1. COMPANY OVERVIEW
The Baroda Rayon Corporation Limited (CIN - L45100GJ1958PLC000892) is a public limited
company incorporated and has its registered office at P.O. Baroda Rayon, Udhna Dist., Surat -
394220 (Gujarat) in India and is listed at BSE Limited.
The company was in the business of manufacturing and sale of Viscose Filament yarn, Nylon yarn
and By product from its manufacturing facility at Udhna, Surat in Gujarat state. However entire
operational activities of this segment is stand still since August 2008.
The company added real estate business in its object clause and amended its object clause in
Memorandum of Association accordingly. Currently company is engaged in Real Estate activities.
The Board of Directors approved the standalone financial statements for the year ended March 31,
2025 and authorized for issue on May 30, 2025.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
(a) Basis of preparation and compliance with Ind AS
These financial statements have been prepared in accordance with Indian Accounting Standards (Ind
AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of
Companies Act, 2013, (the 'Act') and other relevant provisions of the Act.
(b) Basis of measurement
The financial statements have been prepared on a going concern basis using historical cost
convention and on an accrual method of accounting, except for certain financial instruments and
defined benefit plans which have been measured at fair value as required by the relevant Ind AS.
Refer note 3(c) and 3(h) below.
(c) Functional and presentation currency
The financial statements are prepared in Indian Rupees, which is the Company's functional and
presentation currency. All financial information presented in Indian Rupees has been rounded to the
nearest lacs with two decimals.
(d) Current and non-current classification
The Company presents assets and liabilities in the balance sheet based on current / non-current
classification.
An asset is classified as current when it satisfies any of the following criteria:
- it is expected to be realized in, or is intended for sale or consumption in, the Company's normal
operating cycle;
- it is held primarily for the purpose of being traded;
- it is expected to be realized within 12 months after the reporting date; or
- it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability
for at least 12 months after the reporting date.
A liability is classified as current when it satisfies any of the following criteria:
- it is expected to be settled in the Company's normal operating cycle;
- it is held primarily for the purpose of being traded;
- it is due to be settled within 12 months after the reporting date; or
- the Company does not have an unconditional right to defer settlement of the liability for at least 12
months after the reporting date. Terms of a liability that could, at the option of the counterparty, result
in its settlement by the issue of equity instruments do not affect its classification.
Current assets/liabilities include current portion of noncurrent financial assets/liabilities respectively.
All other assets/liabilities are classified as non-current. Deferred tax liabilities are classified as non-
current liabilities.
Operating cycle:
Based on the nature of the operations and the time between the acquisition of assets for processing
and their realization in cash or cash equivalents, the Company has ascertained its operating cycle
less than twelve months for the purpose of current non-current classification of assets and liabilities.
3. STATEMENT OF COMPLIANCE AND SIGNIFICANT ACCOUNTING POLICIES:
3.1 Statement of Compliance:
These 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 read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 as amended from time to time.
3.2 Accounting Policies:
a. Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or 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. The Company has generally
concluded that it is the principal in its revenue arrangements because it typically controls the goods
and services before transferring them to the customers.
Revenue from Contracts with Customers:
Revenue is measured at the fair value of the consideration received/ receivable, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the
Government and is net of rebates and discounts. The Company assesses its revenue arrangements
against specific criteria to determine if it is acting as principal or agent. The Company has concluded
that it is acting as a principal in all of its revenue arrangements.
Revenue is recognized in statement of profit and loss to the extent that it is probable that the
economic benefits will flow to the Company and the revenue and costs, if applicable, can be
measured reliably.
The Company has applied five step model as per Ind AS 115 'Revenue from contracts with
customers' to recognize revenue in the standalone financial statements. The Company satisfies a
performance obligation and recognizes revenue over time, if one of the following criteria is met:
a) The customer simultaneously receives and consumes the benefits provided by the Company's
performance as the Company performs; or
b) The Company's performance creates or enhances an asset that the customer controls as the
asset is created or enhanced; or
c) The Company's performance does not create an asset with an alternative use to the Company and
the entity has an enforceable right to payment for performance completed to date.
For performance obligations where any of the above conditions are not met, revenue is recognised at
the point in time at which the performance obligation is satisfied.
Revenue is recognised either at point of time or over a period of time based on various conditions as
included in the contracts with customers.
Point of Time:
Revenue from real-estate projects
Revenue is recognised at the Point in Time w.r.t. sale of plots and commercial units as and when the
control passes on to the customer upon completion of performance obligations and intimation to the
customers thereof.
Incremental cost of obtaining contract
The incremental cost of obtaining a contract with a customer is recognised as an asset if Company
expects to recover those costs subject to other conditions of the standard are met. These costs are
charged to statement of profit and loss in accordance with the transfer of the property to the customer.
Other Income
Interest income is recognized on a time proportionate basis taking into account the amounts invested
and the rate of interest.
b. Property, Plant and Equipment
Freehold land is carried at historical cost and revaluation cost. All other items of property, plant and
equipment are measured at cost less accumulated depreciation and impairment losses, if any. Costs
include freight, import duties, non-refundable purchase taxes and other expenses directly attributable
to the acquisition of the asset.
Depreciation/amortization:
Depreciation on fixed assets is provided on straight line method over the useful lives of assets
specified in Schedule II of the Companies Act, 2013.
The management believes that the useful life as given above represent the period over which the
management expects to use these assets. The Company reviews the useful life and residual value at
each reporting date.
