g) Provisions and Contingent Liabilities
Provisions are recognised 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.
Provisions are measured at the best estimate of the expenditure required to settle the present
obligation at the Balance Sheet date.
ff the effect of the time value of money is material, provisions are discounted to reflect its present value
using a current pre-tax rate that reflects the current market assessments of the time value of money
and the risks specific to the obligation. When discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are not recognised in the Financial Statements.
h) Non-derivative financial instruments
Financial assets and liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and liabilities are initially measured at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss)
are added to or deducted from the fair value measured on initial recognition of financial asset or
financial liability.
(a) Financial assets
Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and
cash equivalents includes cash on hand, deposits held at call with financial institutions, other short¬
term, highly liquid investments with original maturities of three months or less that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
Trade Receivables and Loans: Trade receivables are initially recognised at fair value. Subsequently,
these assets are held at amortised cost, using the effective interest rate (EIR) method net of any
expected credit losses. The EIR is the rate that discounts estimated future cash income through the
expected life of financial instrument.
Debt Instruments: Debt instruments are initially measured at amortised cost, fair value through other
comprehensive income (‘FVOCI’) or fair value through profit or loss ('FVTPU) till derecognition on the
basis of (i) the entity’s business model for managing the financial assets and (ii) the contractual cash
flow characteristics of the financial asset.
Equity Instruments: All investments in equity instruments classified under financial assets are
initially measured at fair value, the Company may, on initial recognition, irrevocably elect to measure
the same either at FVOCI or FVTPL. The Company makes such election on an instrument-by-
instrument basis.
(b) Financial assets- Subsequent measurement
Financial assets at amortised cost: Financial assets are subsequently measured at amortised cost
if these financial assets are held within a business whose objective is to hold these assets in order to
collect contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
Financial assets at fair value through other comprehensive income (FVTOCI): Financial assets
are measured at fair value through other comprehensive income if these financial assets are held
within a business whose objective is achieved by both collecting contractual cash flows that give rise
on specified dates to solely payments of principal and interest on the principal amount outstanding
and by selling financial assets.
Financial assets at fair value through profit or loss (FVTPL): Financial assets are measured at fair
value through profit or loss unless it is measured at amortised cost or at fair value through other
comprehensive income on initial recognition. The transaction costs directly attributable to the
acquisition of financial assets and liabilities at fair value through profit or loss are immediately
recognised in profit or loss.
(c) Financial liabilities
Loans and borrowings: After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost on accrual basis.
Financial guarantee contracts: Financial guarantee contracts issued by the Company are those
contracts that require a payment to be made to reimburse the holder for a loss it incurs because the
specified debtor fails to make a payment when due in accordance with the terms of a debt instrument.
Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for
transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the
liability is measured at the higher of the amount of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount recognized less cumulative amortization.
(d) Financial liabilities - Subsequent measurement
Financial liabilities are measured at amortised cost using the effective interest method. For trade and
other payables maturing within one year from the balance sheet date, carrying amounts approximate
the fair value due to the short maturity of these instruments.
(e) Derecognition
The Company de-recognizes a financial assets when the contractual rights to the cash flows from the
financial asset expires or it transfers the financial assets and the transfer qualifies for dercognition
under Indian Accounting Standard 109 “Financial Instruments”. A financial liability (or a part of
financial liability) is de-recognised from the Company’s balance sheet when the obligation specified
in the contract is discharged or cancelled or expires.
(f) Offsetting of financial Instruments
Financial assets and financial liabilities are offsetted and the net amount is reported in financial
statements if there is a currently enforceable legal right to offset the recognised amounts and there is
an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
I) Earnings Per Share
Basic EPS is computed by dividing the profit or loss attributable to the equity shareholders of the
Company by the weighted average number of Ordinary shares outstanding during the year. Diluted
EPS is computed by adjusting the profit or loss attributable to the ordinary equity shareholders and
the weighted average number of ordinary equity shares, for the effects of all dilutive potential Ordinary
shares.
