1 The above cash flow statement has been prepared under the "Indirect method" set out in the Accounting Standard- 3 on 'Cash Flow Statements'.
2 Figures in brackets indicate cash outflow.
3 Previous year figures have been regrouped and recast wherever necessary to confirm to current year's classification.
4 Cash and bank balances at the end of the year consist of cash on hand, cheques on hand and balance and deposits with banks as follows:
Rights, Preference and restrictions
3.4 attached to shares
- Equity Shares
(i) The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share.
(ii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to the shareholding.
- Bonus Shares
The Company has issued bonus equity shares of Rs. 6,30,00,000 which is in the ratio 210:1 to existing equity shareholders on October 27, 2022.
- Preference Shares
(i) The Company has fully paid up 20 lacs .01% non convertible preference shares having a par value of Rs. 100 each.
(ii) NCRCPS shall carry a pre-determined cumulative dividend rate of .01% per annum. The dividend shall be payable, subject to cash flow solvency, in the event the Board declares any dividend for the relevant year and shall be paid to the Investors in priority to other classes of Shares.
(iii) The Company shall redeem the NRCCPS on or before 20 years from the date of Allotment at par on the Face Value of the preference Share with the approval of the Company and the Shareholder.
(iv) NCPRS are not entitled to participate in addition to and after payment of preference dividend to participate pari passu in the surplus fund.
(v) NCRCPS held by the Investor shall not be entitled to receive surplus assets and profit on winding up which may remain after entire capital has been repaid.
(vi) Subject to applicable provision of the Companies Act, 2013, the holders of the preference share shall be entitled to receive notice of and vote on all matters that are submitted to the vote of the Shareholders of the Company (including the holders of Equity Shares) in accordance with Section 47 of the Companies Act, 2013.
3.5 Dividend
The Company has booked provision for dividend @0.01% on paid up preference share capital for Rs 20,000.
Note : The balance as per bank statement as on 31st March 2023 is Rs. 19,03,12,495. The reason for balance appearing as Rs. 24,48,06,020 is on account of cheque issued but not presented for payment and cheques deposited but not cleared appearing in bank reconciliation statement as on 31st March 2023. Net impact of the entries appearing in bank reconciliation statement is Rs. 5,44,93,525.
The above related party transactions have been reviewed periodically by the Board of Directors of the Company vis-a-vis the applicable provisions of the Companies Act, 2013, and justification of the rates being charged/ terms thereof and approved the same.
28 Employee Benefits
The Company has classified the various benefits provided to employees as under:-
(a) Defined contribution plans
-Provident fund
During the year, the Company has recognized Employer's contribution to provident fund amounting to Rs. 6,84,915 in the Statement of Profit and Loss .
b) Defined benefit plans
-Contribution to Gratuity funds
In accordance with Accounting Standard 15 (revised 2005), actuarial valuation was done in respect of the aforesaid defined benefit plans based on the following assumptions-
Economic Assumptions
The discount rate and salary growth rate are the key financial assumptions and should be considered together; it is the difference or 'gap' between these rates which is more important than the individual rates in isolation.
Discount Rate
The discounting rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & salary growth rate. For the current valuation a discount rate of 7.36% p.a. compound, has been used in consultation with the employer.
Salary Growth Rate
The salary growth rate usually consists of at least three components, viz. seniority, regular increments and promotional increase and price inflation. The assumptions used are summarised in the following table:
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29 Conti ngent Liabilities And Commitments
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A. Contingent Liabilities
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NIL
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B. Commitments
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NIL
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Segment Reporting
30
The company has only one reportable business segment which is wholesale trading of hardware tools. The entire operations are governed by the same set of risks and return hence have been considered as representing a single segment. The said treatment is in accordance with the guiding principles enunciated in the Accounting Standards Segment Reporting AS 17.
31 Impairment
The Company has not recognised any loss on impairment in respect of assets of the Company as is required in terms of Accounting Standard 28 on 'Impairment of Assets', since in the opinion of the management of the Company, the reduction in value of any asset if any, to the extent required, has already been provided for in the books.
32 Dues to MSME as defined under THE MSME ACT 2006
As per the information available and explanations provided to us and certified by the management, amounts due to any Mirco, Small and Medium Enterprises which are outstanding for more than 45 days have been disclosed under ROC by MSME Return as required under the Micro, Small and Medium Enterprise Development Act , 2006.
33 Taxation
(i) Provision for income tax is based on tax on taxable income calculated as per provisions of the Income Tax Act , 1961.
(ii) The Company has created deferred tax of ^ 11,06,043 during the current year by charging to the Statement of Profit and Loss and resulting into a net deferred tax asset of ^ 15,37,011 as at March 31, 2023.
35 Other Notes
a) Debit and credit balances of trade payables, trade receivables, loans and advances to the extent not confirmed are subject to confirmation and reconciliation with the parties as at March 31, 2023.
b) Value of current assets, loans and advances
As per the requirement of Schedule III, the Board of Directors have considered the values of all assets of the Company other than fixed assets, and have come to a conclusion that these have a value on realisation in the ordinary course of business which is not less than the value at which they are stated in the balance sheet.
c) Past years TDS, TCS have been adjusted in the books. The same has been adjusted as per the various Assesment Orders. The amount to be recovered from the Income Tax Authority has been shown under the head 'Loans and Advances'.
d) Previous year figures have been regrouped and rearranged whenever necessary to make them comparable.
e) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.
f) The company has not owned any immovable property as at balance sheet date.
g) The company has not revalued its Property, Plant and Equipment during the year.
h) The company has not given any Loans or Advances to its promoters, directors or related parties.
i) The company does not have any benami property, where any proceedings has been initiated or pending against the company for holding any benami property.
j) The company has not taken any borrowings from banks or financial institutions on the basis of security of current assets. Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts except the differences attached as Annexure 1.
k) The Company is not declared willful defaulter by and bank or financials institution or lender during the year.
l) The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
m) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
n) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
o) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered 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.
p) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
q) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall :
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
r) The Company has 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 :
(a) 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
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
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