(viii) Provisions, contingent liabilities and contingent assets
Provisions are recognised at present value 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. The expense relating to a provision is presented in the statement
of profit and loss net of any reimbursement. Provisions are not recognised for future operating losses.
Where there are number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.
The measurement of provision for restructuring includes only direct expenditure arising from the restructuring, which are both
necessarily entailed by the restructuring and not associated with the ongoing activities of the company
(ix) Off Setting Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when, and only when, there
is a legally enforceable right to offset the recognized amount and there is intention either to settle on net basis or to realize the
assets and to settle the liabilities simultaneously The legally enforceable right must not be contingent on future events and must
be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or
counterparty.
(x) Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, 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, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.
(xi) Trade Receivables
Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest
method.
(xii) Trade and Other Payables
These amounts represent liability for goods and services provided to the Company prior to the end of financial year which are
unpaid. The amounts are unsecured and are usually paid within 90 days of recognition. Trade and other payables are presented as
current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at fair
value and subsequently measured at amortized cost using the effective interest rate method.
(b) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognized (i.e. removed from the Company’s balance sheet) when:
A. The contractual rights to the cash flows from the financial asset have expired, or B. The Company has transferred its
rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ‘pass-through’ arrangement; and either
i) The Company has transferred substantially all the risks and rewards of the asset, or
ii) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Company continues to recognize the transferred asset to the extent of the Company’s continuing involvement In that
case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Company could be required to
repay.
(c) Impairment of financial assets
The Company assesses impairment based on expected credit loss (ECL) model to the following:
A. Financial assets measured at amortized cost B. Financial assets measured at fair value through other comprehensive
income
Expected credit losses are measured through a loss allowance at an amount equal to:
A. The 12-months expected credit losses (expected credit losses that result from those default events on the
financial instrument that are possible within 12 months after the reporting date); or
B. Full time expected credit losses (expected credit losses that result from all possible default events over the life of
the financial instrument)
The Company follows "simplified approach’ for recognition of impairment loss allowance on trade receivables. It
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
The Company uses a provision matrix to determine impairment loss allowance for trade receivables. The provision
matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for
forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the
forward-looking estimates are analyzed.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly,
12-months ECF is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECF
is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant
increase in credit risk since initial recognition, then the Company reverts to recognising impairment loss allowance based
on 12-months ECL.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the
statement of profit and loss. The balance sheet presentation for various financial instruments is described below:
A. Financial assets measured as at amortised cost and contractual revenue receivables - ECL is presented as an
allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces
the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment
allowance from the gross carrying amount. Management has recognized 14.97 Lakhs ECL impairment Loss in
Profit and Loss Account.
B. Financial assets measured at FVOCI - Since financial assets are already reflected at fair value, impairment
allowance is not further reduced from its value. Rather, ECL amount is presented as accumulated impairment
amount in the OCI.
For assessing increase in credit risk and impairment loss, the Company combines financial instruments on the basis of
shared credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant
increases in credit risk to be identified on a timely basis.
(xvi) Financial Liabilities
a) Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in case of loans and borrowings and payables, net of
directly attributable transaction costs.
Subsequently, all financial liabilities are measured at amortised cost or at fair value through profit or loss. The Company’s
financial liabilities include trade and other payables, loan and borrowings including bank overdrafts.
b) Subsequent measurement
A. Financial liabilities measured at amortised cost
B. Financial liabilities subsequently measured at fair value through profit or loss Financial liabilities at fair value
through profit or loss include financial liabilities held for trading and financial liabilities Financial liabilities
designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of
recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPF, fair value
gains/ losses attributable to changes in own credit risk are recognized in OCT. These gains/ losses are not
subsequently transferred to profit or loss. However, the Company may transfer the cumulative gain or loss within
equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The
Company has not designated any financial liability as at fair value through profit or loss.
c) Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognized in the statement of profit or loss.
(xvii)Fair Value \
The Company measures certain finaneial instruments at fair value at each balance sheet date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either:
A. In the principal market for the asset or liability, or
B. In the absenee of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is
measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market
participants act in their best economic interest.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair
value hierarchy, described as under, based on the lowest level input that is significant to the fair value measurement as a whole:
A. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
B. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
C. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
This note summarizes the accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.
Details ot foreign exchange mentioned above are certified and provided by the Management of the company.
(xix) As certified by the company that it was received written representation from all the directors, that companies in which they are
directors had not defaulted in terms of section 164(2) of the companies Aet, 2013, and the representation from directors taken
in Board that Director is disqualified from being appointed as Director of the company.
(xx) Contributed Equity
Equity shares are classified as equity.
(a) Earnings per Share
Basic earnings per share is calculated by dividing:
-the profit attributable to the owners group
-by the weighted average number of equities shares outstanding during the year.
(b) Rounding off amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lacs as per the
requirement of Schedule III, unless otherwise stated.
For and on behalf of the board of directors As per our attached report of even date
For, Goldcoin Health Foods Limited For, V S S B & Associates
Chartered Accountants
Firm No. 121356W
Devang Shah Niraj Baid Pravinaben D Gohil (Vishves A Shah)
Managing Director & CEO Company Secretary Director (Partner)
(DIN: 00633868) (DIN: 09279658) M No:-109944
UDIN: 23109944BGTKEL9759
Date: lltt May, 2024
Place: Ahmedabad
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