1. Corporate information
M/S Womancart Limited (Formerly Known as Womancart Private Limited) is a Limited Company incorporated under the provisions of the Companies Act. The company is engaged in the business to own, create, operate and manage online shopping websites, e-commerce market places, portals, mobile applications and to create a virtual shopping mall with online catalogue and to provide a convenient shopping experience to its customers for all items related to women viz., clothing, Jewellery, footwear, luggage's, hand bags, beauty products & all kinds of accessories related to fashion & lifestyle products and to carry on the business of traders of all kinds of clothing, readymade garments, jewellery, footwear, hand bags, beauty products and all accessories related to fashion & lifestyle products, or otherwise to act as agents, sub-agents, wholesalers, retailers, representatives, commission agents, franchisees and dealers of all kinds of clothing, wearing apparel, cosmetics, garments and clothing, lingerie, hosiery, footwear & accessories, providing secured payment processing, net commerce solutions for business to business and business to consumers, online in and outside India.
2. Basis of preparation
• The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP).
• The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013.
• The company follows the Mercantile System of Accounting recognizing Income and Expenditure on accrual basis.
• The directors have certified that there are no outstanding expenses not provided for and nor there are income which have fallen due but not accounted for. The accounts are prepared on historical cost basis and as a going concern.
• The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
3. Summary of significant accounting policies
For the year ended 31st March 2024, the Schedule III notified under the Companies Act 2013, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of Schedule III does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements.
a. Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. 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 the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities In future periods.
b. Property Plant & equipment
Property, Plant & Equipment are stated at cost, net of accumulated depreciation and accumulated losses, if any The cost comprises Purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of property plant & equipment is added to its book value only if it increase the future benefits from the existing assets beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair & maintenance expenditure and cost of replacing parts are charged to the statement of profit & loss for the period during which such expenses are incurred.
Gains or losses arising from derecognition of property, plant & equipment are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit & loss when the assets is derecognized.
C. Depreciation on Property, Plant 8< equipment
The company is following Depreciation as per Written Down Value Rate and the in the manner specified as per the companies Act 2013
Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Ordinarily, the residual value of an asset is often insignificant, but it should generally be not more than 5% of the original cost of an assets.
d. 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.
Intangible assets are amortised on straight line method over the period of 5 years. Such intangible assets and intangible assets not yet available for use are tested for impairment annually, either individually or at the cash-generating unit level. All other intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be impaired.
The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern. Such changes are accounted for in accordance with AS Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies.
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net of sale proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.
e. Leases
Finance leases, which transfer to title Company substantially all the risks and benefits incidental to ownership of the leased iteiri, are capitalized at the inception of the lease at the fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Capitalized lease4 assets are depreciated over the shorter of the estimated useful life of the asset or the lease ternt. Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognized as an expense in the income statement on a straight-line basis over the lease term.
f. Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period to get ready for its intended use or sale are capitalized as part of the cost of the respective asset All other borrowing costs are expensed in the period they occur.
h. Impairment
The assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount An asset's recoverable amount is the higher of an assets or cash-generating unit's (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are considered, if available. If no such transactions can be identified, an appropriate valuation model is used.
i. Investment
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition Charges such as brokerage, fees and duties.
Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investment.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and lass.
j. Inventories
Raw materials, components, stores and spares shall be valued at lower of cost and net realizable value. Work in progress and finished goods are valued at lower of cost and net realizable value.
k. Revenue Recognition
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.
Interest
Interest income is recognized on a time proportion basis considering the amount outstanding and the applicable interest rate. Interest income is included under the head "other income” in the statement of profit & loss.
k. Income tax
a. 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 the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
b. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years.
l. Foreign Exchange Fluctuation
All differences in the foreign exchange fluctuation on monetary assets/liabilities has been recognized at the time receipt/payment, unless material.
m. Provisions & contingencies
Provisions involving substantial degree of measurement are recognized when there is an obligation as a result of past events and its probable that there will be an outflow of resources. A contingent liability is a possible obligation that arises from past events whose existence Wilf be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of Society or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.
n. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and shortterm deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
16. in the opinion of the company and to the best of their knowledge and belief, the value on realization of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet
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