A provision is recognized when the company has a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are determined based on management estimate required to settle the obligation at the balance sheet date and are not discounted to present value.
Contingent Liabilities are not recognized but disclosed in Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.
Short term employee benefits are recognised as an expense as per the company's scheme based on expected obligations.
Post Retirement
Post retirement benefits comprise of provident fund and gratuity which are accounted as follows :
Provident Fund
This is a defined contribution plan. Contributions remitted to provident fund authorities in accordance with the relevant statute/rules are charged to statement of profit and loss as and when due. The company has no further obligations other than its monthly contributions.Presently, the company has not deducted any amount towards Provident fund.
Gratuity
This is a defined benefit plan. The liability is determined based on actuarial valuation using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions are recognised immediately in the statement of profit and loss.Presently,the company has recognized gratuity expenses based on the actuarial valuation report by Mr G N Agarwal dated 06th June 2023. However, the company has recognized Gratuity reserve as liability in the Balance Sheet but not yet deposited in any gratuity trust fund.
Compensated Absence
The Company has a policy on compensated absences which are both accumulating and non-accumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.Presently, the company has not deducted any amount towards Compensated Absence. The company has not provided for the provision as per AS-15
Basic earnings 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 the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shareholders.
Cash and cash equivalents for the purposes of Receipts and Payments Account comprise of cash, cheques and Stamps in hand, Bank balances, Money-market instruments, Fixed deposits with original maturity of three months or less . Receipts and Payments Account is prepared and reported using the Direct Method in accordance with Accounting Standard (AS) 3, “Cash Flow Statements”.
"As Per Our Report of Even Date” For and on behalf of the Board
For M/s PSDY & Associates M/s. Swasthik Plascon Limited
Chartered Accountants FRN: 010625S
KUSHAL RAJ N PARASMAL MAHENDRA KUMAR MAHENDRAKUMAR NIRMALA
PARTNER CHAIRMAN & DIRECTOR DIRECTOR
M No 234239 DIN: 00163647 DIN: 03174030
UDIN: 24234239BKBLTW4188
PAWAN KUMAR CHAMARIA PRIYANKA PATNI
CHIEF FINANCIAL OFFICER COMPANY SECRETARY
M NO. 67201
Date: 18.05.2024 Place: Puducherry
30: Additional Regulatory Information
i) The Company has not revalued its Property, Plant and Equipment since the Company has adopted cost model as its accounting policy to an entire class of Property, Plant and Equipment.
ii) The Company has not granted any loan or advance in the nature of loan to promoters, directors, KMPs and other related parties that are repayable on demand or without specifying any terms or period of repayment
iii) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
iv) The Company has been sanctioned working capital limits from banks or financial institutions on the basis of security of current assets at any point of time during the year.
v) The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.
vi) The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956 considering the information available with the Company.
vii) The Company do not have any parent company and accordingly, compliance 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 is not applicable for the year under consideration.
viii) There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.
ix) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
x) The company has also not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
xi) The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.
xii) The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures relating to it are not applicable.
xiii) Share issue expenses are adjusted against the Securities Premium Account as permissible under section 52 of the Companies Act, 2013, to the extent any balance is available for utilisation in the Securities Premium Account. Share issue expenses in excess of balance in the Securities Premium Account is expensed in the Statement of Profit and Loss.
Formula adopted for above Ratios:
Current Ratio = Current Assets / (Total Current Liabilities - Security Deposits payable on Demand - Current maturities of Long Term Debt) Debt-Equity Ratio = Total Debt / Total Equity
Return on Equity Ratio = Total Comprehensive Income / Average Total Equity
Inventory Turnover Ratio (Average Inventory days) = 365 / (Net Revenue / Average Inventories)
Trade receivables Turnover Ratio (Average Receivables days) = 365 / (Net Revenue / Average Trade receivables)
Trade Payables Turnover Ratio (Average Payable days) = 365 / (Net Revenue / Average Trade payables)
Net Capital Turnover Ratio = (Inventory Turnover Ratio Trade receivables turnover ratio - Trade payables turnover ratio)
Net Profit Ratio = Net Profit / Net Revenue
Return on Capital employed = (Total Comprehensive Income Interest) / (Average of (Equity Total Debt))
Return on Investment (Assets) = Total Comprehensive Income / Average Total Assets
36: The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently, the amount paid/ payable to these parties is considered to be nil.
37: As per AS-22 Acounting for Taxes on Income,Deferred Tax Liability has been recognized due to timing difference arising
38: Claims against the company not acknowledged as debt - NIL (Previous year-nil).
39: Previous year's figures have been regrouped, recast and reclassified wherever necessary.
40: The financial statements were approved by the Board of directors