Gala Global Products Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2024

2 SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

The financial statements have been prepared and presented in accordance with the Indian Accounting Standards ("Ind AS") notified under the
Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

These Ind As financial statements have been prepared Dn the historical cost convention and on an accrual basis, except for the following material
items in the balance sheet:

^ Employee defined benefit assets/(liability) are recognised as the net total of the fair value of plan assets, plus actuarial losses, less actuarial
gains and the present value of the defined benefit obligation;

(ii) Long-term borrowings, except obligations under finance leases, are measured at amortized cost using the effective interest rate method;

(b) Use of Estimates

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from
these estimates.

Although these estimates are based on the management''s best knowledge of the current events and actions, uncertainty about these assumption
and esti mates could result in the outcomes requiring a materia I adjustment to the ca Trying amount of the asset & liabilities i n the future period,

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and
critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is
included in the following notes:

- Useful lives of property, plant and equipment and intangible assets (Refer 2(c)&(d))

- Valuation of inventories { Refer 2(f)}

- Employee benefits {Refer 2(h))

- Provisions, contingent liability and contingent assets) Refer 2(1))

- Sales returns (Refer 2(g))

- Evaluation of recoverability of deferred tax assets { Refer 2 (i))

(c) Property, plant and equipment
Recognition and measurement

The items of property, plant and equipment are measured at cost of acquisition or construction less accumulated depreciation and accumulated
impairment losses, if any. The cost comprises of its purchase price and other incidental expenses that are directly attributable to the acquisition of
the asset. The cost of self-constructed assets includes the cost of materials and other costs directly attributable to bringing the asset to a working
condition for its intended use. Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future
benefits from the existing asset beyond its previously assessed standard of performance.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the
future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and
maintenance are recognised in the statement of profit and loss as incurred.

Gains or losses arising from de-recognition of property, plant and equipment are measured as the difference between the net disposal proceeds
and the carrying a mount of the asset and are recognized in the Statement of Profit and Loss when the asset is de-recognized.

Intangible Assets

Intangible assets initially recognized at costand are subsequently carried at cost less accumulated amortisation and accumulated impairment
losses. These costs are amortised to profit or loss using the straight line method over their estimated useful lives.

The Company has adopted Policy of reviewing the intangible in the year of recognition for possible returns. In case of the returns are not
sustainable the intangible assets could be written off with in a period of 2-3 years. And if sustainable the same would be written off as provided
under the applicable standard. Since the Company is required to adopt Ind-As compulsory with effect from 01st April 2018 and it has specifically
defined in these forthcoming standards that any such Intangible Assets needs to be reviewed at each balance sheet date for any impairment {if
any) whereas existing accounting standards require to amortize such intangibles compulsory within maximum of 5/10 years. Further the
management foresee that there would not be any impairment requirement comparing to its carrying value as on 31 march 2022 (even in near
future as well) and hence no amortization of intangible asset has been made in the period under report.

Depreciation

Depreciation is recognised on pro-rata basis in the statement of profit and loss on a straight line basis over the estimated useful lives of property,
plant and equipment.

The residual values, useful lives and method of depreciation of property, plant and equipment are reviewed at each financial year end and
adjusted prospectively, if appropriate.

Advances paid towards the acquisition of property, plant and equipment outstanding at each reporting date is disclosed as capital advances under
other non current assets. The cost of property, plant and equipment not ready to use before such date are disclosed under capital work-in¬
progress. Assets not ready for use are not depreciated.

(d) Impairment of Non Financial Assets

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An
Impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the
asset''s net selling price or value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset
and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring
after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this
amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no
impairment loss been recognized for the asset in prior years

Goodwill

CGlfs to which goodwill has been allocated are tested for Impairment annually or more frequently when there is indication for impairment. If the
recoverable amount of a CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill
allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Determination of recoverable amount of CGU requires the management to estimate the future cash flows expected to arise and a suitable
discount rate in order to calculate the present value. An impairment loss recognised for goodwill is not reversed in subsequent periods,

(e) Investments

Investments, which are readily realisable and intended to be held for not more than a year from the date on which such investments are made,
are classified as current investments. All other investments are classified as Non-current investments.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis.

