e. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of twelve months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above.
f. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds.
g. Impairment of Non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's
(CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual
asset, unless the asset does not generate cash inflows that are largely independent of those from other assets
or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset
is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a post-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no
such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated
by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.
The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared
separately for each of the Company's CGUs to which the individual assets are allocated.
Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement
of profit and loss.
An assessment is made at each reporting date to determine whether there is an indication that previously
recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates
the asset's or CGU's recoverable amount. A previously recognized impairment loss is reversed only if there has
been a change in the assumptions used to determine the asset's recoverable amount since the last impairment
loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its
recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had
no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of
profit and loss.
h. Inventories
Inventories are valued at the lower of cost and net realizable value except scrap and by products which are
valued at net realizable value.
Costs incurred in bringing the inventory to its present location and conditions are accounted for as follows:
a. Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to
their present location and condition. Cost is determined on weighted average basis.
b. Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion
of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs.
Cost is determined on weighted average basis. Net realisable value is the estimated selling price in the
ordinary course of business, less estimated costs of completion and the estimated costs necessary to
make the sale.
i. Taxation
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.
Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns
with respect to situations in which applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax
liabilities are recognised for all taxable temporary differences, except when it is probable that the temporary
differences will not reverse in the foreseeable future.
Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilized.
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 tax asset to
be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
enacted at the reporting date.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are recognized in correlation to the underlying transaction
either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
Sales/ value added taxes paid on acquisition of assets or on incurring expenses
Expenses and assets are recognized net of the amount of sales/ value added taxes paid, except:
a) When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority,
in which case, the tax paid is recognized as part of the cost of acquisition of the asset or as part of the
expense item, as applicable.
b) When receivables and payables are stated with the amount of tax included, the net amount of tax
recoverable from, or payable to, the taxation authority is included as part of receivables or payables in
the balance sheet.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the
Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it
is probable that future economic benefit associated with it will flow to the Company.
j. Employee benefit schemes
Gratuity
Provision of Gratuity is created for employees who have completed continuous five years' of services at the rate
of 15 days salary for every completed year of service based on the salary drawn during the last month of the
financial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not accumulated.
Provident Fund
Company's contribution to provident fund is charged to profit and loss account.
k. Earnings per share
The Company presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS is
calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit
and loss attributable to equity shareholders and the weighted average number of equity shares outstanding for
the effects of all dilutive potential equity shares.
l. Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. Revenue and expenses are identified to segments on the basis of their relationship to
the operating activities of the segment. Inter segment revenue are accounted for based on the cost price.
Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are
included under "Unallocated revenue/ expenses/ assets/ liabilities".
m. Cash Flow Statement
Cash flows are reported using indirect method as set out in Ind AS -7 "Statement of Cash Flows", whereby profit
/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals
of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information.
n. Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
o. Use of Estimates and Judgments
The preparation of the financial statements in conformity with Ind AS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial
statements and the reported amounts of revenues and expenses for the years presented. Actual results may
differ from these estimates under different assumptions and conditions.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to Accounting estimates
are recognized in the period in which the estimate is revised and future periods affected.
b. Property, Plant and Equipment
Title deeds of Immovable Property not held in name of the Company:
All the Title Deeds of Immovable Properties are held in the name of the Company.
c. The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami property.
d. The Company has not availed any fund based Cash Credit limit or any non-fund based limit against stock and
debtors at any time during the year
e. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company
as a willful defaulter at any time during the financial year or after the end of reporting period but before the date
when the financial statements are approved.
f. The Company does not have any transactions with struck-off companies.
g. The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of
Companies (ROC) beyond the statutory period.
h. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies
Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
i. The company has advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities(intermediaries), with the understanding that the intermediary shall;
• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries), or
• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
j. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall;
• Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Company (Ultimate Beneficiaries), or
• Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
k. The Company does not have any transactions which is not recorded in the books of accounts but has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (
such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
l. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
37. Remuneration to Auditors: (excluding GST)
38. There were no Micro and Small enterprises to whom amounts are outstanding for more than 45 days, as at March
31, 2024 (Previous Year Rs. Nil). As at March 31, 2024, no supplier has intimated the company about its status
as Micro and Small enterprises or its registration with the appropriate authority under The Micro, Small and
Medium Enterprises Development Act, 2006.
39. Contingent Liabilities
A. Contingent liabilities not provided for in respect of:
a) During the financial year 2012-2013, the Income Tax Department has raised a demand of Rs.196.28
Lakhs vide income tax assessment order dated 22.03.2013 in respect of assessment year 2005-06. The
company has filed an appeal before The Hon'ble Commissioner of Income Tax (Appeals), which is still
pending for disposal. An amount of Rs 65.49 lakhs as accrued interest is also outstanding along with the
original outstanding amount.
