2.7. Provisions and Contingent Liabilities
Provisions are recognised when there is a present obligation as a result of a
past event, it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and there is a reliable estimate
of the amount of the obligation.
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.
2.8. Revenue Recognition
Sale of goods: Sales are recognised when the significant risks and rewards of
ownership in the goods are transferred to the buyer as per the terms of the
contract and are recognised net of trade discounts, rebates, sales taxes and
excise duties.
Dividend income is recognised when the right to receive dividend is
established.
Revenue in respect of other types of income is recognised when no significant
uncertainty exists regarding realisation of such income.
2.9. Taxes on Income
Tax expense for the period, comprising current tax and deferred tax, are
included in the determination of the net profit or loss for the period. Current
tax is measured at the amount expected to be paid to the tax authorities in
accordance with the taxation laws prevailing in the respective jurisdictions.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in one
period and are capable of reversal in one or more subseq^eat-jieiiipds.
Deferred tax is measured using the tax rates and the tax laws enacted or
substantively enacted as at the reporting date. Deferred tax liabilities are
recognised for all timing differences. Deferred tax assets are recognised for
timing differences of items other than unabsorbed depreciation and carry
forward losses only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these can be
realised. However, if there is unabsorbed depreciation and carry forward of
losses, deferred tax assets are recognised only if there is virtual certainty that
there will be sufficient future taxable income available to realise the assets.
Deferred tax assets are reviewed at each balance sheet date for their
readability.
Current tax assets and current tax liabilities are offset when there is a legally
enforceable right to set off the recognised amounts and there is an intention
to settle the asset and the liability on a net basis. Deferred tax assets and
deferred tax liabilities are offset when there is a legally enforceable right to set
off assets against liabilities representing current tax and where the deferred
tax assets and the deferred tax liabilities relate to taxes on income levied by
the same governing taxation laws.
Minimum Alternate Tax credit is recognised as an asset only when and to the
extent that there is convincing evidence that the company will pay normal
income tax during the specified period. Such asset is reviewed at each Balance
Sheet date and the carrying amount of the MAT credit is written down to the
extent that there is no longer a convincing evidence to the effect that the
Company will pay normal income tax during the specified period.
2.10. Cash and Cash Equivalents
In the cash flow statement, cash and cash equivalents include cash in hand,
demand deposits with banks and other short-term highly liquid investments
with original maturities of three months or less.
2.11. Borrowing Costs
Borrowing costs, if any, directly attributable to acquisition or construction of
qualifying assets (i.e. those fixed assets which necessarily take a substantial
period of time to get ready for their intended use) are capitalised. Other
borrowing costs are recognised as an expense in the period in which they are
incurred.
2.12. Segment Reporting
The Company operates under a single operating segment in accordance with
Accounting Standard 17 - 'Segment Reporting' and hence, segment reporting
is not applicable to the Company.
2.13. Prior Period Items, Exceptional and Extraordinary Items
The Company follows the practice of making adjustments through 'prior year
adjustments' in respect of all material transactions pertaining to the period
prior to the current accounting year. The prior period adjustments, if any, are
shown by way of notes to financial statements.
Exceptional and Extra Ordinary Items, if any, are shown separately as per
applicable accounting standards.
2.14. Earnings per Share
The Company reports basic and diluted Earnings per Share (EPS) in accordance
with Accounting Standard 20.
32. Additional regulatory information
32.1 Details of benami property(ies) held
The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
32.2 Security of current assets against borrowings
The Company is having borrowings from banks or finanacial institutions against which security of current assets is given. Quarterly
returns and statements of current assets filed by the Company with banks are not with available with company.
32.3 Details of wilful default
The Company has not been declared as a wilful defaulter by any bank or financial institution, in accordance with the guidance on wilful
defaulters issued by Reserve Bank of India.
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32.4 Relationship with struck-off companies
The Company does not have any transactions with struck-off companies.
