1.1 SIGNIFICANT ACCOUNTING POLICIES:
The Financial statements have been prepared using
the Significant Accounting Policies and Measurement
bases summarized below:
• Basis Of Accounting And Preparation Of
Financial Statements
The financial statements of the Company
have been prepared on Going Concern basis
in accordance with the accounting principles
generally accepted in India. Further, the financial
statements have been prepared on historical cost
convention on the accrual basis.
These financial statements have been prepared to
comply in all material aspects with the Accounting
Standards as prescribed under section 133 of the
Companies Act, 2013 (the "Act") read with rules
under the Companies (Accounts) Rules, 2021
(amended) and other relevant provisions of the
Companies Act, 2013.
The financial statements are presented in Indian
Rupees(H) which is also the functional currency
of the Company.
• Use of Estimates
The Preparation of Financial Statements in
conformity with Indian generally accepted
accounting principles (IGAAP) requires the
management to make estimates and assumptions
that effect the reported amount of Assets and
Liabilities (including the disclosure of contingent
liabilities) at the date of the Financial Statements
and the results of operation of during the reporting
period end. Although these estimates are based
upon management's best knowledge of current
events and actions, actual results could differ
from these estimates.
• Revenue Recognition
(a) Revenue from sales of goods are recognised
when all significant risks and rewards of
ownership have been transferred to the
buyer and no significant uncertainty exists
regarding the amount of the consideration
that will be realized from the sale of goods.
Sale are recognised, net of returns and
trade discounts.
(b) Revenue from services are recognized on
achievement of performance on the basis of
completed service contract method.
(c) Interest income are recognised on
accrual basis.
• Property, Plant & Equipments
Property, plant & equipment are carried at cost of
acquisition/construction including import duties
& non-refundable purchase taxes (after deducting
trade discounts and rebates) and other incidental
expenses directly attributable to bringing the
asset to location and condition necessary for it to
be capable of operating in the manner intended
by the management, as the case may be, less
accumulated depreciation, amortisation and
impairment as necessary.
• Intangible Assets
The company does not any intangible asset during
the current financial year.
• Depreciation and Amortization
Depreciation on property,plant & equipments has
been charged on written down value method in
accordance with useful lifes and rates specified
in Schedule II of the ""Companies Act, 2013"".
Depreciation on Assets purchase or sold during
the year is taken on prorata basis.
• Foreign Currency Transactions & Translations
(i) Foreign currency transactions are accounted
for at the exchange rate prevailing on the
date of the transaction or at rates that
closely approximate the rate at the date
of the transaction. Gain/loss arising out of
fluctuation rate between transaction date and
settlement date in respect of revenue items is
recognized in the profit & loss account and
in case of other assets, is recognized to the
carrying cost of respective assets.
(ii) Foreign currency monetary items as on the
date of balance sheet are translated at the
exchange rate prevailing on the date of balance
sheet. The resulting exchange difference,if
any except on account on property,plant &
equipment, is charged to the revenue account.
• Purchase
The costs of purchase consist of the purchase
price including duties &taxes (other than those
subsequently recoverable by the enterprise from
the taxing authorities), freight inwards and other
expenditure directly attributable to bringing the
inventory to the present location and condition.
Trade discounts,rebates and other similar items
are deducted in determining the costs of purchase.
• Inventories
Inventories are valued at cost or net realizable value,
whichever is lower. Further, the company follows First
In First Out system of accounting for stock in trade.
• Investments
Investments that are intended to be held for
more than an year, from the date of acquisition,
are classified as long-term investments and are
carried at cost. However, provision for diminution
in value of investments is made to recognise a
decline, other than temporary, in the value of the
investments. Current investments not intended
to be held for a period more than one year, are
stated at lower of cost and fair value.
• Earnings per share
Basic earnings per share is computed by dividing the
profit / (loss) after tax (including the post tax effect of
extraordinary items, if any) by the weighted average
number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing
the profit / (loss) after tax (including the post tax
effect of extraordinary items, if any) as adjusted
for dividend, interest and other charges of expense
or income relating to the dilutive potential equity
shares, by the weighted average number of equity
shares considered for deriving basic earnings per
share and the weighted average number of equity
shares which could have been issued on the
conversion of all dilutive potential equity shares.
