CORPORATE INFORMATION
M/s. ASHRAM ONLINE.COM LIMITED, was incorporated in India, and is engaged in the business of online
and offline trading etc., the Company is listed at Bombay Stock Exchange Ltd (BSE).
♦♦♦ Basis Of Preparation of Financial Statements
1. The financial statements have been prepared in accordance with the Indian Accounting Standards (IND AS)
(as notified under the Companies (Indian Accounting Standards) Rules, 2015) prescribed under Section 133
of the Companies Act, 2013 and other recognized accounting practices and policies to the extent applicable.
2. Use of Estimates: - The preparation of the financial statements in conformity with IND-AS requiring to
make estimates and assumptions considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the year.
♦♦♦ Revenue Recognition
1. Sales of goods: - Sales have been recognized in the books on the basis of invoice value (gross) and considered
only on delivery basis of goods.
2. Interest Income is recognized on the date which they have become due or upon receipt, whichever is earlier.
The Interest income is recognized on gross basis.
3. In respect of other incomes, accrual system of accounting is followed.
♦♦♦ Property, Plant and Equipment, Depreciation & Impairment
1. Property plant and equipment is stated at cost (net of tax/ duty credits availed) excluding the costs of
day—to—day servicing, less accumulated depreciation and accumulated impairment in value. Cost
includes professional fees/ charges related to acquisition of property plant and equipment. Changes in
the expected useful life are accounted for by changing the amortization period or methodology as
appropriate and treated as changes in accounting estimates.
2. Subsequent expenditure incurred is capitalized only if it results in economic useful life beyond the
original estimate.
3. Depreciation is provided on Property, Plant and Equipment on written down value method as per the
rates specified in part C of schedule II of Companies Act, 2013.
4. Assets individually costing less than or equal to Rs.5,000 are fully depreciated in the year of acquisition.
♦♦♦ Valuation Of Inventory
Finished goods are stated at “ cost or net realizable value whichever is lower”. Cost formula used is weighted
average cost. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based
on the past experience of the group. Cost comprises of all cost of purchase, cost of conversion and other costs
incurred in bringing the inventories to their present location and condition.
♦♦♦ Financial Instruments — Initial Recognition
Date of recognition
Financial assets and liabilities, with the exception of loans, debt securities, and borrowings are initially
recognized on the trade date, i.e., the date that the Company becomes a party to the contractual provisions of
the instrument. Loans are recognized when fund transfers are initiated to the customers' account or cheques
for disbursement have been prepared by the Company (as per the terms of the agreement with the borrowers)
or when the Company assumes unconditional obligations to release the disbursement amount to third party on
the direction of the borrower, whichever is earlier. The Company recognizes debt securities and borrowings
when funds reach the Company.
Initial measurement of financial instruments
The classification of financial instruments at initial recognition depends on their contractual terms and the
business model for managing the instruments. Financial instruments are initially measured at their fair value,
except in the case of financial assets and financial liabilities recorded at FVTPL (Fair value through profit and
loss).
Transaction costs/fees which are directly attributable to acquisition of financial assets or financial liabilities are
recognized immediately in statement of profit and loss in case of instruments measured at FVTPL and or, are
added to, or subtracted from, this amount for other categories.
Measurement categories of financial assets and liabilities
The Company classifies all its financial assets and financial liabilities based on the business model for managing
the assets and the asset's contractual terms, measured at either:
• Amortized cost
•FVTPL
• FVTOCI
Equity instruments
Investment in Subsidiaries and Joint Ventures are carried at Cost in the Separate Financial Statements as
permitted under Ind AS 27. The Company subsequently measures all equity investments other than investment
in subsidiaries and associates, at fair value through profit or loss, unless the Company's management has elected
to classify irrevocably some of its equity investments as equity instruments at FVOCI, when such instruments
meet the definition of Equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading.
Such classification is determined on an instrument-by-instrument basis. Gains and losses on these equity
instruments are never recycled to profit or loss. Dividends are recognized in profit or loss as dividend income
when the right of the payment has been established, except when the Company benefits from such proceeds as
a recovery of part of the cost of the instrument, in which case, such gains are recorded in OCI (Other
Comprehensive Income). Equity instruments at FVOCI are not subject to an impairment assessment.
Reclassification of financial assets and liabilities
The Company does not reclassify its financial assets subsequent to their initial recognition, apart from the
exceptional circumstances in which the Company acquires, disposes of, or terminates a business line. Financial
liabilities are never reclassified.
? RETIREMENT BENEFITS
Contribution of Provident funds, Gratuity and Leave encashment benefits wherever applicable is being
accounted on actual liability basis. However, there were no employees in the eligible category to avail such
benefits.
? FOREIGN CURRENCY TRANSACTION
The Company's financial statements are presented in Indian Rupees (INR) which is also the Company's
functional currency. Transactions in foreign currencies are initially recorded by the Company at their
respective functional currency spot rates at the date the transaction first qualifies for recognition.
Foreign currency denominated monetary assets and liabilities are translated at the functional currency spot
rates of exchange at the reporting date and exchange gains and losses arising on settlement and restatement
are recognized in the statement of profit and loss.
There are no reportable Foreign Currency transactions during the year.
? TAX ON INCOME
Current Tax
Current tax comprises amount of tax payable in respect to the taxable income or loss for the year determined
in accordance with Income Tax Act, 1961 and any adjustment to tax payable or receivable in respect of prior
years.
Current tax assets and liabilities for the current and prior years are measured at the amount expected to be
recovered from, or paid to, the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted, or substantively enacted, by the reporting date in the countries where the Company
operates and generates taxable income.
Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognized
amounts and is intended to realize the asset and settle the liability on a net basis or simultaneously.
Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss
(either in other comprehensive income or in equity). Current tax items are recognized in correlation to the
underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken
in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.
Deferred Tax
Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized
to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
The carrying amount of deferred 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 tax
asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized
to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year 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. Deferred tax relating to items recognized outside profit or loss is
recognized outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are
recognized in correlation to the underlying transaction either in OCI or directly in equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority and intends to settle on net basis.
? EARNINGS PER SHARE (EPS)
Basic Earnings per Share is calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. Earnings
considered for Earnings per share is the net profit for the period after deducting preference dividend, if any,
and attributable tax thereto for the period.
The weighted average number of equity shares outstanding during the period and for all periods presented is
adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed
the number of equity shares outstanding, without a corresponding change in resources. For the purpose of
calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
|