The Company has applied the rate of depreciation on the basis of residual value of above Property,
Plant & Equipment as contemplated in Schedule II of Companies Act' 2013, as the entire fixed
register have been updated with physical verification. Wherever the useful life of Property, Plant &
Equipment are completed as per the years mentioned in the Schedule II of the Companies Act' 2013,
the net block of these assets consists of residue value to the extent of 5% of cost and revaluation
portion.
c. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
(i) Financial assets
Initial recognition
Financial assets are recognized when the Company becomes a party to the contractual provisions of
the instruments. Financial assets other than trade receivables are initially recognized at fair value plus
transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets
carried at fair value through profit or loss are initially recognized at fair value, and transaction costs
are expensed in the Statement of Profit and Loss.
Subsequent measurement
Financial assets, other than equity instruments, are subsequently measured at amortized cost, fair
value through other comprehensive income & fair value through profit or loss.
a. Measured at amortized cost:
A financial asset is measured at amortized cost, if it is held under the hold to collect business
model i.e. held with an objective of holding the assets to collect contractual cash flows and the
contractual cash flows are solely payments of principal and interest on the principal outstanding.
Amortized cost is calculated using the effective interest rate (“EIR”) method by taking into account
any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
EIR amortization is included in interest income in the Statement of Profit and Loss. The losses
arising from impairment are recognized in the Statement of Profit and Loss. On derecognition, gain
or loss, if any, is recognised to Statement of Profit and Loss.
b. Measured at fair value through other comprehensive income
A financial asset is measured at FVOCI, if it is held under the hold to collect and sell business
model i.e. held with an objective to collect contractual cash flows and selling such financial asset
and the contractual cash flows are solely payments of principal and interest on the principal
outstanding. It is subsequently measured at fair value with fair value movements recognized in the
OCI, except for interest income which recognized using EIR method. The losses arising from
impairment are recognized in the Statement of Profit and Loss. On derecognition, cumulative gain
or loss previously recognized in the OCI is reclassified from the equity to Statement of Profit and
Loss.
c. Measured at fair value through profit or loss
Investment in financial asset other than equity instrument, not measured at either amortised cost
or FVOCI is measured at FVTPL. Such financial assets are measured at fair value with all
changes in fair value, including interest income and dividend income if any, recognised in the
Statement of Profit and Loss.
Derecognition
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a
transaction in which substantially all the risks and rewards of ownership of the financial asset are
transferred.
(ii) Financial Liabilities
Initial Recognition
Financial liabilities are recognized when the Company becomes a party to the contractual provisions
of the instruments. Financial liabilities are initially recognized at fair value net of transaction costs for
all financial liabilities not carried at fair value through profit or loss.
The Company's financial liabilities includes trade and other payables, loans and borrowings including
bank overdrafts and derivative instruments.
Subsequent measurement
Financial liabilities measured at amortised cost are subsequently measured at using EIR method.
Financial liabilities carried at fair value through profit or loss are measured at fair value with all
changes in fair value recognised in the Statement of Profit and Loss.
a. Financial liabilities at amortized cost (Loans & Borrowings):
After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using EIR method. Gains and losses are recognized in profit & loss when the
liabilities are derecognized as well as through EIR amortization process.
b. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
designated upon initial recognition as at fair value through profit or loss. The Company has not
designated any financial liability as at fair value through profit and loss.
Derecognition
A financial liability is derecognised 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 recognised in the Statement of Profit
and loss.
iii) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet
if there is a currently enforceable legal right to offset the recognised amounts and there is an intention
to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
iv) Income/Loss recognition
Interest income:
Interest income is accrued on time basis, by reference to the principal outstanding and at the effective
interest rate applicable.
Dividends:
Dividend income from investments is recognized when the right to receive it is established.
Borrowing costs:
Borrowing costs are recognized as expenses in the Statement of Profit and loss in the period in which
they are incurred.
d. Impairment of financial assets
The Company assesses at each reporting date whether there is any objective evidence that a
financial asset or a group of financial assets are impaired. If any such indication exists, the Company
estimates the amount of impairment loss. For the purpose of assessing impairment, the smallest
identifiable group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows from other assets or groups of assets is considered as a cash
generating unit. If any such indication exists, an estimate of the recoverable amount of the individual
asset/cash generating unit is made.
An impairment loss is calculated as the difference between an asset's carrying amount and
recoverable amount. Losses are recognized in profit or loss. When the Company considers that there
are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount
of impairment loss subsequently decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized, then the previously recognized impairment loss is
reversed through profit or loss.
e. Inventories
Land and plots other than area transferred to constructed properties at the commencement of
construction are valued at lower of cost/ as re-valued on conversion to stock and net realisable value.
Cost includes land (including development rights and land under agreement to purchase) acquisition
cost, borrowing cost if inventorisation criteria are met, estimated internal development costs and
external development charges and other directly attributable costs.
f. Taxation
The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of
Profit and Loss, except to the extent that it relates to items recognized in the comprehensive income
or in equity. In which case, the tax is also recognized in other comprehensive income or equity
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
Deferred tax is recognized 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 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.
Minimum Alternative Tax ('MAT') credit is recognized as an asset only when and to the extent there is
convincing evidence that the Company will pay normal income-tax during the specified period. The
Company reviews the same at each balance sheet date and writes down the carrying amount of MAT
credit entitlement to the extent there is no longer convincing evidence to the effect that Company will
pay normal income-tax during the specified period. As per Management representation, provisions for
Minimum Alternate Tax (MAT) are not applicable because company has decided to opt for Section
115BAA of The Income Tax Act, 1961.
g. Employees Benefits
The company provides following post-employment plans:
(a) Defined benefit plans such as gratuity and
(b) Defined contribution plans such as Provident fund & ESIC
The company was following the above plans till the company was in operations in textile segment till
August 2008.
All employee benefits payable wholly within twelve months of rendering services are classified as
short-term employee benefits.
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