COMPANY OVERVIEW
The company is listed company domiciled in India and is engaged in the business of retailing household and consumer products through e-commerce platform and departmental stores.
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies, in all material respects, have been consistently applied by the Company and are consistent with those used in the previous year.
SIGNIFICANT ACCOUNTING POLICIES
1. METHOD OF ACCOUNTING
The company adopts the accrual method and historical cost concept in the preparation of the accounts in accordance with generally accepted accounting principles.
2. INCOME/ EXPENDITURE RECOGNITION
(a) INCOME -
Income is recognized on Accrual basis to depict the actual transfer of promised goods or services to customers in an amount that reflects the consideration to which entity expects to entitled in exchange of those goods or services.
(b) EXPENDITURE -
All the expenses are accounted for an accrual basis.
3. PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipments are stated at cost (including expenses related to acquisition and installation) less depreciation. Impairment loss is provided to the extent of the carrying amount exceeds their recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. However, during the year no impairment loss recognized.
The Company depreciates property, plant and equipment over their estimated useful lives. The estimated useful lives of assets were based on technical evaluation, the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence, the useful lives for these assets may be different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
4. INTANGIBLE ASSETS
Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective individual estimated useful lives on as straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition, and other economic factors (such as the stability of the industry, and known technological advances), and the level of maintenance expenditures required to obtain. The expected future cash flows from the asset. Amortization methods and useful lives are reviewed periodically including at each financial year end. However, during the year no amortization of intangible asset is booked, since as per the management the same is having indefinite life.
5. DEPRECIATION
The company systematically allocated depreciation on a depreciable asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, less its residual value. The useful life of an asset is the period over which an asset is expected to be available for use by an entity, or the number of production or similar units expected to be obtained from the asset by the entity. The Company has adopted useful life of assets as prescribed under Schedule II to the Companies Act, 2013. Depreciation on additions /deductions to fixed assets is being provided on pro-rata basis from/to the month of acquisition /disposal.
6. IMPAIRMENT LOSS
Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset’s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life.
Net selling price is the amount obtainable from sale of the asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal. During the year there is no impairment loss of any asset in the company. However, during the year no impairment loss recognized.
7. INVESTMENTS
Current investments are at lower of cost and quoted/fair value, computed category wise. Long Term investments are stated at cost. Provision for diminution in the value of long-term investment is to be made only if such a decline is other than temporary.
However, there are no Investments in the company during the financial year.
8. INVENTORIES
Items of inventories are measured at lower of cost or net realizable value. Cost of inventories comprises of cost of conversion and other costs incurred in bringing them to their respective present location and condition.
9. TRADE RECEIVABLES & TRADE PAYABLES
Trade receivables & Trade Payables are stated at book Values. The company has not prepared a classification ageing schedule of trade payable or categorized it into MSME and Non-MSME. Similarly, they have not conducted a classification ageing schedule for trade receivables or determined their classification as good, doubtful, or credit impaired.
10. RETIREMENT BENEFITS
The company records the liability of Provident Fund and ESI as per the accrual basis.
a) Provision for gratuity has been made based on the basis of report of Actuarial valuer obtained by the company.
11. TAXATION
No provision for current taxes per applicable provisions of the Income Tax Act, 1961 is required to be made in view of no taxable total income during the year on account of brought forward losses.
Deferred income taxes resulting from timing difference between book and taxable profit is accounted for using the rates and laws that have been enacted or substantially enacted as at Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a future taxable income.
12. PROVISIONS, CONTINGENT LIABILITIESAND CONTINGENT ASSETS
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. However, no provisions have been made in respect of interest under section 23 of The Micro, Small and Medium Enterprises development Act, 2006. Contingent liabilities are not recognized but are disclosed in the notes, if any. Contingent Assets are neither recognized nor disclosed in the financial statements.
13. PREOPERATIVE EXPENDITURE
All the expenditure administrative in nature is grouped under the head preoperative expenditure. However, there are no preoperative expenses in the company during the current year.
14. ACCOUNTING POLICIES
Unless specifically stated to be otherwise, accounting policies are being consistently followed.
15. EVENTS OCCURING AFTER THE BALANCE SHEET DATE
Events occurring after the date of Balance Sheet are considered up to the date of finalization of accounts, wherever material.