2B Critical accounting judgments and key sources of estimation uncertainty
a The preparation of the financial statements in conformity with the Ind AS requires management to
make judgements, estimates and assumptions that affect the application of accounting policies and
the reported amounts of assets, liabilities and disclosures as at date of the financial statements and
the reported amounts of the revenues and expenses for the years presented. The estimates and
associated assumptions are based on historical experience and other factors that are considered to
be relevant. Although these estimates are based upon management’s best knowledge of current
events, actual results may differ from these estimates under different assumptions and conditions.
b The 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 if the revision
affects only that period, or in the period of the revision and future periods if the revision affects both
current and future periods.
c Critical Judgements In the process of applying the Company’s accounting policies, management
has made the following judgements, which have the most significant effect on the amounts
recognized in the financial statements:
d Key sources of estimation uncertainty: The key assumptions concerning the future, and other key
sources of estimation uncertainty at the end of the reporting period, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below:
e Key sources of estimation uncertainty: The key assumptions concerning the future, and other key
sources of estimation uncertainty at the end of the reporting period, that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below:
f Income taxes: The Company’s tax jurisdiction is India. Significant judgments are involved in
determining the provision for income taxes, including amount expected to be paid / recovered for
uncertain tax positions.
g Operating Cycle and Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current
classification in accordance with Part-1 of Division- II of Schedule III of the Companies Act, 2013.
An asset is treated as current when (a) It is expected to be realised or intended to be sold or
consumed in normal operating cycle; (b) It is held primarily for the purpose of trading; or (c) It is
expected to be realised within twelve months after the reporting period, or (d) The asset is cash or
cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months afterthe reporting period. All other assets are classified as non-current.
A liability is current when (a) It is expected to be settled in normal operating cycle; or (b) It is held
primarily for the purpose of trading; or (c) It is due to be settled within twelve months after the
reporting period, or (d) There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period. Terms of a liability that could, at the option of the
counterparty, results in its settlement by the issue of equity instruments do not affect its classification.
The Company classifies all other liabilities as non-current.
The operating cycle is the time between the acquisition of assets for processing and their realization
in cash and cash equivalents. The Company has identified twelve months as its normal operating
cycle.
3 Recent Accounting Pronouncements:
'The Ministry of Corporate Affairs (MCA) notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On
March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015, by
issuing the companies(lndian Accounting Standards) AmendmentRules,2023, applicable from April
1,2023, as below:"
a Ind AS 1 - Presentation of Financial Statements
'The amendments require companies to disclose their material accounting policies rather than their
significant accounting policies. Accounting policy information, together with other information, is
material when it can reasonably be expected to influence decisions of primaryusers of general
purpose financial statements. The Group does not expect this amendment to have any significant
impact in its financial statements."
b Ind AS 12-Income Taxes
The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The amendments narrowed the scope of the recognition exemption in
paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions
that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Group
has evaluated and the amendment and there is no impact on its financial statements.
c "Ind AS 8-Accounting Policies, Changes in AccountingEstimates and Errors"
The amendments will help entities to distinguish between accounting policies and accounting
estimates. The definition of a change in accounting estimates has been replaced with a definition of
accounting estimates. Under the new definition, accounting estimates are "monetary amounts in
financial statements that are subject to measurement uncertainty”. Entities develop accounting
estimates if accounting policies require items in financial statements to be measured in a way that
involves measurement uncertainty.
4 Rounding of Amounts:
All amounts disclosed in the financial statements and notes have been rounded off to the nearest
lakhs as per the requirement of Schedule III of the Companies Act, 2013 unless otherwise stated.
27. Contingent liabilities not provided for in respect ot:
The company was in receipt of demand order In respect of Central Excise for FY 2010-11, against the said order,
the company has filed an appeal before the appellate authorities In respective forums. The Company is expecting
a favorable result from the appellate authority.
28. Secured Loans (Refer Note No.14)
a. Term loans from Banks:
The term loans from banks v/ere availed for acquisition of Plant & Machinery, constructions of factory building
from The South Indian Bank Ltd'. During the year.
The above stated terms loans were secured by equitable mortgage of Industrial Property of land & building
situated in plot no.133, Industrial estates, Medchal of the Company, further secured by collateral assets in the
form of immovable properties belonging to the Promoter Directors and their relatives. It is further secured by
personal guarantees of the directors and their relatives.
b. Vehicle Loans from Banks: NIL
c. Other Vehicle Loan
Other vehicle loans were obtained from Mercedes-Benz Financial Services India Pvt Ltd, Mahindra & Mahindra
Financial Services Ltd, Kotak Mahindra Prime Ltd and Sundaram Finance Ltd under hire purchase schemes,
secured by hypothecation of vehicles owned by the Company.
29. Dues to Micro and Small Enterprises
As per the information available with the company, it appears that no dues outstanding for more than 30 days in
excess of Rs.1.00 Lakh as on 31st March 2025 in respect of Small Scale Industrial Undertakings. It is reported
that there are no specific claims on the company from the small-scale industrial supplier under the “Interest on
Delayed Payments to small Scale and Ancillary Industrial Undertaking Act, 1993" during the said year.
