1 Corporate information
Vasa Denticity Limited (the "Company"), was incorporated on 29 August 2016, having its registered office at Khasra No. 714, Village P.O.
Chattarpur New Delhi, South Delhi. The company is engaged in trading of dental equipments.
2 Basis of Preparation of financial statements (Significant Accounting Policies & other explanatory Notes)
2.1 Basis of Preparation
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP), including the Accounting Standards notified under section 133 of the Companies Act, 2013. The financial statements have
been prepared on accrual basis under the historical cost convention.
2.2 Current versus non-current classification
The Company presents assets and liabilities in the balance sheet based on current/non- current classification. An asset is treated as current
when it is:
- Expected to be realized or intended to be sold or consumed in normal operating cycle
- Held primarily for purpose of trading
- Expected to be realized within twelve months after the reporting period, or
- cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting
period
All other assets are classified as non-current.
A liability is current when:
- It is expected to be settled in normal operating cycle
- It is held primarily for purpose of trading
- It is due to be settled within twelve months after the reporting period, or
- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
All other liabilities are classified as non current.
Deferred tax assets and deferred tax liabilities are classified as non- current assets and liabilities.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The
Company has identified twelve months as its operating cycle.
2.3 Use of estimates
The preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts
of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes
that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates
and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.
2.4 Inventories
The inventory are valued at lower of cost or net realizable value.Cost includes all charges in bringing the goods to the point of sale, including
octroi and other levies, transit insurance and receiving charges. Finished goods include appropriate proportion of overheads.
2.5 Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short term investments with an original maturity of
three months or less. Earmarked balances with bank, margin money or security against borrowings, guarantees and other commitments ,if any
shall be treated separately from cash and cash equivalent
2.6 Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available information.
2.7 Property, plant and equipment
Property, Plant and equipment including capital work in progress are stated at cost, less accumulated depreciation and accumulated
impairment losses, if any. The cost comprises of purchase price, taxes, duties, freight and other incidental expenses directly attributable and
related to acquisition and installation of the concerned assets and are further adjusted by the amount of input tax credit availed wherever
applicable. Subsequent costs are included in asset's carrying amount or recognised as separate assets, as appropriate, only when it is probable
that future economic benefit associated with the item will flow to the Company and the cost of item can be measured reliably.
2.8 Depreciation and amortisation
Depreciation on property, plant and equipment is provided on prorate basis on WDV method using the usefiil lives of the assets estimated by
the management and in the manner prescribed in Schedule II of the Companies Act 2013. The estimated life of various assets is as follows:
2.9 Intangible assets
Separately acquired intangible assets
Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at
cost less accumulated amortization and accumulated impairment losses, if any. Internally generated intangibles, excluding capitalized
development cost, are not capitalized and the related expenditure is reflected in statement of Profit and Loss in the period in which the
expenditure is incurred. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its
intended use.
Internally Generated intangible assets
The cost of an internally generated intangible asset comprises all expenditure that can be directly attributed, or allocated on a reasonable and
consistent basis, to creating, producing and making the asset ready for its intended use. No cost incurred in the Research Phase of the asset is
recognized. The cost incurred in the development phase is recognized only if the company can demonstrate the following conditions:
(a) the technical feasibility of completing the intangible asset so that it will be available for use;
(b) its intention to complete the intangible asset and use or sell it;
(c) its ability' to use or sell the intangible asset;
(d) how the intangible asset will generate probable future economic benefits. Among other things, the company should demonstrate the
existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the
intangible asset;
(e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
(f) its ability to measure the expenditure attributable to the intangible asset during its development reliably.
2.10 Revenue recognition
Sale of goods
Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally
coincides with the delivery of goods to customers. Sales exclude GST. The company follows the mercantile system of accounting and
recognizes the income and expenditures on accrual basis except in case of significant uncertainties.
2.11 Other income
Interest income is recognised on time proportion basis. Rental income is recognized on accrual basis
2.12 Foreign currency transactions and translations
initial recognition
Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction
or at rates that closely approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet date
Foreign currency monetary items (other than derivative contracts) of the Company outstanding at the Balance Sheet date are restated at the
year-end rates.
Exchange differences arising out of these translations are charged to the Statement of Profit and Loss.
2.13 Investments
Long-term investments, are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as
brokerage, fees and duties.
2.14 Borrowing costs
Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings
to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly
related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs,
allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development
of the qualifying asset up to the date of capitalisation of such asset is added to the cost of the assets.
Borrowing cost attributable to the fixed assets during construction/ exploration, renovation and modernization are capitalized. Such borrowing
costs are apportioned on the average balance of capital work in progress for the year. Other borrowing costs are recognized as an expense in
the period in which they are incurred.
2.15 Segment reporting
The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which separate financial information is available and for which operating
prolit/loss amounts are evaluated regularly by the executive
2.16 Taxes on income
Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in
accordance with Income Tax Act, 1961. Deferred income tax reflects the impact of current year timing differences between taxable income
Uat originates in one period and are capable of reversal in one or more subsequent periods
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to
future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax.
Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow
to the Company.
Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate
in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets
in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient
future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the
extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax
assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally
enforceable right for such set off. Deferred tax assets ar e reviewed at each Balance Sheet date for their realisability.
2.17 Impairment of assets
The carrying values of assets / cash generating units are reviewed at each Balance Sheet date for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and impairment is recognised if the carrying amount of these assets exceeds their
recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by
discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment
loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is
recognised in the Statement of Profit and Loss.
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