1. CORPORTAE INFORMATION
GABRIEL PET STRAPS LIMITED (the company) is company incorporated under the Companies Act, 2013 by conversion of “Gabriel Pet Straps LLP” (erstwhile Limited Liability Partnership) into Public Limited Company with effect from 03.08.2023 by taking over all assets and liabilities of the running business on going concern basis (and also in line with section 47(xiii) provisions of the Income Tax Act, 1961). The purpose of the same was, to make Initial Public Offer of Equity shares and Listing requirements.
The Company is engaged into manufacturing of polymer pet striping, polymer pet strips, polymer tapes, biaxial oriented polypropylene (BOPP) tape, synthetic, natural or blended polymer and polymer items, polymer intermediaries, its raw materials, derivatives, mixture used as / in packing material for trade, commerce and industries.
2. BASIS OF ACCOUNTING AND PREPERATION OF FINANCIAL STATEMENTS:
The accompanying financial statements are prepared under the historical costs convention and on accrual basis of accounting and in compliance, in all materials respects, with the Generally Accounting Principles accepted and applicable in India, the applicable accounting standards notified under relevant sections and provisions of the Companies Act, 2013. Further, the opening balances of all assets and liabilities are recorded in books of accounts of the company as per balances reflected in audited financial statements of erstwhile Limited Liability partnership.
On basis of opinion and decision taken by the management, the books of the company are initially closed for the period 03.08.2023 to 31.03.2024 i.e. Period less than eight months.
As the company came into existence only during current financial year, no comparative figures of previous year are'included in Financial Statements.
We have relied on management's representation for bifurcation and ageing of trade payables, trade receivable, Capital Assets Work in Progress, and other relevant items.
3. USE OF ESTIMATES:
The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates made are recognized in the period in which the results are materialized.
4. PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION ON IT:
Fixed Assets are valued at cost Less depreciation w.e.f. 03.08.2023 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 have been taken as declared by the management. Further all the assets transferred under the conversion are taken as addition on 3rd August, 2023. And the same is reflected as gross block of asset at closing Written down value, as shown in audited books of accounts of erstwhile Limited Liability partnership firm on 2nd August, 2023.
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 carried out for all the items in due course.
5. INVENTORY:
Inventories are valued at lower of cost or market value as declared by the company. Stock is considered as taken Value and Certified by the company.
6. ACCOUNTING METHOD:
The accounting method employed is Mercantile Accounting System. Final Accounts has been prepared on Going Concern assumption and materiality aspect but some expenses due to their peculiar nature like electricity, telephone expenses, etc are accounted for, on cash basis.
Few adjustments are made on or after 3rd August, 2023 for some entries related to Income-expenses-assets-liabilities of erstwhile Limited Liability partnership firm.
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7. REVENUE RECOGNITION:
Revenues are recognized 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.
9. VERIFICATION
We have verified the transactions recorded in the books with such of the documentary evidences as were made available and produced before us, where such documentary evidence was not available the entries authenticated by the party have been accepted.
10. All the Balances to the Debit and Credit of Debtors, Creditors and Unsecured Loans are subject to confirmation and reconciliation.
11. Accounting Ratios are calculated on the basis of figures shown in audited set of accounts.
12. The figures have been rearranged and regrouped wherever considered necessary and rounded off to the nearest Rupee in Thousands.
13. There are no prior period expenses or there are no extra ordinary expenses debited to Profit & Loss account except non-material item of erstwhile partnership firm.
14. Earnings Per Share
Earnings per share, as reflected in Profit and Loss Statement and other relevant places, is for relevant period of 242 days only (from 03/08/2023 to 31/03/2024) and by considering Shares outstanding as on Balance Sheet date.
15. Effect of Conversion:
The corporate Entity comes into existence on 03.08.2023 after conversion of Limited Liability partnership firm. As per the representation of management, company is eligible for benefit of provisions of Section 47(xiii) and other provisions of Income tax Act, 1961 and estimates NIL tax liabilities on conversion. We are not aware of outcome of the same on the date of our report and hence we do not comment upon the same.
Figures of GST credit and liability as per books of account and as per GST Portal are subject to reconciliation by the Company.
16. Reportable Segments
No business segment of the Company qualifies as separate reportable segments, and therefore segment wise reporting is not provided.
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