1. General information
Minal industries Limited ("the Company") (CIN L32201MH1988PLC216905) is primarily engaged
in the business of manufacturing and export of Diamond Studded Gold & Silver Jewelry. Minal
Industries Limited is a public limited company incorporated in India on January 11, 1988 under
the Companies Act, 1956 and listed on the Bombay Stock Exchange. The registered office of the
Company is 603- l Minal Co-Op Hsg So Ltd, Off Sakivihar Road, Andheri-East, Mumbai - 400072.
1.1. Material Accounting Policies
(I) Statement of compliance
Standalone Financial Statements have been prepared in accordance with the accounting
principles generally accepted in India including Indian Accounting Standards (Ind AS) prescribed
under the section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian
Accounting Standards) Rules, 2015 (as amended from time to time) and presentation and
disclosures requirement of Division II of revised Schedule III of the Companies Act 2013, (Ind AS
Compliant Schedule III), as applicable to standalone financial statement. Accordingly, the
Company has prepared these Standalone Financial Statements which comprise the Balance Sheet
as at 31 March 2025, the Statement of Profit and Loss, the Statement of Cash Flows and the
Statement of Changes in Equity for the year ended as on that date, and accounting policies and
other explanatory information (together hereinafter referred to as "Standalone Financial
Statements" or "financial statements"). These financial statements are approved for issue by the
Board of Directors on 30th May, 2025.
(II) Basis of preparation of financial statements
The Standalone Financial Statements have been prepared on the historical cost basis except for
certain financial instruments measured at fair values at the end of each reporting year, as
explained in the accounting policies below :
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 in 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. Fair value for measurement
and/or disclosure purposes in these financial statements is determined on such a basis, except
for share-based payment transactions that are within the scope of Ind AS 102, leasing
transactions that are within the scope of Ind AS 116, fair value of plan within the scope of Ind AS
19 and measurements that have some similarities to fair value but are not fair value, such as net
realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorized into Level
1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable
and the significance of the inputs to the fair value measurements in its entirety, which are
described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for
the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
The Financial Statement is presented in INR and all values are rounded to the nearest Lakhs
except when otherwise stated.
Current and non-current classification
An asset is classified as current when it satisfies any of the following criteria:
• It is expected to be realized in, or is intended for sale or consumption in, the Company's normal
operating cycle. It is held primarily for the purpose of being traded;
• It is expected to be realized within 12 months after the reporting date; or
• 0 It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least 12 months after the reporting date.
All other assets are classified as non-current.
A liability is classified as current when it satisfies any of the following criteria:
• It is expected to be settled in the Company's normal operating cycle;
• It is held primarily for the purpose of being traded;
• It is due to be settled within 12 months after the reporting date; or the Company does not
have an unconditional right to defer settlement of the liability for at least 12 months after
the reporting date. Terms of a liability that could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do not affect its classification.
All other liabilities are classified as non-current.
The operating cycle is the time between the acquisition of assets for processing and their
realization in cash and cash equivalents. The Company has identified 12 months as its operating
cycle.
Deferred tax assets and liabilities are classified as non- current only.
(III) Revenue
Recognition
Sale of Goods
The Company recognises revenue when control over the promised goods or services is
transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services.
The Company has generally concluded that it is the principal in its revenue arrangements as it
typically controls the goods or services before transferring them to the customer.
Revenue is adjusted for variable consideration such as discounts, rebates, refunds, credits, price
concessions, incentives, or other similar items in a contract when they are highly probable to be
provided. The amount of revenue excludes any amount collected on behalf of third parties.
The Company recognises revenue generally at the point in time when the products are delivered
to customer or when it is delivered to a carrier for export sale, which is when the control over
product is transferred to the customer. In contracts where freight is arranged by the Company
and recovered from the customers, the same is treated as a separate performance obligation and
revenue is recognized when such freight services are rendered.
Revenue from Service income is recognised on rendering of services based on the agreements/arrangements
with the
concerned parties.
Revenue is measured at the fair value of the consideration received or receivable, net of returns
and allowances, trade discounts and volume rebates and excluding taxes or duties collected on
behalf of the government.
a. Interest Income
Interest income from a financial asset is recognised 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 basis, by reference to the principal outstanding and at the 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.
b. Foreign Currencies
The functional currency of the Company is determined on the basis of the primary economic
environment in which it operates. The functional currency of the Company is Indian National
Rupee (INR).
The transactions in currencies other than the entity's functional currency (foreign currencies) are
recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each
reporting period, monetary items denominated in foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign
currencies are retranslated at the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not retranslated.