Non-current investments are carried at cost. Investments in share of foreign subsidiaries are reported in Indian Currency at the rate of exchange
prevailing on the date of transaction. However, provision for diminution in value is made to recognise a decline other than temporary in the value
of the investments.

On disposal of an investment, the difference between its carrying cost and net disposal proceeds is charged or
credited to the statement of profit and loss.

(f) Inventories

(1} Raw materials. Packing materials, fuel, stores and spares are valued at lower of cost and net realizable value. Cost Includes Purchase Price
and other directly attributable costs incidental thereto. However, materials and other items held for use in the production of inventories are
not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is
determined on a weighted average basis.

(ii)

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a
proportion of manufacturing overheads based on normal operating capacity. Cost is determined on a weighted average basis.

{iii} Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs
necessary to make the sale.

(iv) Provision for diminution in value of inventories has been made for expired, obsolete, non-moving and slow-moving inventories as per the
management''s estimate.

(g) Revenue Recognition

Revenue is recognized to the extent that the economic benefits will flow to the Company and the revenue can be reliably measured regardless of
when the payment is being made.

(i)

Revenue is measured at fair value of the consideration received or receivable. Revenue from sale of goods includes excise duty and are net
of discounts, applicable taxes, rebates and estimated returns.

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the
buyer, usually on delivery of the goods, recoverability of consideration is probable, the amount of revenue and cost incurred or to be
incurred in respect of transaction can be measured reliably and there is no continuing managerial involvement over the goods sold.. The
company collects GST (01.04.2021 to 31.03.2022) on behalf of the government and, therefore, these are not economic benefits flowing to
the company. Hence, they are excluded from revenue.

(ii) Income from services is recognized when the services are rendered or based on stage of completation.

(iii) Interest income is accounted on accrual basis at applicable rate.

(iv) Other incomes are accounted as and when the right to receive arises.

(h) Employees retirement and other benefits

Retirement/ Post retirement Benefits: The Company has not made any provision for gratuity and leave encashment as prescribed by the Indian
Accounting Standard (IndAS) -19 on Employee Benefits. Please refer Note 28.

(I) Income Taxes

Income tax expense comprises current and deferred tax expense. Income tax expenses are recognized in statement of profit and loss, except
when they relate to items recognized in other comprehensive income or directly in equity, in which case, income tax expenses are also recognized
in other comprehensive income or directly in equity respectively.

Current tax is the tax payable on the taxable profit for the year, using tax rates enacted or substantively enacted by the end of reporting period by
the governing taxation laws, and any adjustment to tax payable in respect of previous periods. Current income tax assets and liabilities are
measured at the amount expected to be recovered from or paid to the taxation authorities. Management periodically evaluates positions taken in
the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.

Deferred taxes arising from deductible and taxable temporary differences between the tax base of assets and liabilities and their carrying amount
in the financial statements are recognized using substantively enacted tax rates and laws expected to apply to taxable income in the years in
which the temporary differences are expected to be received or settled. The deferred tax arising from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the
transaction are not recognized.

Deferred tax asset are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible
temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilized.

In respect of taxable temporary differences associated with investments in subsidiaries, associates and interest in jointly controlled entities, when
the timing of reversal of temporary differences can be controlled and it is probable that temporary differences will reverse in foreseeable future.

Deferred tax assets and liabilities are offset when the Company has a legally enforceable right to do the same.

MAT credit is recognized as an asset only when there is convincing evidence that the company will pay normal
income tax within specified period. The assets are reviewed at each balance sheet date

(j) Earnings Per Share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the
period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for
deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all
dilutive potential equityshares. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented
for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of
Directors. Basic earnings per share is computed by dividing profit or loss attributable to equity share holders of Group by the weighted average
number of equity shares outstanding during the period. Oilutes earnings per share is determined by the adjusting profit or toss attributable to
ordinary shareholders and weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.

(k) Cash and cash equivalents

Cash and cash equivalents consists of cash on hand, short demand deposits and highly liquid Investments, that are readily convertible into known
amounts of cash and which are subject to an insignificant risk of change in value. Short term means investments with original maturities / holding
period of three months or less from the date of investments. Bank overdrafts that are repayable on demand and form an Integral part of the
Group''s cash management are included as a component of cash and cash equivalent for the purpose of statement of cash flow.

