1.0 Corporate Information
Rose Merc Limited is a Limited Company, incorporated under the provisions of the Companies Act, 1956
and having CIN: L93190MH1985PLC035078. The company mainly trading of General Merchandise and
allied items, along with trading in gold, and other precious metals. The Registered office of the Company
is situated at 15/B/4, New Sion CHS, SIES College, Behind D Mart, Sion West, Sion, Mumbai, Maharashtra,
India, 400022.
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:a. Accounting Convention: -
The financial statements have been prepared in accordance with Section 133 of Companies Act, 2013,
i.e. Indian Accounting Standards ('Ind AS') notified under Companies (Indian Accounting Standards)
Rules 2015. The Ind AS Financial Statements are prepared on historical cost convention, except in case
of certain financial instruments which are recognized at fair value.
All assets and liabilities have been classified as current or non-current as per the Company's normal
operating cycle and other criteria set out in the Part I of Schedule Ill to the Companies Act, 2013. Based
on the nature of products and the time between the acquisition of assets for processing and their
realization in cash and cash equivalents.
b. Functional and Presentation Currency
All amounts disclosed in the financial statements and notes are rounded off to lakhs the nearest INR
rupee in compliance with Schedule III of the Act, unless otherwise stated.
The functional and presentation currency of the company is Indian rupees. This financial statement is
presented in Indian rupees. Due to rounding off, the numbers presented throughout the document
may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.
c. Compliance with Ind AS
The financial statements have been prepared in accordance with Ind AS notified under the Companies
(Indian Accounting Standards) Rules, 2015.
d. Use of Estimates and Judgments
The preparation of the Ind AS financial statements in conformity with the generally accepted
accounting principles in India requires management to make estimates and assumptions that affect the
reported amount of assets and liabilities as of the Balance Sheet date, reported amount of revenue
and expenses for the year and disclosure of contingent liabilities and contingent assets as of the date
of Balance Sheet. The estimates and assumptions used in these Ind AS financial statements are based
on management's evaluation of the relevant facts and circumstances as of the date of the Ind AS
financial statements. The actual amounts may differ from the estimates used in the preparation of the
Ind AS financial statements and the difference between actual results and the estimates are recognized
in the period in which the results are known/materialize.
Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and in future periods
affected.
particular, information about significant areas of estimation uncertainty and critical judgments in
applying accounting policies that have the most significant effect on the amounts recognized in the
financial Statement are as below:
1. Valuation of Financial Instruments;
2. Evaluation of recoverability of deferred tax assets/Liabilities;
3. Useful lives of property, plant and equipment and intangible assets;
4. Measurement of recoverable amounts of cash-generating units;
5.Obligations relating to employee benefits;
6. Provisions and Contingencies;
7. Provision for income taxes, including amount expected to be paid/recovered for
uncertain tax positions;
8. Recognition of Deferred Tax Assets/Liabilities
e. Current versus Non-Current Classification
The Company presents assets and liabilities in the Balance Sheet based on current/ non-current
classification.
An asset / liability is treated as current when it is: -
i. Expected to be realized or intended to be sold or consumed or settled in normal operating
cycle.
ii. Held primarily for the purpose of trading.
iii. Expected to be realized / settled within twelve months after the reporting period.
iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.
v. There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.
All other assets and liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
1.2 ACCOUNTING POLICIES:(A) Property, Plant and Equipment
All items of property, plant and equipment are stated at historical costless depreciation. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
Cost includes purchase price, non-recoverable taxes and duties, labour cost and direct overheads for self-
constructed assets and other direct costs incurred up to the date the asset is ready for its intended use.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, 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 derecognized when replaced. All other repairs and maintenance are
charged to profit or loss during the reporting period in which they are incurred.
Freehold land is not depreciated. Depreciation is provided on a pro-rata basis on the straight-line
method in Amusement Division and on other assets Written Down Value Method over the estimated
useful lives of the assets or the rates prescribed under Schedule II of the Companies Act,
2013.considering the nature, estimated usage, operating conditions, past history of replacement,
anticipated technological changes, manufacturers' warranties and maintenance support. The Company
provides pro-rata depreciation from the day the asset is put to use and for any asset sold, till the date of
sale.
Projects under commissioning and other Capital work-in-progress are carried at cost comprising of direct
and indirect costs, related incidental expenses and attributable interest. Depreciation is not recorded on
capital work-in-progress until construction and installation are complete and the asset is ready for its
intended use.
An item of property, plant and equipment is derecognized on disposal. Any gain or loss arising from
derecognition of an item of property, plant and equipment is included in profit or loss.
(B) Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable taxes, accumulated amortization,
and impairment losses, if any. Such costs include purchase price, borrowing cost, and any cost directly
attributable to bringing the asset to its working condition for the intended use, net charges on foreign
exchange contracts and adjustments arising from exchange rate variations attributable to the intangible
assets.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the entity and cost can be measured reliably.
The amortization period for intangible assets with finite useful lives is reviewed at each year-end.
Changes in expected useful lives are treated as changes in accounting estimates.
Internally generated intangible asset Research costs are charged to the statement of Profit and Loss in
the year in which they are incurred.