Exchange differences on monetary items are recognized in Standalone Statement of Profit and
Loss in the period in which they arise except for:
• Exchange differences on foreign currency borrowings relating to assets under construction
for future Productive use, which are included in the cost of those assets when they are
regarded as n adjustment to interest costs on those foreign currency borrowings;
• Exchange differences on transactions entered into in order to hedge certain foreign currency risks
(IV) 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 added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.
All other borrowing costs are recognized in the Statement of Profit and Loss in the year in which
they are incurred.
The Company determines the amount of borrowing costs eligible for capitalisation as the actual
borrowing costs incurred on that borrowing during the year less any interest income earned on
temporary investment of specific borrowings pending their expenditure on qualifying assets, to
the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying
asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying
asset, borrowing costs eligible for capitalisation are determined by applying a capitalisation rate
to the expenditures on that asset.
Borrowing Cost includes exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the finance cost.
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings to
the extent they are regarded as an adjustment to the interest cost.
(V) Employee Benefits
Payments to defined contribution retirement benefit plans are recognised as an expense when
employees have rendered service entitling them to the contributions.
For defined benefit retirement benefit plans, the cost of providing benefits is determined using
the projected unit credit method, with actuarial valuations being carried out at the end of each
annual reporting year. Re-measurement, comprising actuarial gains and losses, the effect of the
changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is
reflected immediately in the Balance sheet with a charge or credit recognised in other
comprehensive income in the year in which they occur. Re-measurement recognised in other
comprehensive income is reflected immediately in retained earnings and will not be reclassified
to Statement of profit and loss. Past service cost is recognised in Statement of profit and loss in
the year of a plan amendment or when the company recognises corresponding restructuring cost
whichever is earlier. Net interest is calculated by applying the discount rate to the net defined
benefit liability or asset. Defined benefit costs are categorised as follows:
• service cost (including current service cost, past service cost, as well as gains and
losses on curtailments and settlements);
• net interest expense or income; and
• re-measurement
The Company presents the first two components of defined benefit costs in Statement of
profit and loss in the line item 'Employee benefits expenses'. Curtailment gains and losses
are accounted for as past service costs.
The retirement benefit obligation recognised in the Balance sheet represents the actual
deficit or surplus in the Company's defined benefit plans. Any surplus resulting from this
calculation is limited to the present value of any economic benefits available in the form of
refunds from the plans or reductions in future contributions to the plans.
A liability for a termination benefit is recognised at the earlier of when the entity can no
longer withdraw the offer of the termination benefit and when the entity recognises any
related restructuring costs.
a) Defined benefit plans - gratuity
i. The liability or asset recognised in the balance sheet in respect of defined benefit
gratuity plan is the present value of defined benefit obligations at the end of the
reporting period. The defined benefit obligation is calculated annually by actuaries
through actuarial valuation using the projected unit credit method.
ii. The Company recognises the following changes in the net defined benefit obligation as
an expense in the statement of profit and loss:
o Service costs comprising current service costs, past-service costs, gains and
losses on curtailment and non-routine settlements.
o Net interest expense or income.
iii. The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and fair value of plan assets. This cost is included in employee
benefit expenses in the statement of the profit & loss.
iv. Re-measurement comprising of actuarial gains and losses arising from
• Re-measurement of Actuarial(gains)/losses
• Return on plan assets, excluding amount recognized in effect of asset ceiling
• Re-measurement arising because of change in effect of asset ceiling are recognised in the
period in which they occur directly in other comprehensive income. Re-measurements are
not reclassified to Statement of Profit and Loss in subsequent periods.
v. Ind AS 19 requires the exercise of judgment in relation to various assumptions including future
pay rises, inflation and discount rates and employee and pensioner demographics. The
Company determines the assumptions in conjunction with its actuaries, and believes these
assumptions to be in line with best practice, but the application of different assumptions could
have a significant effect on the amounts reflected in the income statement, other
comprehensive income and balance sheet. There may be also interdependency between some
of the assumptions.
b) Short-term and other long-term employee benefits
i. A liability is recognised for benefits accruing to employees in respect of wages and salaries,
annual leave and sick leave in the period the related service is rendered at the undiscounted
amount of the benefits expected to be paid in exchange for that service.
ii. Liabilities recognised in respect of short-term employee benefits are measured at the
undiscounted amount of the benefits expected to be paid in exchange for the related service.
iii. Liabilities recognised in respect of other long-term employee benefits are measured at the
present value of the estimated future cash outflows expected to be made by the Company in
respect of services provided by employees up to the reporting date.
(VI) Taxes
Income tax expense represents the sum of the tax currently payable and deferred tax.
