CK's FOODS PRIVATE LIMITED

Notes forming part of the financial statements for the year ended 31 March 2021
1. SIGNIFICANT ACCOUNTING POLICIES
I. Reporting Entity

CKs Foods Private Limited is a Bakery Business having registered office at 12, EKkaduthangal, Mount Poonamalle Road. The primary
Business of the Company is Bakery Business with Own R&D, Dedicated TPU to Supply the Bakery Products on B2B basis to CKs Foods
Private Limited Retail Franchisees. Currently we have Registered Bakery Brand of CKs Bakery, this Baker is Franchised to 75+
Franchisees Across Tamil Nādu.

II. Basis of preparation of financial statements:

A. Statement of compliance
The financial statements of CK's Foods Private Limited ("the Company") have been prepared and presented in accordance with
Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises
accounting standards as prescribed under Section 113 of the Companies Act, 2013 ('the Act') read with rule 7 of the Companies
(Accounts) Rules, 2014, other pronouncements of Institute of Chartered Accountants of India and the provisions of the Act, to
the extent applicable. Accounting policies have been consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
B. Functional and presentation currency:
Indian Rupee (₹) is the Company’s functional currency and the currency of the primary economic environment in which the
Company operates. Accordingly, the management has presented the financial statements in Indian Rupees (₹).All amounts have
been rounded-off to the nearest lakhs up to two decimal places, unless otherwise indicated
C. Use of estimates:
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that
affect the reported amounts of revenues and expenses during the reporting period, reported balances assets and liabilities and
the disclosure of contingent assets and liabilities as at the date of the financial statements. Any revision to accounting estimates
is recognized prospectively in the current and future periods. Contingencies are recorded when it is probable that a liability will
be incurred, and the amount can be reasonably estimated. Actual results could differ from those of estimates.

III. Significant accounting policies

(a) Property, Plant and Equipment
Fixed Assets are stated at Cost less accumulated depreciation
(b) Depreciation and Amortisation:
Depreciation is provided on the written down value method. Depreciation is provided based on the useful lives prescribed in
Schedule II to the Act, 2013.

Asset Category Useful life

Machinery and equipment 15 Years
Furniture and fixture 10 Years
Vehicles 8 Years
Office Equipment 5 Years
Computer and data processing unit 3–6 Years
Electrical Installations and Equipment 10 Years
Software (SLM) 3 Years
Leasehold Improvements are being depreciated over the term of the lease on a Written Down value basis.
(c) Lease Assets
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as
operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss.
(d) Inventories
Inventories are valued at cost or net realisable value whichever is lower. Cost of raw materials, stores, and spares, packing
materials, semi-finished goods, finished goods and stock in trade is ascertained on a FIFO method.
(e) Earnings per share:
Basic earnings per share amounts are computed by dividing net profit or loss for the period attributable to equity shareholders
by the weighted average number of shares outstanding during the year. Diluted earnings per share amounts are computed after
adjusting the effects of all dilutive potential equity shares.
 CK's FOODS PRIVATE LIMITED
Notes forming part of the financial statements for the year ended 31 March 2021

