Accounting Policies of Goldcoin Health Foods Ltd. Company

Mar 31, 2024

NOTE: 1.1 SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting policies adopted in the preparation of these standalone financial statements.
These Policies have been consistently applied to all the years presented, unless otherwise stated.

(i) Corporate Information

Goldcoin Health Foods Limited (bearing CIN L15419GJ1989PLC012041) was incorporated on March 27, 1989 under the
Companies Act, 1956 with the Registrar of Companies of Ahmedabad. The Company is currently engaged in the business of
dealing and trading in milk and other related materials on retail as well as on wholesale basis. The Company is listed on Bombay
Stock exchange (BSE) [Script code: GOLDCOIN],

(ii) Basis Of Preparation

The financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the
‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (‘Act’) read with of
the companies (Indian Aecounting Standards) Rules, 2015 as amended from time to time and other aceounting principal generally
accepted in India.

(iii) Basis of Measurement

These financial statements prepared and presented under the historical cost convention with the exception of certain assets and
liabilities that are required to be carried at fair value by Ind AS. The fair value is the price that would be received to sell an asset
or paid to transfer liability in an orderly transaction between the market participant at the measurement date.

The Financial Statements have been presented in Indian Rupees (INR), whieh is also the eompany’s function currency. All values
are rounded off to the nearest rupees, unless otherwise indicated.

(iv) Revenue Recognition

Effective 1st April, 2018, the Company has applied Ind AS 115 - Revenue from Contracts with Customers. Pursuant to adoption
of Ind AS 115, Revenue from contracts with customers are recognized when the control over the goods or services promised in
the contract are transferred to the customer. The amount of revenue recognized depicts the transfer of promised goods and
services to customers for an amount that reflects the consideration to which the Company is entitled to in exchange for the

goods or services.

(v) Use of Estimates

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the eompany and
are based on historical experience and various other assumptions and factors (including expectations of future events) that the
company believes to be reasonable under the existing circumstances. Difference between actual results and estimates are recognized
in the period in which the results are known/materialized. The said estimates are based on the facts and events, that existed as at
the reporting date, or that occurred after that due provide additional evidence about conditions existing as at the reporting date.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized
in the period in which the estimates are revised and future periods affected. Significant judgements and estimates about the
carrying amount of assets and liabilities include useful lives of tangible and intangible assets, impairment of tangible assets,
intangible assets ineluding goodwill, investments, employee benefits and other provisions and recoverability of deferred tax

assets.

(vi) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a
noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the
Company are segregated.

(vii) Property, Plant and Equipment (PPE)

All items of property, plant and equipment are stated at historical cost of acquisition/construction (net of recoverable taxes) less
accumulated depreciation and impairment losses, if any.

Freehold land is carried at historical cost. Subsequent costs are included in asset’s carrying amount or recognized at a separate
asset, as appropriate, only when it is probable that future eeonomie benefits assoeiated with the item will flow to the group and
the cost of the item measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized
when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are
incurred.

Historical cost includes expenditure that is directly attributable to the acquisition as well as construction/installation of the items.
Rehabilitation and resettlement expenses incurred after initial acquisition of the assets are expensed to profit or loss in the year
in which they are incurred.

The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respeetive
asset if the recognition criteria for a provision are met.

Capital Work-in-progress includes expenditure that is directly attributable to the acquisition/construction of assets, which are yet
to be commissioned.

An item of property, plant or equipment is derecognized upon disposal or when no future economic benefits are expected to arise
from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is recognized in the statement of profit and loss.

Depreciation on Property, Plant & Equity (PPE) is provided in the manner prescribed in Schedule II to the Companies Aet, 2013
read with relevant circulars issued by the Department of Company Affairs. Depreciation on assets acquired/disposed off during the
year is provided on pro-rata basis.

Depreciable amount of an asset is the cost of an asset less its estimated residual value. Depreciation on PPE, including assets
taken on lease, other than freehold land is charged based on Written down method on an estimated useful life as prescribed in
Schedule IT to the Comnanies Act 2013.

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Mar 31, 2015

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated as prescribed in Companies Act, 2013 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.

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Mar 31, 2014

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated at the rates provided as per Companies Act, 1956 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.

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Mar 31, 2013

(i) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

(ii) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

(iii) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are value at cost less depreciation. The depreciation has been calculated at the rates provided as per Companies Act, 1956 on single shift and if the Asset is purchased during the year depreciation is provided on the days of utilisation in that year.

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Mar 31, 2012

1. Bases of Accounting :

The financial statemeHits are prepared under the historical cost convention or [he Accrual Concept of accountancy in accordance with the accounting principles generally accepted In India and they comply with the Accounting Stardards prescribed in the Companies Accounting Standard! Rules, 2006 issued by the Central Governmcdt to the extent appl-cjple and with the applicable provision! of the companies Act, 1956.

