Manoj Ceramic Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

Corporate Information

MANOJ CERAMIC LIMITED (MCPL or the Company) is a limited company and was incorporated on 12 December 2006. The Equity Shares of the Company got listing on the SME platform of the Bombay Stock Exchange. The registered office of the Company is located at 1, Krishna Kunj, 140 Vallabh Baug, Lane, Ghatkopar (East),

Mumbai, Mumbai,Mumbai, Maharashtra, India, 400077.

The Company is engaged in the business of a Contract-Manufacturing, selling and distribution of Ceramic and Vitrified wall and floor tiles.

Note 1: Significant Accounting Policies:

a Basis of Preparation of Financial Statement :

The Financial Statements of the Company have been prepared under Historical cost Convention on accrual basis of accounting in accordance with the Generally Accepted Accounting principles (GAAP) in India. These Financial Statements Comply.

Company’s Financial Statements are presented in the Indian Rupees (), which is also its functional currency. b Presentation of financial statements:

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.

c Revenue Recognition:

Revenue from Sale of the goods is recognized at the point of dispatch to customers when the significant risk and reward of ownership of the goods have been passed to the customer, it can be reliably measured and it is reasonable to expect ultimate collection and other income are accounted on accrual basis. Sales are net of GST. Government subsidy is recognized on receipt basis on compliance of stipulated conditions as notified under the respective scheme.

d Property Plant & Equipment :

Property, plant & Equipment’s are stated at cost less depreciation. Cost comprises of the purchase price and any attributable cost of bringing the asset to working condition and incidental expenses incurred in relation to their acquisition / bringing the assets for their intended use as intended by the management.

Depreciation/Amortisation:

Depreciation is provided as per Written down Value method in accordance with the rates specified in Schedule II to the Companies Act, 2013, in case of tangible assets. Depreciation is charged on pro rata basis for assets purchased during the period.

Intangible Assets:

The Intangible assets are held on the balance sheet at cost less accumulated amortisation and impairment losses. The Intangible Assets are treated as per AS- 26, for the purpose of Amortization.

e Inventories :

Inventories are valued at lower of cost or net realizable value. Net realisable 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 inventories comprises of cost of purchase and other costs incurred in bringing them to their respective present location and condition. Cost is determined using FIFO method.

f Foreign Currency Transaction :

Transactions denominated in Foreign Currency are recorded at the average exchange rate for the reporting period. The exchange difference arising there on i.e. Fluctuation Gains/Losses are recognized in the profit and Loss statement. Monetary assets and liabilities denominated, in foreign currency at the Balance sheet date are translated at the year-end rates.

g Provisions for Current Income T ax and Deferred T ax:

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses, if any.

Current tax is based on taxable profit for the year. Taxable profit is different from accounting profit due to temporary differences between accounting and tax treatments, and due to items, that are never taxable or tax deductible. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws prevailing and applicable for the relevant assessment year.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

The Company offsets, the tax assets and liabilities (on a year on year basis) where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis or to realise the assets and liabilities on net basis.

The carrying amount of deferred income 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 income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

h Provisions & Contingencies

Provision involving substantial degree of estimation in measurement is 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. No provision is made for liabilities, which are contingent in nature. If material, the same are disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

i Investments:

Long Term Investments i.e. (Non-Current investments) are stated at cost. Provision for diminution in the value of Long-Term Investments is made only if such decline is other than temporary. Current investments are valued at cost.

j Employee Benefits:

The Company has provides following post-employment plans such as

i) Defined benefit plans such a gratuity and

ii) Defined contribution plans such as Provident fund

A Defined-benefit plan:

The obligation in respect of defined benefit plans, which covers Gratuity, are provided for on the basis of an actuarial valuation at the end of each financial year using projected unit credit method. Gratuity is funded through an insurance policy.

The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss:

Service costs comprising current service costs, past-service costs, gains and losses on

i curtailment and non-routine settlements; and

ii net interest expense or income

B Defined-contribution plan:

Defined Contribution plan comprise of contributions to the employees’ provident fund. In accordance with the Employees’ Provident Fund and Miscellaneous Provision Act, 1952, for certain eligible employees of the Company are entitled to receive benefits under the provident fund plan in which both the employee and employer (at a determined rate). The provident fund contribution as specified under the law is paid to the Employees Provident Fund Organisation(EPFO). The Company’s payments to the defined contribution plans are recognised as expenses during the period in which the employees perform the services that the payment covers.

k Borrowing Costs :

Borrowing costs directly attributable to the acquisition and construction of an asset which takes a substantial period of time to get ready for its intended use, are capitalize as part of the cost of such asset, until such time the asset is substantially ready for it intended use.

All other borrowing costs are recognized as an expense in the period in which they are incurred Borrowing costs consist of interest and other costs incurred in connection with borrowing of funds.

l Leases

In respect of operating leases, lease rentals are recognized as an expense in the Statement of Profit & Loss on an accrual basis over the leased term. In respect of assets obtained on finance leases, assets are recognized at their fair value at the date of acquisition or if lower, at the present value of minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a Finance Lease obligation. The excess of lease payments over the recorded lease obligations are treated as Finance charges which are allocated to each lease term so as to produce a constant rate of charge on the remaining balance of the obligations. The assets are depreciated on the basis of lease period.

m Cash Flow Statement

Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.

n Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.

o Impairment of Financial and Non-Financial Assets

The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial assets are impaired. If any such indication exists, the Company estimates the amount of impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognised in profit or loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognized impairment loss is reversed through profit or loss.