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Mar 31, 2018

1 Significant accounting policies

1.1 Basis of preparation of financial statements

These financial statements are prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) under the historical cost convention on the accrual basis. 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 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

Current versus non-current classification:

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period.

Although these estimates are based on the management’s best knowledge of the current events and actions, uncertainty about these assumption and estimates could result in the outcomes requiring a material adjustment to the carrying amount of the asset & liabilities in the future period.

1.3 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Sale of goods

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on delivery of the goods. The company collects sales taxes and value added taxes (VAT) (01.04.2017 to 30.06.2017) and GST (01.07.17 to 31.03.2018) on behalf of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

Other Income:

Other income is recognised when no significant uncertainty as to its determination or realisation exists.

1.4 Valuation of Inventories:

RAW MATERIALS AND PACKING MATERIALS:

Raw materials are valued at lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost of raw materials is determined on First-in-First-out basis.

FINISHED GOODS & WORK IN PROGRESS:

Work-in-progress and finished goods are valued at lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. 1.5 Investment:

Investment which are readily realizable & intended to be held for not more than one year from the date on which such investment is made, are classified as current investments. All other investments are classified as long term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees & duties.

Current investments are carried in the financial statements at lower of cost or fair market value determined on an individual investment basis. Long term investments are carried at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature as per Accounting Standard-13” Accounting for Investments” in the opinion of the Management.

On disposal of an investment, the difference between its carrying cost and net disposal proceeds is charged or credited to the statement of profit and loss.

1.6 Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.7 Property, Plant and Equipment

Property, plant and Equipment are stated at cost of acquisition and installation, net of CENVAT, Vat, and GST less accumulated Depreciation. Borrowing costs incurred during the period of construction/Acquisitions of assets are added to the cost of Property, Plant and Equipment. Major expenses on modification/alterations increasing efficiency/capacity of the plant are also capitalized. Subsequent expenditure related to an item of property, Plant and Equipment is added to its book value only if it increases the future Benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing property, plant and Equipment including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

1.8 Borrowing Cost:

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowing to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

1.9 Government grants and subsidies:

Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the company will comply with the conditions attached to them, and (ii) the grant/subsidy will be received.

When the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Such grants are deducted in reporting the related expense. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset.

Where the company receives non-monetary grants, the asset is accounted for on the basis of its acquisition cost. In case a non-monetary asset is given free of cost, it is recognized at a nominal value.

Government grants of the nature of promoters’ contribution are credited to capital reserve and treated as a part of the shareholders’ funds.

1.10 Foreign currency translation:

Foreign currency transactions and balances Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Nonmonetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

Exchange differences

Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

Monetary items denominated in foreign currency at the yearend are translated at the exchange rates prevailing at the balance sheet date.

Premium or discount arising at the inception of the forward exchange contract is amortized as income or expense over the period of the contract. Any profit or loss arising in renewal or cancellation of forward exchange contracts are recognized as income or expenses during the year.

Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account.

Losses in respect of all outstanding derivative contracts at the balance sheet date is provided by marking them to market.

1.11 Intangible assets

Intangible assets initially recognized at cost and are subsequently carried at cost less accumulated amortisation and accumulated impairment losses. These costs are amortised to profit or loss using the straight line method over their estimated useful lives.

The Company has adopted Policy of reviewing the intangible in the year of recognition for possible returns. In case of the returns are not sustainable the intangible assets could be written off with in a period of 2-3 years. And if sustainable the same would be written off as provided under the applicable standard. Since the Company is required to adopt Ind-As compulsory with effect from 01st April 2018 and it has specifically defined in these forthcoming standards that any such Intangible Assets needs to be reviewed at each balance sheet date for any impairment (if any) whereas existing accounting standards require to amortize such intangibles compulsory within maximum of 5/10 years. Further the management foresee that there would not be any impairment requirement comparing to its carrying value as on 31 march 2018 (even in near future as well) and hence no amortization of intangible asset has been made in the period under report.

