O. Provisions and contingent liabilities
Provisions are recognized when there is 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.
The expenses relating to a provision is presented in the Statement of Profit and Loss net of
reimbursements, if any. If the effect of the time value of money is material, provisions are discounted
using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognized as a finance
cost.
Contingent liabilities are possible obligations whose existence will only be confirmed by future events not
wholly within the control of the Company, or present obligations where it is not probable that an outflow
of resources will be required or the amount of the obligation cannot be measured with sufficient
reliability.
Contingent liabilities are not recognized in the financial statements but are disclosed unless the
possibility of an outflow of economic resources is considered remote.
Contingent liabilities and capital commitments disclosed are in respect of items which in each case are
above the threshold limit.
R. Employee benefits(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled
wholly within 12 months after the end of the period in which the employees render the related
service are recognised in respect of employees' services up to the end of the reporting period and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are
presented as current employee benefit obligations in the balance sheet.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12
months are measured as the present value of expected future payments to be made in respect of
services provided by employees up to the end of the reporting period using the projected unit
credit method. The benefits are discounted using the Government Securities (G-Sec) at the end of
the reporting period that have terms approximating to the terms of the related obligation. Re¬
measurements as a result of experience adjustments and changes in actuarial assumptions are
recognised in the Statement of Profit and Loss.
The obligations are presented as current liabilities in the balance sheet if the entity does not have
an unconditional right to defer settlement for at least twelve months after the reporting period,
regardless of when the actual settlement is expected to occur.
(iii) Post-employment obligations
The Company operates the following post-employment schemes:
(a) defined benefit plans such as gratuity; and
(b) defined contribution plans such as provident fund.
Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is
the present value of the defined benefit obligation at the end of the reporting period less the fair
value of plan assets. The defined benefit obligation is calculated annually by actuaries using the
projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets. This cost is included in employee benefit
expense in the Statement of Profit and Loss.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in the period in which they occur, directly in other comprehensive
income. They are included in retained earnings in the statement of changes in equity and in the
balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in profit or loss as past service cost.
Defined Contribution Plans
The Company pays provident fund contributions to publicly administered provident funds as per local
regulations. The Company has no further payment obligations once the contributions have been paid. The
contributions are accounted for as defined contribution plans and the contributions are recognised as
employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the
extent that a cash refund or a reduction in the future payments is available.
S. Earnings Per Share(i) Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year, adjusted
for bonus elements in equity shares issued during the year and excluding treasury shares.
(ii) Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic earnings per
share to take into account:
- the after income tax effect of interest and other financing costs associated with dilutive
potential equity shares, and
- the weighted average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.
3. New and Amended Standards:
The Ministry of Corporate Affairs ("MCA"), vide the Companies (Indian Accounting Standards) Amendment Rules,
2025 and the Companies (Indian Accounting Standards) Second Amendment Rules, 2025, notified certain
amendments to Ind AS which are effective for annual reporting periods beginning on or after 1 April 2025. The
Company has applied these amendments for the first time in the preparation of these financial statements. The
amendments, to the extent relevant to the Company, are set out below:
• Ind AS 21, The Effects of Changes in Foreign Exchange Rates — Lack of Exchangeability: introduces
requirements for assessing whether a currency is exchangeable into another currency and, where it is
not, for estimating the spot exchange rate to be used, together with related disclosures.
• Ind AS 1, Presentation of Financial Statements — Classification of Liabilities as Current or Non-current /
Non-current Liabilities with Covenants: clarifies the criteria for classifying liabilities as current or non¬
current, including the effect of covenants on the entity's right to defer settlement of a liability.
• Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures — Supplier Finance
Arrangements: introduces disclosures enabling users to assess the effect of supplier finance
arrangements on the entity's liabilities, cash flows and exposure to liquidity risk.
• Ind AS 12, Income Taxes — International Tax Reform: Pillar Two Model Rules: provides a mandatory
temporary exception from recognising and disclosing deferred tax arising from Pillar Two income taxes,
and requires specified disclosures for entities within the scope of such rules.
These amendments do not have a material impact on the financial statements of the Company.
Nature of Reserve & Surplus
Retained Earnings
Retained Earnings are the net profit that the Company has earned/ incurred till date, less any transfer to general reserve, dividends or other distributions paid to
shareholders.
Security Premium
This reserve arises on the issue of share capital at a premium in accordance with sanction 52 of the Companies Act, 2013. It captures the excess of issue price of
equity shares over their nominal value and represents non-distributable equity. This reserve provides a buffer for corporate actions such as bonus issue and
premium on redemption of preference shares.
Other items of OCI
Other Comprehensive income includes re-measurement (loss)/ Gain on defained benefit plans net of taxes.