(f) Revenue:
i) Revenue from Sale of goods
Revenue from sale of goods is recognized on delivery of goods, which corresponds with the transfer of all significant risks and
rewards of ownership to the buyer. The amount recognized as sale is exclusive of Goods and services tax, trade and quantity
discounts. Revenue for services is recognized after completion of service or upon receiving of consideration whichever is earlier.
ii) Recognition of dividend income, interest income:
Interest income - on a time proportion basis taking into account the amount outstanding and the rate applicable.
Dividend income - when the owner’s right to receive payment is established from investments in shares
(g) Employee benefits
Provident fund & Employee State Insurance
Eligible employees receive benefits from the provident fund and Employee State insurance, which is a defined contribution plan.
Both the employee and the Company make monthly contributions to the provident fund plan equal to specified percentage of
the covered employee's basic salary. The Company has no further obligations under the plan beyond its monthly contributions.
Gratuity
The Company has a defined benefit gratuity plan for its employees. Under the gratuity plan, every employee who has completed
at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The
scheme is funded with an insurance company in the form of qualifying insurance policy.
Leave Benefits
The company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit
for measurement purposes. Such long - term compensated absences are provided for based on the actuarial valuation using the
projected unit credit method at the year-end. The Company presents the leave as a current liability in the balance sheet, to the
extend it does not have an unconditional right to defer its settlement for 12 months after the reporting date. Where the company
has the unconditional legal and contractual right to defer the settlement for a period beyond 12 months, the same is presented
as non-current liability.
(h) Income taxes
Current tax
Income tax expense comprises current tax, i.e., amount of tax for the period determined in accordance with the income tax law.
Deferred Tax
Deferred Tax is recognized on timing differences; being the difference between the taxable incomes and accounting income that
originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets subject to the
consideration of prudence are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient
future taxable income will be available against which such deferred tax assets can be realised

(i) Provisions, Contingent assets, and Contingent liabilities

Provisions are recognised when the company has present legal or constructive obligations, as a result of past events, for which it
is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are not discounted to their
present value and are determined based on a best estimate basis, required to settle the obligation at the balance sheet date.
A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will
not, require an outflow of resources.
Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote,
no provision or disclosure is made.
Contingent assets are neither recognised nor disclosed in the financial statements.
(j) Cash and Cash equivalents
Cash and cash equivalents are short-term highly liquid investments that are readily convertible into cash with original maturities of
three months or less. Cash and cash equivalents consist primarily of cash and deposits with banks.
(k) Cash flow statement
Cash flows are reported using the indirect method, whereby net profit / (loss) before tax is adjusted for the effects of transactions
of non-cash nature and any deferrals or accruals of past of future cash receipts and payments. The cash flows from operating,
investing, and financing activities of the Company are segregated.
CK's FOODS PRIVATE LIMITED
Notes forming part of the financial statements for the year ended 31 March 2021

23) Related party transaction:

a) Name of the related parties and nature of relationships are as follows:
(i) Key management personnel:
Particulars Nature of relationship
Mr. Manuranjith R Director
Mrs. Akshitha Rajvee Director
Mr. Babu Director

(ii) Other Related Parties

Particulars
M/s. Cavinkare Private Limited
M/s. Cavin International Pvt Ltd
M/s. Cavin Solai Private Limited
M/s Hema's Enterprises Private Limited
Mrs. R.Thenmozhi
Ms Dhaneeswari
b) Related Party Transactions during the year
Nature of relationship
Entities over which Key Managerial personnel has
significant influence
Entities over which Key Managerial personnel has
significant influence
Entities over which relative of Key Managerial
personnel has significant influence
Entities over which relative of Key Managerial
personnel has significant influence
Relative of Director
Entities over which relative of Key Managerial
personnel has significant influence

As at March As at March
Party Name Nature of Transaction
2021 2020
Mr.Manuranjith R Directors’ remuneration NA 7.43
M/s. CavinKare Private Limited Purchase of Raw materials 13.85 31.89

M/s. CavinKare Private Limited Service sales 0.79 67.23

Rent 0.83 **
M/s. Cavin International Pvt Ltd
Services rendered and sale of
goods 4.90 **

Sale of Raw materials / Service

M/s. CavinKare Private Limited – Trends
Sales 19.57 42.02
Division
M/s. CavinKare Private Limited – Trends
Material purchase 0.86 NA
Division

M/s Hema's Enterprises Private Limited Resource Service 0.55

NA

Mr.Manuranjith R Loan received from Director - 368.00

Ms. Dharaneeshwari Sale of goods 1.06 NA

Note: ** Figures for the previous year ended has not been given as the break up is not available with the company.
CK's FOODS PRIVATE LIMITED
Notes forming part of the financial statements for the year ended 31 March 2021

c) Details of Balance Outstanding with Key Management Personnel and Related parties.

