11 CORPORATE INFORMATION
Weizmann Limited ("the Company") is a Company domiciled in India, with its registered office situated at Empire House, 214, D.N. Road, Ent. A.K
Nayak Marg, Fort, Mumbai 400001. The Company has been incorporated under the provision of Indian Companies Act and its equity shares are
listed on National Stock Exchange and Bombay Stock Exchange in India. The company is primary involved in the business of Textiles.
1.2 BASIS OF PREPARATIONS AND SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation and presentation
i) Statement of Compliance
The financial statements of the Company have been prepared to comply with the Indian Accounting standards ('Ind AS'), including the rules
notified under the relevant provisions of the Companies Act, 2013.
The accounts have been compiled on an accrual system based on principle of going concern.
The Standalone financial statements were authorised for issue by the Company's Board of Directors on 28th May, 2026.
ii) Functional and Presentation Currency
Company's financial statements are presented in Indian Rupees, which is also its functional currency. All amounts have been rounded off to 2
decimal places to the nearest lakh and unless otherwise indicated.
iii) Basis of measurement
The financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been measured
at fair value amount:
i Certain financial assets and liabilities,
ii Defined benefit plans - plan assets/liabilities
1.3 Use of Estimates and Judgements
In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
Judgements
Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the
financial statements is included in the following notes:
- Note 42 - lease; whether an arrangement contains a lease and:
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending
31.03.26 is included in the following notes:
- Note 2 - useful life of Property, plant and equipment
- Note 40 - employee benefit plans
- Note 34 & 41 - recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow
of resources;
1.4 Summary of significant accounting policies
A) Property, Plant and Equipment
i) Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated depreciation and
impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable to bringing the assets to its
working condition for its intended use.
ii) Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use, are considered
as pre - operative expenses and disclosed under Capital Work - in - Progress.
iii) Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their estimated useful
lives using the straight-line method and is recognised in the statement of profit and loss.
The estimated useful lives of items of property, plant and equipment for the current and comparative periods are as follows:
Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate. Based on internal
assessment and consequent advice, the management believes that its estimates of useful lives as given above best represent the period over
which management expects to use these assets.
Depreciation on additions/disposals is provided on a pro-rata basis i.e. from/up to the date on which asset is ready for use/disposed off.
B) Investment Property
Property that is held to earn rentals or for capital appreciation or both, and that is also not occupied by the Company, is classified as
Investment Property. Investment Property is measured initially at cost, including related transaction costs and where applicable borrowing
costs. Subsequent expenditure is capitalized to the asset's carrying amount only when it is probable that future economic benefits associated
with the expenditure will flow to the Company and the cost of the item can be measured reliably. Depreciation is provided using the Straight
Line Method in accordance with IND AS 40 'Investment Property' with useful life as prescribed in Schedule II of the Companies Act, 2013
Notes to Standalone Financial Statements for the year ended 31.03.2026 continued.........
Components of Investment Property Useful life in years
Building 60
Furniture and Electrical Installations 7 / 10
Office Equipment 5
A part of investment property is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any
gain or loss on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the
asset) is included in Statement of profit and loss in the year it is derecognized. All other repair and maintenance costs are expensed when
incurred. The residual values, useful lives and methods of depreciation of investment property is reviewed at the end of each reporting period
and adjusted prospectively, as appropriate.
C) Leases
Assets held under leases that do not transfer to the Company substantially all the risks and rewards of ownership (i.e. operating leases) are
not recognized in the Company's Balance Sheet.
Payments made under operating leases are generally recognized in profit or loss on a straight-line basis over the term of the lease unless such
payments are structured to increase in line with expected general inflation to compensate for the lessor's expected inflationary cost increases.
As a lessee
The Company's leases primarily consist of leases of land and office premises. The Company assesses whether a contract contains a lease, at
inception of a contract. 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.
At the date of commencement of the lease, the Company recognizes a ROU and a corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short-term and/
or low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.
Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and lease
liabilities includes these options when it is reasonably certain that they will be exercised.
The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made
at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at
cost less accumulated depreciation and impairment losses. Currently, ROU assets are being amortised over a period of 3-5 years based on
lease term being lower of lease term and estimated useful life of underlying assets.
Lease liability and ROU assets have been separately presented in the Balance Sheet and lease payments have been classified as financing
activities in the statement of cash flows.
As a lessor
Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless
the receipts are structured to increase in line with expected general inflation to compensate for the expected inflation.
C) Borrowing Cost
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such
assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.
All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.
D) Inventories
Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in
bringing them to their respective present location and condition.
Cost of raw materials, chemicals, packing materials, components, stores and spares and other products are determined on FIFO basis.
E) Impairment of non-financial assets
The Company assesses at each reporting date as to whether there is any indication that any asset or group of assets, called cash generating
units may be impaired. If any such indication exists the recoverable amount of an asset or cash generating units is estimated to determine the
extent of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the cash generating units to which the asset belongs.
If the carrying amount of assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable
amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of
estimated future cash flows.
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