(K) Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a
past event, 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 of the amount of the obligation. Provisions are measured
at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no
longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
(L) Taxation
(i) Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from 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 reporting date. Current income tax relating to gain on equity
instruments (not held for trading) are recognised either in other comprehensive income or in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and adjust provisions accordingly where ever
appropriate.
(ii) Deferred tax
Deferred tax is recognised on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable
that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable
that taxable profit will be available against which the deductible temporary differences, and the carry
forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and
are recognised to the extent that it has become probable that future taxable profits will allow the deferred
tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the
underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits
in the form of adjustment to future income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in
the Balance Sheet when it is probable that future economic benefit associated with it will flow to the
Company.
(M) Employee Benefits
(i) Short term employee benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as
short term employee benefits. Benefits such as salaries and performance incentives, are charged to
standalone statement of profit and loss on an undiscounted, accrual basis during the period of service
rendered by the employees in the financial year.
(ii) Defined Contribution Plans:
Contributions to defined contribution schemes such as employees’ state insurance, labour welfare fund,
superannuation scheme, employee pension scheme etc. are charged as an expense based on the amount
of contribution required to be made as and when services are rendered by the employees. The above
benefits are classified as Defined Contribution Schemes as the Company has no further defined obligations
beyond the monthly contributions.
(iii) Defined benefit plans
Company has an obligation towards gratuity a defined benefit retirement plan covering all employees.
The plan provides for a lumpsum payment to employees at retirement/determination of service on the
basis of 15 days terminal salary for each completed year of service subject to maximum amount of Rs.
20 Lacs.
Company’s liability towards gratuity and compensated absences is determined using the projected unit
credit method, with actuarial valuations being carried out at the end of each annual reporting period by
independent actuary. Remeasurement, comprising actuarial gains and losses, the effect of the changes,
is reflected immediately in the balance sheet with a charge or credit recognized in other comprehensive
income (OCI) in the period in which they occur. Remeasurement recognized in the other comprehensive
income is reflected immediately in retained earnings and is not reclassified to profit or loss.
(N) Revenue Recognition
Sale of Products/Services
Revenue from sale of goods is recognised when control of the products being sold is transferred to customer
and when there are no longer any unfulfilled obligations. The Performance Obligations in contracts are fulfilled
at the time of dispatch, delivery or upon formal customer acceptance depending on terms with customers.
Revenue is measured on the basis of contracted price, after deduction of any trade discounts, volume rebates
and any taxes or duties collected on behalf of the Government such as Goods and Services Tax, etc. Revenue
is only recognised to the extent that it is highly probable a significant reversal will not occur.
Specific recognition criteria described below must also be met before revenue is recognized.
(a) Conversion charges are recognized on completion of jobs.
(b) Interest Income is recorded on time proportion basis using the effective rate of Interest (EIR).
(c) Carbon Credits are recognized on realization basis.
O) Earning per shares
The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares.
Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by
the weighted average number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted
average number of equity shares outstanding that could have been issued upon conversion of all dilutive
potential equity shares Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented.
P) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker. The Company’s Managing Director assesses the financial performance and position
of the Company, and makes strategic decision and has been identified as the chief operating decision maker.
The Company’s primary business segment is reflected based on principal business activities carried on by the
Company. The company is operating under a single segment i.e., “Dairy Products - comprising Ghee, Milk
Powder, Whey powder and Dairy whitener” and therefore there are no reportable segments as per IND AS-
108 “Operating Segments” issued under section 133 of Companies Act 2013 read with Companies (Indian
Accounting Standards) Rules 2015.
Q) Contingent liabilities
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the Company; or a present obligation that arises from past events but is not recognized because it is not
probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
the amount of the obligation cannot be measured with sufficient reliability. Therefore, in order to determine the
amount to be recognised as a liability or to be disclosed as a contingent liability, in each case, is inherently
subjective, and needs careful evaluation and judgement to be applied by the management.
In case of provision for litigations, the judgements involved are with respect to the potential exposure of each
litigation and the likelihood and/or timing of cash outflows from the company, and requires interpretation of
laws and past legal rulings. The Company does not recognize a contingent liability but discloses its existence
in the standalone Ind AS financial statements.
