1 .A. SYSTEM OF ACCOUNTING

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Indian Accounting Standards notified with the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The company follows the mercantile system of accounting and recognize Income and Expenditure on an accrual basis except in case of significant uncertainties. The Accounting policies applied by the company are consistent with those used in the previous year. The financial statement are prepared to comply in all material respects with the mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013.

B. The accounts of the company have been prepared based on the going concern concept and the company is operating at a low capacity utilization level.

2. REVENUE RECOGNITION

Revenue from the sale of manufactured products are recognized upon passage of title to the customer and generally coincides with the delivery and acceptance.

3. FIXED ASSETS AND DEPRECIATION FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of an asset comprises purchase price and any directly attributable cost of bringing the assets to its present condition or intended use.

The fixed assets includes a sum of Rs. 13515861- capital work in progress during the FY 2012-13 and it has been increased by Rs. 10142000/- during the FY 2015-16. Total amount Rs. 23657861- shown under this head. However a sum of Rs. 50.00 lacs has been utilized in Building at Bhogpur account during the FY 2024-25. Now a sum of Rs. 18657861- is pending for its utilization.

Bank Interest Rs. 2902308- paid on term loan and on working capital loan during the year.

Depreciation has been provided on fixed assets as per the guidelines of the Companies Act 2013 on the basis of life of the assets uses at SLM.

4. TECHNICAL KNOW-HOW FEES

No technical know-how fee is paid during the year.

5. Investment Rs. 5.00 lacs has been done in the company Sanskar Ayush Medicare Pvt. Ltd. during the financial year 2021-22.

6. INVENTORIES

INVENTORIES BASIS OF VALUATION

a. Raw Materials At cost

b. Work - in - progress At cost

c. Finished goods Sales - G.Profit Margin

d. stores and spares At cost

6. SALES

There is no Export Sales of the company during the year.

8. RESEARCH AND DEVELOPMENT EXPENDITURE

No research and development expenditure is incurred during the year.

9. RETIREMENT BENEFITS

a. Retirement benefits are accounted for as and when paid.

b. Provision of Gratuity has not been made since it is paid as and when due.

c. Provident Fund contributions Rs. 98438/-, ESI Rs. 11326-, TDS Rs. 189925- are payable as on 31.3.2025.

d. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

10. PROPOSED DIVIDEND

No provision has been made for the payment of Dividend.

The company have a book profit of Rs. 5647209- as per P&L Account. After add back of depreciation, the taxable income comes Rs. 3366612- on which Income Tax calculated @ 25% plus surcharge @ 4% which comes Rs. 867519- which is lower side.

Book profit of the company is 5647209- on which MAT is calculated @ 15% which comes Rs. 847081-. And cess @ 4% comes Rs. 33883- Total MAT comes to Rs. 880965- against which an Advance Tax Rs. 535000- and TDS/TCS Rs. 95079- has already been deposited and rest Rs. 250886- has to be deposited for which the provision has been made under the head Provision.

NOTES TO THE ACCOUNTS

Additional information pursuant to the provisions of paragraph 3 & 4 [c] [d] of part II of schedule VI of the Companies Act, 1956.

3. DETAILS OF RAW MATERIAL CONSUMPTION

As the number of raw materials are more than one thousand and none of them amount to reasonable parts of total consumption, no item wise details of raw material consumption in quantity has been given.

4. MANAGERIAL REMUNERATION PAID/PAYABLE DURING YEAR

a. Managing Director Tosh Kr.Jain Rs. 2403000/-

b. Director Monika Jain Rs. 600000/-

c. Director Arihant Jain Rs. 360000/-

5. A interest free Short Term loan of Ganga Corporation Pvt.Ltd. Rs. 100000- is outstanding during the financial year 2024-2025.

6. Confirmation of balances of Sundry Debtors and Sundry Creditors appearing under the heads current liabilities, current assets, capital work in progress and loans & advances are still awaited except few parties.

7. Particular of Auditors remuneration -

Audit Fee Rs. 100000/-

8. Sundry Debtors / Creditors includes various amounts which are more than 45 days old and no confirmation of the outstanding amount are available. Figures has been taken in such heads as per the confirmation of the management of the co.

The classification of creditors as micro and small enterprise has been given for the parties from whom the confirmation has been received regarding their classification as per MSMED Act. There is no interest on delayed payment to such parties, if any, has neither been determined nor has been paid as per verbal mutual understanding with the such parties.

9. There is no previous losses in the company. The company has profit during the year on which Income Tax/MAT has to be deposited as per the computation of Income Tax.

10. EARNING PER SHARE Basic earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by the numbers of equity shares outstanding during the year.

11. BUSINESS INFORMATION

Based on the analysis of the company’s internal organization and management structure, the management of the company has classified its business activities as “Manufacturing & processing of Ayurvedic, Medicines Ayurvedic composit drug kits, dye kits & CHW kits”. The company has not done manufacturing on job work basis during this year under audit.

12. DEFERRED TAX LIABILITY

Difference of Depreciation as per the Companies Act & as per I. Tax Act, has been add back in the net profit of the company and then Tax has been calculated.

13. EXPENDITURES ON EMPLOYEE

Break up of expenditure incurred on employees who were employed throughout financial year and were in receipt of remuneration aggregating to net less than Rs. 60,00,000/- per annum or if employed for a part of financial year were in receipts of remuneration aggregating to net less than Rs. 500,000/- per month.

14. The company has taken Cash Credit Limit of Rs. 225.00 lacs from Axis Bank & availed Rs. 209.94 lacs approximately with interest during the year against the hypothecation of all type of stocks and personal guarantee of the Directors. The company also has taken term loan from Axis Bank Rs. 262.00 lacs for its new project which comes in production during the financial year 2022-23 at Bhogpur and now the balance of term loan is Rs. 74.22 lacs during the FY 2024-25.

15. There has been no prior period or extra-ordinary item of income or expenditure which has been entered in the books of accounts during the year.

16. The company has received intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence, following disclosures under the said Act have been shown as.

17. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

18 . Notes 1 to 18 form integral part of Balance Sheet and Profit & Loss account and have been duly annexed.