provision arising from claims, litigation, assessment, fines, penalties, etc. is recognised when the Company has a present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. These are reviewed at each balance sheet date and adjusted to reflect
current management estimates. Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the
existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the enterprise. When there is a possible obligation or present obligation where the likelihood of an outflow is remote, no disclosure or provision is
made.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within the control of the entity. A contingent asset is disclosed, where an inflow of economic benefits
is probable.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized
as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
The company does not recognize a contingent liability but disclosed its existence in the financial statements.
Income Taxes
Income tax comprises current tax and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates
to items directly recognized in equity or in other comprehensive income.
Current tax
Current tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on
the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively
enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability
simultaneously.
Deferred tax
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable temporary
differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred tax
arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting
nor taxable profits or loss at the time of the transaction.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary
differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
Deferred tax liabilities are recognized for all taxable temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Minimum Alternate Taxes
Minimum Alternate Tax (MAT) is payable when the taxable profit is lower than the book profit. Taxes paid under MAT are available as a set off
against regular income tax payable in subsequent years. MAT paid in a year is charged to the Statement of Profit and Loss as current tax. The
Company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income
tax during the specified period i.e the period for which MAT credit is allowed to be carried forward. MAT credit is recognised as an asset and is shown
as ‘MAT Credit Entitlement’. The Company reviews the ‘MAT Credit Entitlement’ asset at each reporting date and write down the asset to the extent
the Company does not have convincing evidence that it will pay normal tax during the specified period.
Foreign Currency Translations
a) Functional and Presentation Currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the
functional currency’). The financial statements are presented in Indian Rupee (INR), which is BOJ Heights Private Limited’s functional and
presentation currency.
b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are recognised in profit or loss.
Leases
As a Lessee:
Leases of property, plant and equipment where the company, as lessee, has substantially all the risks and rewards of ownership are classified as
finance leases. Finance leases are capitalised at the lease’s inception at the fair value of the leased property or, if lower, the present value of the
minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as
appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating
leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis
over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor’s
expected inflationary cost increases.
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The
arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement
conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. Arrangements containing a lease have been
evaluated as on the date of transition i.e. April 1, 2016 in accordance with Ind-AS 101 First-time Adoption of Indian Accounting Standards.
As a Lessor:
Leases in which the company does not transfer substantially all the risk and benefits of ownership of the assets are classified as operating leases.
Assets subject to operating lease are included in Property, Plant & Equipment. Lease income on an operating lease is recognized in the statement of
profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognized immediately in the statement of profit & loss.
Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
Cash and Cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial
institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
Revenue Recoginition
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.
Income from Services - Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.
Interest Income: Interest income is recognized as it accrues in Statement of Profit and Loss using the effective interest method.
Dividend income - Revenue is recognized when the shareholder’s right to receive payment is established at the balance sheet date. Dividend
income is included under the head “Other income” in the statement of profit and loss.
Earnings Per Share
Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period.
Diluted earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving
basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares
are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for bonus
shares, as appropriate.
Segment reporting
Business segment: The Company has a single reportable business segment namely; carrying out business of trading of goods (Chemical items)
Rounding of amounts
All amounts disclosed in the financial statements and notes have been rounded as per the requirement of Part I of Schedule III, unless otherwise
stated.
c. Terms /rights attached to equity shares
1. The company has only one class of equity shares having a face value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The
dividend declared, if any is payable in Indian rupees. The dividend if any proposed by the Board of Directors is subject to the approval of the shareholders in the
ensuing annual General Meeting. The board has not proposed any dividend for current year and previous year.
In the event of liquidation of the company, the holders of equity shares will be entitiled to receive remaining assets of the company, after distribution of all
preferential amounts including preference shares. The distribution will be in proportion to the number of equity shares held by the shareholders.
2. The Company had forfeited 9,47,900 equity shares on October 12,2015, due to non-payment of call-in arrears, Hence, there is a difference between Issued
Capital and Paid-up Capital of the Company.
The fair value of the assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in forced or liquidation sale. The following methods and assumptions were used
to estimate the fair values:
Fair Value of cash and short-term deposits, trade and other current receivables, trade payables, other current liabilities and
other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.
The different levels of fair value have been defined below:
Level 1: Quoted (Unadjusted) prices in active markets for identical assets or liabilities.
Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either
directly or indirectly
Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.
I Financial Risk Management
The Company's financial risk management is an integral part of how to plan and execute its business
strategies. The Company's financial risk management policy is set by the Managing Board. The financial risks
are identified, measured and managed in accordance with the Company's policies on risk management. Key
financial risks and mitigation plans are reviewed by the board of directors of the Company.
. MARKET RISK
Market risk is the risk of loss of future earnings, fair value of future cash flows that may result from a change in
the price of financial instrument. The value of a financial instrument may change as a result of changes in the
interest rates, equity prices and other market changes that may effect market sensitivity instruments. Market
risk is attributable to all market risk sensitive financial instruments including investments and deposits, loans
and borrowings.
Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. In order to balance the Company's position with regards to
interest income and interest expense and to manage the interest rate risk, management performs a
comprehensive interest rate risk management. The Company has no interest bearing borrowings hence it is
not exposed to significant interest rate risk as at the respective reporting dates. The Company's fixed rate
financial assets are carried at amortized cost. They are therefore not subject to interest rate risk, since neither
the carrying amount nor the future cash flows will fluctuate because of change in market interest rates.
Foreign currency risk
The Company has operations in India only hence Company's exposure to foreign currency risk is nil.
Price Risk
Price risk arises from exposure to equity securities prices from investments held by the Company. The
. CREDIT RISK
Credit risk is the risk that customer or counter-party will not meet its obligation under the contract, leading to
T rade Receivables
Customer credit risk is managed on the basis of established policies of the Company, procedures and controls
Other Financial Assets
There is no credit risk exposure with respect to other financial assets as they are either supported by legal
- Deposits are held with Banks are with Nationalized Bank, hence the risk of default is considered to be
- Other receivables from related parties are as per approved policy and the established procedure to monitor
Provision for Expected Credit losses
Financial Assets are considered to be of good quality and there is no credit risk to the Company.
. LIQUIDITY RISK
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Group's approach to
Management monitors rolling forecasts of the liquidity position and cash and cash equivalents on the basis of
expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.
Capital Risk Management
The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern
and to optimize returns to shareholders. The capital structure of the Company is based on management's
judgment of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We
consider the amount of capital in proportion to risk and manage the capital structure in light of changes in
economic conditions and the risk characteristics of the underlying assets. The Company's policy is to maintain
a stable and strong capital structure with a focus on total equity so as to maintain creditors and market
confidence and to sustain future development and growth of its business. There in no change in the Company
capital structure since previous year.
The Company has not received intimation from vendors regarding their status under the Micro, Small and
Medium Enterprises Development Act, 2006 and hence names of Micro, Small and Medium Enterprises to
whom the company owes any sum together with interest unpaid as on the date of balance sheet is no
The Balances of Trade receivables, Trade Payables, Loans and Advances appearing in the balance sheet are
subject to balance confirmation/reconciliation at the year end. The management is in the process of obtaining
the respective confirmations in the due course. However, the reconciliation of these balances is not expected
to result in any material adjustments in the stated balances in the financial Statements.
The figures of previous years have been recast/regrouped wherever necessary to make them comparable
and for the purpose of our audit.
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