2. SIGNIFICANT ACCOUNTING POLICIES:
2.1. Accounting convention
The financial statements have been prepared in accordance with accounting principles generally
accepted in India (GAAP) under historical cost convention on an accrual basis and GAAP includes
accounting standard specified under Section 133 of the Companies Act, 2013 {the Act! read with the
Companies (Accounting Standards! Rules, 2021 (as amended) except otherwise mentioned elsewhere
in the financial statements,
The accounting method employed is Mercantile Accounting System, Final Accounts has been
prepared on Going Concent assumption and materiality aspect but some expenses due to their
peculiar nature like electricity, telephone expenses, etc are accounted for, on cash basis.
2.2, Use of Estimates
The preparation of Financial statements requires the Management to make estimates and
assumptions considered in the reported amounts of assets and liabilities including contingent
liabilities, if any) as of the date of the financial statements and the reported income and expenses
during the reporting period like provisioning for taxation, useful lives of assets etc, Management
believes that the estimates used in the preparation of financial statements are prudent and!
reasonable. Future results may vary from these estimates. t
2.3. Revenue Recognition
Revenues are recognised in accordance with AS 9 on; Revenue Recognition' following the accrual basis of accounting and using exclusive method i,e. excluding the amount of taxes.
However* certain items, due to their nature, are recognized on cash basis. However, effect of
the same does not seem to be material.
Interest: Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate. Interest income is included under the head '‘other
income"’ in the statement of profit and loss.
2.4. Foreign currency translation
There are no transactions related to foreign currency,
2.5, Property* Plant and Equipment
Fixed Assets are valued at cost Less depreciation by SLM method as per the useful life prescribed
under the Companies Act, .2013. The details of fixed assets are given in the balance sheet & the
schedule referred therein, The existence, utilization date of put to use of fixed assets has been
taken as declared by the management.
Further as clarified by the management, certain items of Property, Plant and Equipment are held in
the name of erstwhile Limited Liability Partnership firm i.e, Gabriel Pet Straps LLP.
As represented by management, process for transfer of property in Company’s name is already
initiated for many items and will be earned out for all the items in due course.
4. Segment Reporting .
The Company is primarily engaged in the business of Manufacturing of PET Straps. The Company
operates in only one business segment and therefore. Accounting Standard 17 'Segment
Reporting” issued by the Institute of Chartered Accountants of India is not applicable to the
company.
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of
the Company by the weighted average number of Equity Shares outstanding during the year.
The following reflects die income and shares data used in the Basic EPS and Diluted EPS
Computations:
6. Taxes on Income
Current Tax
Current income tax assets and liabilities 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, at the reporting date.
Current lax assets and liabilities are offset only if there is a legally enforceable right to set off the
recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or
simultaneously
On 20 September 2019, the Government of India, vide Taxation Laws (Amendment| Ordinance 2019,
inserted section 115BAA in the Income Tax Act, 1961. which provides domestic companies an option
to pay Income Tax at reduced rates effective April 2019, subject to certain conditions. The tax
expenses for the year ended March 31,2025. have been provided for at such reduced rates.
Deferred Tax
Deferred tax is provided on temporary' differences between the tax base of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date. Deferred lax liabilities
are recognized for all taxable temporary differences except for the following:
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, Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognized to the extern 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 ar the tax-rates that are expected to apply in the
year when the asset is realized or the liability is settled, based on tax rales (and tax laws] that have
been enacted or substantively enacted at the reporting date,
Deferred lax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current lax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority,
7. Cash and Cash Equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand,
For the purpose of Cash Flow Statement, cash and cash equivalents consists of cash and bank
balances reported under Current Assets,
|