Accounting Policies of Tasty Dairy Specialities Ltd. Company

Mar 31, 2025

1.3 Statement of Significant Accounting Policiess
1.3.1 Property, Plant and Equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment (PPE) are
stated at cost less accumulated depreciation and impairment losses, if any. Historical cost includes
expenditure that is directly attributable to the acquisition of the item.

The cost of an item of PPE comprises its purchase price net of any trade discounts and rebates, any
import duties and other taxes (other than those subsequently recoverable from the tax authorities),
any directly attributable expenditure including brokerage and start-up costs on making the asset ready
for its intended use, other incidental expenses and interest on borrowings attributable to acquisition
of qualifying assets up to the date the asset is ready for its intended use.

When significant parts of PPE are required to be replaced at intervals, company depreciates them
separately based on their specific useful lives.

An item of PPE is derecognized upon disposal or when no future economic benefits are expected from
its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference
between the net disposal proceeds and the carrying amount of the asset) is included in the income
statement when the asset is derecognized.

The residual values, useful lives and methods of depreciation of PPE are reviewed at each financial
year end and changes if any are accounted in line with revisions to accounting estimates.

Depreciation

Depreciation on PPE is provided as per Written Down Value Method as per the useful life prescribed
in Schedule II of the Companies Act, 2013.

Depreciation on additions/deductions to PPE made during the year is provided on a pro-rata basis
from / up to the date of such additions /deductions, as the case may be.

Leased Assets

Leasehold land is amortized over the period of lease.

Capital Work in Progress

Capital work in progress is stated at cost, net of impairment losses, if any. Cost comprises of the cost
of items of PPE not yet commissioned, incidental pre-operative expenses, related borrowing costs and
other direct expenditure.

1.3.2 Intangible Assets

Intangible assets are carried at cost net of accumulated amortization and accumulated impairment
losses, if any.

1.3.3 Leases

lnd AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease
adjusted with any option to extend or terminate the lease, if the use of such option is reasonably
certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and
thereby assesses whether it is reasonably certain that any options to extend or terminate the contract
will be exercised. In evaluating the lease term, the Company considers factors such as any significant
leasehold improvements undertaken over the lease term, costs relating to the termination of the lease
and the importance of the underlying asset to Company''s operations taking into account the location
of the underlying asset and the availability of suitable alternatives. The lease term in future periods is
reassessed to ensure that the lease term reflects the current economic circumstances.

I. The Company as a Lessee:

The Company''s lease asset class primarily consist of leases for buildings. 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:

> The contract involves the use of an identified asset.

> The Company has substantialized all of the economic benefits from use of the asset through the
period of the lease and;

> 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.

Certain lease arrangements include the options to extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that
they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses, if any.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying asset

Right-of-use assets is evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing,
the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is
determined on an individual asset basis unless the asset does not generate cash flows that are largely
independent of those from other assets. In such cases, the recoverable amount is determined for the
Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease
payments. The lease payments are discounted using the interest rate implicit in the lease or, if not
readily determinable, using the incremental borrowing rates in the country of domicile of these leases.
Lease liabilities are re-measured with a corresponding adjustment to the related right- of- use asset if
the Company changes its assessment of whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments
have been classified as financing cash flows.

As a lessor

Leases for which the company is a lessor, is classified as finance lease or operating lease. Whenever
the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the
contract is classified as finance lease. All other leases are classified as operating lease. When the
Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease
separately. The sub-lease is classified as finance lease or operating lease with reference to right-of-
use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of such lease.

1.3.4 Impairment of Non-Financial Assets

Non-financial assets other than inventories and deferred tax assets are reviewed at each Balance Sheet
date to determine whether there is any indication of impairment. If any such indication exists, or when
annual impairment testing for an asset is required, the Company estimates the asset''s recoverable
amount. The recoverable amount is higher of the assets or Cash-Generating Units (CGU''s) fair value
less costs of disposal and its value in use. Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other
assets or group of assets.

