SIGNIFICANT ACCOUNTING POLICIES:
1. Basis of Preparation of Financial Statements:
a. Compliance with Ind AS
The financial statements are prepared on the accrual basis of accounting and in accordance with the Indian Accounting Standards
(hereinafter referred to as the Ind AS) as prescribed under section 133 of the Companies Act,2013 and other relevant provisions of
All amounts are stated in /akhs, except where specifically mentioned otherwise.
b. Historical cost convention
The financial statements have been prepared on a historical cost basis, except for the following:
- certain financial assets and liabilities that are measured at fair value,
- defined benefit plans - plan assets measured at fair value
2. Summary of significant accounting policies
i. Current and non-current classification
The assets and liabilities reported in the balance sheet are classified on a "current/non-current basis".
An asset is treated as current when it is:
- Expected to be realized or intended to be sold or consumed in normal operating cycle;
- Held primarily for the purpose of trading;
- Expected to be realized within twelve months after the reporting date, or
- Cash or Cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period.
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle;
- It is held primarily for the purpose of trading;
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
All other liabilities are classified as non -current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash
equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of
assets and liabilities.
ii. Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:
-in the principal market for the asset or liability, or
-in the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is
measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market
participants act in their economic best interest.
The fair value measurement of a non-financial asset takes into account market participant’s ability to generate economic benefits by
using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to
measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
Where required/appropriate, external valuers are involved.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
-Level 1 - Quoted (unadjusted) prices in active market for identical assets or liabilities.
-Level 2 (if level 1 feed is not available/appropriate) - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable.
-Level 3 (if level 1 and 2 feed is not available/appropriate) - Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable.
For financial assets and liabilities maturing within one year from the Balance Sheet date and which are not carried at fair value, the
carrying amount approximates fair value due to the short maturity of these instruments.
The Company recognizes transfers between levels of fair value hierarchy at the end of reporting period during which change has
occurred.
iii. Revenue Recognition:
Income and expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from
sales transaction is recognized as and when the significant risk and reward attached to ownership in the goods is transferred to the
Revenue from sale of goods is recognized on completion of sale of goods and is recorded net of trade discount and rebates and
GST is accounted for on exclusive accounting method which does not get included in Sales.
iv. Income tax:
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable
income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences.
Current income tax
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period. The provision for current tax is made at the rate of tax as applicable for the income of the previous year as defined under the
Income tax Act, 1961. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable
tax regulation is subject to interpretation. It establishes provision where appropriate on the basis of amounts expected to be paid to
the tax authorities.
Current tax assets and current tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to
settle on a net basis, or to realize the asset and settle the liability simultaneously.
Deferred tax
Deferred tax is recognized using the Balance Sheet approach on temporary differences at the reporting date arising between the tax
bases of assets and liabilities and their carrying amounts for the financial reporting purpose at the reporting date.
Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the
deductible temporary differences, unused tax losses, depreciation carry forwards and unused tax credits could 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.
Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is
realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the reporting
date.
v. Impairment of Asset
An impairment loss is charged to the Statement of profit and loss in the year in which an asset is identified as impaired. The
impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
During the year , there is no impairment of assets.
vi. Cash & Cash Equivalents:
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposit balances, highly liquid
investments that are readily convertible into known amounts of cash and which are subject to in significant risk of changes in value
vii. Inventories:
Inventories are being valued as under : (As taken ,Valued and certified by the management)
Traded Goods at Lower of Cost or Net realizable Value.
viii. Financial instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity.
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial assets:
Classification
The Company classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value (either through other comprehensive income, or through the Statement of Profit
and Loss), and
- those measured at amortized cost.
The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash
flows.
Initial recognition and measurement
Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets
are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through Profit and Loss, transaction
costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through
Profit and Loss are expensed in the Statement of Profit and Loss.
Subsequent measurement
After initial recognition, financial assets are measured at:
Fair value (either through other comprehensive income or through Profit and Loss), or amortized cost.
Debt instruments
Debt instruments are subsequently measured at amortized cost, fair value through other comprehensive income ('FVOCI') or fair
value through Profit and Loss ('FVTPL') till de-recognition on the basis of (i) the entity's business model for managing the financial
assets and (ii) the contractual cash flow characteristics of the financial asset.
Amortised cost:
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortized cost. A gain or loss on a debt investment that is subsequently measured at amortized cost is
recognized in the Statement of Profit and Loss when the asset is derecognized or impaired. Interest income from these financial
assets is included in other income using the effective interest rate method.
Fair Value Through Other Comprehensive Income (FVOCI):
Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows
represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through
OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are
recognized in the Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously
recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income
from these financial assets is included in other income using the effective interest rate method.
Fair Value Through Profit and Loss (FVTPL):
Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is
subsequently measured at FVTPL is recognized in Statement of Profit and Loss in the period in which it arises. Interest income from
these financial assets is recognized in the Statement of Profit and Loss.
Financial liabilities:
Initial recognition and measurement
Financial liabilities are initially measured at its fair value plus or minus, in the case of a financial liability not at FVTPL, transaction
costs that are directly attributable to the issue/origination of the financial liability.
Subsequent measurement
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is
classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are
measured at fair value and net gains and losses, including any interest expense, are recognized in statement of profit and loss. Other
financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign
exchange gains and losses are recognized in Statement of profit and loss. Any gain or loss on derecognition is also recognized in
statement of Profit and Loss.
