determined by comparing net disposal proceeds with carrying amount.
These are included in the Statement of Profit and Loss.
(c) Intangible Assets and Amortisation
Intangible assets that are acquired by the Company, which have finite useful lives are measured at cost less amortisation and
impairment, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Cost includes its
purchase price including non-refundable taxes and duties, directly attributable costs of bringing the asset to its present location
and condition.
Intangible assets are amortised on straight line basis over the estimated useful life.
Gains and losses on disposals are determined by comparing net disposal proceeds with carrying amount.
These are included in the Statement of Profit and Loss.
(d) Leases
At inception of a contract, company shall assess whether the contract is, or contains, a lease. 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"
Where the Company is Lessee
At the Inception, lessee shall recognise and measure Right-of-use asset and lease liability at cost. Right to use assets shall comprise
initial measurement of lease liability, any lease payments made at or before the commencement date, less any lease incentives
received, any initial direct costs incurred by the lessee; and an estimate of costs to be incurred by the lessee in dismantling and
removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required
by the terms and conditions of the lease, unless those costs are incurred to produce inventories.
Lease liability is the present value of the lease payments that are not paid. These lease payments shall be discounted using the
interest rate implicit in the lease (if readily determined) otherwise should be discounted at lessee's incremental borrowing rate
If the lease contract transfers ownership of the underlying asset, at the end of the lease term or if, the cost of the right-of-use asset
reflects that the lessee will exercise a purchase option, then depreciate the right-of-use asset over the useful life of the underlying
asset. Otherwise, depreciate the right-of-use asset till the end of the useful life of the right-of-use asset or the end of the lease term,
whichever is earlier.
The lease term as the non-cancellable period of a lease, together with both: (a) periods covered by an option to extend the lease
if the lessee is reasonably certain to exercise that option; and (b) periods covered by an option to terminate the lease if the lessee
is reasonably certain not to exercise that option.
Subsequently, lessee shall measure the right-of-use asset applying a cost model."
Where the Company is Lessor
Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company
to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company's net investment in
the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net
investment outstanding in respect of the lease.
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as
operating leases. Rental income from operating lease is recognised on a straight line basis over the term of the relevant lease"
(e) Borrowing Cost
Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is measured
with reference to the effective interest rate applicable to the respective borrowing.
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use. Qualifying
assets are assets that necessarily take a substantial period of time to get ready for their intended use. Other borrowing costs are
expensed in the period in which they are incurred."
(f) Financial instruments
(i) Financial Assets
Initial Recognition and Measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through
profit or loss, transaction costs that are attributable to the acquisition of the financial asset."
Subsequent Measurement
The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive
income (FVTOCI) or fair value through profit or loss (FVTPL) on the basis of its business model for managing the financial assets
and the contractual cash flow characteristics of the financial asset, as per Ind AS 109.
a. Subsequent Measurement - Equity Instruments
All equity investments other than investments in subsidiaries, joint ventures and associates are measured at fair
value. Equity investments which are held for trading are classified as FVTPL. For all other equity investments,
the Company decides to classify the same either at FVTOCI or FVTPL. The Company makes such election on an
instrument by instrument basis. The classification is made on initial recognition and is irrevocable.
Investment in equity instruments of subsidiaries, joint ventures and associates are measured at cost.
b. Subsequent Measurement - Debt Instruments
A financial asset being debt instrument that meets the following 2 conditions is measured at amortised cost (net
off any write down for impairment) unless the asset is designated at fair value through profit or loss under the fair
value option.
Business Model Test: the objective of the Company's model is to hold the financial asset to collect the contractual
cash flows (rather than to sell the instrument prior to its contractual maturity to realise its fair value changes)"
Cash Flow Characteristics Test: The contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payment of principal and interest on the principal amount outstanding.
A financial asset that meets the following 2 conditions is measured at fair value through other comprehensive
income unless the asset is designated at fair value through profit or loss under the fair value option.
Business Model Test: the financial asset is held within a business model whose objective is achieved both by
collecting contractual cash flows and selling the financial assets.
Cash Flow Characteristics Test: The contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payment of principal and interest on the principal amount outstanding.
Even if an instrument meets the two requirements to be measured at amortised cost or fair value through other
comprehensive income, a financial asset is measured at fair value through profit or loss if doing so eliminates
or significantly reduces a measurement or recognition inconsistency (sometimes referred to as an 'accounting
mismatch') that would otherwise arise from measuring assets or liabilities or recognising the gains or losses on
them on different basis.
All other debt instruments are measured at fair value through profit or loss.
Derecognition of Financial Assets
The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset, to another
entity.
Impairment of Financial Assets
Loss allowance for expected credit losses is recognised for financial assets measured at amortised
cost and FVTOCI.
For financial assets other than trade receivables, whose credit risk has not significantly increased since initial
recognition, loss allowance equal to twelve months expected credit losses is recognised. Loss allowance equal
to the lifetime expected credit losses is recognised if the credit risk on the financial instruments has significantly
increased since initial recognition.
The Company follows 'simplified approach' for recognition of impairment loss allowance on trade receivables,
considering historical trend, industry practices and the business environment in which the Company operates or
any other appropriate basis
The impairment losses and reversals are recognised in Statement of Profit and Loss."
(ii) Equity and Financial Liabilities
Debt and equity instruments issued by an entity are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
a. Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all
of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct
issue costs.
b. Financial Liabilities
Initial Recognition and Measurement
Financial liabilities are initially recognised at fair value plus any transaction costs that are attributable to the
acquisition of the financial liabilities, except for the financial liabilities at FVTPL which are initially measured at fair
value.
Subsequent Measurement
The financial liabilities are classified for subsequent measurement either at amortised cost or at fair value through
Profit and Loss (FVTPL).
Amortised cost for financial liabilities represents amount at which financial liability is measured at initial recognition
minus the principal repayments, plus or minus the cumulative amortisation using the effective interest method of
any difference between that initial amount and the maturity amount.
Derecognition of Financial Liabilities
A financial liability is removed from the Balance Sheet when the obligation is discharged, or is cancelled, or
expires. When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated
as the derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the Statement of Profit and Loss.
Offsetting of Financial Instruments
Financials assets and financial liabilities are offset and the net amount is reported in the Balance Sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis,
or to realize the assets and settle the liabilities simultaneously"
(g) Fair Value Measurement
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.
The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement
as a whole:
• Level 1 — Quoted prices in active markets for identical assets or liabilities
• Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices)
• Level 3 — Inputs for the asset or liability that are not based on observable market data.
(h) Inventories
Inventories are stated at the lower of cost and net realisable value. Costs comprise direct materials and, where applicable, direct
labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Net
realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to
make the sale. The cost formula used for determination of cost is 'Weighted Average Cost'
Machinery spares, stand-by equipment and servicing equipment are recognised as inventory when the useful life is less than one
year and the same are charged to the Statement of Profit and Loss as and when issued for consumption."
(i) Income Tax
The income tax expense or credit for the period is the tax payable on the current period's taxable income based on the applicable
income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax
losses.
The Company's liability for current tax is calculated using the Indian tax rates and laws that have been enacted by the reporting
date. The Company periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretations and provisions where appropriate.
Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets
and liabilities and their carrying amount in the financial statements. Deferred income tax is determined using tax rates (and laws)
that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related
deferred income tax assets is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised 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.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and current tax
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset
where the Company 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 recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively.
Minimum Alternate Tax (MAT) credit is recognised as deferred tax asset only when and to the extent there is convincing evidence
that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and
the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect
that the Company will pay normal income tax during the specified period.
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