1 CORPORATE INFORMATION
GKB Ophthalmics Limited (the "Company") is a public limited company domiciled in India and was incorporated on December 10,
1981 under the provisions of the Companies Act, 1956. Its registered and principal office of business is located at 16-A, Tivim
Industrial Estate, Mapusa, Goa 403 526, India.
The company is engaged in manufacture and sale of unfinished ophthalmic lenses.
The Board of Directors approved the Financial Statements for the year ended March 31,2025 and authorised for the issues on May
30, 2025.
2 Basic of preparation and Material Accounting Policies
2.1 Basis of Preparation of Standalone Financial Statements
(a) Compliance with Ind AS
These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under
Section 133 of the Companies Act, 2013 (the "Act") read with the Companies (Indian Accounting Standards) Rules, 2015 as
ammended and and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS
Compliant Schedule III), as applicable to the standalone financial statements.
(b) Basis of measurement
The standalone financial statements have been prepared on the historical cost basis except for the following items:
(c) 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 III to the Companies Act, 2013. Based on the nature of products and the time between
the acquisitions of materials for processing and their realization in cash and cash equivalents, the Company has
ascertained its operating cycle as twelve months for the purpose of current and noncurrent classification of assets and
liabilities.
(d) Use of estimates
The preparation of financial statements in conformity with Ind AS requires the Management to make estimate and
assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of
revenue and expenses for the year and disclosures of contingent liabilities as at the Balance Sheet date. The estimates
and assumptions used in the accompanying financial statements are based upon the Management's evaluation of the
relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these
estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates, if
any, are recognized in the year in which the estimates are revised and in any future years affected. Refer Note 3 for
detailed discussion on estimates and judgments.
(e) Functional and presentation currency
These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All
amounts have been rounded-off to the nearest Rupee, unless otherwise indicated.
(f) Going concern
The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.
2.2 Property, plant and equipment
Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the
item can be 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 Statement of Profit and Loss during the year in which
they are incurred.
Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is
classified as capital advances under other non-current assets.
Property, Plant & Equipment's residual values and useful lifes are reviewed at each Balance sheet date and changes, if
any, are treated as changes in accounting estimates.
Depreciation methods, estimated useful lives
The Company depreciates Property, plant and equipments using the straight line method over their estimated useful
lives as under :
Leasehold land are amortized over the lease period, which corresponds with the useful lives of the assets.
Based on the technical experts assessment of useful life, certain items of property plant and equipment are being
depreciated over useful lives different from the prescribed useful lives under Schedule II to the Companies Act, 2013.
Management believes that such estimated useful lives are realistic and reflect fair approximation of the period over
which the assets are likely to be used.
Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition.
Depreciation on sale/deduction from property, plant and equipments is provided up to the date preceding the date of
sale, deduction as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying
amount. These are included in Standalone Statement of Profit and Loss under 'Other Income'.
Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted
prospectively, as appropriate.
2.3 Other Intangible Assets
Other Intangible assets are stated at acquisition cost, net of accumulated amortization.
Amortisation, estimated useful lives
The Company amortises intangible assets over their estimated useful lives using the straight line method. The estimated
useful lives of intangible assets are as follows:
Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible asset
may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life
are reviewed at least at each financial year end.
2.4 Foreign Currency Transactions
(a) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in
which the entity operates (‘the functional currency’). The financial statements are presented in Indian rupee (INR),
which is the Company’s functional and presentation currency.
(b) Transactions and balances
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the
exchange rate between the functional currency and the foreign currency at the date of the transaction. Gains/Losses
arising out of fluctuation in foreign exchange rate between the transaction date and settlement date are recognised in
the Statement of Profit and Loss.
All monetary assets and liabilities in foreign currencies are restated at the year end at the exchange rate prevailing at
the year end and the exchange differences are recognised in the Statement of Profit and Loss.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rates at the dates of the initial transactions.
2.5 Revenue from Contracts with customers
Sale of goods
Revenue from the sale of goods is recognised at a point in time when the Company satisfies the performance obligation
by transferring / delivering promised goods to the customer. Amounts disclosed as revenue are net of returns and
allowances, trade discounts and volume rebates, goods and service tax (GST). For all contracts, there is a fixed unit
price for each product sold at a specific time. Therefore, there is no judgement involved in allocating the contract price
to each unit ordered in such contracts (it is the total contract price divided by the number of units ordered).
Rendering of services
Revenue is recognised in accordance with the terms of the contract with customers when the identified performance
obligation is completed. The revenue is measured based on transaction price. Amounts disclosed as revenue are net of
goods and service tax (GST).
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net
of indirect taxes, trade allowances, rebates and amounts collected on behalf of third parties.
Other operating income
Export incentive under various schemes are accounted in the year of export on accrual basis when the right to receive is
established.
Other Income
Interest Income is recognised on a basis of effective interest method as set out in Ind AS 109, Financial Instruments, and
where no significant uncertainty as to measurability or collectability exists.
Dividend income is accounted for when the right to receive the same is established, which is generally when the
shareholders approve the dividend.
2.6 Taxes on Income
Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or
loss for the year.
(a) Current income tax
Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted,
at the year end date. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
(b) Deferred tax
Deferred income tax is provided in full, using the balance sheet approach, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in financial statements. Deferred income tax is also not
accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business
combination that at the time of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred
income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the
year and are expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable
that future taxable amounts will be available to utilize those temporary differences and losses.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to
be paid to the tax authorities
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority.
Current and deferred tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.
2.7 Leases
As a lessee
The Company’s lease asset classes primarily consist of leasehold land. The Company assesses whether a contract contains
a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right
to control the use of an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases) and low value leases. For these short-term and low value leases, the Company recognizes the lease
payments as an operating expense on a straight-line basis over the term of the lease.
2.8 Inventories
Inventories are valued at the lower of cost and net realisable value.
Raw materials, stores, spares and consumable tools, packing materials, work-in-progress and finished goods are valued
at lower of cost or net realisable value.
In case of raw materials, stores, spares, consumable tools and packing materials, cost represents purchase price and
other costs incurred for bringing the inventories to their present location and conditions and is determined on “weighted
average" basis.
In case of work-in-progress and finished goods, cost represents cost of raw material, cost of conversion such as direct
labour, direct expenses, etc. and production overheads which are based on normal level of production.
Provision of obsolescence on inventories is considered on the basis of management's estimate based on demand and
market of the inventories.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of
completion and the estimated costs necessary to make the sale.
Cost of traded goods is determined on a weighted average basis.
The comparison of cost and net realizable value is made on item by item basis.
2.9 Impairment of non-financial assets
The Company assesses at each year end whether there is any objective evidence that a non financial asset or a group of
non financial assets is impaired. If any such indication exists, the Company estimates the asset's recoverable amount and
the amount of impairment loss.
|