Current income tax
Current tax is the amount of tax payable based on the taxable profit for the year as determined in
accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961
The Company has recognised income tax expenses applying the provisions under section 115BAA of the
Income-tax Act, 1961.
Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax
paying unit intends to settle the asset and liability on a net basis
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets
are recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be
utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference
arises from the initial recognition (other than in a business combination) of assets and liabilities in
a transaction that affects neither the taxable profit nor the accounting profit. Further, deferred
tax is not recognised on the items that does not give rise to equal taxable and deductible
temporary differences. In addition, deferred tax liabilities are not recognised if the temporary
difference arises from the initial recognition of goodwill.
The carrying amount of deferred tax assets is reviewed at the end of each reporting year 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 are recognised on taxable temporary differences arising on investments in
subsidiaries, joint ventures and associates, except where the company is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not
reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting year 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.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to
the extent that it has become probable that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the
year in which the liability is settled or the asset realised, based on tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting year.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set
off current tax assets against current tax liabilities and the deferred taxes relate to the same
taxable entity and the same taxation authority.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they are relating to items
that are recognised in other comprehensive income or directly in equity, in which case, the
current and deferred tax are also recognized in other comprehensive income or directly in equity
respectively.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same
taxation authority and the relevant entity intends to settle its current tax assets and liabilities on
a net basis.
(VII) Property, Plant and Equipment
The cost of property, plant and equipment comprises its purchase price net of any trade
discounts and rebates, any import duties and other taxes (other than those subsequently
recoverable from the tax authorities), any directly attributable expenditure on making the
asset ready for its intended use, including relevant borrowing costs for qualifying assets and any
expected costs of decommissioning. Expenditure incurred after the property, plant and
equipment have been put into operation, such as repairs and maintenance, are charged to the
Statement of Profit and Loss in the year in which the costs are incurred. Major shut-down and
overhaul expenditure is capitalised as the activities undertaken improves the economic benefits
expected to arise from the asset.
An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected to arise from the continued use of the asset. Any gain or loss
arising on the disposal or retirement of an item of property, plant and equipment is determined
as the difference between the sales proceeds and the carrying amount of the asset and is
recognised in Statement of Profit and Loss. Property, plant and equipment held for use in the
production, supply or administrative purposes, are stated in the balance sheet at cost less
accumulated depreciation and accumulated impairment losses, if any. The Company has elected
to continue with the carrying value for all of its property, plant and equipment as recognised in
the financial statements on transition to Ind AS, measured as per the previous GAAP and use
that as its deemed cost as at the date of transition.
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less
its estimated residual value. Depreciation is recognised so as to write off the cost of assets (other
than freehold land and properties under construction) less their residual values over their useful
lives, using straight-line method as per the useful life prescribed in Schedule II to the Companies
Act, 2013 except in respect of following categories of assets, in whose case the life of the assets
has been assessed as under based on technical advice, taking into account the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past history of
replacement, anticipated technological changes, manufacturers warranties and maintenance
support etc.
Property, plant and equipment are measured at acquisition cost less accumulated depreciation
and accumulated impairment losses. Costs directly attributable to acquisition are capitalized until
the property, plant and equipment are ready for use, as intended by Management. The Company
depreciates property, plant and equipment over their estimated useful lives using the straight¬
line method as prescribed under Part C of schedule II of the Companies Act,2013.
Depreciation methods, useful lives and residual values are reviewed periodically, including at
each financial year end. Leasehold land is amortized over the period of lease. The cost of an item
of property, plant and equipment comprises of its purchase price including import duties and
other non- refundable purchase taxes or levies, directly attributable cost of bringing the asset to
its working condition for its intended use and the initial estimate of decommissioning, restoration
and similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the
purchase price.
The management believes that the estimated useful lives are realistic and reflects fair
approximation of the period over which the assets are likely to be used. At each financial year
end, management reviews the residual values, useful lives and method of depreciation of
property, plant and equipment and values of the same are adjusted prospectively where needed.
The carrying amount of an item of property, plant and equipment is derecognized on disposal or
when no future economic benefits are expected from its use or disposal. The gain or loss arising
from the de-recognition of an item of property, plant and equipment is measured as the
difference between the net disposal proceeds and the carrying amount of the item and is
recognized in the Statement of Profit and Loss when the item is derecognized.
The company has policy to not capitalizing the assets which is acquired during the year and value
of such assets is below ^ 5000.
(VIII) Impairment of Non-Financial Assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss (if any).
Where it is not possible to estimate the recoverable amount of an individual asset, the Company
estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where
a reasonable and consistent basis of allocation can be identified, corporate assets are also
allocated to individual cash-generating units, or otherwise they are allocated to the smallest
group of cash- generating units for which a reasonable and consistent allocation basis can be
identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing
value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its
carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its
recoverable amount. An impairment loss is recognised immediately in the Standalone Statement
of Profit and Loss.
