1.0 Corporate Information
Rose Merc Limited is a Limited Company, incorporated under the provisions of
Companies Act, 1956 and having CIN: L93190MH1985PLC035078. The company is
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
111 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 1NR 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 labilities 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 cost less
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 amortisation
and impairment, if any. Amortisation 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
(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
its 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)Leases
As 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) ora change in the assessment ofan 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 receivables 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 month that are readily convertible
into cash and which are subject to an insignificant risk of changes in value.
(H) Inventories
Inventories includes 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 Transactions
i) 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 June
27,2025 have been considered, disclosed and adjusted, if changes or event are material
in nature wherever applicable, as per the requirement of Ind AS.
0] 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 asset is 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 asset to be utilized.
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