2. Significant accounting policies
a) Basis of preparation
These financial statements have been prepared in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) and in compliance with the Accounting Standards as specified in the
Companies (Accounting Standards) Rules, 2021 read with Rule 7 of the Companies (Accounts) Rules,
2014 issued by the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.
The financial statements have been prepared under the historical cost convention on an accrual basis.
The accounting policies have been consistently applied by the company and are consistent with those
used in the previous year. The financial statements are prepared in Indian rupees rounded off to
nearest Hundreds.
b) Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make judgments, estimates and assumptions that affect the reported amounts
of revenue, expenses, assets and liabilities and disclosure of contingent liabilities at the end of the
reporting period. Although these estimates are based upon management’s best knowledge of current
events and actions, uncertainty about these assumptions and estimates could result in outcomes
requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.
C) Current/ Non-Current classification of assets and liabilities
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 Schedule III to the Companies Act, 2013. Based on the
nature of products and the time between the acquisition of assets for processing and their realization in
cash and cash equivalents, the Company has ascertained its operating cycle as up to twelve months for
the purpose of current - Non Current classification of assets and liabilities.
d) Property. Plant & Equipment
The Company does not have any Property in its name. Plant & Equipment are stated at their original
cost of acquisition including taxes, freight and other incidental expenses relateidt^ae^uisition and
installation of the concerned assets less depreciation till
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e) Intangible Assets tfaf #g|\fKj ]!•])
The company may write off the Intangible assets in part or full if it is no more useful/operational to the
company.
f) Depreciation
Depreciation on Property, Plant & Equipment is provided to the extent of depreciable amount on the
Written down Value (WDV) Method. Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.
g) inventories
• The Company has inventory worth of Rs. 97,378,658 /- at the end of the year.
• Inventory is valued at Cost or Net Realizable Value whichever is lower.
• The cost includes all expenses directly attributable to bringing the inventory to its current condition
and location.
• Cost of inventory is determined using first in first out method of valuation.
h) investments
• Investments intended to be held for not more than a year are classified as “Current Investments",
which are carried at lower of cost and fair value determined on an individual investment basis.
• All other investments are classified as "Long term investments and they are carried at cost, however
provision for diminution is made to recognize a decline, other than temporary in nature.
• On disposal of an investment, the difference between its weighted average carrying amount and the
net disposal proceeds is charged or credit to the statement of profit and loss.
• Current investments readily convertible in known amount of cash and subject to insignificant risk of
changes in value are classified as cash and cash equivalents for preparation of Cash flow statements.
i) Reclassification of investments:
Investments are reclassified when there is a change in the company's intention regarding the holding of
an investments, or when there is a change in the characteristics of investments or strategy of
management of the company.
A provision for diminution in value of Investment is created in accordance with Accounting Standard
13.
The company may reclassify the assets and will not adjust the amount below 1 lakhs
j) Revenue recognition:
(a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured.
(b) Interest income on fixed deposit and debentures held, is accounted on accrual basis.
k) Expense Recognition
Expenses are recognized in the financial statements when they are incurred regardless when the
payment is made and can be reliably measured. These are j^ecoggjzed on accruaUs^li^etjardless of
when the payment is made. Expenses are recognized conslS|5tfe^^^i5>periods to^jMJTFT^^arability
of financial informatfafc \vv\
Hrwt 111
l) Post-employment benefits
a) Defined contribution plans are post-employment benefit plans under which an enterprise pays fixed
contributions into a separate entity (a fund) and will have no obligation to pay further contributions
if the fund does not hold sufficient assets to pay all employee benefits relating to employee service
in the current and prior periods.
b) Current service cost is the increase in the present value of the defined benefit obligation resulting
from employee service in the current period.
c) Interest cost is the increase during a period in the present value of a defined benefit obligation
which arises because the benefits are one period closer to settlement
m) Prior Period Items
Prior period items are costs or revenue that relate to earlier financial periods but were either not
recorded or were recorded incorrectly in those periods. These expenses or revenue are identified
during the current period and required adjustments to ensure accurate financial reporting and in
compliance with Accounting Standard 5.
n) Tax Expense
Tax expense comprises of current income tax and deferred tax. Current Income Tax is measured at the
Amount expected to be paid to the tax authorities.
Deferred taxes reflects the impact of timing differences between taxable income and accounting income
originating during the current year and reversal of timing differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the
balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable
right exists to set off current tax assets against current tax liabilities and deferred tax liabilities and the
deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing
taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which such deferred tax assets can be
realized.
In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported by convincing evidence that they
can be realized against future taxable profits.
At each balance sheet date, the Company re-assesses unrecognized deferred tax assets. It recognizes
unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain,
as the case may be that sufficient future taxable income will be available against which such deferred
tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Company
writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably
certain or virtually certain, as the case may be, that sufficient future taxable income will be available
against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income
will be available.
o) Cash and Cash Equivalent
Cash and Cash Equivalents comprise cash in hand, cash. at. bank and fixed dep^jttp*wth banks.
Irrespective of the maturity of the fixed deposits made ttesa4c£jfiaSsified in cash^/^ictl^r^wivalent.
(fcf hi rlfkxh
p) Kamings per share
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable
to equity shareholders and the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
q) Previous Year Figures
The company has reclassified previous year figures wherever necessary.
For S P M G AND COMPANY For and on behalf of the Board of Directors
(Chartered Accountants) , r-^^MARC LOIRE FASHIONSJJI^ITED
FRN:S0«49C
(PARTNER)
Membership No.531054 SHAINA MAI.HOTRA ARVIND KAMRO)
UDIN: 25531054RMZWFI4017 Director Director
Place: New Delhi DIN-06809352 DIN-09624208
Dale: 20-05-2025
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