m) Provisions
Provisions for legal claims, service warranties, volume discounts and returns are recognized when the Company
has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for
future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of
an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of managements best estimates of the expenditure incurred to settle
the present obligation at the end of the reporting period. The discount rate used to determine the present value is a
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time is recognized as interest expense.
n) Current and non-current classification:
i. The assets and liabilities in the Balance Sheet are based on current/ non - current classification. An asset
as current when it is:
• Expected to be realised or intended to be sold or consumed in normal operating cycle
• Held primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalents 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.
ii. A liability is current when:
• Expected to be settled in normal operating cycle
• Held primarily for the purpose of trading
• 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 treated as non-current.
Deferred tax assets and liabilities are classified as non - current assets and liabilities.
o) Trade receivables
Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the
effective interest method, less provision for impairment.
Trade Receivables have been taken at fair value subject to confirmation and reconciliation.
p) Trade payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. The amounts are unsecured and are usually paid as per the agreed terms. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.
They are recognized initially at their fair value and subsequently measured at amortized cost using the effective
interest method
Notes on Financial Statements
1. The Company has not identified and classified MSME creditors accordingly the disclosures relating to amounts
payable to Micro and Small Enterprises as required under the Act have not been made.
2. Trade receivables, Trade payables, Loans & Advances and Unsecured Loans have been taken at
their book value as the management is unable to provide any external confirmations from the parties.
8. There are no contingent liabilities as on the balance sheet date.
9. There are no charges or satisfaction of charge pending to be registered with Registrar of Companies beyond the
statutory period, as applicable.
10. The company has not been declared wilful defaulter by any bank or financial institution or other lender during
the year.
11. The company does not hold any Benami property and no proceeding have been initiated or pending against the
company in such respect.
12. The company has not entered into any transactions with struck off companies.
13. The company has not traded or invested in Crypto currency or Virtual Currency during the year.
14. The company has made detailed assessment of its liquidity position and of the recoverability and carrying value
of its assets as on the balance sheet date and has concluded that no material adjustments are required to be made
in financial statements.
15. In the opinion of the management all the assets of the company have a value on realization in the ordinary course
of business, at least equal to the amount at which they are stated in the financial statements.
16. Previous year figures have been regrouped/rearranged wherever necessary.
17. Whenever the balance confirmation is not available from the parties, the balance as appearing in the books of
accounts have been considered.
In terms of our Report attached of even date
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