31. There are no debts outstanding as on 31 st March 2025 from Directors or other officers of the company other than
imprest cash in orderto meet running expenses.
32. Segment Reporting:
a) Business Segment
The company's business consists of one primary reportable business segment of manufacturing of sugar boiled
candies & toffees and consists of major revenue on account of processing charges; hence no separate disclosure
is required in the context of Indian Accounting Standard 108 “Operating Segment*.
b) Geographical Segment:
During the period under report, the Company has engaged in its business primarily within India with tv/o
manufacturing facilities including of leasehold unit. The conditions prevailing in India being uniform, no separate
geographical disclosure is considered necessary. The Company has following reportable geographical segments
based on location of its customers:
(i) Revenue from customers within India - Domestic
(ii) Revenue from customers outside India - Exports
Revenues are attributed to geographical areas based on the location of the customers as detailed below:
34. Earnings per Share (EPS)
The earnings considered in ascertaining the company’s Earnings per share comprise of net profit after tax. The
number of shares used in computing Basic earnings per share is the weighted average number of shares
outstanding during the year. The numerators and denominators used to calculate earnings per share.
35. Taxes on income
The company made necessary provision for income tax as perthe provisions of income tax act, 1961.
36. Financial riskmanagementand policies
36.1 Capital risk managemenl
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.
36.2 Financial risk management
The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance and supportthe Company's operations. The Company’s principal
financial assets comprise investments, cash and bank balance, trade and other receivables.
The Company is exposed to various financial risks such as market risk, credit risk and liquidity risk. The financial
risks are identified, measured and managed in accordance with the Company's policies and risk objectives.
a. Market risk
The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates
and changes in interest rates. There have been no changes to the Company’s exposure to market risk or the
manner in which it manages and measures the risk in recent past.
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 two types of risk: interest rate risk and currency risk. Financial
instruments affected by market risk include borrowings and bank deposits.
I. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flov/s of a financial instrument will fluctuate because of
changes in market interest rates. The Company's exposure to the risk of changes in market interest rates is limited
as the Company has only fixed deposit with bank.
ii. Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's Financial Liabilities. The Company’s foreign currency risks are identified,
measured and managed at periodic intervals in accordance with the Company’s policies.
b. Credit risk
Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the
company. The Company has adopted a policy of only dealing with creditworthy customers.
In many cases an appropriate advance or letter of credit / bank guarantee is taken from the customers to cover the
risk. In other cases credit limit is granted to customer after assessing the credit worthiness based on the
information supplied by credit rating agencies, publicly available financial information or its own past trading
records and trends.
At March 31,2025, the company did not consider there to be any significant concentration of credit risk, which
had not been adequately provided for. The carrying amount of the financial assets recorded in the financial
statements, grossed up for any allowances for losses, represents the maximum exposure to credit risk.
c. Liquidity risk
The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously
monitoring forecast and actual cash flov/s and by matching the maturity profiles of financial assets and liabilities
for the Company. The Company has established an appropriate liquidity risk management framework for it’s
short-term, medium term and long-term funding requirement.
The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments:
37. Fair Value measurement
The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a
current transaction between willing parties other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair value:
(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current
liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.
(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters
such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances
are taken to accountforthe expected losses of these receivables.
A. Financial instruments by category
The carrying value and fair value of financial instruments by categories as at March 31,2025 were as follows:
40. Previous year's figures have been re grouped / and or re-arranged wherever necessary to confirm with the current
year classification.
41. Provision for accruing liability for Super Annuation / Retirement benefits have been made in the basis of the liability
as actually determined as at the year end.
42. Depreciation has been provided on the straight-line method as per the rates prescribed as of Schedule II of The
Companies Act 2013.
43. There were no employees drawing remuneration of Rs.60.00 lacs or more per annum or Rs.5.00 lacs or more per
month, if employed for part of the year.
44. Micro and Medium Scale Business Entities: There are no micro, small and medium enterprises, to whom the
company over dues, which are outstanding for more than 45 days as at 31st March 2025. This information as
required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been
determined to the extent such parties have been identified on the basis of information available with the company.
The accompanying notes referred above form an integral part of the financial statements.
As per our report of even date attached
For N G RAO & ASSOCIATES For and on behalf of the Board of Directors
Chartered Accountants 0I sampre Nutritions Limited
FRNO.009399S
CA G Nageswara Rao Brahma Gurbani Vislial R Gurbani
Partner Managing Director Director
Membership No. 207300 DIN: 00318180 DIN: 07738685
Place: Hyderabad
Date: 0% June, 2025 V.Vamshi Srinivas Krishnama Nupur
CFO Company Secretary
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