41. Fair Value Hierarchy
The table shown below analyses financial instruments carried at fair value, by valuation method. The different
levels have been defined below:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
42. Segment Reporting
The segment reporting of the Company has been prepared in accordance with Ind AS-108, "Operating Segment"
(specified under section 133 of The Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules,
2015). For management purposes, the Company is organized into business units based on its products and
services and has two reportable segments as follows:
(a) Pan Masala and Allied
(b) Trading Agency
(c) Real Estate
Segments have been identified as reportable segments by the Company's chief operating decision maker
("CODM"). Segment profit amounts are evaluated regularly by the Board, which has been identified as the CODM,
in deciding how to allocate resources and in assessing performance.
Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the
segments and amount allocated on a reasonable basis. Unallocated expenditure consists of common expenditure
incurred for all the segments and expenses incurred at corporate level. The assets and liabilities that cannot be
allocated between the segments are shown as unallocated corporate assets and liabilities respectively.
The accounting policies of the reportable segments are the same as the Company's accounting
policies described in Note 3i. Segment profit (Earnings before interest, depreciation and amortization, and tax)
amounts are evaluated regularly by the Board that has been identified as its CODM in deciding how to allocate
resources and in assessing performance. The Company's financing (including finance costs and finance income)
and income taxes are reviewed on an overall basis and are not allocated to operating segments.
44. Critical estimates and judgments in applying accounting policies
The management believes that the estimates used in preparation of the financial statements are prudent and
reasonable. Information about estimates and judgments made in applying accounting policies that have the most
significant effect on the amounts recognized in the financial statements are as follows:
i) Property, plant and equipment and useful life of property, plant and equipment and intangible
assets
The carrying value of property, plant and equipment is arrived at by depreciating the assets over the
useful life of assets. The estimate of useful life is reviewed at the end of each financial year and changes
are accounted for prospectively.
ii) Provisions and contingencies
The assessments undertaken in recognizing provisions and contingencies have been made in accordance
with the applicable Ind AS.
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. Where the effect of time value of money is material, provisions are
determined by discounting the expected future cash flows.
In the normal course of business, contingent liabilities may arise from litigation and other claims against
the Company. Guarantees are also provided in the normal course of business. There are certain obligations
which management has concluded, based on all available facts and circumstances, are not probable of
payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities
and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there
can be no assurance regarding the final outcome of the legal proceedings in which the Company
involved, it is not expected that such contingencies will have a material effect on its financial position or
profitability.
45. Capital Management
The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and
healthy capital ratios in order to support its business and provide adequate return to shareholders through
continuing growth and maximize the shareholders' value. The Company's overall strategy remains unchanged
from previous year. The Company sets the amount of capital required on the basis of annual business and long¬
term operating plans which include capital and other strategic investments. The funding requirements are met
through a mixture of equity, internal fund generation and borrowed funds. The Company's policy is to use short
term and long-term borrowings to meet anticipated funding requirements. The Company monitors capital on the
basis of the net debt to equity ratio. The Company is not subject to any externally imposed capital requirements.
Net debt is long-term and short-term debts as reduced by cash and cash equivalents (including restricted cash
and cash equivalents) and short-term investments. Equity comprises share capital and free reserves. The
following table summarizes the capital of the Company:
46. The Company had measured Long-Term investments at cost and Current Investments at lower of cost and fair
value in the previous GAAP. Under Ind AS, the company has recognized the Non-current Investments in equity
shares (other than subsidiary, associates and joint ventures) at Cost as appearing in the Standalone Balance
Sheet as at March 31, 2024 and March 31, 2023.
Therefore, financial impact on account of the difference between the fair value and the cost of Non-Current
investment in the "Non-Current Investment", "Other Equity" and "Other Comprehensive Income" and "Deferred
Tax" are not ascertainable.
47. Previous Year's Comparatives
Previous Year's figures have been regrouped/re-classified, wherever necessary, to confirm to Current Year's
Classification.
48. These financial statements were approved for issue by the Board of Directors on May 30, 2023.
49. General
a. All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees
in One Lakh upto two decimals as per the requirements of Schedule III, unless otherwise stated.
b. Figures for the previous year have been regrouped and / or rearranged and / or reclassified wherever
necessary to make them comparable with those of current periods.
c. Notes to Accounts form an integral part of the Ind AS Financial Statements and have been duly authenticated
For and on behalf of the Board of Directors of
For Aggrawal & Rampal Raghunath International Limited
Firm Registration No.: 003072N
Chartered Accountants Sd/- Sd/-
(Manoj Kumar Pandey) (G. N. Choudhary)
Director Director
DIN:00057386 (DIN: 00012883)
Sd/-
Praveen Kumar Rampal
Partner
Membership No.: 082226
UDIN Number:2408226BKEDQI1686 Sd- Sd/-
(Parakh Lakhina) (Shivam Dixit)
Place: New Delhi Company Secretary Chief Financial Officer
Date: May 30,2024 PAN: AQLPL8985A PAN: ANBPD1628H
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