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. Sale 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 cost 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 of 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 fund, 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.
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