CORPORATE INFORMATION:
EVOQ REMEDIES LIMITED (CIN: L24230GJ2010PLC059692) (‘the Company’) is dealing in Pharmaceutical Business i.e., trading of pharma products and commission agent in pharma products etc.
Registered Office of the Company is situated at: A-1106, Empire Business Hub Near AUDA Water Tank, Science City Road, Sola Ahmedabad 380060.
SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF ACCOUNTING:
a. The financial statements have been not prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on accrual basis, the provisions of the companies Act, 2013 ("the Act’) (to the extent notified) and guidelines issued by the securities and Exchange Board of India (SEBI), The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the companies Indian Accounting Standards) Rule 2015 and relevant amendment rules issued thereafter.
b. Effective April 1, 2017, the Company has not adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards, with April 1, 2016 as the transition date. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts0 Rules, 2014 (IGAAP), which was the previous GAAP.
All assets and liabilities are classified as current or non-current as per the company’s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.
2. Use of Estimates
The preparation of financial statements in accordance with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as at the Balance Sheet date and the results of operations during the reporting period. The actual results could differ from these estimates. Any revision to such accounting estimates is recognized in the accounting period in which such revision takes place.
3. Fixed Assets and Depreciation
Fixed assets are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss.
Fixed assets are stated at cost. Depreciation on assets is provided on Straight line method (SLM) in accordance with section 205(2) of the Companies Act, 2013 and at the rates and manner, specified in Schedule II to the Companies Act, 2013 till the residual value of the asset is reduced equal to 5% of the original cost. In respect of assets acquired during the year the depreciation is provided on pro-rata basis.
4. Investments
Long-term Investments made by the Company are stated at cost and provision for diminution in the value of long term investments is made only if such a decline is other than temporary.
5. BORROWING COST AND FINANCE CHARGES:
Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily takes a substantial period to get ready for its intended use are capitalized as part of the cost of the asset until such time that the assets are substantially ready for their intended use. Capitalization of borrowing costs is suspended and charged to profit and loss during the extended periods when the active development on the qualifying assets is interrupted. Qualifying fixed asset is an asset that necessarily takes a substantial period to get ready for their intended use or sale. All other borrowing costs are not charged to statement of Profit and Loss over the tenure of the borrowing
6. Inventories
Inventory valued at lower of the cost and net realizable value. Quantity records maintain in Tally software, however no physical verification report and details of substandard / expire date material not ascertain.
7. Revenue Recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, considering contractually defined terms of payment and excluding taxes or duty except turn over with related party. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principle or agent. The company has concluded that it is acting as a principal is all its revenue arrangements except turn over with related party.
8. Foreign Currency Transactions
Foreign currency transactions, if any, are recorded at the exchange rates prevailing on the date of the transaction. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment or realization. Monetary items denominated in foreign currency as at the Balance Sheet date are converted at the exchange rates prevailing on that date. Exchange differences are recognized in the Statement of Profit and Loss.
9. Employee Retirement Benefits
Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
The contributions remitted to government administered Provident and Pension Fund on behalf of its employees in accordance with the relevant statute are charged to the
Statement of Profit and Loss as and when due. The Company has no further obligations for future Provident/ Pension fund benefits other than its monthly contributions.
10. Taxation
Taxes on Income are accounted in the same period to which the revenue and expenses relate. Provision for current income tax is made based on estimated taxable income, in accordance with the provisions of the Income Tax Act, 1961 and rules framed the under Deferred tax is the tax effect of timing difference The timing differences are differences between the taxable income and accounting Income for a period that originate in one period and are capable of reversal in one or more subsequent periods.
11. Earnings per share (‘EPS’)
Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year except where the results would be anti dilutive. The number of equity shares is adjusted for any share splits and bonus shares issued effected prior to the approval of the financial statements by the Board of Directors.
12. Cash Flow Statements
Cash-flow statements are prepared in accordance with the "Indirect Method” as explained in the Accounting Standard (AS)3 - Cash Flow Statements
13. Contingencies and provisions
Provisions are recognized when the Company has a present obligation as a result of past events and it is more likely that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not discounted to present value and are determined based on best estimate of the expenditure required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Contingent Liabilities are not disclosed by way of notes to the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. As stated by Management, there were following Contingent Liabilities.
• The company has not paid below mentioned Income tax demand displayed on income tax portal/website
a. F.Y. 2020-21 Rs. 28,27,100 plus Interest Rs. 7,63,317 totaling Rs. 35,90,417
b. F.Y. 2021-22 Rs. 53,14,660 plus Interest Rs. 7,44,044 totaling Rs. 60,58,704
c. F.Y. 2022-23 Rs. 50,02,570 plus Interest Rs. 2,50,125 totaling Rs. 52,52,695
The company has made income tax provision of Rs. 65.45 out of above Income tax demand in the books of accounts as provision for income tax.
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