As on
Nature of Transaction
31st March 2021 31st March 2020

A) Long term borrowings

Mr. Manuranjith R 1489.27 1489.27
M/s. Cavin Solai Private Limited - 1.27
Mrs. Thenmozhi R 19.62 19.62

B) Trade Payables
M/s CavinKare Private Limited - 10.76

C) Trade Receivables
M/s CavinKare Private Limited - Trends Division - 6.05
M/s CavinKare Private Limited - 3.80
M/s.Cavin International Private Limited - -

D) Advances to suppliers
M/s.Cavin International Private Limited
- 2.13

D) Preference share capital including securities premium

M/s.CavinKare Private Limited 567.60 567.60
M/s.Cavin Solai Private Limited 600.00 600.00

Note: During the year, the company has written off an amount of Rs 36,000 and written back an amount of Rs 6,12,950
to Profit and Loss account in respect of receivables from related parties.
24A) Details of loans, investments and guarantees covered under section 186(4) of the Companies Act, 2013:
Company has neither invested nor provided any guarantees in connection with loan availed by any other Body
Corporate as covered under 186(4) of companies Act. Inter corporate loans received and Loans received from Directors
are mentioned under note 4 of financial statements.
24B) Going Concern
As on 31st March 2021, the company's net worth has been eroded. However, the financial statements of the
companies have been prepared under Going Concern Assumption on the basis that the promoters of the company
have agreed to provide all necessary financial and non-financial support to enable the company to operate as a going
concern.
CK's FOODS PRIVATE LIMITED
Notes forming part of the financial statements for the year ended 31 March 2021

25) Dues to Micro, small and medium enterprises

There are no dues payable as at 31st March 2021 to any companies which qualify under the definition of Micro,
Small and Medium Enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006
(MSMDA).
As at As at
31 March 31
Particulars
2021 March
2020
The principal amount and the interest due thereon remaining unpaid to any supplier as at the
- -
end of each accounting year
Principal amount due to micro and small enterprises - -
Interest due on above - -
The amount of interest paid by the buyer in terms of section 16 of the MSMED Act 2006 along
with the amounts of the payment made to the supplier beyond the appointed day during each
- -
accounting year

The amount of interest due and payable for the period of delay in making payment (which have
been paid but beyond the appointed day during the year) but without adding the interest
- -
specified under the MSMED Act 2006.
The amount of interest accrued and remaining unpaid at the end of each accounting year - -
The amount of further interest remaining due and payable even in the succeeding years, until
such date when the interest dues as above are actually paid to the small enterprise for the
purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act 2006 - -

Note: Company is in the process of obtaining confirmation from MSME vendor. As of 31st March,2021, no vendor has
confirmed about the status of MSME.

26) Foreign Exchange

Foreign outgo (Foreign Travel Expense) is Nil.
Foreign Exchange earnings - Nil.

27) Defined Benefit Obligation – Gratuity

Assumptions:
Particulars As at 31st March 2021 As at 31st March 2020

Expected Return on Plan N.A. N.A.

Assets
Rate of Discounting 6.57% 6.87%
Rate of Salary Increase 10.00% 5.00%
Rate of Employee For service 3 years and below 40.00% p.a. For 5.00%
Turnover service 4 years and above 5.00% p.a.
Mortality Rate During Indian Assured Lives Mortality (2006-08) Ultimate Indian Assured Lives Mortality
Employment (2006-08) Ultimate
CK's FOODS PRIVATE LIMITED
Notes forming part of the financial statements for the year ended 31 March 2021

