Accounting Policies of Manglam Global Corporations Ltd. Company

Mar 31, 2026

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a. Background

MANGLAM GLOBAL CORPORATIONS LIMITED (“the Company”) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act 1956. The registered office of the Company is located at Mangalwara Bazaar, Next to Agrawal Redymade Stores, Pipariya, Madhya Pradesh - 461775. The Company is listed on the Bombay Stock Exchange (BSE).

b. Significant Accounting Policies followed by the company

i. Basis of preparation

1. Compliance with Ind AS

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 (''Act'') read with of the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

The accounting policies are applied consistently to all the periods presented in the financial statements.

2. Current / Non-current classification

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

? An asset is treated as current when it is:

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

• Held primarily for the purpose of trading, or

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

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

The Company classifies all other assets as non-current.

? A liability is current when:

• It is expected to be settled in normal operating cycle, or

• It is held primarily for the purpose of trading, or

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

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

The Company classifies all other liabilities as non-current.

? Deferred tax assets and liabilities are classified as non-current assets and liabilities.

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.

ii. Cash and Cash Equivalents

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

iii. Inventories

Traded Goods have been valued at lower of cost and net realisable value. The cost of inventories shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. NRV is the estimated selling price in the ordinary course of business less the estimated cost of completion and estimated cost necessary to make the sale.

Provision is made for obsolete, slow moving and defective stocks, wherever necessary.

iv. Investments and other financial assets

1. Classification

The company classifies its financial assets in the following measurement categories:

i. those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit and Loss), and

ii. those measured at amortised cost.

The classification depends on the company''s business model for managing the financial assets and the contractual terms of the cash flows.

2. Measurement

For purposes of subsequent measurement, the Company classifies its financial assets in the following measurement categories:

i. those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

ii. those measured at amortized cost.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in debt instruments, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

Equity investments:

The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to present fair value gains and losses for an equity investments, that is not held for trading, in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends from such investments are recognised in profit or loss as other income when the Company’s right to receive payments is established. Changes in the fair value of financial assets at fair value through profit or loss are recognised in the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

3. Impairment of financial assets

The company measures the expected credit loss associated with its assets based on historical trend, industry practices and the business environment in which the entity operates or any other appropriate basis. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For Trade Receivables only, the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

4. De-recognition of financial assets

A financial asset is de-recognised only when:

- The company has transferred the rights to receive cash flows from the financial asset or

- retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de-recognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognised if the company has not retained control of the financial asset. Where the company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

v. Impairment of non-financial assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s or cash generating unit''s carrying amount exceeds its recoverable amount and is recognised in the Statement of Profit and Loss. The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or company of assets (cash-generating units). Non-financial assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

vi. Financial liabilities

1. Classification

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities

2. Measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

3. Subsequent Measurement

The measurement of financial liabilities depends on their classification, as described below:

a. Borrowings:

Borrowings are subsequently carried at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the statement of profit and loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates

b. Trade and other payable:

These amounts represent obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and payables are subsequently measured at amortized cost using the effective interest method.

4. De-recognition:

A financial liability is de-recognised 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 de-recognition 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 or loss.

vii. Revenue recognition

The Company primarily engage in in the manufacture, process, market, trade, import, export, improve, sell Agri and Non- Agri commodities, food products, fast moving consumer good (FMCG) and other related products. It recognize revenue from sales effected directly, is recognized on issue of invoices (on delivery of goods) except sales on consignment.

viii. Income tax

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the statement of profit and loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to setoff the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

ix. Earnings Per Share

1. Basic earnings per share

Basic earnings per share is calculated by dividing:

- the net profit attributable to owners of the company.

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

2. Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

x. Provisions and contingent liabilities

Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. 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 recognized as a finance cost.

1. Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which 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. A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or reliable estimate of the amount cannot be made, is termed as contingent liability.

2. Contingent Assets

Contingent assets is disclosed where an inflow of economic benefit is probable.

xi. Employee benefits

1. Short-term obligations

All employee benefits payable wholly within twelve months of rendering the service including performance incentives and compensated absences are classified as short term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are charged off to the Statement of Profit and Loss/ Capital Work-in-Progress, as applicable. The employee benefits which are not expected to occur within twelve months are classified as long term benefits and are recognised as liability at the net present value.