Such policy adoption has an effect of overstatement of profit of Financial Year 2017-18

1.12 Depreciation and amortization

Depreciation is provided based on useful life of the property, Plant and Equipment as prescribed in schedule II to the companies Act, 2013 on Written Down Value (WDV) method.

1.13 Impairment

The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset’s net selling price or value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

1.14 Retirement benefits to employees

Retirement/ Post retirement Benefits: The Company has not made any provision for gratuity and leave encashment as prescribed by the Accounting Standard (AS) - 15(Revised) on Employee Benefits as in the opinion of the Management there are no employees who are eligible for retirement benefits.

1.15 Income taxes

Current tax is determined as the amount of tax payable in respect of taxable income for the year.

Differed tax is recognized on difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed depreciation or carry forward losses, differed tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed at each balance sheet date to reassess realization.

MAT credit is recognized as an asset only when there is convincing evidence that the company will pay normal income tax within specified period. The assets are reviewed at each balance sheet date

1.16 Earnings per share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The number of shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

1.17 Cash and cash equivalents

Cash and cash equivalents comprise cash and cash at banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.18 Cash flow statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

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Mar 31, 2017

(a) Basis of Accounting:

The financial statements have been prepared in compliance with the requirements under section 133 of the Companies Act, 2013(to the extent notified), read with Rule 7 of the Companies (Accounts) Rules, 2014, and other generally accepted accounting principles (GAAP) in India, to the extent applicable, on the accrual basis of accounting, under the historical cost convention and to comply in all material respect with the notified accounting standards by the Companies (Accounting Standards) Rules - 2006.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. The cost of fixed asset comprise of its purchase price and any directly attributable cost of bringing the assets in an operational condition for its intended use. However during the current year the value of the assets whose useful life has been fully utilized in the past years has been adjusted against the opening retained earnings.

(c) Depreciation

Depreciation has been provided at the rates and in the manner prescribed in Schedule XIV of the Companies act, 1956 on WDV Method. Depreciation on addition or on sale/ disposal of assets is calculated on pro-rata basis from the date of such addition or sale/ disposal as the case may be. However during the current year the depreciation method has been changed as per new Companies Act, 2013.

(d) Valuation of Inventories

Stock is valued at cost or net realizable value whichever is lower.

(e) Investment

Long term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature in the opinion of the Management.

(f) Revenue Recognition

All the income & expenses are accounted on accrual basis.

(g) Retirement/ Post retirement Benefits

The company has not made provision for gratuity and leave encashment as prescribed by the Accounting Standard (AS) - 15(Revised) on Employee Benefits.

(h) Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(i) Provisions, Contingent Assets and Contingent Liabilities

A provision involving substantial degree of estimation are recognized when there is a present obligation as a result of past event and it is probable that there will be on outflow or resources.

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Mar 31, 2016

(a) Basis of Accounting:

The financial statements have been prepared in compliance with the requirements under section 133 of the Companies Act, 2013(to the extent notified), read with Rule 7 of the Companies (Accounts) Rules, 2014, and other generally accepted accounting principles (GAAP) in India, to the extent applicable, on the accrual basis of accounting, under the historical cost convention and to comply in all material respect with the notified accounting standards by the Companies (Accounting Standards) Rules - 2006.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. The cost of fixed asset comprise of its purchase price and any directly attributable cost of bringing the assets in an operational condition for its intended use. However during the current year the value of the assets whose useful life has been fully utilized in the past years has been adjusted against the opening retained earnings.

(c) Depreciation

Depreciation has been provided at the rates and in the manner prescribed in Schedule XIV of the Companies act, 1956 on WDV Method. Depreciation on addition or on sale/ disposal of assets is calculated on pro-rata basis from the date of such addition or sale/ disposal as the case may be. However during the current year the depreciation method has been changed as per new Companies Act, 2013.

(d) Valuation of Inventories

Stock is valued at cost or net realizable value whichever is lower.

(e) Investment

Long term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature in the opinion of the Management.

(f) Revenue Recognition

All the income & expenses are accounted on accrual basis.

(g) Retirement/ Post retirement Benefits

The company has not made provision for gratuity and leave encashment as prescribed by the Accounting Standard (AS) - 15(Revised) on Employee Benefits.

