12. Provisions
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. If
the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
13. Contingent liabilities
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
14. Financial instruments
a. Financial Assets
Purchase and sale of Financial Assets are recognized using trade date accounting. Trade receivables that do not contain
a significant financing component are measured at transaction price. All other equity investments are measured at fair
value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which
the Company has elected to present the value changes in ‘Other Comprehensive Income’. However, dividend on
such equity investments are recognised in Statement of Profit and loss when the Company’s right to receive payment
is established. Other Financial Assets are generally measured at Fair Value Through Profit or Loss (FVTPL) except
where the Company, based on the business model objectives, measures these at Amortised Cost or Fair Value Through
Other Comprehensive Income (FVTOCI). The Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating
impairment of Financial Assets other than those measured at Fair Value Through Profit and Loss (FVTPL).
Expected credit losses are measured through a loss allowance at an amount equal to:” 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 “ Full lifetime expected credit losses (expected credit losses that result
from all possible default events over the life of the financial instrument). For Trade Receivables, the Company
applies ‘simplified approach’ which requires expected lifetime losses to be recognised from initial recognition of
the receivables.The Company uses historical default rates to determine impairment loss on the portfolio of trade
receivables. At every reporting date these historical default rates are reviewed and changes in the forward-looking
estimates are analysed. For other assets, the Company uses 12 month ECL to provide for impairment loss where there
is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.
b. Financial liabilities
For trade and other payables maturing within one year from the balance sheet date, the carrying amounts are determined
to approximate fair value due to the short maturity of these instruments.
III. Critical accounting judgements and key sources of estimation uncertainty
The preparation of the Company’s Financial Statements requires management to make judgement, estimates and assumptions
that affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in next financial years.
Provision and contingent liabilities
On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses
that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are
considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the
likelihood of which is remote are not disclosed in the financial statements. Gain which are contingent are not recognized until
the contingency has been resolved and amounts are received or receivable.
Useful lives of depreciable assets
Management reviews the useful lives of depreciable assets at each reporting period. As at 31st March, 2025 management assessed
that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the
useful lives as compared to previous year.
(d) Rights, Preference and Restrictions attached to the Shares:
The Company has only one class of equity shares having face value of ' 10 each. The holder of the equity share is entitled to
dividend right and voting right in the same proportion as the capital paid-up on such equity share bears to the total paid-up
equity share capital of the Company. In the event of liquidation of the Company, the holders of equity shares will be entitled to
receive the remaining assets of the Company in the same proportion as the capital paid-up on the equity shares held by them
bears to the total paid-up equity share capital of the Company.
Actuarial valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary
over time. These plans typically expose the Company to actuarial risks such as: interest risk, longevity risk and salary risk as below:
Interest risk. A decrease in the bond interest rate will increase the plan liability.
LongevityriskiThe present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will
increase the plan‘s liability.
Salary risk.The present value of the defined plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan‘s liability.
FINANCIAL INSTRUMENTS
The Company’s activities expose it to market risk, credit risk and liquidity risk. Company’s overall risk management focus on the
unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance.
Valuation Methodology
All financial instruments are initially recognized and subsequently re-measured at fair value as described below:
a) The fair value of the financial instruments if any, is determined using discounted cash flow analysis.
b) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.
1. Market Risk
Market risk is the risk of loss of the future earnings, fair values or future cash flows that may result from a change in the price
of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, commodity
prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk
sensitive financial instruments including instruments and deposits, foreign currency receivables, payable and borrowings.The
Company’s commodity risk is managed centrally through well-established trading operations and control processes.
2. Credit Risk
Credit risk arises when a customer or counter party does not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk on its operating activities (primarily trade receivables) and
from its financing / investing activities. Including deposits with banks. The Company has a prudent and conservative process
for managing its credit risk arising in the course of its business activities. The Company is receiving payments regularly from
its customers and hence the Company has no significant credit risk.
3. Liquidity Risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet obligations on time or at reasonable price.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding
through an adequate amount of credit facilities to meet obligations when due. The Company’s treasury team is responsible for
liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior
management. Management monitors the Company’s liquidity position through rolling forecasts based on expected cash flows.
SEGMENT INFORMATION
The Company is primarily engaged in the manufacturing of Chocolates, Cocoa Products and other similar nature of products. The
Company operates in a single reporting segment, hence there is no reportable segment as per requirements of Indian Accounting
Standard 108 on ‘Operating Segments’. The chief operational decision maker monitors the operating results of the Company’s business
for the purpose of making decisions about resource allocation and performance assessment.
NOTE 34:
DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186 (4) OF THE
COMPANIES ACT, 2013
(i) There are no investments made by the Company during the year ended 31st March 2025.
(ii) There are no Guarantees issued or loans given by the company during the year ended 31st March 2025.
NOTE 35:
OTHER STATUTORY INFORMATION
(i) The Company does not have any transactions with struck off companies.
(ii) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
(a) 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
(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(iii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Group shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iv) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(vi) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.
(vii) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.
(ix) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.
(x) The stock statements filed by the Company with the banks and financial institutions are consistent with the books of accounts.
(xi) The Company does not have any charges or satisfaction which is yet to be registered with the Register of Companies beyond
the statutory period.
(xii) The capital work-in-progress is not overdue as at the year end.
(xiii) The deeds of immovable properties are held in the name of the Company.
NOTE 36:
The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them comparable.
NOTE 37:
The Financial statements were approved for issue by the Board of Directors on 21st April, 2025.
For Deloitte Haskins & Sells LLP For and on behalf of the Board
Chartered Accountants
(Film Registration No. 117366W/W-100018) Dipak C. Jain K. Sudarshan Riddhi Bhimani Krishnakumar Thirumalai
Chairman Director Director Director
Varsha A. Fadte (DIN: 00228513) (DIN: 01029826) (DIN: 10072936) (DIN: 00079047)
Partner
Membership No 103999 Ketan Mody Asim Parekh Renuka Shastry Abhijeet Pai
Director Director Director Director
(DIN: 07723933) (DIN: 00056125) (DIN: 02578917) (DIN: 02100465)
Aditya Pai Sandipan Ghosh S Gautham Utsav Saini
Director Chief Executive Officer Chief Financial Officer Company Secretary &
Date: 21st April, 2025 (DIN: 07538946) Compliance Officer
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