Accounting Policies of Transglobe Foods Ltd. Company

Mar 31, 2024

Note 1: Significant accounting policies Background

Transglobe Foods Limited (the company) was incorporated in India in the year 1986 as public limited
company

and is listed on Bombay stock exchange having its registered office at 603 / 604, Bldg No. 3 -115, Plot
1427, Sai Janak Classic, Devidas Lane, Borivali West, Mumbai - 400103. The Company is engaged in
activities of trading in food grains, fruits, vegetables, various type of fruit jams, tomato ketchup,
pastes, purees and varieties of pickles.

a. Basis of preparation

(i) Compliance with Ind AS

The company has prepared financial statements which comprise the Balance Sheet as at 31 March,
2024, the Statement of Profit and Loss for the year ended 31 March, 2024, the Statement of Cash Flows
for the year ended 31 March, 2024 and the Statement of Changes in Equity for the year ended as on
that date, and accounting policies and other explanatory information for the year ended March 31,
2024 in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the
Companies Act, 2013 (the Act), Companies (Indian Accounting Standards)Rules, 2015 and other
relevant provisions of the Act together with comparative period data as at and for the year ended
March 31, 2023.

(ii) Historical Cost Convention

The financial statements have been prepared on a historical cost basis.

(iii) Current versus Non-Current Classification

The Company presents assets and liabilities in the standalone balance sheet based on current/
noncurrent classification.

An asset is treated as current when it is:

i. Expected to be realised or intended to be sold or consumed in normal operating cycle,

ii. Held primarily for the purpose of trading,

iii. Expected to be realised within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period

All other assets are classified as non-current. A liability is current when:

i. It is expected to be settled in normal operating cycle,

ii. It is held primarily for the purpose of trading,

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities. Operating cycle for
current and non-current classification

The operating cycle is the time between the acquisition of assets for processing and their realisation in
cash and cash equivalents. The Company has identified twelve months as its operating cycle.

b. Revenue Recognition

Revenue from contracts with customers is recognised when control of the goods and services are
transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services.

Allocation of transaction price to performance obligations - A contract''s transaction price is allocated
to each distinct performance obligation and recognised as revenue, when, or as, the performance
obligation is satisfied. To determine the proper revenue recognition method, the Company evaluate
whether two or more contracts should be combined and accounted for as one single contract and
whether the combined or single contract.

(iii) Interest Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding
and the applicable interest rate.

(iv) Dividend Income

Dividend Income from investments is recognized when the Company''s right to receive the amount
has been established (provided that it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably) which is generally when shareholder approves
the dividend and it is probable that economic benefit associated with the dividend will flow to the
company and the amount of dividend can be measured reliably.

c. Tax Expense

The tax expense for the period comprises current tax and deferred income tax. Tax is recognized in
the statement of income except to the extent it relates to items directly recognized in equity or in other
comprehensive income.

(i) Current Tax:

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the
Balance sheet date.

(ii) Deferred Tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit.

Deferred tax assets are recognized to the extent it is probable that taxable profit will be available
against which the deductible temporary difference and the carry forward of unused tax credit and
unused tax losses, if any, can be utilized.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have
been enacted or substantively enacted by the end of the reporting period. The carrying amount of
deferred tax liabilities and assets are reviewed at the end of each reporting period.

(iii) Minimum Alternate Tax: MAT credit is recognised as an asset only when and to the extend there
is convincing evidence that company will pay higher than the computed under MAT, during the
period that MAT is permitted to be set off under the Income Tax Act, 1961.

d. Cash and cash equivalents

For the purposes of presentation in the statement of cash flows, cash and cash equivalents include
cash on hand, in banks and other short-term highly liquid investments with original maturities of
three months or less that is readily convertible to known amounts of cash and which are subject to
insignificant risk of change in value.

e. Trade Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method, less provision for impairment, if any.

A. Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not
recorded at fair value through profit or loss transaction costs that are attributable to the acquisition of
the financial asset. Purchase and sale of financial assets are recognised using trade date accounting.

B. Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is
to hold the asset 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.

b) Financial assets at fair value through other comprehensive income (FVOCI)

A financial asset is measured at FVOCI if it is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets 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.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised for those
equity investments for which the Company has elected to present the value changes in ''Other
Comprehensive Income''.

D. Impairment of financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no
significant financing component is measured at an amount equal to lifetime ECL. The amount of
expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to
the amount that is required to be recognized is recognized as an impairment gain or loss in profit or
loss.

(ii)Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable
cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance
cost.

B. Subsequent measurement

(i) Trade and other payables:

These amounts represent liabilities 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 30 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 recognised initially at their fair value and
subsequently measured at amortized cost using the effective interest method.

(ii) Loans and borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognised in profit or loss when the

liabilities are derecognised as well as through the Effective Interest Rate (EIR) amortisation process.
The EIR amortisation is included as finance costs in the statement of profit and loss. This category
generally applies to borrowings.

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Mar 31, 2015

Basis of Preparation of Financial statement.

The financial statements of Transglobe Foods Limied have been prepared and presented in accodance with Generally Accepted Accounting Principles (GAAP) on the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by Central Government of India under the relevant provision of Companies Act, 2013

Use of Estimates

The preparation of financial statements is in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of the financial statements and reported amounts of income and expenses during the period.

Revenue Recognition:

The Company follows the mercantile system of Accounting and recognizes income and expenditure on accrual basis

Investments:

Investments are stated at cost i.e., cost of acquisition, inclusive of expenses incidental to acquisition wherever applicable.