32.5 Delay in registration/satisfaction of charges with Registrar of Companies
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
32.6 Compliance with number of layers of companies
The Company does not have subsidiary company, hence the compliance regarding with the number of layers of Companies as
prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, is not
applicable to the Company.
Reason for change for more than 25%
1 Debt-equity ratio
Debt-equity ratio has decreased due to a small increase in total debt and a large increase in shareholders’ fund during the reporting
period.
2 Return on equity
Return on equity has decreased due to a small increase in profitability and a large increase in average shareholders’ funds during the
reporting period.
3 Trade payables turnover ratio
Trade payables turnover ratio has decreased due to a small increase in total purchase and a large increase in average trade payables
during the reporting period.
32.8 Undisclosed income
The Company does not have any such transactions which are not recorded in the books of accounts that have been surendered or
disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as search or survey or any other
relevant provisions of the Income-tax Act, 1961).
32.9 Details of crypto currency or virtual currency
The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
33.1 Notes
1. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been
identified on the basis of information available with the Company.
2. The Company recognises interest due on late payment to MSMEs on actual payment basis only. Consequently no provision has been
made for such interest due during the current reporting period.
3. The Company has not compiled the requisite data to determine the principal amounts paid to suppliers beyond the appointed day
during the current reporting period.
34. Related party transactions
34.1 List of related parties
Other related parties where common control exists
Ashish Sales Agency
Key Management Personnel ("KMP”) and their relatives
Whole-time directors ("WTDs")/Executive directors etc.
Ashokbhai B Monsara
Ashish D Monsara
Relative of WTDs/Executive directors
Kishorbhai B Monsara
Fenil A Monsara
Dhirajlal B Monsara
Other KMPs and their relatives
Mitesh R Jasani (Appointed w.e.f. 16/08/2023)
CS Vidhi Mehta
Truptiben A Monsara (Appointed w.e.f. 27/05/2023)
Yash G Khokhariya (Appointed w.e.f. 16/08/2023)
Ashokkumar H Koyani (Appointed w.e.f. 16/08/2023)
Gunvantbhai B Khokhariya <r-zZ'~
Jalpaben G Khokhariya
Sweta Y Khokhariya (( ( M HQl!£47*\\
# There are no transactions during the year with the above entities \\ *j)
35. Segment reporting
The Company operates under a single reporting segment and hence, segment reporting is not applicable to the Company as per AS 17 -
Segment Reporting.
36. Employee benefits
The Company has various schemes for long-term benefits such as Provident Fund, Gratuity and Leave Encashment. The Company's
defined contribution plans are Provident Fund (in case of certain employees), Employees State Insurance Fund. The Company has no
further obligation beyond making the contributions to such plans. The Company's defined benefit plans include Provident Fund (in case
of certain employees), Gratuity, and Leave Encashment.
37. Other notes
1. Previous year's figures have been regrouped/redassified wherever necessary to correspond with the current year's
dassification/disdosure.
2. The outstanding balance as on year end in respect of trade receivables, trade payables, loans and advances and other payables, and
other receivables, if any, are subject to confirmation from respective parties and consequential reconciliation and/or adjustments
arising there from, if any. Management of the Company, however, does not expect any material variation.
3 According to the opinion of the management of the Company, the value of realization of trade and other receivables and loans and
advances given in the ordinary course of the business, if any, would not be less than the amount at which they are stated in the balance
sheet.
Signature to notes 1 to 37 of the financial statements.
For, H. B. Kalaria & Associates For and on behalf of.
Chartered Accountants Gajanand International Limited |
Firm Registration No. 104571W ^ ^*j<**3f
Ashlsh D Iflonsara Ashok B Monsara
Director Managing Director
/O/ DIN: 02668120 DIN: 02788077
HardikH. Kalaria [*( M74 )*' Yash 6 Khokhariya VvWlfohta
Partner /]) ^/' Chief Financial Officer Company Secretary
Mem. NO. 155474 PAN: CARPK0224P PAN: BNPPM3226F
Rajkot, August 30, 2024 Jasdan, August 30, 2024
| 