When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

1.3.5 Inventories

Cost includes all charges in bringing the inventories to their present location and condition, including
octroi and other levies, transit insurance and receiving charges and excluding rebates and discounts,
if any.Net realizable value is the estimated selling price in the ordinary course of business.

Inventories other than Scrap and Import entitlements/license are valued at lower of cost and net
realized value.

1.3.6 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured. The specific recognition criteria described below
are also to be met before revenue is recognized.

Sale of Goods

Revenue from the sale of goods is measured at the fair value of the consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates. The sales exclude
Value added tax/sales tax/GST. Sales are recognized on dispatch of goods to customers and on transfer
of corresponding risk to the customers. Export Sales are recognized on the issuance of Bill of
Lading/Airway bill by the carrier.

Dividend income

Dividend income is accounted for when the right to receive the same is established, which is generally
when shareholders approve the dividend.

Insurance Claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to
the extent that the amount recoverable can be measured reliably and it is reasonable to expect
ultimate collection.

Other Income

Other income is accounted for on accrual basis except where the receipt of income is uncertain in
which case it is accounted for on receipt basis.

1.3.7 Employee Benefits

1.3.7.1 Short Term Employee Benefits

Short-term obligations Liabilities for wages and salaries, including nonmonetary benefits that are
expected to be settled wholly within twelve months after the end of the period in which the employees
render the related service are recognized in respect of employees'' services up to the end of the
reporting period and are measured at the undiscounted amounts expected to be paid when the
liabilities are settled.

1.3.7.2 Post-Employment Benefits

I. Defined Contribution Plan:

Defined Contribution Plans such as Provident Fund, Employee State Insurance and National
Pension Scheme are recognized as an expense and charged to the Statement of Profit and

Loss for the year when contributions are due. Both employees and the company make

contribution at a specified percentage of covered employee''s salary.

Defined Benefit Plans:

a) Gratuity:

(i) Cost of providing the benefit is determined on an actuarial basis at the end of the
year and charged to the Statement of Profit & Loss. The cost of providing these
benefits is determined by independent actuary using the projected unit credit
method.

(ii) Re-measurement, comprising actuary gains and losses and the effect of Asset
ceiling, (excluding amount included in the net interest on the net defined liability
and retirement plan asset) are recognized immediately in the balance sheet with a
corresponding debit/credit to the Retained Earning through OCI in the period in
which they occur. It is included in the retained earnings in the statement of changes
in the Equity and in the Balance Sheet Actuarial gain or loss is recognized in Other
Comprehensive Income for long term benefits including gratuity benefits.

b) Other Long Term Benefits:

No other post-retirement benefits are provided to the employees.

1.3.8 Research and Development Expenditure

Expenditure on research of revenue nature is charged to Statement of Profit and Loss and that of
capital nature is capitalized as fixed assets.

1.3.9 Foreign Currency Transactions
Monetary Items

Transactions in foreign currencies are initially recorded at their respective exchange rates at the date
the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates
prevailing on the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in
Statement of Profit and Loss either as profit or loss on foreign currency transaction and translation or
as borrowing costs to the extent regarded as an adjustment to borrowing costs.

Non - Monetary items

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.

1.3.10 Government Grants

Government grants are recognized where there is reasonable assurance that the grant will be
received, and all attached conditions will be complied with.

When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a
systematic basis over the periods that the related costs, for which it is intended to compensate, are
expensed.

Government grants relating to Property, Plant and Equipment are presented as deferred income and
are credited to the Statement of Profit and Loss on a systematic and rational basis over the useful life
of the asset.

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Mar 31, 2024

1.3 Statement of Significant Accounting Policies 1.3.1 Property, Plant and Equipment

Freehold land is carried at historical cost. All other items of property, plant and equipment (PPE) are stated at cost less accumulated depreciation and impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the item.