7 Use of Estimates ;

The preparation of Financial statements in conformity with the Accounting standards generally accepted In india requires, the management to make estimates and assumptions that affect the reported amounts of' assets and liabilities and disclosure of contingent liabilities as at the date of tt.e financial statements and reported amounts of revenues and expenses for the year Actual results could differ from These estimates. Any revision to accounting estimates is recognised prospectively In current and future periods,

3 Fixed Assets and Depreciation :

A Fixed Assets arr- stated at histcrical cost of acquistion- / construction less accumulated deprecation and impairment loss. Cost Net of input tax credit received receivable ] Includes related expend'fjre and pre-operative and project expenses for the period up to completion of ccnstrucc'on / assets are put to use The less or gain exchange rates on long term foreign currency loans attributable to fixed assets, effective From April 1, 2007 is adjusted to the cost Of respective fixed assets.

B Depreciation is provided on 'stright Line Method' it the rates prescribed in Schedule XIv thereto,

C Depreciation on impaired assets is calculated on ts residual value, if ary, on a systematic basil over its remaining useful life.

D Leasehold land is amortised Over the period of the lease.

E Trade Marks, Technical Know-hcw Fees a--d other similar rights are amories over their estimated economic life of ten years,

F Captalised costs incurred towards purchase / development of software are amortised using straight line method over Its useful life of lour years as estimated by the management' at the time of capitalisation

G Depreciation on additions I disposals the fixed assets during the year Is provided on pro-rate basis according to the period during which assets are put to use of Impairment of Assets:

The Company, at each balance sheet dlate, assesses whether-there is any Indication of Impairment of any asset end t or cash generating unit. if such Indication exists, assets are impaired by comparing carrying amount of each asset and > or cash generating unit to the recoverable amourt being higher of The net selling price or value in use. Value In use is determined from the present value of tie estimated Future cash flows from cp continuing use of the assets,

5 Borrowing Costs :

A Borrowing costs that Aft directly attributable Id the acquistion i construct ions of a qualifying asset are capitalised as part of the cost of such assets, UP to the date, the assets arc ready for their intended use

B Othpr borrowin g costs are recognised as an expense In the period in which they are Incurred,

L Sorrowing cost also include Exchange differences arising from Foreign Currency barrowings to the extent that they are regarded as an adjustment to Interest costs, 6 Investments:

A Long term and strategic investments are stated at' cost, less any dlmmution in the value other than temporary.

B Current investments, if any, are stated at lower Of post gad fair value determined On individual investment basis.

C Investments in shares of foreign subsidiary and other Companies are expressed in Indian Currency al the rales of exchange prevailing at the time when the original investments were made

7 Inventories:

A Inventory is valued at lower of cost arid net realisable value.

8 Revenue Recognition :

A service income is recognised as per the terms of contracts with the customers when it related services are performed or the agreed milestones are achieved.

B interest income Is recognised on time proportinate method.

c Revenue In respect of other Income 1s recognised when ni significant uncertainty as to its determination or realisation exists

9 Research and Development Cost:

A Expenditure on research and development If charged to the profit and loss account of the year in which it is Incurred

B Capital expenditure on reasearch and development is given the same treatment as Fixed Assets.

10. Retirement Beneflti:

A Defined contribution Plans;

The company contributes nn a defined contribution basis to Employees' Providenit Fund towards past employment benefits' all of which arc administered by the respective Government authorities, and has no further obligation beyond makig its contribution, which is expensed in the year to which it pertains.

B Defined Benefit Plans :

The gratuity scheme is administered through the Lire insurance Corporation or India [ LIC ]. The liability for toe defined benefit plan of Gratiotuy is determined on me basis of an actuarial valuation by an Independent actuary at 1he year end, which is calculated using projected Unit credit method.

Actuarial jams and losses which comprise experience adjustment and the effect of changes in actuarial assumptions are recognised ill the profit and loss Account.

C Leave Liability :

The leave encashmentenl scheme is administered through Life Insurance Cocporaticn of ndia's Employees' Group Leave Encashment tum Life Assurance [ Cash Accumulation j scheme. The employees of the company are entitled to leave as per the leave policy pf the company The liability on account of accumulated leave as on last day of the accounting year is recognised I net of the fair value of plan asset as it the balance sneet date ] at present value a1 the defined obligation at me balance sheet date based of the actuarial valuation cabled Out by an independent actuary using projected unit credit method.

11 Employee Separation Casts :

The compensation paid to the employees under Voluntary Retirement Scheme is expensed in the year of payment,

12 Provision for Bad and Doubtful Debts ! Advances :

Provision is made In accounts for Odd and doubtful debts t advances which in the opinoce of the management are considered doubtful of recovery.

13 Taxes or income :

A Tax expenses comprise of Current and deferred Lax.

B Current tax Is Measured at the amount expected to be paid on the basis of reliefs and deductions available inaccordance wiTh the provisions of the -ncome tax Act, 1961.