De-recognition
A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires.
ix. Property, Plant and Equipment (PPE)
Items of Property, plant and equipment acquired or constructed are initially recognized at historical cost net of recoverable taxes,
duties, trade discounts and rebates, less accumulated depreciation and impairment loss, if any. The historical cost of Property, plant
and equipment comprises of its purchase price, borrowing costs and adjustment arising for exchange rate variations attributable to
the assets, including any cost directly attributable to bringing the assets to their working condition for their intended use.
Capital Work-in-Progress represents Property, plant and equipment that are not ready for their intended use as at the reporting date.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured
The Company identifies and determines cost of each component/part of the plant and equipment separately, if the component/part
has a cost which is significant to the total cost of the plant and equipment and has useful lives that is materially different from that of
the remaining plant and equipment.
The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and
maintenance are charged to the Statement of Profit and Loss during the year in which they are incurred.
Gains and losses arising from de-recognition of PPE are measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the Statement of Profit and Loss when the asset is derecognized.
Depreciation method
Depreciation on fixed assets are provided on Straight line Method in accordance with requirements of Schedule II to the Companies
Act, 2013.
x. (i) Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable taxes, trade discounts and rebates less accumulated
amortization/depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs, and any cost directly
attributable to bringing the asset to its working condition for the intented use, net changes on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the intangible assets.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and are recognized in the Statement of Profit & loss when the asset is derecognized.
(ii) Goodwill
Goodwill represent the excess of consideration transferred over the fair value of the identifiable net assets acquired. Goodwill is
measured at cost less accumulated impairment loss if any.
xi. Earnings per Share:
Basic earnings per share is calculated by dividing the net profit after tax for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during 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, etc. For the purpose of
calculating diluted earnings per share, the net profit 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.
xii. Employee's Benefit:
Provident Fund and ESIC : Provident fund and ESIC contributions are made as per defined scheme and the contribution is charged
to statement of Profit & Loss Ale of the year when it becomes due. The company has no other obligation other than to contribute and
deposit to respective authorities.
Short term employee benefits are recognized as an expense in the statement of Profit & Loss Ale for the year in which the related
service is rendered.
Long term employee benefit are recognized as an expense in the statement of Profit & Loss Ale for the year in which the employee
has rendered service.
The Company’s gratuity scheme is a defined benefit plan. The Company’s net obligation in respect of the gratuity benefit is
calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current and
prior periods, that benefit is discounted to determine its present value, and the fair value of any plan assets, if any, is deducted. The
present value of the obligation under such benefit plan is determined based on actuarial valuation using the Projected Unit Credit
Method. The obligation is measured at present values of estimated future cash flows. The discount rates used for determining the
present value are based on the market yields on government securities as at the balance sheet date. Remeasurement gains and
losses arising from experience adjustments and changes in acturial assumptions are recognized in the period in which they occur
directly in other comprehensive income.
xiii. Cash flow statement:
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the Company are segregated based on the available information.
xiv. Loan, Advances & Security Deposit:
Balances of Loans and Advances, Debtors, Creditor, Banks are subject to confirmation and reconciliation. The company receives
advance/ security deviation from it's various franchisee(s) and the same is adjusted against the amount due from them as on the
date of balance sheet. The Company also receives deposit from branch partner towards security deposit against stock provided to
them and same is shown in balance sheet as other non current liability.
xv. Accounting for Indirect Taxes (GST)
The Company is recording sales and purchases on exclusive method and GST are not passed through the profit and Loss accounts
of the company.
xvi. Estimates and Assumptions
The key assumptions concerning the future and other key sources of estimation at the reporting date.which may cause material
The areas involving critical estimates and judgements are:
- Useful lives of Property, plant and equipment and intangibles
- Measurement of defined benefit obligations
- Provision for inventories
- Measurement and likelihood of occurrence of provisions and contingencies
- Impairment of trade receivables
- Deferred Taxes
*During the previous financial year i.e., F.Y. 2024-25, the Company issued 1,55,00,000 share warrants at Rs 23.75 per warrant,
against which 25% of the issue price, amounting to Rs. 9,20,31,250, was received during the said year. The balance 75% was
received during the current financial year i.e., F.Y. 2025-26. Accordingly, the Company allotted 50,00,000 equity shares of Re. 1
each at a premium of Rs. 22.75 per share on 30th September 2025, and 1,05,00,000 equity shares of Re. 1 each at a premium of
Rs. 22.75 per share on 9th March 2026, upon conversion of all 1,55,00,000 share warrants into equity shares.
h. Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the
Income Tax Act 1961.
i. Reclassification note: Figures pertaining to the previous years/period have been regrouped/rearranged, reclassified and
restated wherever considered necessary, to make them comparable with those of current year/period.
j. Subsequent events: There are no other subsequent events that occurred after the reporting date.
k. Unforeseeable losses: The Company has a process whereby periodically all long-term contracts (including derivative
contracts) are assessed for material foreseeable losses. At the year end, the Company did not have any long-term contracts
(including derivative contracts) for which there were any material foreseeable losses.
l. Authorisation of financial statements: The financial statements for the year ended 31st March, 2026 were approved by the
Board of Directors on 25th May, 2026.
m. Segment Reporting: The Company has evaluated its Operating segment in accordance with lndAS 108 and has concluded
that it is engaged in a single operating segment.
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