R) Use of Key Accounting estimates and judgments
The preparation of financial statements requires management to make estimates, judgements and assumptions
in the application of accounting policy that affect the reported amount of assets and liabilities on the date of
financial statements and the reported amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period in which it is known/materialised.
Continuous evaluation is done on the estimation and judgements based on historical experience and other
factors, including expectations of future events that are believed to be reasonable. Revisions to accounting
estimates are recognised prospectively
In particular, information about significant areas of estimation, uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognized in the financial statements
are included in the following notes:
(i) Property, Plant and Equipment - Note 3A
(ii) Indefinite useful life of Intangible Assets - Note 3C
(iii) Recognition of deferred tax assets/liabilities - Note 31D
(iv) Measurement of defined benefit obligation - Note 35
(v) Measurement and likelihood of occurrence of provisions and contingencies - Note 34
(vi) Measurement of Right of Use Asset and Lease liabilities - Note 3D, 16A and 16B.
Footnotes:
i) In view of insignificant amount of bad debts and timely recovery in earlier years, allowance for expected credit loss is made
on the simplified approach of provisions based in earlier years.
ii) Includes receivables of Rs 47 Lakhs (net of write off/ provisions of Rs 22 Lakhs) from an entity facing an insolvency petition
before the NCLT against a claim of Rs 78 Lakhs including interest of Rs 9 lakhs filed before the Resolution Professional.
The Company is of the view that it has good chance to recover the amount of claim. As a matter of abundant caution,the
amount of Rs 22 Lakhs as stated above has been written off/ provided in the books. Against Rs 53 Lakhs outstanding
(unconfirmed) for more than one year no provision is made as company hopes to recover the same in the near future.
iii) No trade receivables are due from directors or other officers of the company or any of them either severally or jointly with
any other person, or from firms or private companies in which any director is a partner, a director or a member. Refer note
36 (b) for information about credit risk .
Footnotes:
(i) Securities Premium
The amount received in excess of face value of the equity shares is recognised in Securities Premium. Where the Company
issues shares at premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received
on those shares is transferred to “Securities Premium account”. The company may issue fully paid-up bonus shares to its
members out of balance lying in the securities premium account and the company can also use the premium for buy-back
of shares. During the year, Company has utilised the amount of Rs 609 lakhs by issue of bonus shares in the ratio of 1:1
to the existing shareholders.
(ii) Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or
other distributions paid to shareholders. It also Includes revaluation reserve of Rs. 5,081 lakhs (PY Rs. 5,122 lakhs) [Net
of increase in value of Land & Building of Rs 8,530 Lakhs and decrease in the value of Plant & Machinery of Rs 3,080
Lakhs as at 01.04.2016 after adjusting accumulated depreciation of Rs. 369 Lakhs (PY Rs. 328 lakhs) on revalued figure.
(iii) Share Option Outstanding Account
The fair value of the equity-settled share based payment transactions is recognised in standalone statement of profit and
loss with corresponding credit to Employee Stock Options Outstanding Account.
As per the NRC resolution dated 28.05.2025 ESOP Scheme 2024 has been cancelled/withdrawn on the request of the
employees. Bombay Stock Exchange has been informed of the same.
(iv) Capital Reserve has been created in pursuance of scheme of amalgamation between Triputi Infrastructure Pvt Ltd (Transferor
Company) with Milkfood Ltd (Transferee Company) duly approved by NCLT Chandigarh Bench.
(v) The disaggregation of changes in each type of reserve, retained earnings and other comprehensive income are disclosed
in Statement of Changes in Equity.
(ii) Figures in bracket relates to the previous year. Interest rate above represent prevailing rates.