The carrying amounts of the Company's non-financial assets are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists, then
the asset's recoverable amount is estimated in order to determine the extent of the impairment
loss, if any.
Any reversal of the previously recognised impairment loss is limited to the extent that the asset's
carrying amount does not exceed the carrying amount that would have been determined if no
impairment loss had previously been recognised.
(IX) Inventories
Inventories are valued after providing for obsolescence as follows:
i) Raw material, stores & spares, packing material are valued at lower of cost and net realisable
value. However, these items are considered to be realisable at cost, if the finished products, in
which they will be used, are expected to be sold at or above cost.
ii) Work-in-progress and Finished Goods are valued at lower of cost and net realisable value. Cost
of finished goods and work-In -progress include cost of direct material and labour and a
proportion of manufacturing overheads based on the normal operating capacity but excluding
borrowing cost.
iii) Waste/Scrap inventory is valued at net realisable value.
iv) Obsolete, defective and unserviceable stock is duly provided for wherever applicable.
v) Cost includes cost of purchase and other costs incurred in bringing the inventories to their
present location and condition
vi) Costs of inventories are determined on weighted average basis. Net realisable value
represents the estimated selling price for inventories less all estimated costs of completion and
costs necessary to make the sale.
(X) Investment in subsidiaries and associates
Investment in subsidiaries & associates are shown at cost. Where the carrying amount of an
investment in greater than its estimated recoverable amount, it is written down immediately to
its recoverable amount and the difference is transferred to the Standalone Statement of Profit
and Loss. On disposal of investment, the difference between the net disposal proceeds and the
carrying amount is charged or credited to the Standalone Statement of Profit and Loss.
Fair Value Measurement
The Company measures financial instruments at fair value in accordance with accounting policies
at each reporting date. 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.
The principal or the most advantageous market must be accessible by the Company.
The fair value of asset or a liability is measured using the assumptions that market participants
would use in pricing the asset or liability, assuming that market participant at in their economic best
interest.
A fair value measurement of a non-financing asset takes into account a market participant's
ability to generate economic benefit by using the asset in its highest and best use or by selling it
to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorized 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 (unadjusted) market prices in active markets for identical assets or liabilities.
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
a) Financial Instruments Financial assets
Financial assets and financial liabilities are recognised when an entity becomes a party to
the contractual provisions of the instrument.
Subsequent measurement
On initial recognition, a financial asset is recognised at fair value, in case of Financial assets which
are recognised at fair value through profit and loss (FVTPL), its transaction cost are recognised in
the statement of profit and loss. In other cases, the transaction cost are attributed to the
acquisition value of the financial asset.
Financial assets are subsequently classified as measured at:
• amortised cost.
• fair value through profit and loss (FVTPL).
• fair value through other comprehensive income (FVOCI).
Financial assets are not reclassified subsequent to their recognition, except if and in the period
the Company changes its business model for managing financial assets.
Trade Receivables and Loans
Trade receivables are initially recognised at fair value. Subsequently, these assets are held at
amortised cost, using the effective interest rate (EIR) method net of any expected credit losses.
The EIR is the rate that discounts estimated future cash income through the expected life of
financial instrument.
Financial liabilities
Initial recognition and measurement.
All financial liabilities are recognised initially at fair value and transaction cost that is attributable
to the acquisition of the financial liabilities is also adjusted. These liabilities are classified as
amortised cost.
Subsequent measurement
Subsequent to initial recognition, these liabilities are measured at amortised cost using the
effective interest method.
These liabilities include borrowings.
De-recognition of financial liabilities
A financial liability is de-recognised when the obligation under the liability is discharged or
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 de- recognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognised in the Standalone Statement of profit and loss.
b) Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial assets.
ECL is the difference between all contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that the Company expects to receive. When
estimating the cash flows, the Company is required to consider -
• All contractual terms of the financial assets (including prepayment and extension) over the
expected life of the assets.
• Cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.
(XI) Trade receivables
The Company applies approach permitted by Ind AS 109, financial instruments, which requires
expected lifetime losses to be recognised from initial recognition of receivables.
Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company
determines whether there has been a significant increase in the credit risk since initial
recognition and if credit risk has increased significantly, impairment loss is provided.
(XII) Cash and Cash Equivalents
Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short¬
term deposits with an original maturity of three months or less, which are subject to insignificant
risk of changes in value.
For the purpose of the Statement of cash flows, cash and cash equivalent consists of cash and
short term deposits, as defined above.
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