p Cash & Cash Equivalents

Cash and Cash equivalents include cash on hand and Cheque in hand, bank balances, demand deposits with banks having original maturity of less than three months or less and other short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of changes in value.

q Earnings Per Share

Basic earnings per share is computed by dividing the net profit after tax attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding for the year

Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earnings per share is computed by dividing the net profit after tax attributable to the equity shareholders for the year adjusted for effect of interest and other financing costs, net of taxes,associated with dilutive potential equity share by aggregate of weighted average number of equity shares considered for deriving basic earnings per share and weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares into equity shares

---

Mar 31, 2024

Significant Accounting Policies:

1. Basis of Preparation of Financial Statement :

The Financial Statements of the Company have been prepared under Historical cost Convention on accrual basis of accounting in accordance with the Generally Accepted Accounting principles (GAAP) in India. These Financial Statements Comply in all material aspects with the Accounting standards (AS) notified under the Companies (Accounting standards) Rules, 2006 (as amended), to the extent applicable, other pronouncement of the Institute of Chartered Accountants of India and are in accordance with the provision of the Companies Act, 2013.

Company''s Financial Statements are presented in the Indian Rupees (), which is also its functional currency.

2. Presentation of financial statements:

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 ("the Act"). The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.

3. Revenue Recognition:

Revenue from Sale of the goods is recognized at the point of dispatch to customers when the significant risk and reward of ownership of the goods have been passed to the customer, it can be reliably measured and it is reasonable to expect ultimate collection and other income are accounted on accrual basis. Sales are net of GST. Government subsidy is recognized on receipt basis on compliance of stipulated conditions as notified under the respective scheme.

4. Property Plant & Equipment:

Property, plant & Equipment''s are stated at cost less depreciation. Cost comprises of the purchase price and any attributable cost of bringing the asset to working condition and incidental expenses incurred in relation to their acquisition / bringing the assets for their intended use as intended by the management.

Depreciation:

Depreciation is provided as per Written down Value method in accordance with the rates specified in Schedule II to the Companies Act, 2013, except in case of intangible assets. Depreciation is charged on pro rata basis for assets purchased during the period.

Intangible Assets:

The Intangible Assets are treated as per AS - 26, for the purpose of Amortization.

5. Inventories :

Inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs incurred in bringing them to their respective present location and condition. Cost is determined using FIFO method.

6. Foreign Currency Transaction :

Transactions denominated in Foreign Currency are recorded at the exchange rates prevailing on the date when the relevant transactions take place. The exchange difference arising there on i.e. Fluctuation Gains/Losses are recognized in the profit and Loss statement. Monetary assets and liabilities denominated, in foreign currency at the Balance sheet date are translated at the year-end rates.

7. Provisions for Current and Deferred Tax:

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted on the balance sheet date. During the period the company has accumulated for Deferred Tax in Accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. Consequently, the company has recognized in these financial statements the Deferred Tax Assets and has credited the Profit & Loss Account with Deferred Tax Assets relating to the period net of Rs.24.33 (Rs. In Lakhs).

Current tax is measured on the basis of estimated taxable income for the current accounting period in accordance with the provision of the income tax Act, 1961.

8. Provisions, Contingent Liabilities and Contingent Assets:

Provision involving substantial degree of estimation in measurement is 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. No provision is made for liabilities, which are contingent in nature. If material, the same are disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

9. Investments:

Long Term Investments i.e. (Non-Current investments) are stated at cost. Provision for diminution in the value of Long-Term Investments is made only if such decline is other than temporary. Current investments are valued at cost.

10. Employee Benefits:

(a) Short term employee benefits:

Short term employee benefits are recognized as an expense on accrual basis

(b) Defined Contribution plan:

Contribution payable to recognized provident fund which are defined contribution plan, are recognized as expense in the statement of profit & loss account as they are incurred.

11. Borrowing Costs:

Borrowing costs directly attributable to the acquisition and construction of an asset which takes a substantial period of time to get ready for its intended use, are capitalize as part of the cost of such asset, until such time the asset is substantially ready for it intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred Borrowing costs consist of interest and other costs incurred in connection with borrowing of funds.

12. Leases

In respect of operating leases, lease rentals are recognized as an expense in the Statement of Profit & Loss on an accrual basis over the leased term. In respect of assets obtained on finance leases, assets are recognized at their fair value at the date of acquisition or if lower, at the present value of minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a Finance Lease obligation. The excess of lease payments over the recorded lease obligations are treated as Finance charges which are allocated to each lease term so as to produce a constant rate of charge on the remaining balance of the obligations. The assets are depreciated on the basis of lease period.

Lease payments of Rs 155.81 (Previous year Rs. 160.88) have been recognized as expenses in the statement of profit & loss for the year ended March 31, 2024. Lease are cancellable and current Financial year & future lease payments are shown as below:-

13. AS - 3 Cash flow indirect method is used for preparation for cash flow statement.

14. AS-17 Segment reporting - As the Company''s annual report contains both Consolidated and Standalone Financial Statements, segmental information is presented only in the Consolidated Financial Statement.

15. Earnings Per Share (EPS)

The basic and diluted earnings per equity share are computed by dividing the net profit Attributable to the equity shareholders for the period by the weighted average number of Equities shares outstanding during the reporting period. The EPS is calculated as under:

16. Impairment of Financial and Non-Financial Assets

The Company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial assets are impaired. If any such indication exists, the Company estimates the amount of impairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. If any such indication exists, an estimate of the recoverable amount of the individual asset/cash generating unit is made. An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognised in profit or loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognized impairment loss is reversed through profit or loss.