Significant Accounting Policies and other Explanatory Information:
1. Basis of Accounting
The financial statements have been prepared on accrual basis and under the historical cost
convention in compliance with the mandatory accounting standards issued by The
Institute of Chartered Accountants of India and in conformity with accounting principles
generally accepted in India. The company has prepared accounts on the assumption of
going concern basis.
2. Revenue Recognition
Sales are recognized on transfer of title of the goods to the customers. Sales are net-of
Sales Tax, and returns. The Company got converted from erstwhile LLP on 21st February,
2024. The sales done after 21st Feb, 2024 were also accounted in the LLP only as the GST
number was not transferred into Company’s name till 31st March, 2024 due to various
technical and statutory requirement under LLP act, 2008 and Companies Act, 2013. All the
sales till 31st March, 2024 are recorded in the erstwhile LLP “Acetech Ventures LLP”
before conversion and the tax on the same been paid as per the LLP tax slabs.
Hence, as on 31st March, 2024 there were Nil sales recorded in the books of M/s. Acetech
Ventures Limited and no revenue was generated from operations.
3. Fixed Assets Fixed Assets are stated at cost. Gross Block & Net Block of Fixed Assets at the
beginning & at the end of the year are disclosed separately, which duly satisfy requirements
of AS-10.
4. Depreciation
Depreciation on Fixed Assets is provided based on. Useful life prescribed under Part A of
schedule II of the companies Act, 2013.The depreciable amount of an asset is the cost of an
asset or other amount substituted for cost less its residual value.
• Raw materials are valued at cost. Cost for this purpose includes direct cost and
attributable overheads.
• Work in process is valued at cost.
• Stores and Spares have been valued at cost.
• Finished Goods have been valued at lower of cost and net realizable value.
Cost for this purpose includes direct cost and attributable overheads.
During the year company has followed exclusive method of accounting system, where it
has not included duty element in cost of purchases.
6. Investments
Investments are stated at cost if any.
7. Stores and Spares
Stores and spares (Other than spares acquired with Fixed Assets) are charged to Profit
and Loss Account as and when purchased.
8. Computer Software Cost
Expenditure incurred for procuring, developing, improving and maintaining computer
software programme are charged to Profit and Loss Account as and when incurred.
9. Retirement benefits
No provision has been made for gratuity, as no employee has put the qualifying period of
service for entitlement to this benefit.
10. Taxation.
Income tax is accounted in accordance with AS-22 'Accounting for taxes on income', issued
by The Institute of Chartered Accountants of India, which includes current taxes and
deferred taxes. Deferred tax is recognized on timing difference being the difference
between tax incomes and accounting income that originate in one period and are capable
of reversal in one/ more subsequent period. There is deferred tax asset on account of
unabsorbed loss depreciation which has not been recorded as a matter of conservation.
11. Claims against the company not acknowledged as debts
There are no claims against the company which are pending and not provided for.
12. Secured Loans:
There are no secured loans taken by the Company. However, upon subsequent conversion
of the LLP into the Company, the erstwhile secured loan amounting to Rs. 13218.72 has
been taken over by the Company in its books. The said loan is secured over hypothecation
of car. The company has not registered charge over MCA portal.
ACETECH VENTURES LIMITED Summary of Significant accounting policies and other explanatory
information as at and for the year ended 31 March 2024 (All amounts in Rupees hundreds, unless
otherwise stated)
13. Borrowing Costs: Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying
asset is one that necessarily takes substantial period of time to get ready for its intended use.
All other borrowing costs are charged to revenue.
The erstwhile LLP “Acetech Ventures LLP” has taken loan from its designated partners and
partners and the relative and friends of designated partner and partner. On the date of its
conversion, the loan stands in the books of the company as unsecured loan from others.
As per the Companies act, 2013, for the year ended 31st March, 2013, the status of the
entity is a PUBLIC LIMITED COMPANY and these loans are considered as DEPOSIT as per
Section 73 and 76 of the Companies' Act, 2013 read with The Companies (Acceptance of
Deposit) Rules, 2014.
The entity was a LLP for the major part of the financial year 01/04/2023 to 20/02/2024
and a PUBLIC LIMITED COMPANY from 21/2/2024 to 31/03/2024. Hence, the payment of
these loan amount upon conversion of the LLP into Public Company could not be done
before the closing of the year.
Hence the amount outstanding as Long term borrowings is classified as Borrowings and
not Deposits. As the amount is brought forward from the books of the LLP and no fresh
amount was received from the Company as deposit.
|