(iii) a) SBI Term Loan of Rs 1000 Lakhs was primarily secured on 1st pari pasu basis of entire current assets including stocks
of raw materials, stores, spares, Stock in Progress, Finished Goods, including goods in transit, book debts (etc.) and
collaterally secured by 1st pari passu charge through equitable mortgage of factory land and building located at
Bahadurgarh Patiala, hypothecation of Movable fixed assets of the company excluding vehicles and assets financed
by other lenders and charge over company’s Brand. Further the loan is guaranteed by the two promoters.
b) GECL-2.0 and as extended (WCTL) of SBI are secured by way of extension of 2nd charge over the existing primary
and collateral securities including mortgages created in favour of the consortium banks on pari passu basis. Refer
Note 19(i)
c) GECL 2.0 and as extended (WCTL) of Canara Bank are secured by 1st Pari passu Charge on entire Current Assets
of the Company including Receivables and collaterally secured by pari pasu charge on equitable mortgage of Factory
land and building located at Bahadurgarh, Patiala. Refer Note 19(i).
d) Canara Bank Term Loan of Rs 1000 Lakhs was primarily secured by 1 st pari passu charge on entire current assets of
the Company including receivables and collaterally secured through pari pasu charge on equitable mortgage of factory
land and building located at Bahadurgarh Patiala - Punjab and hypothecation of Plant and Machinery.
(iv) Date of agreement: 08.08.2022, tenure 10 years, rate of interest 10.25% p.a
(v) The company has utilised the borrowings from banks and financial institutions for the specific purposes for which it was
taken.
(vi) There has been no default in respect of repayment of borrowings and interest. Company has not been declared as wilful
defaulter by any bank or financial institution or any other lender.
(vii) Represents the Loan from directors of the erstwhile company merged in accordance with the scheme of amalgamation
between Trupati Infrastructure Pvt Ltd (Transferor Company) with Milkfood Ltd (Transferee Company) duly approved by
NCLT Chandigarh Bench.
(i) No amounts have been written off / provided for or written back during the year in respect of amounts receivable from or
payable to related parties. There have been no guarantee provided or received to/ from related party in respect of any debt/
obligation of the related party or of Company except personal guarantee given by promoters in respect of secured loans
from banks.
(ii) Related parties have been identified by the management.
(iii) Rent (lease liability including interest) is certified by the the management as per prevalent market rates and for business
purposes of the group.
(iv) As the defined benefit plans and compensated absences are provided on actuarial basis for the group as a whole, the
amount pertaining to Key Managerial Personnel are not included above.
(v) Related parties transactions are done in the ordinary course of business and are at arms length. Outstanding balances at
the year end are unsecured .Refer note 16(iv) for Terms and conditions of loans taken from related party.
(vi) Figures in bracket relates to the previous year.
(i) *The company is contesting these demands and the management, based on advise of its advisors, believes that its
position will likely be upheld in the appellate process. No expense has accrued in the standalone financial statements for
these demands raised. The management believes that the ultimate outcome of these proceedings will not have a material
adverse effect on the company’s financial position and results of operations. The company does not expect any
reimbursements in respect of the above contingent liabilities.
(ii) In addition, the company is subject to legal proceedings claims, which have arisen in the ordinary course of business. The
company’s management reasonably does not expect that outcome of these legal proceeding etc, when ultimately concluded
and determined, will have adverse material effect on the company’s results of operations or financial condition.
NntP Fmnlru/oo honofitc
The company’s principal financial liabilities comprise borrowings, Security Deposits Received, trade and other payables etc.
The main purpose of these financial liabilities is to finance the company’s operations. The company’s principal financial assets
include , trade and other receivables, cash and cash equivalents and security deposits that are out of regular business operations.
The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. In order to manage the
aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and
responding to each risk factors. The company’s senior management oversees the management of these risks.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate because of changes
in market prices. Market risk comprises three types of risk i.e. interest rate risk, currency risk and other price risk, such as
commodity risk. The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
i. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate
because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rate
relates primarily to the company’s borrowings with floating interest rates.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on borrowings
affected. With all other variables held constant, the company’s profit before tax is affected through the impact on
floating rate borrowings, as follows:
The impact of increase of 1% in rate of interest shall be mitigated by the increase in the volume based turnover.Further
there is a huge related party borrowings on long term basis, there would be no difficulty in negotiating the lower rate if
the situation so demands.
ii. Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. There does not seem to be any significant risk as transaction in foreign currency
are not there.