Money received against share warrants
The Company has received share application money against the issue of share warrants. Such amounts have been presented under Other Equity as they are of
Note 38 Defined Benefit Plans
- The Company operates a Gratuity plan as a defined benefit plan covering eligible employees, to provide a lumpsum payment to vested employees at
retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of
employement.
Sensitivity Analysis
- The Sensitivity analysis have been determined based on reasonably possible changes of respective assumptions occurring at the end of the
reporting period. While holding all other assumptions constant. The sensitivity analysis presented above may not be representative of the actual
change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of
assumptions may be correlated.
- The Present value of the Defined benefit Obligation been calculated using the Projected Unit Credit Method at the end of the reporting period, which is
the method as applied in calculating the Defined Benefit Obligation as recognised in the balance Sheet.
Asset-Liability Matching Strategy
- There are no minimum funding requirements for a Gratuity Benefits plan in India and there is no compulsion on the part of the Company to fully or
partially pre-fund the liabilities under the Plan.
- Since the liabilities are unfunded, there is no Asset-Liability Matching strategy decided for the plan.
Note 43 Segment Reporting
Business Segment
The Company's operations fall under two operating segment "Milk and Milk Products" & "Namkeen Products". However on the basis of management's
evaluation of the namkeen products segment, the segment does not meet quantitative thresholds criteria, hence, segment reporting is not applicable
as per Indian Accounting Standard (Ind AS) - 108 - Segment Reporting.
- There are no provisions for doubtful debts or amounts written off or written back in respect of debts due to or due from related parties, Currently
there are no outstanding from any related party.
- Related party relationship is as identified by the Company on the basis of information available with them.
- There are no outstanding from any related party or any outstanding to related party.
Note 45 Financial Instrument
Financial Risk Management - Objectives and Policies
The Company's business activities are exposed to a variety of financial risks, viz liquidity risk, market risk and credit risk. The Management of the
Company has the overall responsibility for establishing and governing the Company's risk policy framework. The risk management policies are
formulated after the identification and analysis of the risks and suitable risk limits and controls are set which are monitored & reviewed periodically.
The changes in the market conditions and allied areas are accordingly reflected in the changes of the policy. The key risks and mitigating actions are
placed before the Audit Committee of the Company who then evaluate and take the necessary corrective action.
The Company has exposure to the following risks arising from the financial instruments; as described below:
- The fair value of cash and cash equivalents, other bank balances, trade receivables, loans receivable, investments and other financial assets,
borrowings, trade payable, trade credits, and other financial assets and liabilities approximate their carring amount largely due to the nature of these
instruments. accordingly, the carring value of such loans approximate fair value.
B Market Risk
The Company's size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:
• Currency risk; and
• Interest rate risk
The above risks may affect the Company's income and expenses, or the value of its financial instruments."
(a) Interest Rate Risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of
fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets /borrowings are measured at fair value
through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of
fluctuations in the interest rates.
(b) Foreign Currency Risk
The Company is subject to the risk that changes in foreign currency values impact the Company's exports revenue and imports of raw material. The risk
exposure is with respect to various currencies viz. USD. The risk is measured through monitoring the net exposure to various foreign currencies and the
same is minimized to the extent possible.
(i) Exposure to Foreign Currency Risk
The Company had no outstanding derivative instruments. The amount of foreign curency exposure (unhedged) are as under:
C. Credit Risk
Credit risk is the risk of financial loss to the Company if the counterparty fails to meet its contractual obligations. The Company is exposed to credit risk
from its operating activities (primarily trade receivables). However, the credit risk on account of financing activities, i.e., balances with banks is very low,
since the Company holds all the balances with approved bankers only.
(i) Cash and Cash Equivalent and Bank Balance
- Cash holdings and balances with banks are placed with reputable financial institutions having high credit ratings. Accordingly, the credit risk
associated with these balances is considered minimal.
(ii) Loans and Other Financial Assets measured at Amortized Cost
- Loans and other financial assets are primarily extended to employees. The Company evaluates the creditworthiness of such parties before granting
loans and monitors recoverability on an ongoing basis.
(iii) Trade Receivable
- Trade receivables arise from the Company's operating activities. The Company applies the simplified approach under Ind AS 109 to measure lifetime
ECL on trade receivables. Credit risk is managed by evaluating the financial condition of customers, setting appropriate credit limits, and monitoring
outstanding balances. Historical collection patterns and current market conditions are considered in estimating impairment allowances.
(iv) Expected Credit Losses:
The Expected Credit loss allowance is based on the ageing of the receivables are due and the rates as given in the table below. The provision at the end
of the reporting period is as follows.:
D. Liquidity Risk
Liquidity risk is the risk the Company faces in meeting its obligations associated with its financial liabilities. The Company's approach in managing
liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, Management
considers both normal and stressed conditions.
Note: - CC Facility is gets renewed every year.
