n. Provisions
Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable
that an outflow of resources embodying
economic benefits will be required to settle
the obligation and a reliable estimate can
be made of the amount of the obligation.
When the Company expects some or all of a
provision to be reimbursed, for example, under
an insurance contract, the reimbursement is
recognized as a separate asset, but only when
the reimbursement is virtually certain. The
expense relating to a provision is presented
in the Statement of profit and loss net of any
reimbursement.
Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the
end of the reporting period. The increase in
the provision due to the passage of time is
recognized as an interest expense
o. Contingent liabilities
A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future
events beyond the control of the Company
or a present obligation that is not recognized
because it is not probable that an outflow
of resources will be required to settle the
obligation. contingent liability also arises in
extremely rare cases where there is a liability
that cannot be recognized because it cannot
be measured reliably. The Company does not
recognize contingent liability but discloses its
existence in the financial statements.
p. Contingent assets
A contingent asset is a possible asset that
arises from past events and whose existence
will be confirmed only by future events
not wholly within the control of the entity.
Contingent assets require disclosure only if
the realization of income is virtually certain,
the related asset is not a contingent asset and
recognition is required.
q. Employee Benefit
Defined contribution plans (Provident Fund)
In accordance with Indian Law, eligible
employees receive benefits from Provident
Fund, which is a defined contribution plan.
Both the employee and employer make
monthly contributions to the plan, which is
administrated by the Government authorities,
each equal to the specific percentage of the
employee's basic salary. The Company has
no further obligation under the plan beyond
its monthly contributions. Obligation for
contributions to the plan is recognized as an
employee benefit expense in the Statement of
Profit and Loss when incurred.
Defined benefit plans (Gratuity)
In accordance with applicable Indian Law, the
Company provides for gratuity, a defined benefit
retirement plan (the Gratuity Plan) covering
eligible employees. The Gratuity Plan provides
a lump sum payment to vested employees, at
retirement or termination of employment, and
amount based on the respective last drawn
salary and the year of employment with the
Company. The Company's net obligation in
respect of the Gratuity Plan is calculated by
estimating the amount of future benefits that
the employees have earned in return of their
service in the current and prior periods; that
benefit is discounted to determine its present
value. Any unrecognized past service cost
and the fair value of plan assets are deducted.
The discount rate is the yield at the reporting
date on risk-free government bonds that
have maturity dates approximating the terms
of the Company's obligation. The calculation
is performed annually by a qualified actuary
using the projected unit credit method. When
the calculation results in a benefit to the
Company, the recognized asset is limited to the
Total of any unrecognized past service cost
and the present value of the economic benefits
available in the form of any future refunds from
the plan or reduction in future contribution to
the plan.
The Company recognizes all remeasurement
of net defined benefit liability/asset directly in
other comprehensive income and presented
within equity.
Short term benefits
Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as a related service provided. A
liability is recognized for the amount expected
to be paid under short-term cash bonus or
profit-sharing plans if the Company has a
present legal or constructive obligation to pay
this amount as a result of past service provided
by the employee and the obligation can be
estimated reliably.
r. Segment reporting
Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker (CODM).
The board of directors of the company assesses
the financial performance and position of the
company and makes strategic decisions. The
board of directors, which has been identified
as being the chief operating decision-maker,
consists of the managing director and other
directors. Refer to note 40 for the segment
information presented.
s. Earnings per share
Basic earnings per share is calculated by
dividing the net profit or loss for the period
attributable to equity shareholders (after
deducting attributable taxes) by the weighted
average number of equity shares outstanding
during the period. The weighted average
number of equity shares outstanding during
the periods/years is adjusted for events
including a bonus issue. There are no potential
equity shares; hence diluted EPS is the same
as Basic earnings per Share.
t. Cash dividend distribution to equity holders
The Company recognizes a liability to make
cash distributions to equity holders when the
distribution is authorized and the distribution is
no longer at the discretion of the Company. As
per the corporate laws in India, a distribution
is authorized when it is approved by the
shareholders. A corresponding amount is
recognized directly in equity.
Purpose of Reserve stated as follows:
Securities premium : Securities premium is used to record the premium on issue of shares. The reserve to be
utilized in accordance with the provisions of the Companies Act, 2013.
Capital reserve : Capital reserve that indicates the cash on hand that can be used for future expenses or to
offset any capital losses. It is derived from the accumulated capital surplus of a company and is created out of
its profit.
Retained earnings : Retained earnings represents undistributed profits of the Company which can be distributed
to its equity shareholders in accordance with the provisions of the Companies Act, 2013.