16. DIVERSION OF FUNDS BORROWED FROM BANKS AND FINANCIAL INSTITUTIONS
The company has no borrowings from banks.
17.REALISABLE VALUE OF ASSETS
The Board of Directors is of the opinion that any of the assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have realizable value not less than their carrying amount in the ordinary course of business.
18.IMMOVABLE PROPERTIES NOT HELD IN THE NAME OF COMPANY
There is no immovable property not held in the name of the company.
19. REVALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS
Company has not revalued its assets during the current financial year.
20. LOANS OR ADVANCES GRANTED TO PROMOTERS, DIRECTORS, KMPS AND RELATED PARTIES
Company has not granted any Loans or Advances granted to Promoters, Directors, KMPs and Related Parties during the financial year.
21. CLASSIFICATION, AGEING SCHEDULE AND COMPLETION SCHEDULE OF CAPITAL WORK-IN-PROGRESS AND INTANGIBLE ASSETS UNDER DEVELOPMENT
There were no capital work-in-progress and intangible assets under development during the financial year.
22. BENAMI PROPERTY
No proceedings have been initiated or pending against the company for holding any benami property.
23. RETURNS OR STATEMENTS FILED WITH BANKS OR FINANCIAL INSTITUTIONS IN AGREEMENT WITH BOOKS OF ACCOUNTS
The company has no borrowings from banks during the financial year.
24. WILFUL DEFAULTER
The company was not declared as willful defaulter during the year.
25. RELATIONSHIP WITH STRUCK OFF COMPANIES
The company has no transactions with struck off companies
26. PENDING FILING OF CHARGES
There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.
27. COMPLIANCE WITH NUMBER OF LAYERS OFINVESTMENTS
The Company has no layers of investments.
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28. RATIO ANALYSIS
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S.No.
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Ratio Name
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F.Y 2023-24
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F.Y 2022-23
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1
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CURRENT RATIO
(Current assets/ Current Liability)
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2.87
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1.02
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2
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DEBT EQUITY RATIO
(Debt /Equity)
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NA
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NA
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3
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DEBT SERVICE COVERAGE RATIO
(Earnings before interest, tax, depreciation and amortization/ Interest Principal)
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NA
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NA
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4
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RETURN ON EQUITY
(Net Income/Shareholder’s Equity)
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0.07
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0.25
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5
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INVENTORY TURNOVER RATIO
(Cost of goods sold/Average Inventory)
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6.09
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5.75
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6
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TRADE RECEIVABLES TURNOVER RATIO
(Net annual credit sales/average accounts receivable)
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17.00
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16.21
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7
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TRADE PAYABLES TURNOVER RATIO
(Net annual credit purchases/ average accounts payable)
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11.07
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5.72
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8
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NET CAPITAL TURNOVER RATIO
(Net annual Sales/ Working Capital)
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5.66
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191.32
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9
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NET PROFIT RATIO
(Net Profit/Total Sales)
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2.59%
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7.11%
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10
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RETURN ON CAPITAL EMPLOYED
(Earnings before interest and tax/Capital Employed)
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0.11
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0.01
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11
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RETURN ON INVESTMENT
(Income from Investment/ Cost of Investment)
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NA
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NA
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29. COMPLIANCE WITH APPROVED SCHEME OF ARRANGEMENTS
No scheme of arrangements has been approved in terms of sections 230 to 237 of the Companies Act, 2013 are entered by company.
30. MONEY LAUNDERING
The company has not advanced or loaned or invested funds to intermediaries for directly or indirectly lending to, or investing in, or providing guarantee or security on behalf of ultimate beneficiaries identified by the company and/or where the company has received any fund to act as intermediary for directly lending to, or investing in, or providing any guarantee or security on behalf of ultimate beneficiaries identified by the funding parties.
31. UNDISCLOSED INCOME
The company does not have any undisclosed income as per records and books of accounts.
32. CSR
The provisions of Section 135 of the Companies Act, 2013, pertaining to Corporate Social Responsibility (CSR) were not applicable to the Company in previous financial years. However, for the current financial year ended 31.03.2024, the Company’s profit has exceeded Rs. 5crore. Consequently, the Company, now in the financial year ending as on 31.03.2025 is required to comply with the CSR provisions under the Companies Act, 2013.
33. CRYPTO CURRENCY
The company has not traded or invested in Crypto currency or Virtual currency during the financial year
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