2.4. PROVISIONS AND CONTINGENT LIABILITIES
The Company estimates the provisions that have present obligations as a result of past events and it is
probable that outflow of resources will be required to settle the obligations. These provisions are reviewed
at the end of each reporting period and are adjusted to reflect the current best estimates.
The Company uses significant judgments to assess contingent liabilities. Contingent liabilities are disclosed
when there is a possible obligation arising from past events, 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 Company or a present obligation that arises from past events where it is either not probable that an
outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot
be made. Contingent assets are neither recognized nor disclosed in the standalone financial statements.
2.5. EMPLOYEE BENEFITS
The Company has adopted the Accounting Standard 15- Employee Benefits prescribed under the
Companies (Accounting Standards) Rules, 2006. ‘Employee benefits include provident fund, bonus and
gratuity benefits. The Company's obligation towards various employee benefits has been recognized as
follows:
Short Term Employee Benefits:-
All employee benefits payable wholly within twelve months of rendering the service are short-term
employee benefits. Benefits such as salaries, wages and bonus, wages, etc., are recognized in the Profit
and Loss statement in the period in which the employee renders the related service.Defined Contribution
Plans:-
The Company's contribution to provident fund are considered as defined contribution plans and are
charged as an expense as they fall due based on the amount of contribution required to be made.Defined
benefits plans -
For defined-benefit plans, the amount recognized in the Balance Sheet is the present value of the
defined-benefit obligation less the fair value of any plan assets. The present value of the defined benefit
obligation is the present value of expected future payments required to settle the obligation resulting
from employee service in the current and prior periods. The discount rate used is the market yields on
government bonds at the Balance Sheet date with remaining terms to maturity approximating those of
the Company's obligations.
Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the
Statement of Profit and Loss.
2.6. Leases
Ý Finance lease
Assets taken on finance lease are capitalized at fair value or net present value of the minimum lease
payments, whichever is less.
Lease payments are apportioned between the finance charges and outstanding liability in respect of
assets taken on lease.
Ý Operating Lease
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the
leased term are classified as operating lease. Lease rent are recognized as an expense in the Statement
of Profit and Loss on a straight line basis over the lease term.
2.7. PROVISINS, CONTINGENT LIABILITIES AND ASSETS
A provision is recognized when there is a present obligation as a result of 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 obligation. A Contingent Liability is recognized for :-
A present obligation that arises from past events but is not recognized as a provision because either
the possibility that an outflow of resources embodying economic benefit will be required to settle the
obligation is remote or reliable estimate of the amount of the obligation can not be made.
A possible obligation that arises 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 control of the
company.
Contingent assets are neither accounted for nor disclosed in the financial statements.
2.8. 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.
2.9. Depreciation and amortization
Depreciation on property, plant and equipment is provided on prorate basis on straight line method using
the useful 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:
2.10. Inventories
Inventories are carried at lower of cost and net realizable value. Cost is Computed on First in First Out
(FIFO) method. 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.
2.11. 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.
2.12. 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.
2.13. Taxes on Income :-
Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred
tax for timing difference between the book profits and tax profits is accounted for using the tax rates
and laws that have been enacted or substantially enacted as of the Balance Sheet date. Deferred tax
assets arising from the timing differences are recognized to the extent there is reasonable certainty that
sufficient future taxable income will be available against which such deferred tax assets can be realized.
Keeping in view the taxable income of the company provision for tax has been made for Rs 352.69
The company has followed the deferred tax accounting method Consequently, the company has
accounted for a Deferred Tax assets arising out of timing difference during the year of Rs. (19.13).
2.14. Other income
Interest income is recognized on time proportion basis. Rental income is recognized on accrual basis.
2.15. Revenue Recognition:-
All the term of costs/expenditure and revenue/ Income have been accounted for an accrual Basis.
Loans and Advances are considered good in respect of which company does not hold any security other
than the personal guarantee of persons.
Trade Receivables, Trade Payables, Loans & Advances, Security Deposits and Unsecured Loans have been
taken at their book value subject to confirmation and Realization
Contingent Liabilities not provided for Rs NIL ( previous Year Rs NIL )
As the company's business activity falls within a single primary business segment viz Herbal Products ,
the disclosure requirements of Accounting Standards (AS-17) Segment Reporting issued by the Institute
of Chartered Accountants of India are not applicable
There are no dues outstanding to Micro and Small Enterprises for a period exceeding 45 days as at the
balance sheet date. Details of Dues to Micro and Small Enterprises as per MSMED Act 2006
Previous year's figures have been regrouped and rearranged wherever considered necessary.
All other information required to be given is either Nil or not applicable.
2.16. Foreign Currency Transactions And Translations
Ý 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.
Ý 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."
Ý Foreign Currency Payments During the Year :-
During the year, the Company made foreign currency payments amounting to USD 557,158.28 (equivalent
to ^5,09,70,672.70) and AED 301.99 (equivalent to 7,169.86). These payments were made in the ordinary
course of business.
2.17. 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 includes acquisition charges such as brokerage, fees and duties.
The company has invested Rs 29.28 lac in shares of Plantomed Neutraceuticals Pvt Ltd. This investment is
classified as a long-term investment and is recorded at cost, less any provision for permanent diminution
in value, if applicable.
2.18. Government Grants
This is not applicable to the this concern.
2.19. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that
necessarily takes a substantial period of time 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.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing
of funds.
2.20. Related Party Disclosures
Related party disclosures as required under Accounting Standard 18 (AS-18) will be shown separately in
the Balance Sheet as Note No 27.
The above disclosure is in addition to the existing notes and policies and has been appropriately included
as per the instructions provided.
2.21. Earning Per Share :-
Basic Earning Per share are calculated by dividing the Net Profit or Loss for the year attributable to equity
shareholders by the weighted average number of Equity Shares outstanding during the year .
For Calculating Diluted earning per share, The Net Profit or Loss for the Year attributable to equity
shareholders and the weighted average number of Equity Shares outstanding during the year are adjusted
for the effects of all dilutive potential Equity Shares.
2.22. Financial Ratios (As per Schedule III Requirements)
For NIDHI BANSAL & CO
For Sat Kartar Shopping Limited
CHARTERED ACCOUNTANTS (FRN: 022073N) (cin: L52590DL2012PLC238241)
Sd/- Sd/-
Sd/- (Ved Prakash) (Sanjay Kumar)
(Varun Gupta) Managing Director Director
Partner DIN: 08591808 DIN: 08218434
M. No. 503070 Sd/- Sd/-
UDIN: 25503070BMHBVR9655
(Himanshu Malik) (Devender Kumar Arora)
Date: 17.05.2025
Company Secretary Chief Financial Officer
Place: New Delhi M. No. F8651
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