As there is no significant foreign currency risk, sensitivity analysis showing impact on profit is not calculated.
iii. Commodity price risk
The Prices of the raw material mainly loose ghee keep fluctuating frequently due to volatility in the prices of Raw Milk.
and the company tries to pass the same to the customers through appropriate adjustment to selling prices. The major
players both on supply chain of loose ghee and market chain of FG are in unorganised sector and at times the
company has to pay more for supply and receive less for sales. Company is trying to work on seamless chain of supply
and sales at most reasonable prices.
(b) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments if a counterparty default on its obligations.
The company’s exposure to credit risk arises majorly from trade and other receivables. Other financial assets like security
deposits and bank deposits are mostly with government authorities and nationalised banks and hence, the company does
not expect any credit risk with respect to these financial assets. In majority of cases of Trade receivables are collected in
time. The trade receivables are subject to monthly review. Expected Credit Loss is too low considering the past record and
management does not foresee any significant change in near future. In view of insignificant credit risk sensitivity analysis
showing impact on profit is not calculated
The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the
return to shareholders through the optimisation of the debt and equity. For the purpose of the company’s capital management,
capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders.
The company monitors capital using a gearing ratio, which is net debt divided by total capital. The company includes within net
debt, all non-current and current borrowings reduced by cash and cash equivalents and other bank balances. The Company
manages its capital structure and makes adjustments in the light of changes in economic conditions and the requirements of
the financials covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payments to
shareholders, return capital to shareholders or issue new shares. The capital structure is monitored on the basis of net debt to
equity and maturity profile of the overall debt portfolio of the Company.
In order to achieve this overall objective, the company’s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing borrowings that define capital structure requirements. The breaches
in meeting the financial covenants would permit the bank to immediately call borrowings. There have been no breaches in the
financial covenants of any interest-bearing borrowings in the current year.
No significant changes were made in the objectives, policies or processes for managing capital during the years ended March
31,2025 and March 31,2024.
Note 38. Fair value measurement
(i) All the financial assets and financial liabilities of the company are carried at amortised cost.
(ii) The management assessed that the carrying values of trade and other receivables, deposit, cash and short term deposits,
other assets, borrowings, trade and other payables reasonably approximate their fair values because these instruments
have short-term maturities.
(iii) It is view of the management that fair value impact of long term security deposits/loan paid or payable would not be
material.
Note 39: Interim Dividend on Equity Shares
The Board of Directors in the meeting held on 25.06.2024 declared an interim dividend of 2.50/- per equity share valuing at Rs
153 Lakhs and accordingly Rs 132 Lakhs (net of TDS of Rs 14 Lakhs) has been paid as tabulated below:
Note 40: Corporate social responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of
its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The
areas for CSR activities are defined in schedule VII of the Companies Act which inter- alia includes contribution to the Prime
Minister National Relief Fund, PM Cares Fund or any other fund set up by the Central Government for socio economic development
and relief and welfare of the scheduled castes, the scheduled tribes, other backward classes, minorities and women. A CSR
committee has been formed by the company as per the Act. The funds were primarily utilized through the year on these
activities which are specified in Schedule VII of the Companies Act, 2013.
Note 43: Relevant Additional Regulatory Information: (Other than disclosed in the respective notes)
(i) The operating cycle of the company is assumed to be of twelve months in absence of clearly identifiable normal operating
cycle and accordingly assets/ liabilities have been classified as current/ non current.
(ii) No proceedings have been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(iii) The Company has not done any transaction with struck off companies during the year.
(iv) There is no charge or satisfaction of any charge which is not registered with ROC beyond the statutory period.
(v) The company has not granted any loans or advances in the nature of loans to promoters, directors, KMP and the related
parties either severally or jointly with any other person which is either repayable on demand or without specifying any
terms or period of demand and therefore requirement of disclosure of such loan/ advance is not applicable.
(vi) The company has complied with the number of layers prescribed under clause (87) of section 2 of the act read with
companies (restriction on number of layers) rules 2017.
(vii) Company has not applied any accounting policy retrospectively or has made a restatement of items in FS or has reclassified
items in the FS.
(viii) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (Ultimate Beneficiaries), or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(ix) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries), or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(x) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(xi) The Company have not made any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act,1961)
Note 44: Previous year figures have been reclassified / regrouped wherever necessary to confirm with
those of current year figures.
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