C Dclerred tax reflects the impact of current year timing differences between accounting and taxable Income and reversal oftiminf differences of cor her years. Deferred lax is measured based on the tax rates and taws that have been enacted pr substantively enacted as of the palance Sheet date. Deferred tax assets a'e recognised only to the extent there is reasonable certainty that sufficient future taxable income will be avalable againsl which such deferred tax assets can be realised and are reviewed at each balance sheet date-

14 Provisions, Contingent Liabilities and Contingent Assets :

provision, is recognised when the company has a p-tesent Obligation as a result of past events and It is probable that the outflow of resources wilt be required to settle the obligation and in respect of which reliable estimates can be made. A disclosure for contingent liability Is mace when there is a possible obligation, that may, but probably wilt not require an outflow of resources. When there is a possible Obligation or a present obligation in respect of Which the likellihood of outflow of resources Is remote, no provision f disclosure is made, Contingent assets are not recognised in the financial statements Provisions and contingencies are reviewed at each balance sheet date ard adjusted to reflect the correct management estimates.

15 the Company had made Advances of Rs. 55,78 Lacs for purchase of Capital Goods. Neither the Capital Goods are purchased nor advances are refunded to the company. NO Provision has been made in accounts in respect of Such doubtful advances.

16 Hit the year ended Hatch 31, 2D12, the company was using pre- revised Scheou-e VI to the Compan-es Act, 1956 for preparation and presentation of its financial Statements. During the year ended March 31, 2D-2, tile revised Schedule VI Stifled under Companies Act '956 has become applicable to the company, The company has reclassified p'eviouiyea' figures to conform to this years classification, ftir udopilun of revised schedule VI does not impact recognition and reasuremtht principles lui.owcri lo_ preparation of fina-rial statements. However, it s-grii I'canity Imparts present at on end diSclousers made in the financial statements, particularly presentation of Balance Sheet.

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Mar 31, 2011

1. Accounting convention:

The financial statements are prepared in accordance with the accounting principles generally accepted in India (Indian GAAP) and comply with the companies (Accounting Standards) Rules, 2006, issued by the central Government and relevant provisions of companies act, 1956 and are based on the historical cost convention as modified to include the revolution of certain fixed assets.

2. USE of Estimates :

Preparation of financial statement in conformity accepted accounting principles require management to make estimates and assumptions that effect the reported amounts of the financial statements and accompanying notes. Difference between the actual results and estimates, are recognized in the period in which the result are known/ materialized.

3. Fixed Assets and Depreciation & Impairment:

Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairments loss. Other attributable cost incurred for bringing the fixed assets to its intended use are added to the cost of fixed assets. Adjustments arising from exchange rate valuation relating to transaction in foreign currencies attributable to fixed assets are capitalized.

Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in Schedule XIV of the companies act, 1956.

The carrying amount of assets is reviewed at each balance sheet date for and indication of impairment based on internal/ external factors. An impairment loss is recognized wherever the carrying amount is measured as the higher of the net selling price & the value in use determined by the present value of estimated future cash flows.

4. Investments:

Investments are classified as long term investments and are stated at cost. A provision for diminutions in the value of long term investments is made for each investment individually, only if such decline is other than temporary.

5. Inventories:

Inventories are valued as under:

Inventory Valuation Method

Finished Goods At cost or net realizable value whichever is lower

Machinery Parts At lower of cost or net realizable value. Cost is determined on "Weighted Average Basis".

6. Revenue recognisation :

Sales are shown net of damages, trade discount and special scheme discount sales do not include value added tax.

7. Foreign Currency Transactions :

Transaction denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction.

Assets and liabilities related to foreign currency transaction remaining unsettled at the end of the year are translated at the year end rates and those covered by forward exchange contracts are translated at the rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference having been recognized over the life of the contract. The difference in the translation of current assets and current liabilities is recognized in the profit & loss account.

8. Provision, Contingent Liabilities and contingent assets :

Provision are recognized when the company has present legal or constructive obligation, as /a result of past events, for which 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 for the amount of the obligation. These are reviewed at each year end and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed by way on notes to Accounts.

Contingent Assets are neither recognized nor disclosed in the financial Statements.

9. Contingencies and events occurring after balance sheet date :

All contingencies and events occurring after balance sheet date which have a material effect on the financial position of the company are considered for preparing the financial statements.

10. Borrowing cost:

Borrowing cost utilized for acquisition, construction or production of qualifying assets are capitalized as part of cost of such assets till the activities necessary for its intended use are complete. All other borrowing cost are charged in statement of profit and loss of the year in which incurred.

11. Taxes on Income and Expenses :

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is reasonable certainty of realization of such assets. Other deferred tax assets recognized only to the extent there is reasonable certainty of realization in future. Such assets a are reviewed at each Balance sheet date to reassess realization.

12. Miscellaneous Expenditure :

Upfront interest paid on restructuring of term loans is amortized over the tenure of such /loans