12. Accounting for Provisions, Contingent Liabilities and Contingent Assets -
Provisions are recognized in terms of Accounting Standard 29 - 'Provisions, Contingent
Liabilities and Contingent Assets' issued by the ICAI, when there is a present legal or
statutory obligation as a result of past events where it is probable that there will be outflow
of resources to settle the obligation and when a reliable estimate of the amount of the
obligation can be made except provision for Retirement Benefits which are dealt as per
Accounting Standard 15.
During the year no Contingent Liabilities are recognized and there is no occasion for such
recognisation.
Contingent Assets are not recognized in the financial statements.
13. Prior Period Item / Extra-Ordinary Items -
Prior period items, and extra ordinary items, if material, are separately disclosed in the notes
to the accounts is a policy of the Company.
14. Earning per share
Basic earning per share is computed by dividing the net profit after tax by the weighted
average number of equity shares outstanding during the period.
Adjusted earning per share is computed by dividing net profit after tax by the average number
of equity shares including bonus shares outstanding during the period.
15. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for
the effects of transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or expenses associated with investing
or financing cash flows. The cash flows from operating, investing and financing activities of
the Company are segregated.
B) Notes on Accounts -
1. Depreciation
Pursuant to the enactment of Companies Act, 2013 the company has applied the estimated
useful lives as specified in Schedule II, except in respect of certain assets as disclosed in
accounting policy on Depreciation, Amortization and Depletion. Accordingly the
unamortized carrying value is being depreciated / amortised over the revised/ remaining
useful lives.
2. Third Party Confirmation
In most of the cases, confirmation from the parties grouped under sundry debtors, sundry
creditors, loans & advances has not been received by the company. These balances have,
therefore been taken as per the books subject to reconciliation & adjustments, if any.
3. Long Term Borrowings
During the year, Company has outstanding Long Term Unsecured Loans from Associate
Concern, Directors, Shareholders amounting Rs. 50,000/- (Previous year Rs. 50,000)as per
condition stipulated by Bank.
4. Trade Receivables
Outstanding debts having found not realizable are treated as bad and has been written off in
the relevant financial year.
5. Trade Payables
Outstanding credit balances having found not payable are treated as bad and has been
forfeited in the relevant financial year.
6. As informed by the management that the liability / refund of all Indirect Taxes will be
accounted on finality of claims from concerned department.
7. Previous years figures have been regrouped and recasted wherever necessary to make them
comparable to current years figure.
16. Relationship with Struck off Companies
Where the company has any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956, the Company shall disclose the
following details:-
17. Registration of charges or satisfaction with Registrar of Companies
Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the
statutory period, details and reasons thereof shall be disclosed.
18. Compliance with number of layers of companies
Where the company has not complied with the number of layers prescribed under clause (87) of
section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name
and CIN of the companies beyond the specified layers and the relationship/extent of holding of the
company in such downstream companies shall be disclosed.
19. Following Ratios to be disclosed:
(a) Current Ratio (Current Asset / Current Liabilities) - 4.28. Increase in Current asset and increase
in trade payable
(b) Debt-Equity Ratio (Loans/ Capital Account Net Profit) - 0.0039 Loan repayable on demand
taken from director
(c) Debt Service Coverage Ratio (PBIT/Interest) - NA
(d) Return on Equity Ratio (Net Profit/ Capital Account Net Profit)- 10.31%- Business operations
begun form current year.
(e) Inventory turnover ratio (Turnover/ Closing Stock) - 1265.38
(f) Trade Receivables turnover ratio ( Sundry Debtors/Turnover) - 0.0371
(g) Trade payables turnover ratio( Sundry Creditors/Turnover) - 0.1105
(h) Net capital turnover ratio (PBIT/ Turnover) - 4.29%
(i) Net profit ratio (Net Profit/Turnover) - 4.29%
(j) Return on Capital employed (PBIT/ Capital Employed) - 10.31%
The company shall explain the items included in numerator and denominator for computing the above
ratios. Further explanation shall be provided for any change in the ratio by more than 25% as
compared to the preceding year.
20. RELATED PARTY DISCLOSURE
1. Number of contracts or arrangements or transactions not at arm’s length basis: Nil
2. Number of material contracts or arrangement or transactions at arm’s length basis: as under
a) name of the related parties with whom transactions have been entered in the ordinary
course of business.
For, DMKH & Co
Chartered Accountants
Sd/-
Partner
Membership No.122962
Firm’s Registration No. 116886W
UDIN:- 25122962BMIQCU1025
Place - Pune
Date - 29/05/2025
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