Employees stock option reserve: The fair value of the equity-settled share-based payment transactions is
recognized in statement of profit and loss with corresponding credit to Employees stock option reserve
40 SEGMENTAL INFORMATION
The Company primarily operates in the food products segment. The board of directors of the Company, which
has been identified as being the chief operating decision maker (CODM), evaluates the Company's performance,
allocate resources based on the analysis of the various performance indicators of the company as a single
segment. Therefore, there is no reportable segment for the company as per the requirement of Ind AS 108
"Operating Segments".
Geographical locations: The geographical segments have been considered for disclosure as the secondary
segment, under which the domestic segment includes sales to customers located in India and overseas segment
includes sales to customer located outside India.
41 CORPORATE SOCIAL RESPONSIBILITY (CSR)
As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The areas
for CSR activities are ensuring environmental sustainability education, Donation to Trust Registered under CSR.
The amount has to be expended on the activities which are specified in Schedule VII of the Companies Act,
2013.
43 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The risk management policies of the Company are established to identify and analyse the risks faced by
the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company's activities.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include
loans and borrowings, deposits and derivative financial instruments.
Credit risk
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's
exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables, loans and other
financial assets measured at amortised cost. The Company continuously monitors defaults of customers and
other counterparties and incorporates this information into its credit risk controls.
i) financial assets
Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties
to discharge their obligations in full or in a timely manner consist principally of cash balances with banks,
cash equivalents and receivables, and other financial assets. The maximum exposure to credit risk is: the
Total of the fair value of the financial instruments and the full amount of any loan payable commitment at
the end of the reporting year. Credit risk on cash balances with banks is limited because the counterparties
are entities with acceptable credit ratings. Credit risk on other financial assets is limited because the other
parties are entities with acceptable credit ratings.
As disclosed in Note 12 (a), cash and cash equivalents balances generally represent short term deposits
with a less than 90-day maturity.
As part of the process of setting customer credit limits, different credit terms are used. The average credit
period generally granted to trade receivable customers is about 7-30 days. But some customers take a
longer period to settle the amounts.
ii) Trade receivable
Customer credit risk is managed by the Company subject to the Company's established receivable
management policy. The policy details how credit will be managed, past due balances collected, allowances
and reserves recorded and bad debt written off. Credit terms are the established timeframe in which
customers pay for purchased product. Outstanding customer receivables are regularly monitored by the
Management
An impairment analysis is performed at each reporting period on consolidated basis for similar category of
customer. The maximum exposure to credit risk at the reporting date is the carrying value of each class of
financial assets
The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers
are located in several jurisdictions and operate in largely independent markets.
45 FOREIGN CURRENCY RISK
The Company operates internationally and the nominal portion of business is transacted in USD & CAD. The
Company has Sales, Purchase, (etc.) in foreign currency. Consequently, the Company is exposed to foreign
exchange risk.
The company evaluate exchange rate exposure arising from foreign currency transactions and the company
follows established risk management policies
46 INTEREST RATE RISK
Interest rate risk arises from the movements in interest rates which could have effects on the Company's net
income or financial position. Changes in interest rates may cause variations in interest income and expenses
resulting from interest-bearing assets and liabilities. The Company's exposure to the risk of changes in market
interest rates relates primarily to the Company's long term debt obligations with floating interest rates.
The Company manages its interest rate risk by having an agreed portfolio of fixed and variable rate borrowings.
With all the other variables remaining constant, the following table demonstrates the sensitivity to a reasonable
change in interest rates on the borrowings:
47 INTEREST RATE SENSITIVITY
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion
of loans and borrowings affected, after the excluding the credit exposure for which interest rate swap has been
taken and hence the interest rate is fixed. With all other variables held constant, the Company's profit before tax
is affected through the impact on floating rate borrowings, as follows:
48 LIQUIDITY RISK
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including debt and
cash credits from banks at an optimised cost.
The Company maximum exposure to credit risk for the components of the balance sheet year ended as at March
31, 2026 and March 31, 2025 is the carrying amounts. The liquidity risk is managed on the basis of expected
maturity dates of the financial liabilities. The average credit period taken to settle trade payables is about 90
days. The other payables are with short-term durations. The carrying amounts are assumed to be a reasonable
approximation of fair value. The following table analysis financial liabilities by remaining contractual maturities:
49 CAPITAL MANAGEMENT
For the purpose of the Company's capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders of the parent. The primary objective of the
Company's capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company
monitors capital using a gearing ratio, which is net debt divided by Total capital plus net debt. The Company's
policy is to keep optimum gearing ratio. The Company includes within net debt, interest bearing loans and
borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.
