i) Corporate Information:
Company is incorporated in December, 2018 by consolidating business of Magson group of firms; company is engaged in the business of trading of various kinds of food products under brand name "Magson" by opening up the different outlets at different places in the state of Gujarat as well as adjoining states.
Company has also opened stores under brand name "My Chocolate World" and "Nasta Bazaar" in Gujarat which also deal in various kind of speciality food products.
The Company has completed Initial Public Offering (IPO) of its Equity Shares and its equity shares got listed on SME platform of NSE Limited ("NSE Emerge") on 6th July, 2023.
ii) Basis of Preparation:
The Financial Statements are prepared as per historical cost convention and in accordance with the Generally Accepted Accounting Principles (GAAP) in India, Section 133 of the Companies Act, 2013 and the applicable Accounting Standards read with rule 7 of the Companies (Accounts) Rules 2014.The company follows mercantile systems of accounting and recognised income and expenditures on accrual basis. The company is a Large Company as defined in the general instruction in respect of accounting standards noticed under the Companies Act, 2013. Accordingly, the company has complied with the accounting standards as applicable to a Large Company. The presentation of the accounts is based on the revised Schedule III of the Companies Act, 2013.
iii) Use of Estimates:
The preparation of financial statements in conformity with generally accepted principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations 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.
iv) Property, Plant & Equipment & Depreciation:
Fixed Assets are stated at cost less accumulated depreciation.
Depreciation is provided on fixed assets used during the year as per Straight Line Method on the basis of useful life of assets specified in Schedule II of the Companies Act, 2013.
v) Investments:
Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current Investments are stated at lower of cost and net realizable value. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long-term Investments.
vi) Revenue Recognition:
Revenues are Recognised Accrual Basis. Sales are accumulated net of GST.
vii) Interest Income:
Interest income has been recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
viii) Impairment of Assets:
An asset is considered as impaired in accordance with Accounting Standard 28 on impairment of Assets when at balance sheet date there are indications of impairment and the carrying amount of the asset exceeds its recoverable amount. The carrying amount Is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the statement of profit and loss.
ix) Provisions, Contingent Liabilities and Contingent Assets:
Contingent liabilities are not recognized but are disclosed in the accounts by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.
x) Taxes on Income:
Deferred tax liabilities arising on account on timing differences, which is capable of reversal in subsequent periods are recognized using tax rates and tax laws, which have been enacted or substantively enacted.
xi) Employee Benefits:
The contributions to Provident Fund & Employee State insurance Fund are provided for and payments in respect thereof are made to relevant authorities on actual basis which is charged to statement of profit and loss.
The company does not have any other scheme of short term or long term retirement benefits.
The company has policy of providing for employees' gratuity liability based on actuary valuation report as on balance sheet date. However, this liability is unfunded and company will pay the liablity as an when it arises from it existing resources.
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