1 CORPORATE INFORMATION
Stove Kraft Limited (the 'Company' / 'SKL') is a company domiciled in India, with its registered office situated at Bengaluru. It is engaged primarily in the business of manufacture of pressure cookers, LPG stoves, non-stick cookware and trading of other kitchen and electrical appliances under the brand names Pigeon, Pigeon LED and “Gilma”. The Company also possesses a licensing agreement with Stanley Black & Decker on certain categories of appliances.
The Corporate Identification Number (CIN) of the Company is L29301KA1999PLC025387.
These Financial Statements are approved for issue by the Company's Board of Directors in their meeting held on May 24, 2024.
2.1 Basis of preparation
(i) Compliance with Ind AS
These financial Statements comply in all material aspects with the Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.
(ii) Historical cost convention
The Financial Statements have been prepared on the historical cost basis except for the following:
- certain financial assets and liabilities (including derivative instruments)
- share based payments that are measured at fair value at grant date.
- on transition to Ind AS as at April 1, 2017, the company elected to consider the fair value of all of its property, plant and equipment and intangible assets in its opening Ind AS Balance Sheet as deemed cost of property, plant and equipment.
(iii) Based on the nature of products of the company and the normal time between
acquisition of assets and their realisation in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
(iv) New and amended standards adopted by the Company
The Ministry of Corporate Affairs vide
notification dated 31 March 2023 notified the Companies (Indian Accounting Standards) Amendment Rules, 2023, which amended certain accounting standards (see below), and are effective 1 April 2023:
- Disclosure of accounting policies -
amendments to Ind AS 1
- Definition of accounting estimates -
amendments to Ind AS 8
- Deferred tax related to assets
and liabilities arising from a single transaction - amendments to Ind AS 12
The other amendments to Ind AS notified by these rules are primarily in the nature of clarifications.
These amendments did not have any material impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
(v) Standards issued but not yet effective
MCA notified new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards as applicable to the Company.
2.2 Use of critical estimates and management judgments
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results.
Management also needs to exercise judgement in applying the Company's accounting policies. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Following are the critical estimates :
(i) Provision for Warranties ( Refer note 19.2)
(ii) Provision for refund liabilities (Refer note 25)
(iii) Defined benefit plan obligations (Refer note 19.1 & 37)
Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements. “
3(A) PROPERTY, PLANT AND EQUIPMENT
Freehold land is carried at historical cost. All other 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.
Depreciation is calculated using the straight-line method to allocate the cost of the assets, net of their residual values, over their estimated useful lives as follows:
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Asset
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Useful life (in years)
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|
Buildings
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10 to 30 years
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|
Plant and machinery
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3 to 25 years
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|
Furniture and fixtures
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3 to 10 years
|
|
Leasehold improvements*
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3 to 5 years
|
|
Computers
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3 to 6 years
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|
Office Equipments
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5 to 10 years
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|
Vehicles
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8 years
|
|
*Leasehold improvements are depreciated over the shorter of their useful life or the lease term.
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The useful lives have been determined based on technical evaluation done by the management's which are higher or lower than those specified by Schedule II to the Companies Act, 2013, in order to reflect the actual usage of the assets. The residual values are not more than 5% of the original cost of the asset.
See note 52.1 for the other accounting policies relevant to Property, Plant and Equipment.
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