The cost of an internally generated intangible asset is the sum of directly attributable expenditure
incurred from the date when the intangible asset first meets the recognition criteria to the completion
of its development.
Product development expenditure is measured at cost less accumulated amortization and impairment,
if any. Amortization is not recorded on product in progress until development is complete.
Gains or losses arising from derecognition of an Intangible Asset are measured as the difference between
the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.
(C) Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are
tested annually for impairment, or more frequently if events or changes in circumstances indicate that
they might be impaired. Other assets are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset's fair value, less costs of disposal and value in use.
The Company assesses at each balance sheet date whether there is any indication that an asset may be
impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which
the asset belongs is less than it carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and
loss. 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 depreciable historical cost.
(D) LeasesAs a lessee
The Company has applied IND AS 116 using the partial retrospective approach.
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
The Company applies a single recognition and measurement approach for all leases, except for short¬
term leases and leases of low-value assets. The Group recognizes lease liabilities to make lease payments
and right-of-use assets representing the right to use the underlying assets.
Right of use assets
The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and
lease payments made at or before the commencement date, less any lease incentives received. Right-of-
use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated
useful lives of the assets.
Lease Liabilities
At the commencement date of the lease, the Company recognizes lease liabilities measured at the
present value of lease payments to be made over the lease term. The lease payments include fixed
payments (including in substance fixed payments) less any lease incentives receivable, variable lease
payments that depend on an index or a rate, and amounts expected to be paid under residual value
guarantees.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at
the lease commencement date because the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g.,
changes to future payments resulting from a change in an index or rate used to determine such lease
payments) or a change in the assessment of an option to purchase the underlying asset.
As Lessor:
At the inception of a lease, the lease arrangement is classified as either a finance lease or an operating
lease, based on contractual terms & substance of the lease arrangement. Whenever the terms of the
lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified
as a finance lease. All other leases are classified as operating leases.
Amounts due from lessees under finance leases are recognized as receivable at the amount of 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 Company's net investment outstanding in respect of
the leases.
Rental income from operating leases is recognized on a straight-line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognized on a straight-line basis over the lease term.
(E) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to Chief
Operating Decision Maker (CODM).
The Company has identified its Chief Financial Officer as CODM who is responsible for allocating
resources and assessing performance of the operating segments and makes strategic decisions.
CODM is in view that the Company is operating in single business segments. Hence, Segment reporting
is not required.
(F) Statement of Cashflow
Cash Flows of the Group are reported using the indirect method, whereby profit before tax is adjusted
for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating
cash receipts or payments and item of income or expenses associated with investing or financing Cash
Flows. The cash flows from operating, investing and financing activities of the Company are segregated.
(G) Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and highly liquid investments with
an original maturity of up to three months that are readily convertible into cash, and which are subject
to an insignificant risk of changes in value.
(H) Inventories
Inventories include stock -in -trade, stores & spares, consumables, packing materials, goods for resale
and material in transit are valued at lower of cost and net
Stock-in-trade - Cost includes cost of purchase and other costs incurred in bringing the inventories to
their present location and conditions. Cost is determined on First-In-First-Out basis.
Stores, Spare Parts, Consumables, Packing Materials etc. - Cost is determined on First-In-First-Out basis.
Goods for Resale - valuation Cost is determined on First-In-First-Out basis.
realizable Net realizable value represents the estimated selling price for inventories less all estimated
costs of completion and costs necessary to make the sale. Adequate allowance is made for obsolete and
slow-moving items.
(I) Foreign Currency Transactionsi) Initial Recognition
On initial recognition, all foreign currency transactions are recorded by applying to the foreign
currency amount the exchange rate between the functional currency and the foreign currency at
the date of the transaction.
ii) Subsequent Recognition
As at the reporting date, non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the
transaction. All non-monetary items which are carried at fair value or other similar valuation
denominated in a foreign currency are reported using the exchange rates that existed when the
values were determined.
All monetary assets and liabilities in foreign currency are restated at the end of accounting period.
Exchange differences on restatement of all other monetary items are recognized in the Statement
of Profit and Loss.
Any subsequent events occurring after the Balance Sheet date up to the date of the approval of the
financial statement of the Company by the board of directors on 18th May 2026 have been considered,
disclosed and adjusted, if changes or event are material in nature wherever applicable, as per the
requirement of Ind AS.
(J) Income Taxes
The tax expense for the period comprises of current tax and deferred income tax. Tax is recognized in
Statement of Profit and Loss, except to the extent that it relates to items recognized in the Other
Comprehensive Income or in Equity. In which case, the tax is also recognized in Other Comprehensive
Income or Equity.
I. Current tax: -
Current tax is measured at the amount expected to be paid to the tax authorities in accordance
with the taxation laws prevailing in the respective jurisdictions. Current tax assets and current
tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts
and there is an intention to settle the asset and the liability on a net basis.
II. Deferred tax: -
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities
are recognized for deductible and taxable temporary differences arising between the tax base of
assets and liabilities and their carrying amount in financial statements.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available
against which such deferred tax assets can be realized. The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred income tax assets to be utilized.
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