(h) Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(i) Provisions, Contingent Assets and Contingent Liabilities

A provision involving substantial degree of estimation are recognized when there is a present obligation as a result of past event and it is probable that there will be on outflow or resources

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Mar 31, 2015

(a) Basis of Accounting:

The financial statements are prepared under historical cost convention and to comply in all material respect with the notified accounting standards by the Companies Accounting standard Rules - 2006 and the relevant provision of Companies Act, 1956.

(b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. The cost of fixed asset comprise of its purchase price and any directly attributable cost of bringing the assets in an operational condition for its intended use. However during the current year the value of the assets whose useful life has been fully utilized in the past years has been adjusted against the opening retained earnings.

(c) Depreciation

Depreciation has been provided at the rates and in the manner prescribed in Schedule XIV of the Companies act, 1956 on WDV Method. Depreciation on addition or on sale/ disposal of assets is calculated on pro-rata basis from the date of such addition or sale/ disposal as the case may be. However during the current year the depreciation method has been changed as per new Companies Act, 2013.

(d) Valuation of Inventories

Stock is valued at cost or net realizable value whichever is lower.

(e) Investment

Long term investments are stated at cost. Provision of diminution in the value of Long term investments is made only if such decline is other than temporary in nature in the opinion of the Management.

(f) Revenue Recognition

All the income & expenses are accounted on accrual basis.

(g) Retirement/ Post retirement Benefits

The company has not made provision for gratuity and leave encashment as prescribed by the Accounting Standard (AS) - 15(Revised) on Employee Benefits.

(h) Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between the taxable incomes and accounting income that originate in, one period and are capable of reversal in one or more subsequent period.

Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(i) Provisions, Contingent Assets and Contingent Liabilities

A provision involving substantial degree of estimation are recognized when there is a present obligation as a result of past event and it is probable that there will be on outflow or resources.

NOTES FORMATING OF ACCOUNTS

a. The Company has not made any Provision regarding Gratuity liability as prescribed by the accounting standard 15 (Revised) on employee benefits ,as In the opinion of the management none of the employees are eligible for gratuity benefit.

b. 1/5th of the Preliminary Expenses are written off during the year.

c. Related Party Disclosure :

The transactions that has taken place during the year with related parties to be disclosed as required by Accounting Standard -18 " Related party Transaction" issued by the Institute of Chartered Accountants Of India and notified by the Companies Accounting standard Rules - 2006 are as under.

4. The numerators and Denometers used in calculation of Basic and Diluted Earnings per Share are as under

Particulars For period ended For period ended

31st March,2015 31st March,2014 (Amount Rs.) (Amount Rs.)

Net Profit/loss available To Equity Share Holders 1074637 147497

Weighted Average No. of Equity Shares O/sat the end of the year 2617418 991473

Basis and Diluted Earnings 0.41 0.15 per Share (Rs.)

d. Additional information pursuant to the provision of Para 3,4C & 4D of part III of Schedule-VI of the Companies Act, 1956. (To the extent applicable)

For the period ended For the year ended

31.03.2015 31.03.2014

(1) Licensed Capacity N. A. N. A.

(2) Installed Capacity N. A. N. A.

(3) The company does not maintain N. A. N. A.

quantitative details.

(4) C.I.F. Value of Imports Rs. Nil Rs. Nil.

(5) Expenditure in foreign currency Rs. Nil Rs. Nil.

(6) Earnings in Foreign Exchange Rs. Nil Rs. Nil.

(7) Particulars of payment made to Auditors :

(g) Particulars For the period ended on For the year ended on 31.03.2015 31.03.2014 Audit Fees Amount (Rs.) Amount (Rs.)

Audit Fees 20,000 15,000

(h) Particulars of payment made to Directors:

Particulars For the year For the year ended on ended on 31.03.2015 31.03.2014 Amount (Rs.) Amount (Rs.)

(1.) Vishal Gala. (Salary) 315000 120000

(2.) Neha Gala (Salary) 100000 180000

(3.) Sanket Sheth (Salary) 272171 --

(i) The balances shown in the Balance sheet under the head of Creditors, Current Assets are subject to confirmation from respective parties and are subject to adjustment if any, on receipt of confirmation.