1. Background of Operations:
MISH DESIGNS LIMITED was incorporated on November 24, 2017 as a private limited company under
Companies Act, 2013. The registered office of the company is situated at Gala No. 4, Gulati Industries,
Hattibaug Love Lane, Mazgaon, Mumbai - 400010. The Company has completed its Initial Public Offer
(IPO) and accordingly the Company’s equity shares are listed on Bombay Stock Exchange (BSE) SME on
November 07, 2023. Mish Designs Limited is primarily engaged in the business of manufacture and sale of
fashion apparels.
2. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared and presented under the historic cost convention, on the
accrual basis of accounting, and in accordance of the Companies Act applicable (‘the Act’) and the
accounting principles generally accepted in India (‘Indian GAAP’) and comply with the accounting
standards (AS) as notified in the Companies (Accounting Standards) Rules 2006, to the extent applicable.
a. ) Use of Estimates
The preparation of financial statements in accordance with generally accepted accounting principles (‘GAAP’) in
India requires that management makes estimates and assumptions that affect the reported amount of assets and
liabilities and disclosure of contingent liabilities as of the date of financial statements. The estimates and
assumptions used in the accompanying financial statements are based upon management’s evaluation of relevant
trends and circumstances as of the date of the financial statements. Any revision to accounting estimates is
recognized prospectively in current and future periods.
b. ) Taxation
Current Tax: Provision for current tax is recognized in accordance with the provisions of Income Tax Act, 1961
and is made annually based on the tax liability after taking credit for tax allowances and exemptions.
Deferred Tax: Deferred Tax Liability/ Asset is recognized for timing differences between the profit or losses
offered for Income Tax and profits or losses as per financial statements. Deferred tax assets and liabilities and the
corresponding deferred tax credit or change are measured using the tax rates and tax laws that have been enacted
or substantively enacted as at balance sheet date.
Deferred tax asset is recognized only to the extent that there is reasonable certainty that the asset can be realized
in future; however, when there is unabsorbed depreciation or carried forward loss under taxation laws, deferred
tax asset is recognized only if there is a virtual certainty of realization of such asset. Deferred tax assets is
reviewed as at each balance sheet date and written down or written up to reflect the amount that is
reasonably/virtually certain to be realized.
Earnings per share: Basic EPS is computed by dividing the net profit for the year attributable to equity
shareholders by weighted average number of equity shares outstanding during the year. Diluted EPS is computed
using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year
except where the results would be anti-dilutive.
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