• Borrowing Costs
Borrowing costs that are directly attributable
to the acquisition or construction of qualifying
assets are capitalised as part of the cost of such
assets up to the date when such assets are
ready for its intended use. All other borrowing
costs are recognised in profit and loss in the
period in which they are incurred. Borrowing
costs includes interest, ancillary costs incurred
in connection with the arrangement of the
borrowings and exchange differences arising from
foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.
• Employee Benefits
(a) Defined Contribution Plan:
The Company's Contribution towards
Provident Fund, State Insurance Fund and
other Funds are considered as Defined
Contribution Plan and are charged as an
expenses to the Statement of Profit and
Loss statement when it falls due based
on the amount of Contribution required to
made for the reporting period. There is no
other obligation other than the contribution
payable to the respective funds.
(b) Defined Benefit Plan:
Defined benefit plan of bonus and leave
encashment are provided as expense on the
basis of payment and gratuity is calculated
as per Payment of Gratuity Act, 1972.
• Tax Expenses
a) Current tax is the amount of tax payable
on the taxable income for the year as
determined in accordance with the
provisions of the Income Tax Act, 1961.
Provision for current tax are measured on
the basis of the assessable income at the
tax rates and tax laws are enacted on the
balance sheet date.
b) Deferred tax is recognized on timing
differences, being the differences between the
taxable income and the accounting income
that originate in one period and are capable of
reversal in one or more subsequent periods.
Deferred tax asset and deferred tax liability
are calculated by applying tax rate and tax
laws that have been enacted or substantively
enacted by the Balance Sheet date.
c) Deferred tax liabilities are recognized for
all timing differences. Deferred tax assets
in respect of unabsorbed depreciation or
carried forward losses are recognised, if
there is virtual certainty that there will be
adequate future taxable income against
which such deferred tax assets can be
realised. Deferred tax assets are recognized
for timing differences of other items only to
the extent that reasonable certainty exists
that sufficient future taxable income will
be available against which these can be
realized. Deferred tax assets are reviewed at
each Balance Sheet date for their reliability
• Provisions, contingent liabilities and contingent
assets
Provisions involving a substantial degree of
estimation in measurement are recognised when
there is a present obligation as a result ofpast events,
for which a reliable estimate can be made and it is
probable that there will be an outflow of resources.
Provision is not discounted to its present value and
is determined based on the best estimate required
to settle an obligation at the year end. These are
reviewed every year end and adjusted to reflect the
best current estimate. Contingent liabilities are
not recognised but are disclosed in the Notes to
Accounts of the Financial Statements. Contingent
assets are neither recognised nor disclosed in the
Financial Statements.
• Impairment of Assets
The carrying amounts of assets are reviewed at
each Balance Sheet date to assess if there is any
indication of impairment based on internal/external
factors. An impairment loss on such assessment
will be recognised wherever the carrying amount
of an asset exceeds its recoverable amount. The
recoverable amount of the assets is net selling
price or value in use, whichever is higher. While
assessing value in use, the estimated future
cash flows are discounted to the present value
by using weighted average cost of capital. A
previously recognised impairment loss is further
provided or reversed depending on changes in the
circumstances and to the extent that the assets
carrying amount does not exceeds the carrying
amount that would have been determined if no
impairment loss had previously been recognised.
• Cash and cash equivalents
Cash and cash equivalents include cash in hand,
demand deposits with banks, other short-term
highly liquid investments with original maturities
of 12 months or less.
• Current / non-current classification
All assets and liabilities have been classified as
current or non-current as per the Company's
normal operating cycle and other criteria set-out
in the Act. Deferred tax assets and liabilities are
classified as non-current assets and noncurrent
liabilities, as the case may be
• Segment Reporting
Company operates in a single reportable
operating segment. Hence there are no separate
reportable segments.
For Ms Goel Mintri & Associates For and on behalf of the Board of Company
CHARTERED ACCOUNTANTS
(FR No. 013211N)
Santosh Kumar Agrawal Sunil Kumar Agrawal
(Director) (Director)
DIN NO.-00493749 DIN NO.-00493820
GOPAL DUTT
Partner
Membership No. 520858
Place : New Delhi Keshav Pareek Rajnish Pandey
UDIN: 25520858BMIDSA8828 (Chief Financial Officer) (Company Secretary)
Date : 28.05.2025
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