Maturities of Financial Liabilities
The Following table detail the Company's remaining contractual maturity for its financial liabilities with agreed repayment and realisation period. The tables have
been drawn up based on the undiscounted cash flows of the financial liablities based on the earliest date on which the Company can be required to pay and
realise.
The Company does not have any derivative financial liability as at the reporting date.
E. Capital Management
The Company policy is to have robust financial base so as to maintain outsider's confidence and to sustain future development of the business.
Management monitors the return on capital, as well as level of dividends to equity shareholders.The company monitors capital using a ratio of
"adjusted net debt" to "equity". For this purpose, adjusted net debt is defined as total liability, Comprising interest-bearing loans and borrowing, less
cash and cash equivalents. Total Equity includes the share capital, other equity.
46 Loans and Advances given to Related Parties
- The Company has not provided any loan and advances to any related party.
47 Title deeds of Immovable Property not held in name of the Company
- The Board of Directors of the Company is of the opinion that all assets of the Company are held in the name of the Company.
48 Details of Benami Property held
- The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami
property.
49 Wilful Defaulter
- The Company has not been declared as a wilful defaulter by any bank or financial institution, in accordance with the guidance on wilful defaulters
issued by Reserve Bank of India.
50 Relationship with Struck off Companies
- The Company does not have any transactions with struck-off companies.
51 Registration of Charge
- The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
52 Compliance with number of layers of comapanies
- The Company has complied with the number of layers of Companies as prescribed under clause (87) of section 2 of the Act read with Companies
(Restriction on number of Layers) Rules, 2017.
Note:
Earning available for Debt Service = Net Profit before taxes Non-cash operating expenses Interest other exceptional item
Debt service = Interest & Lease Payments Principal Repayments
Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability
Cost of Goods Sold = Cost of Material Consumed Purchases Changes in Inventories Other Direct expenses
Reasons for Variances
Note 1 : Improvement due to reduction in short-term borrowings. Current assets remained relatively stable, leading to stronger liquidity.
Note 2 : Significant reduction in debt obligations during the year. Equity base remained stable, resulting in healthier leverage position.
Note 3: Higher profitability increased earnings available for debt service. Lower debt servicing requirements (interest principal repayments) improved coverage.
Note 4: Shorter credit period allowed for quicker collections. Revenue growth combined with reduced receivables balance enhanced efficiency..
54 Disclosure where company has given loan or invested to other person or entity to lend or invest in another person or entity
- 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 entity/ies ("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediaries shall lend or invest in party ("Ultimate Beneficiaries") identified by or on behalf of the Company.
55 Disclosure where company has received fund from other person or entity to lend or invest in other person or entity
- The Company has not received any fund from any party(s) ("Funding Party/ies"), with the understanding, whether recorded in writing or otherwise,
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
Beneficiary") or provide any guarantee, security, or the like on behalf of the Ultimate Beneficiary.
56 Undisclosed Income
- The Company does not have any such transactions which is not recorded in the books of account that 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).
Nature of CSR activities
Promoting healthcare including preventive healthcare, distribution of food and clothes, promotion of education and animal welfare etc.
Details of related party transactions
See Note for related party transaction
58 Details of Crypto Currency
- The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
59 Contingent Assets
- There are no Contingent Assets as on 31 March, 2026 & 31 March, 2025.
60 Subsequent Events
"- Event after the reporting period are those events, favourable or unfavourable, that occur between the end of the reporting period and the date when
the financial statements are approved by the Board of Directors. The types of events can be identified:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and
(b) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period)."
- The New Labour Codes became effective 21st November 2025, resulting in increase in a past period employee benefit liability,on that liability related
Deferred tax asset has also been recognised. After the balance sheet date, while the Central Government notified the Rules on May 8, 2026, the State
Rules are yet to be notified. The impact relating to Labour Codes is subject to finalisation of rules and regulatory framework thereunder.
61 Discontinuing Operations
- There are no items related to discontinuing operations requiring separate disclosure in the Statement of Profit and Loss.
62 Other Notes
- The outstanding balance as on year end in respect of trade receivables, trade payables, loans and advances and other payables, and other receivables,
if any, are subject to confirmation from respective parties and consequential reconciliation and/or adjustments arising there from, if any. Management
of the Company, however, does not expect any material variation.
- According to the opinion of the management of the Company, the value of realization of trade and other receivables and loans and advances given in
the ordinary course of the business, if any, would not be less than the amount at which they are stated in the balance sheet.
- All lease of property are either short term lease or low value lease, so there are no Right of Use of assets and its Lease Liablity created.
63 Regrouping
- Figures of the previous year have been regrouped and/or rearranged, wherever necessary, to ensure comparability with the current year's
presentation. Such regrouping or rearrangement has also been carried out in consonance with the current year's figures, wherever required.
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