1 Company information
DOMS Industries Limited (formerly known as DOMS Industries
Private Limited) ('DOMS' or 'the Company') has its registered
office at J-19, G.I.D.C, Umbergaon, Gujarat 396171. The
Company was incorporated on October 24, 2006 under
erstwhile Companies Act, 1956. On April 21, 2017, the Company
changed its name from Writefine Products Private Limited to
DOMS Industries Private Limited and thereafter, the name of
the Company was changed to "DOMS Industries Limited” and
a fresh certificate of incorporation consequent upon change of
name was issued by the RoC on August 03, 2023. During the
year ended March 31, 2024, the Company has completed its
Initial Public Offer ("IPO") and its equity shares were listed on
the National Stock Exchange ("NSE”) and on the BSE Limited
("BSE”) on December 20, 2023.
The Company is primarily engaged in manufacturing, marketing,
trading and distribution of stationery products. The Company
sells its products in India and in international markets. The
Company has its manufacturing facilities located at Umbergaon,
Gujarat and Bari Brahma, Jammu & Kashmir.
2 Basis of Preparation
i) Compliance with Ind AS
The Standalone Financial Statements of the Company have
been prepared in compliance with Indian Accounting Standards
(hereinafter referred to as the '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.
The Standalone Financial Statements have been prepared on
accrual and going concern basis.
ii) Historical Cost Convention
The Standalone Financial Statements have been prepared
under the historical cost convention except for certain financial
instruments measured at fair value as explained in the
accounting policies. Historical cost is generally based on the
fair value of the consideration given in exchange for goods and
services at the time of their acquisition.
iii) New and amended standards adopted by the Company
The Ministry of Corporate Affairs vide notification dated
September 9, 2024 and September 28, 2024 notified the
Companies (Indian Accounting Standards) Second Amendment
Rules, 2024 and Companies (Indian Accounting Standards) Third
Amendment Rules, 2024, respectively, which amended/ notified
certain accounting standards (see below), and are effective for
annual reporting periods beginning on or after April 1, 2024:
- Insurance contracts- Ind AS 117; and
- Lease Liability in Sale and Leaseback-
Amendments to Ind AS 116
These amendments did not have any material impact on the
amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.
iv) Standards issued but not yet effective
There are no standards that are notified and not yet effective
as on the date.
v) Current vs non-current classification
All assets and liabilities have been classified as current or non¬
current as per the Company's operating cycle and other criteria
set out in the Schedule Ill (Division II) to the Act. Based on the
nature of products/services and the time between the delivery
of services and their realisation in cash and cash equivalents,
the Company has ascertained its operating cycle as 12 months
for the purpose of current or non-current classification of assets
and liabilities.
Assets:
An asset is classified as current when it satisfies any of the
following criteria:
a) It is expected to be realised in, or is intended for sale or
consumption in, the Company's normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is expected to be realised within 12 months after the
reporting date; or
d) 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.
Current assets include the current portion of non-current
financial assets. All other assets are classified as non-current.
Liabilities:
A liability is classified as current when it satisfies any of the
following criteria:
a) It is expected to be settled in the Company's normal
operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is due to be settled within 12 months after the
reporting date; or
d) The Company does not have an unconditional right to
defer settlement of the liability for at least 12 months
after the reporting date.
Current liabilities include current portion of non-current
financial liabilities. All other liabilities are classified
as non-current.
Deferred tax assets and liabilities are classified as non-current
assets and liabilities.
Operating cycle:
Operating cycle is the time between the acquisition of assets
for processing and their realisation in cash or cash equivalents.
Based on the nature of the products and the time between
the acquisition of assets and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle
as twelve months for the purpose of current and non-current
classification of assets and liabilities.
vi) Events occurring after reporting period
Where events occur after the balance sheet date provide
evidence of conditions that existed at the end of the reporting
period, the impact of such events is adjusted with the
Standalone Financial Statements. Otherwise, events after the
balance sheet date of material size or nature are only disclosed.
vii) Functional and presentation currency
Items included in the Standalone Financial Statements of
the Company are presented in INR which is our Company's
functional currency. All amounts have been rounded-
off to the nearest lakhs and decimals thereof, unless
otherwise mentioned.
viii) Critical estimates and judgements
The preparation of Standalone Financial Statements requires the
use of accounting estimates which, by definition, will likely differ
from the actual results. Management also needs to exercise
judgement in applying the Company's accounting policies.
This note provides an overview of the areas that involved a higher
degree of judgement or complexity, and of items which are more
likely to be materially adjusted due to final outcomes deviating from
estimates and assumptions made. Detailed information about each
of these estimates and judgements is included in relevant notes
together with information about the basis of calculation for each
affected line item in the Standalone Financial Statements.
Critical estimates and judgements
The areas involving critical estimates and judgements are:
i) Useful lives of property, plant and equipment and
intangible assets (Refer Note 3 & 5)
ii) Definition of lease, lease term and discount rate for the
calculation of lease liability (Refer Note 4)
iii) Recognition and measurement of provisions and
contingencies (Refer Note 48(m))
iv) Recognition of deferred tax assets (Refer Note 26)
v) Estimation of current tax expense and current tax payable
(Refer Note 26)
vi) Estimation of defined benefit obligations (Refer Note 39)
vii) Estimation of impairment of investment in associate and
subsidiaries (Refer Note 6)
viii) Fair valuation of Employee Stock options (Refer Note 40)
Estimates and judgements are continually evaluated. They are
based on historical experience and other factors, including
expectations of future events that may have a financial impact
on the Company and that are believed to be reasonable under
the circumstances.
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