51 ESTIMATES
The estimates at March 31, 2026, are consistent with those made for the same dates in accordance with Ind As
(after adjustments to reflect any differences in accounting policies.
Balances in the accounts of Trade Receivables, Loans and Advances, Trade Payables and Other Current
Liabilities are subject to confirmation / reconciliation, if any. The management does not expect any material
adjustment in respect of the same effecting the financial statements on such reconciliation / adjustments.
52 EARNINGS PER SHARE
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted
average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average
number of equity shares outstanding during the year plus the weighted average number of equity shares that
would be issued on conversion of all the dilutive potential equity shares into equity shares.
The following reflects the income and share data used in the basic and diluted EPS computations:
54 EMPLOYEE STOCK OPTIONS PLAN
Our Company has adopted the Gopal Snacks Limited — Employee Stock Option Scheme, 2023 ("Gopal ESOP
2023"). The Gopal ESOP 2023 has been instituted to grant stock options to eligible employees of our Company
based on the eligibility criteria described under the Gopal ESOP 2023.
We have used Black-Scholes model, which is a pricing model used to determine the fair price or theoretical
value for a call or a put option based on five variables such as underlying stock price, Exercise price, volatility,
risk-free rate and time. This model is widely used for determination of fair value of options.
56 DISCLOSURE PURSUANT TO REQUIREMENTS OF RULE 11(E) (I) & (II) OF THE COMPANIES
(AUDIT AND AUDITORS) RULES
a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including
foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the
Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries)
b) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the
Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on
behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
57 OTHER STATUTORY INFORMATION
i) Undisclosed income
The Company has not entered into any such transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the year ended March 31, 2026 in the tax assessments
under the Income Tax Act, 1961.
ii) Number of layers under clause (87) of companies act
The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017.
iii) Wilful defaulter
The Company is not declared wilful defaulter by any bank or financial institution or other lenders.
iv) Crypto currency
The Company has not traded or invested in crypto currency or virtual currency during the financial year
ended March 31, 2026.
v) Revalued of property, plant and equipments
The Company has not revalued its property, plant and equipment (including right-of-use asset) during year
ended March 31, 2026.
vi) Benami Transactions
No proceedings have been initiated or are pending against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made there under.
vii) Stuck off under section 248 or 560 of companies act
The company does not have any transactions with companies struck off under section 248 of the Companies
Act,2013 or section 560 of Companies Act, 1956.
viii) Title deeds of all immovable property
Title deeds of all the Immovable property (other than properties where the company is the lessee and the
lease agreements are duly executed in favor of the lessee) are held in the name of the company.
ix) ROC charge
There are no charges or satisfaction which are yet to be registered with ROC beyond the statutory period.
x) Credit facility from the bank
The company avails the credit facility from the bank on the basis of security of inventory and book debts
and file monthly statements with the banks and the same is in agreement with books of accounts.
xi) Borrowings from bank
The Company has used the borrowings from banks for the specified purpose for which it has taken place
at the balance sheet date.
58 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions
by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released
draft rules for the Code on Social Security, 2020 on November 13, 2020. The Company will assess the impact
and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial
statements in the period in which, the Code becomes effective and the related rules to determine the financial
impact are published.
59 Subsidy income receivable are accounted on accrual basis for the "New Mega Project under the package
Scheme of lncentives-2O13 as notified under Govt. of Maharashtra,s Resolution No. PSI-1707 / (CR-50) / lnd-8,
dated 1st April, 2013.
60 A fire incident occurred at one of the Company's plants located in Rajkot on December 11, 2024, causing
significant damage to property, plant and equipment, inventory, and other assets; however, there were no human
casualties. During the quarter ended March 31, 2025, the company reported a loss of ' 471.85 million under the
exceptional item, which includes plant & machinery, factory building, stock, and expenses incurred due to fire.
Company has adequate insurance cover for the loss incurred and claim has been lodged for individual asset
category based on reinstatement of assets.The insurance claim receivable has not been recognized in the books
of account. The claim amount will be recognized upon actual receipt and disclosed as an Exceptional Item in the
Statement of Profit and Loss.During the financial year 2025-26, the Company received '374.64 million from the
insurance company against the claim, which has been recognized accordingly in the financial statements.
61 The company has evaluated all events or transactions that occurred between reporting date March 31,2026 and
May 12,2026,the date the financial statements were authorized for issue by the Board of Directors.
62 Previous years figures have been regrouped/rearranged wherever necessary, to correspond with the current
year classification / disclosures.
63 The balance sheet, statement of profit and loss, cash flow statement, statement of changes in equity, statement
of accounting policies and the other explanatory notes forms an integral part of the financial statements of the
Company.
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