The cost of an item of PPE comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure including brokerage and start-up costs on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for its intended use.

When significant parts of PPE are required to be replaced at intervals, company depreciates them separately based on their specific useful lives.

An item of PPE is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

The residual values, useful lives and methods of depreciation of PPE are reviewed at each financial year end and changes if any are accounted in line with revisions to accounting estimates.

Depreciation

Depreciation on PPE is provided as per Written Down Value Method as per the useful life prescribed in Schedule II of the Companies Act, 2013.

Depreciation on additions/deductions to PPE made during the year is provided on a pro-rata basis from / up to the date of such additions /deductions, as the case may be.

Leased Assets

Leasehold land is amortized over the period of lease.

Capital Work in Progress

Capital work in progress is stated at cost, net of impairment losses, if any. Cost comprises of the cost of items of PPE not yet commissioned, incidental pre-operative expenses, related borrowing costs and other direct expenditure.

1.3.2 Intangible Assets

Intangible assets are carried at cost net of accumulated amortization and accumulated impairment losses, if any.

1.3.3 Leases

lnd AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Company''s operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

I. The Company as a Lessee:

The Company''s lease asset class primarily consist of leases for buildings. 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:

> The contract involves the use of an identified asset.

> The Company has substantialized all of the economic benefits from use of the asset through the period of the lease and;

> 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 straightline basis over the term of the lease.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset

Right-of-use assets is evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are re-measured with a corresponding adjustment to the related right- of- use asset if the Company changes its assessment of whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

As a lessor

Leases for which the company is a lessor, is classified as finance lease or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as finance lease. All other leases are classified as operating lease. When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sub-lease is classified as finance lease or operating lease with reference to right-of-use asset arising from the head lease.

For operating leases, rental income is recognized on a straight line basis over the term of such lease.

1.3.4 Impairment of Non-Financial Assets

Non-financial assets other than inventories and deferred tax assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. The recoverable amount is higher of the assets or Cash-Generating Units (CGU''s) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.

When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

1.3.5 Inventories

Cost includes all charges in bringing the inventories to their present location and condition, including octroi and other levies, transit insurance and receiving charges and excluding rebates and discounts, if any.Net realizable value is the estimated selling price in the ordinary course of business.

Inventories other than Scrap and Import entitlements/license are valued at lower of cost and net realized value.

1.3.6 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The specific recognition criteria described below are also to be met before revenue is recognized.

Sale of Goods

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. The sales exclude Value added tax/sales tax/GST. Sales are recognized on dispatch of goods to customers and on transfer of corresponding risk to the customers. Export Sales are recognized on the issuance of Bill of Lading/Airway bill by the carrier.

Dividend income

Dividend income is accounted for when the right to receive the same is established, which is generally when shareholders approve the dividend.

Insurance Claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

Other Income

Other income is accounted for on accrual basis except where the receipt of income is uncertain in which case it is accounted for on receipt basis.

1.3.7 Employee Benefits

1.3.7.1 Short Term Employee Benefits

Short-term obligations Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees'' services up to the end of the reporting period and are measured at the undiscounted amounts expected to be paid when the liabilities are settled.

1.3.7.2 Post-Employment Benefits

I. Defined Contribution Plan:

Defined Contribution Plans such as Provident Fund, Employee State Insurance and National Pension Scheme are recognized as an expense and charged to the Statement of Profit and

Loss for the year when contributions are due. Both employees and the company make

contribution at a specified percentage of covered employee''s salary.

Defined Benefit Plans:

a) Gratuity:

(i) Cost of providing the benefit is determined on an actuarial basis at the end of the year and charged to the Statement of Profit & Loss. The cost of providing these benefits is determined by independent actuary using the projected unit credit method.