Change in the Present Value of Projected Benefit Obligation

Particulars As at 31st March As at 31st March

2021 2020
Present Value of Benefit Obligation at the Beginning of the Period 494,698 696,234
Interest Cost 33,986 54,028
Current Service Cost 231,941 159,470
Past Service Cost - -
Liability Transferred In/ Acquisitions - -
(Liability Transferred Out/ Divestments) - -
(Gains)/ Losses on Curtailment - -
(Liabilities Extinguished on Settlement) - -
(Benefit Paid Directly by the Employer) - -
(Benefit Paid From the Fund) - -
The Effect Of Changes in Foreign Exchange Rates - -
Actuarial (Gains)/Losses on Obligations - Due to Change in Demographic (116,350) -
Assumptions
Actuarial (Gains)/Losses on Obligations - Due to Change in Financial 330,051 -
Assumptions
Actuarial (Gains)/Losses on Obligations - Due to Experience (317,850) (415,034)
Present Value of Benefit Obligation at the End of the Period 656,476 494,698

Amount Recognized in the Balance Sheet

Particulars As at 31st March 2021 As at 31st March 2020
Present Value of Benefit Obligation at the end of the Period) (656,476) (494,698)
Fair Value of Plan Assets at the end of the Period - -
Funded Status (Surplus/ (Deficit)) (656,476) (494,698)
Net (Liability)/Asset Recognized in the Balance Sheet (656,476) (494,698)

Net Interest Cost for Current Period

Particulars As at 31st March 2021 As at 31st March 2020
Present Value of Benefit Obligation at the Beginning of the Period 494,698 696,234
(Fair Value of Plan Assets at the Beginning of the Period) - -
Net Liability/(Asset) at the Beginning 494,698 696,234

Expenses Recognized in the Statement of Profit or Loss

Particulars For the year ended 31st For the year ended 31st
March 2021 March 2020
Current Service Cost 231,941 159,470
Net Interest Cost 33,986 54,028
Past Service Cost - -
(Expected Contributions by the Employees) - -
(Gains)/Losses on Curtailments And Settlements - -
Net Effect of Changes in Foreign Exchange Rates - -
Actuarial (Gains)/Losses on Obligation For the Period (104,149) (415,034)
Return on Plan Assets, Excluding Interest Income - -
Change in Asset Ceiling - -
Net (Income)/Expense For the Period Recognized in 161,778 (201,536)
Statement of Profit or loss
CK's FOODS PRIVATE LIMITED
Notes forming part of the financial statements for the year ended 31 March 2021

Other Details
Particulars As at 31st March 2021 As at 31st March 2020
No of Members in Service 47 59
Per Month Salary For Members in Service 445,760 661,085
Weighted Average Duration of the Projected Benefit Obligation 17 14
Average Expected Future Service 8 13
Projected Benefit Obligation (PBO) - Total 656,476 494,698
Projected Benefit Obligation (PBO) - Due but Not Paid - -
Expected Contribution in the Next Year - -

Maturity Analysis of the Benefit Payments

Projected Benefits Payable in Future Years From the Date of As at 31st March As at 31st March 2020
Reporting 2021
1st Following Year 3,555 1,087
2nd Following Year 14,563 10,217
3rd Following Year 21,697 19,809
4th Following Year 25,378 31,655
5th Following Year 27,212 36,400
Sum of Years 6 To 10 216,327 223,003
Sum of Years 11 and above 1,910,062 1,106,941

Sensitivity Analysis
Particulars As at 31st March 2021 As at 31st March 2020
Projected Benefit Obligation on Current Assumptions 656,476 494,698
Delta Effect of +1% Change in Rate of Discounting (90,631) (55,847)
Delta Effect of -1% Change in Rate of Discounting 112,356 67,335
Delta Effect of +1% Change in Rate of Salary Increase 107,382 67,943
Delta Effect of -1% Change in Rate of Salary Increase (88,812) (57,249)
Delta Effect of +1% Change in Rate of Employee Turnover (37,684) (1,900)
Delta Effect of -1% Change in Rate of Employee Turnover 43,671 84

o The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions
occurring at the end of the reporting period, while holding all other assumptions constant.
o The sensitivity analysis presented above may not be representative of the actual change in the projected benefit
obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the
assumptions may be correlated.
o Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has
been calculated using the projected unit credit method at the end of the reporting period, which is the same
method as applied in calculating the projected benefit obligation as recognised in the balance sheet.
o There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
28) Earnings per share

