1. Basis of accounting:
The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and comply in all material aspects with the Accounting Standards (AS) specified under Section 133 of the Companies Act,2013, read with Rule 7 of the Companies (Accounts) Rules,2014. The accounting policies adopted in the preparation of these financial statements are consistent with those of the previous year.
2. Use of Estimates:
The preparation of financial statements in conformity of Indian GAAP requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements. The reported amounts of revenues and expenses during the reporting period and the disclosures relating to contingent liabilities as on the date of the financial statements. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes different from the estimates. Difference between actual results and estimates are recognised in the period in which the results are known or materialize.
3. Current/ Non-Current Classification:
All assets and liabilities have been classified as either Current and Non-Current as per the company’s normal operating cycle and other criteria set out in the Schedule III to Companies Act, 2013.
Assets
An asset is classified as current when it satisfies any of the following criteria:
a. It is expected to be realised in, or is intended for sale or consumption in, the Company's normal operating cycle;
b. It is held primarily for the purpose of being traded;
c. It is expected to be realised within 12 months after the reporting date; or
d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
a. It is expected to be settled in the Company's normal operating cycle;
b. It is held primarily for the purpose of being traded;
c. It is due to be settled within 12 months after the reporting date; or
d. The Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as noncurrent.
Operating cycle
The company has ascertained its Operating Cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. This is based on nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalent.
4. Property, Plant and Equipment and Intangible Assets:
Property, Plant and Equipment and Intangible Assets are stated at cost, net of tax/duty credit availed, if any, after reducing accumulated depreciation till the date of the Balance Sheet. Direct costs are capitalized till the assets are ready to use and include financial cost relating to any borrowing attributable to acquisition.
Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
An item of property, plant and equipment and intangible assets is de-recognized upon disposal or when no future economic benefits are expected to arise from its use. Any gain or loss arising from its de-recognition is measured as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss when the asset is de-recognized.
Items of Property, Plant and Equipment and Intangible Assets that have been retired from active use and are held for disposal are stated at the lower of their net book value or net realizable value.
Capital Work-in-progress includes the cost of Property, Plant and Equipment that are not yet ready for the intended use and the cost of assets not put to use before the Balance Sheet Date.
Intangible Assets separately acquired are initially measured at Cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on a straight-line basis over the estimated useful economic life.
5. Depreciation:
Depreciation on Property, Plant and Equipment and Intangible Assets has been provided using the written down value method as per useful life of assets prescribed in Schedule II to the Companies Act, 2013 and is charged to the Statement of Profit and Loss.
In respect of additions/deletions to Property, Plant and Equipment and Intangible Assets during the year, depreciation is provided on pro-rata basis with reference to the date of addition/put to use or up to the date of sale as the case may be.
Intangible assets are amortized on a straight-line basis over their estimated useful life.
6. Inventories:
Raw material & WIP is valued at cost or net realisable value, whichever is lower, as certified by the Company's management.
Stock in trade is valued at cost or net realisable value, whichever is lower, as certified by the Company's management.
7. Pre-commencement of Business expenses:
Precommencement of Business expenses / Amortisation of Exhibition expenses are amortized over a period of 5 years.
8. Sales/Revenue recognition of income and expenses:
a. Revenue from sales is recognised at the point of dispatch to the customers when the risk and reward stands transferred to the customer.
b. Interest income is recognised on accrual basis.
9. Accounting For Taxes On Income:
a. Provision for current tax is calculated in accordance with the provisons of the Income Tax Act, 1961 and is made annually based on tax liability computed after considering
b. Deferred Tax Asset and Deferred tax liability is calculated by applying rates and tax laws that have been enacted or substantively enacted as on balance sheet date.
c. Deferred Tax Liability are recognised & carried Forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such Deferred Tax Liability can be realised.
10. Accounting for effects in Foreign Exchange Rates:
a. Transactions in foreign currency are recorded on initial recognition at the exchange rate prevailing at the time of the transaction.
b. Monetary items (i.e.receivables, payables, loans etc.) denominated in foreign currency are reported using the closing exchange rate on which these were initially recorded/reported in previous financial
c. statements are recognised as income/expenses in the period in which they arise.
11. Earning Per Share:
The Company reports basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard 20 on Earning per Share. Basic EPS is computed by dividing the net profit or loss for the year by weighted average number of Equity shares outstanding during the year.
# Retirement Benefits:
No Accounting provisions has been made for Retirement Benefits to the Employees by the Company as per Accounting Standard AS-15.
# Provisions. Contingent Liabilities and contingent assets:
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities, if any, are not recognized but are disclosed by way of a note to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.
#Additional Regulatory Information:
Additional Regulatory Information pursuant to Clause 6Y of General Instructions for preparation of Balance Sheet as given in Part I of Division I of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.
1. All title deeds of Immovable Property are held in the name of company.
2. The Company does not have revalued its Property, Plant and Equipment
3. The Company has not advanced any loans or advances in the nature of loans to specified persons viz. promoters, directors, KMPs, related parties, which are repayable on demand or where the agreement does not specify any terms or period of repayment.
4. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
5. Capital Work in Progress if any - The Company has not any capital work in progress during the year
6. The Company has not any Intangible assets under development.
7. Quarterly returns or statements of current assets - Reconciliation - Refer Note No. 5
8. The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when financial statements are approved.
9. The Company does not have any transactions with struck-off companies.
10. Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
11. There is no scheme of arrangements approved by the competent authority in the terms of section 230 to 237 of the Companies Act 2013.
12. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding, that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiary
13. Company have not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise that the company shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiary.
14. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
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