(ii) Re-measurement, comprising actuary gains and losses and the effect of Asset ceiling, (excluding amount included in the net interest on the net defined liability and retirement plan asset) are recognized immediately in the balance sheet with a corresponding debit/credit to the Retained Earning through OCI in the period in which they occur. It is included in the retained earnings in the statement of changes in the Equity and in the Balance Sheet Actuarial gain or loss is recognized in Other Comprehensive Income for long term benefits including gratuity benefits.

b) Other Long Term Benefits:

No other post-retirement benefits are provided to the employees.

1.3.8 Research and Development Expenditure

Expenditure on research of revenue nature is charged to Statement of Profit and Loss and that of capital nature is capitalized as fixed assets.

1.3.9 Foreign Currency Transactions Monetary Items

Transactions in foreign currencies are initially recorded at their respective exchange rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at exchange rates prevailing on the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognized in Statement of Profit and Loss either as profit or loss on foreign currency transaction and translation or as borrowing costs to the extent regarded as an adjustment to borrowing costs.

Non - Monetary items

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.

1.3.10 Government Grants

Government grants are recognized where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with.

When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.

Government grants relating to Property, Plant and Equipment are presented as deferred income and are credited to the Statement of Profit and Loss on a systematic and rational basis over the useful life of the asset.

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Mar 31, 2018

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 2013 and comply with the Generally Accepted Accounting Principles (GAAP) in India and the accounting standard specified in section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

2 USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of the assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3 REVENUE RECOGNITION

Sale is recognized when the significant risks and reward of ownership of the goods have passed to the customer. Sales are net of sales returns, trade discounts, rebate, Value Added Tax, Sales Tax and Goods & Service Tax.

4 FIXED ASSETS

Fixed Assets are stated at cost less Accumulated depreciation. Cost Include all expenses incurred to bring the assets to its present location and condition. Expenditure during construction/erection period is included under Capital Work-in-Progress and allocated to the respective fixed assets on completion of construction / erectioon.

5 DEPRECIATION

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

6 INVENTORIES

Finished Goods, Raw Materials/ Packing Materials are valued at cost or net realizable value which ever is lower. Damaged/Defective stocks are valued at net realizable value.

7 NON-CURRENT INVESTMENTS

a) Investment in Shares/ Securities Purchased for Capital appreciation and other benefits are held as investment.

b) Investments (Long Term) in shares/ securities are valued at cost after considering decline in value other than temporary decline.

8 CURRENT INVESTMENTS

a) The cost of Shares/Securities includes brokerage, stamp duty, Taxes and other incidental charges.

b) Shares/ securities held as current investments is valued at acquisition cost or market value whichever is lower.

9 TAXATION

a) Tax on income for the current period is determined on the basis of taxable income and tax credit computed in accordance with the provisions of Income Tax Act, 1961.

b) Deferred Tax is recognized subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred Tax Assets is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be adjusted in future.

10 RETIREMENT & OTHER BENEFITS

a) Company’s contribution to Provident Fund and Employee’s State Insurance Fund are charged to Profit & Loss Account.

b) Company’s liability towards defined benefit plan is determined using the projected unit credit method which considers each period of service as giving rise to additional unit of benefit entitlement and measure each unit seperately to build up the final obligation. Actuarial gain and losses are recognised immediately in the profit and loss account as income or expenses.

Obligation measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to market yeilds at the balance sheet date or government bonds where the currency and terms of the Government are consistent with the currency and estimates of the defined benefit obligation.

11 IMPAIRMENT OF ASSETS

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed would be recognized in the account in the relevant year.

12 EARNING PER SHARE

The earning considered in ascertaining the Company’s Earning Per Share (EPS) comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential diluted equity shares

13 CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferral or accruals of past or future cash receipts or payment. The cash flows from regular operating, investing and financing activities of the Company are segregated.

14 PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes.

Contingent assets are neither recognized nor disclosed in the financial statements.

15 MAT CREDIT ENTITLEMENT

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 that there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

16 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Net exchange gain or loss resulting in respect of foreign exchange transactions settled during the period is recognized in the profit and loss account.