Particulars As on 31st March 2021 As on 31st March 2020

Profit / (Loss) for the year (Rs. in lakhs) (A) -224.31 -362.29
Number of shares (nominal value of Rs.10/- each) (B) 5,400 5,400
-4,153.89
Earnings per share (Basic & Diluted) – Rs. (A)/(B) -6,709.01
 CK's FOODS PRIVATE LIMITED
Notes forming part of the financial statements for the year ended 31 March 2021
29) Revenue
The company generates revenue primarily from Sale of goods and services to its customers.
Particulars Purchase Sales

Traded goods

290.35 1,118.04
Semi/Finished Goods

523.47 243.26
Raw Material

101.90 91.35
Packing Material

915.73 1,452.65
Total

Note: Figures for the previous year ended has not been given as the break up is not available with the
company.

For the year ended 31st March For the year ended 31st March
Particulars
2021 2020

Services rendered:

Rental/Software/Tele
180.31 318.85
Reimbursement

Brand fee 26.84 162.76

Other Reimbursement 9.26 -
Total 216.42 481.61

30) Remuneration to Auditors:

For the year ended 31st March For the year ended 31st
Particulars
2021 March 2020
Statutory Audit fee 75,000 75,000
Tax Audit fee 25,000 25,000
Total 1,00,000 1,00,000

31) COVID-19 IMPACT

In view of lockdown across the country due to outbreak of Covid-19 pandemic, the Company's operations were
scaled down / shutdown in compliance with the directives / orders issued by the Government Authorities.

The Company continues to actively manage its business during COVID-19 pandemic and has not yet experienced
significant changes on the business impact than estimated earlier. In assessing the assumptions relating to the
possible future uncertainties in the economic conditions because of this pandemic, nothing has come to the
attention of the Company through internal and external sources, which warrants a reassessment of carrying
amounts of financial and non-financial assets and the expected future performance of the Company.
CK's FOODS PRIVATE LIMITED
Notes forming part of the financial statements for the year ended 31 March 2021

32) a) Based on the current assessment of the long-term contracts in the ordinary course of business, the Company
has made adequate provision for losses wherever required. The Company has not entered into any derivative
contracts during the year.
b) The pending litigations as on 31st March 2021 have been compiled by the company and reviewed by the
Statutory Auditors. The current position of the litigations has been evaluated and the effect thereof has been
disclosed in the financial statements.
c) There were no amounts required to be disclosed as contingent assets and contingent liabilities on account of
pending litigations as on 31st March 2021 for the company.

33) The outstanding balances in respect of all receivables and payables are subject to confirmations.

34) During the year the company has carried out reconciliations of amounts receivable and payable during which
several long pending balances were deemed to be not recoverable/ payable. On the basis of such reconciliation,
company has written off INR 482.21 Lacs and written back INR 137.71 Lacs as of March 2021. Further, management
also confirms that company has sufficient and appropriate evidences for closing balances carried in books as of
March 31, 2021 to demonstrate that closing balance is appropriate.

35) Arrears of Dividend on Cumulative Non-Convertible preference shares:

Company has to pay cumulative arrears of dividend (Including current year) at the rate of 9% on preference shares
issued during the years 2017-18 and 2018-19 amounting to Rs. 48.34 Lacs/-.

36) Previous year figures have been reclassified / regrouped wherever necessary to confirm to the current year’s
classification.
37) Figures are rounded off to the nearest Rupees in Lakhs.

As per our report of even date attached For and on behalf of the Board of Directors
For Brahmayya & CO., of CK'S FOODS PRIVATE LIMITED
Chartered Accountants
FRN:000511S

P Babu R Manuranjith Karuppan Chetty

Chartered Accountant Director Director
Membership No.:203358 DIN: 06590425 DIN: 09320658

Place: Chennai
Date: 24/11/2021