| 1. Basis of Preparation of Financial Statements
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. 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.
2. Use of Estimates
The preparation of Financial Statements in conformity with Indian GAAP
requires estimates and assumptions to be made, that affects the
reported amounts of assets and liabilities on the date of the Financial
Statements and the reported amounts of revenue and expenses during the
reporting period. Differences between the actual results and estimates
are recognized in the period in which the results are known /
materialized.
3. Fixed Assets
Fixed Assets are capitalized at cost less accumulated depreciation
inclusive of purchase price, duties and other non refundable taxes,
direct attributable cost of bringing asset to its working condition and
financing cost till commercial production. Projects, if any, under
which assets are not ready for their intended use are shown as Capital
Work-in-Progress.
4. Depreciation / Amortization
Depreciation on fixed assets is provided on Written Down Value Method
(WDV) at the rates and in the manner prescribed under Part C of
Schedule II of the Companies Act 2013 on prorata basis.
5. Inventories
The inventories are stated at lower of cost and net realizable value,
after providing for obsolescence, if any. Cost of Inventories comprises
of all cost of purchase, cost of conversion and other cost incurred in
bringing inventory to the present location and condition and valuation
is inclusive of taxes and duties incurred on same.
6. Revenue Recognition
Revenue from sales transactions is recognized on transfer of
significant risk and rewards of ownership, which generally is on the
dispatch of goods. Revenue from services is recognized upon rendering
of services. Interest Income is recognized on accrual basis, if any.
7. Investment
Investments are classified as Current &Non Current Investments. Current
Investments are carried at lower of cost or Market / Fair Value
determined on an individual investment basis. Non-Current investments
are valued at cost.
Company has not held or made any investments during the year under
review.
8. 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 takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss A/c.
9. Taxation
Tax expenses for the Period comprise of current tax and deferred tax.
Current tax is measured as amount of tax payable in respect of taxable
income for current Period as per Income Tax Act 1961 after considering
tax allowances and exemptions, if any. Deferred Tax assets or
liabilities are recognized for further tax consequence attributable to
timing difference between taxable income and accounting income that
originate in one Period and are capable of reversal in one or more
subsequent Period.
10. Leases Operating Lease
Lease where the lesser effectively retains substantially all risks and
benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss
account on a Straight Line Basis over the Lease term.
11. Impairment of Assets
An asset is impaired when the carrying cost of assets exceeds its
recoverable value. An impairment loss is charged to Profit & Loss in
the Period in which an asset is identified as Impaired. As on Balance
Sheet date, the Company reviews the carrying amount of Fixed Assets to
determine whether there are any indications that those assets have
suffered "Impairment Loss".
12. Earnings per Share
In determining the Earnings Per share, the company considers the net
profit after tax/(loss) which includes any post tax effect of any
extraordinary / exceptional item. The number of shares used in
computing basic earnings per share is the weighted average number of
shares outstanding during the period.
The number of shares used in computing Diluted earnings per share
comprises the weighted average number of shares considered for
computing Basic Earnings per share and also the weighted number of
equity shares that would have been issued on conversion of all
potentially dilutive shares.
13. Related Party Transactions
As per accounting standard 18 (AS-18) Related party disclosures,
notified in the companies (Accounting Standards) Rules 2006, the
disclosure of transactions with the related parties defined in AS-18
are given below;
1. Key Managerial Personnel (KMP's) -
a) Mr. Keshava Kalidas Kannan - C.E.O.
b) Mr. Ritesh Baldevbhai Patel - C.F.O.
c) Mr. Ankit Shukla - C.S.
2. Relatives of Key Management Personnel -
Name of the Party Nature of Relation
1) Jalpa Patel (Director) Wife of Ritesh Patel
3. Parties where control exists -
Name of the Party Nature of Control
Not Applicable Not Applicable
15. Contingent Liabilities & Provisions
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made.
Contingent Liability is disclosed for, by way of note for -
a) Possible obligation which will be confirmed only by future events
not wholly within the control of the Company or
b) Present obligations arising from the past events where it is not
probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation
cannot be made.
c) Contingent Assets are not recognized in the financial statements
since this may result in the recognition of income that may never be
realized.
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