Fixed Assets & Depreciation

Fixed Assets are stated at cost less Depreciation. Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on addition / deletions is calculated on pro- rata with respect to date of addition / deletions.

Taxation:

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company. Deferred tax asset and liability is recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax asset & liability are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Earnings per Share:

The earning considered in ascertaining the company's earnings per share comprises 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.

Impairment of Assets :

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital

Gratuity:

No provision for gratuity has been made as no employee has put in qualifying period of service for entitlement of this benefit

Under the Micro Small and Medium Enterprises Development Act ,2006, certain disclourses are required to be made relating to Micro,Small and Medium Enterprises. The company is in the process of compling relevant information from its suppliers about their coverage under the Act . Since the revelant information is not presently available, no disclosures have been made in the accounts.

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Mar 31, 2014

A. System of Accounting :

I. The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

II. The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

III. The Company, generally, follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

IV. The company has suspended manufacturing activities during the year 2003-04 and there are no intentions to resume the manufacturing activities. In spite of this facts the accounts have been prepared on the basis of going concern.

B. Fixed Assets :

Fixed assets are stated at cost less accumulated Depreciation . However depreciation has been provided on written down value method as prescribed in schedule XIV to the companies Act, 1956.

C. Revenue Recognition :

Revenue from Sales is recognized when all significant risks and rewards of the ownership have been transferred to buyer.

Revenue from Services rendered is recognized on accrual basis as per contractual arrangement with the parties.

D. Income Tax :

Tax expense comprises both current and deferred taxes. Current income- tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realised against future taxable profits. Unrecognised deferred tax assets of earlier years are re-assessed and recognised to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realised.

E. Provisions :

A provision is recognised when an enterprise has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liability is not recognized in the financial statements but is disclosed.

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Mar 31, 2013

A. System of Accounting :

I. The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

II. The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

III. The Company, generally, follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

IV. The company has suspended manufacturing activities during the year 2003-04 and there are no intentions to resume the manufacturing activities. In spite of this facts the accounts have been prepared on the basis of going concern.

B. Fixed Assets :

Fixed assets are stated at cost less accumulated Depreciation . However depreciation has been provided on written down value method as prescribed in schedule XIV to the companies Act, 1956.

C. Revenue Recognition :

Revenue from Sales is recognized when all significant risks and rewards of the ownership have been transferred to buyer.

Revenue from Services rendered is recognized on accrual basis as per contractual arrangement with the parties.

D. Income Tax :

Tax expense comprises both current and deferred taxes. Current income- tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realised against future taxable profits. Unrecognised deferred tax assets of earlier years are re-assessed and recognised to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realised.

E. Provisions :

A provision is recognised when an enterprise has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liability is not recognized in the financial statements but is disclosed.

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Mar 31, 2012

1) GENERAL:

i. The financial statement have generally been prepared on the historical cost conversion

ii. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2) Basis of Accounting:

The Company follow the Mercantile system of accounting and recognizes income and expenditure on accrual basis.

3) Fixed Assets:

Fixed assets are stated at cost of less accumulated depreciation. No depreciation has been provided during the year under consideration as no business activity was taken the year.

4) Investment: Investments are stated at cost.

5) Revenue Recognition:

Sales are stated net of trade discount, rebates and sales tax.

6) Miscellaneous Expenditure:

Expenses capitalized towards Public Issue, Product launching, Post issue expense and other Expenses are amortized at flat rate @10 % on reducing balance.

7) Deferred Tax

The deferred tax is recognized for all temporary difference subject to the consideration of prudence and at currently available rates. Deferred Tax assets are recognized only if virtual certainty that they will be realized.

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Mar 31, 2011

1) GENERAL:

i. The financial statement have generally been prepared on the historical cost conversion

ii. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2) Basis of Accounting:

The Company follow the Mercantile system of accounting and recognizes income and expenditure on accrual basis.

3) Fixed Assets:

Fixed assets are stated at cost of less accumulated depreciation. No depreciation has been provided during the year under consideration as no business activity was taken the year.

4) Investment: Investments are stated at cost.

5) Revenue Recognition:

Sales are stated net of trade discount, rebates and sales tax.

6) Miscellaneous Expenditure:

Expenses capitalized towards Public Issue, Product launching, Post issue expense and other Expenses are amortized at flat rate @10 % on reducing balance.

7) Deferred Tax

The deferred tax is recognized for all temporary difference subject to the consideration of prudence and at currently available rates. Deferred Tax assets are recognized only if virtual certainty that they will be realized.

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Mar 31, 2010

1) GENERAL:

i. The financial statement have generally been prepared on the historical cost conversion

ii. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2) Basis of Accounting:

The Company follow the Mercantile system of accounting and recognizes income and expenditure on accrual basis.

3) Fixed Assets:

Fixed assets are stated at cost of less accumulated depreciation. No depreciation has been provided during the year under consideration as no business activity was taken the year.

4) Investment: Investments are stated at cost.

5) Revenue Recognition:

Sales are stated net of trade discount, rebates and sales tax.

6) Miscellaneous Expenditure:

Expenses capitalized towards Public Issue, Product launching, Post issue expense and other Expenses are amortized at flat rate @10 % on reducing balance.

7) Deferred Tax

The deferred tax is recognized for all temporary difference subject to the consideration of prudence and at currently available rates. Deferred Tax assets are recognized only if virtual certainty that they will be realized.