2. Defined contribution plan

Contributions to defined contribution schemes such as provident fund, Employees State Insurance and Pension Plans are charged off to the Statement of Profit and Loss, as applicable, during the year in which the employee renders the related service.

c. Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also need 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 estimates and assumptions turning out to be different than those originally assessed. 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 financial statements.

The areas involving critical estimates or judgement are:

Estimation of tax expenses, utilisation of deferred tax assets (including MAT credit) and tax payable.

2. Notes on Financial Statements

1) In compliance with the requirement of the proviso to rule 3(1) of the Companies (Accounts) Rules, 2014, the management has represented that the company is in the process of implementing the audit trail feature required under the Companies Act, 2013. This feature will provide an edit log of all transactional changes, capturing modifications along with the date and details. The company expects the implementation to be completed soon.

2) Corporate Information & Regulatory Status:

The Company received approval for a change in its name and main objects from the Registrar of Companies (ROC) during the financial year 2024-25 in the month of Aug 2024. As of March 31, 2026, the process of updating these changes with the Bombay Stock Exchange (BSE) is in progress. The Company’s securities continue to be traded under the former name on the BSE portal. The Company has received certain queries/notices from the Stock Exchange regarding the procedural requirements for the name and objective change, to which the Company is currently responding. No material financial penalty has been levied on the Company as of the date of these financial statements.

3) Purchases of Agricultural Produce:

The Company’s operations involve the procurement of agricultural produce directly from farmers within the APMC framework. Due to the nature of the trade and the requirements of the primary producers, payments for such purchases are often settled in cash. For the financial year ended March 31, 2026, the Company has ensured that such payments are made to the producers of the agricultural produce. Management is currently regularizing the internal authorization protocols for these cash disbursements. There are no pending dues or disputes regarding these payments as of the balance sheet date.

4) In most of the cases, the company has not received confirmation from the parties grouped under trade receivables, trade payables, loans & advances. These balances have, therefore been taken as per the books subject to reconciliation & adjustments, if any.

5) Borrowings from Bank:

The Company has availed working capital facilities in the nature of cash credit from SBI bank. The said facilities are secured, inter alia, by way of first charge by hypothecation of the Company’s all current assets including stock of Grains & other spare items etc., both present and future, and such other securities as stipulated in the respective sanction letters and loan agreements.

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Mar 31, 2025

A) Significant Accounting Policies:

1. Basis of Preparation and Presentation of Financial Statements -

The financial statements are prepared on accrual basis under the historical cost convention, except
for certain fixed assets which are carried at revalued amounts.

2. Use of Estimates -

The preparation of financial statement is in conformity with the generally accepted accounting
principles those requires management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial
statements and the reported amount of revenues and expenditures during the reporting year.
Difference between the actual result and estimates are recognized in the year in which the results are
known / materialized. The management believes that the estimates used in preparation of financial
statements are prudent and reasonable.

3. Fixed Assets -

3.01 Tangible Assets :

The Company has No Tangible during the year.

4. Borrowings Costs -

Borrowing cost directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use is capitalized as part of the
cost of that assets. Other costs are charged to Profit and Loss Account.

5. Investments -

5.01 Non Current investment are stated at cost. Provision for diminution in the value of non current
investments is made only if such a decline is other than temporary.

5.02 Current investments are carried at the lower of cost and fair value determined by category of the
particular investment.

6. Revenue Recognition -

Revenue from sales effected directly, is recognised on issue of invoices (on delivery of goods)
except sales on consignment.

7. Employee Benefits -

a) The liability for the Gratuity and Superannuation Fund is not provided in the Accounts.

b) As informed by the management, the liability for the Gratuity and Superannuation Fund are
adhoc benefits and hence will be accounted for on pay-as-you-go basis as per Accounting
Standard 15.

8. Taxes on Income -

a) Current Income Tax is determined in respect of relative taxable amount for the period.

b) Deferred tax is recognised, subject to the consideration of prudence, on timing differences,
being the difference between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent period. Deferred tax assets are
not recognized un unabsorbed depreciation and carry forward of losses, unless there is virtual
certainty that sufficient future taxable income will be available against which such deferred
tax assets can be realized.

c) Company’s normal tax liabilities are more than the liability calculated under the MAT and
hence no occasion for recognizing the credit of Mat liabilities.

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Mar 31, 2024

A) Significant Accounting Policies:

1. Basis of Preparation and Presentation of Financial Statements -

The financial statements are prepared on accrual basis under the historical cost convention, except
for certain fixed assets which are carried at revalued amounts.

2. Use of Estimates -

The preparation of financial statement is in conformity with the generally accepted accounting
principles those requires management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial
statements and the reported amount of revenues and expenditures during the reporting year.
Difference between the actual result and estimates are recognized in the year in which the results
are known / materialized. The management believes that the estimates used in preparation of
financial statements are prudent and reasonable.

3. Fixed Assets -

3.01 Tangible Assets :

The Company has No Tangible during the year.

4. Borrowings Costs -

Borrowing cost directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time to get ready for its intended use is capitalized as part of the
cost of that assets. Other costs are charged to Profit and Loss Account.

5. Investments -

5.01 Non Current investment are stated at cost. Provision for diminution in the value of non current
investments is made only if such a decline is other than temporary.

5.02 Current investments are carried at the lower of cost and fair value determined by category of
the particular investment.

6. Revenue Recognition -

Revenue from sales effected directly, is recognised on issue of invoices (on delivery of goods)
except sales on consignment.

7. Employee Benefits -

a) The liability for the Gratuity and Superannuation Fund is not provided in the Accounts.

b) As informed by the management, the liability for the Gratuity and Superannuation Fund
are adhoc benefits and hence will be accounted for on pay-as-you-go basis as per
Accounting Standard 15.

8. Taxes on Income -

a) Current Income Tax is determined in respect of relative taxable amount for the period.

b) Deferred tax is recognised, subject to the consideration of prudence, on timing differences,
being the difference between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent period. Deferred tax assets
are not recognized un unabsorbed depreciation and carry forward of losses, unless there is

virtual certainty that sufficient future taxable income will be available against which such
deferred tax assets can be realized.

c) Company’s normal tax liabilities are more than the liability calculated under the MAT and
hence no occasion for recognizing the credit of Mat liabilities.

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Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared on the accrual basis of accounting, under the historical cost convention, in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

2.2 USE OF ESTIMATES:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the Financial Statements are prudent and reasonable. Future results could differ due to these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known and materialized.

2.3 FIXED ASSETS:

Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price less creditable duties, taxes and levies, and any directly attributable cost of bringing the asset to its working condition for the intended use. However there are no fixed assets.

2.4 PROVISION FOR RETIREMENT BENEFITS:

Provision for Retirement benefits/leave Encashment is accounted for as per rules of the Company.

2.5 EARNING PER SHARE:

The earning considered in ascertaining the Company"s Earning per Share comprise Net Profit after tax. The number of shares (nominal value of Rs.10/-) used in computing Basic Earnings per share is weighted average number of shares outstanding during the year.

2.6 ACCOUNTING FOR TAXES ON INCOME:

a. Current Tax is determined as amount of tax payable in respect of taxable income for the year based on applicable tax rates and law.

b. Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s).Deferred tax assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized.

2.7 PROVISIONS AND CONTIGENT LIABLITIES:

a. Provisions are recognized when the Company has a legal and a constructive obligation as a result of a past event, for which it is probable that a future outflow will be required and a reliable estimate can be made on the amount of the obligation.

b. Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

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Mar 31, 2010

1.1. Method of Accounting :

The financial statements have been prepared on the historical cost convention and in accordance with mandatory accounting standards.

1.2. Revenue Recognition :

Sales are recognized on the basis of dispatches to the customers. Sales dose not includes State or Central Sales Tax.

1.3. Fixed Assets :

Fixed assets have been stated at the cost less accumulated depreciation Cost comprises the purchase price and other attributable expenses. Depreciation is provided on straight line method in accordance with the rate prescribed under schedule XIV of the companies Act 1956, on pro- rata basis.

1.4. Inventories :

Finished goods are valued at cost or net realizable value whichever is lower.

1.5. Miscellaneous Expenditure :

Preliminary expenses are being written off @10% from the year of commercial production.

1.6. Retirement Benefit :

Employees Provident Fund Act and Employees State Insurance Act are not applicable to the company. No provision has been made for leave encashment and Gratuity payable on retirement.