Kizi Apparels Ltd. कंपली की लेखा नीति

Mar 31, 2025

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with Generally
Accepted Accounting Principles in India (“Indian GAAP"). Indian GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies Act, 2013 (“the Act") read
with the Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements have been
prepared on an accrual basis and under the Historical Cost Convention, and the Companies
(Accounting Standards) Amendment Rules 2016 and the relevant provisions of the Companies Act,
2013.

b. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees. This financial statement
is presented in Indian rupees.

All amounts disclosed in the financial statements and notes are rounded off to lakhs the nearest
INR rupee in compliance with Schedule III of the Act, unless otherwise stated.

Due to rounding off, the numbers presented throughout the document may not add up precisely
to the totals and percentages may not precisely reflect the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires the
Management to make estimates, judgments, and assumptions. These estimates, judgments and
assumptions affects the application of accounting policies and the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of financial statement and
reported amounts of revenue and expenses during the period. Accounting estimates could change
form period to period. Actual result could differ from those estimates. As soon as the Management
is aware of the changes, appropriate changes in estimates are made. The effect of such changes are
reflected in the period in which such changes are made and, if material, their effect are disclosed in
the notes to financial statement.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and in future
periods affected.

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria.-

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s
Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting
date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at
least twelve months after the reporting date.

All other assets and liabilities are classified as non-current.

For the purpose of Current / Non - Current classification of assets and liabilities, the Company has
ascertained its operating cycle as twelve months. This is based on the nature of services and the
time between the acquisition of the assets or liabilities for processing and their realization in Cash
and Cash Equivalents.

1.0 Basis of Preparation

a) Property, Plant & Equipment and Intangible Assets: -

i. The company has adopted Cost Model to measure the gross carrying amount of Property Plant &
Equipment.

ii. Tangible Property Plant & Equipment are stated at cost of acquisition less accumulated
depreciation. Cost includes the purchase price and all other attributable costs incurred for bringing
the asset to its working condition for intended use.

iii. Intangible assets are stated at the consideration paid for acquisition and customization thereof
less accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is disclosed as Capital Work
in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is disclosed as
Intangible Assets under Development.

b) Depreciation / Amortization : -

Depreciation has been provided under Written down Method at the rates prescribed under
schedule III of the Companies Act, 2013 on single shift and Pro Rata Basis to result in a more
appropriate preparation or presentation of the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has been provided at the
rates prescribed under Schedule II.

Intangible assets being Software and Website are amortized over a period of its useful life on a
straight-line basis, commencing from date the assets are available to the company for its use.

c) Impairment of Assets: -

An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value. An
impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior period is reversed if there has been
a change in the estimate of the recoverable amount.

d) Investments: -

• Investments that are readily realizable 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 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 and duties. If an investment is
acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair
value of the securities issued. If an investment is acquired in exchange for another asset, the
acquisition is determined by reference to the fair value of the asset given up or by reference to the
fair value of the investment acquired, whichever is more clearly evident. There is no investment
made by Company.

• Current investments are carried at lower of cost and fair value determined on an individual
investment basis. Long term investments are carried at cost. However, provision for diminution in
value of long-term investments is made to recognize a decline, other than temporary, on an
individual investment basis.

• Current investments are carried in the financial statements at lower of cost and market value
determined on an individual investment basis. Long-term investments are carried at cost. However,
provision for diminution in value is made to recognize a decline other than temporary in the value
of the investments.

Long term investments which are expected to be realized within twelve months from the balance
sheet date are presented under ''current investments’ as ''current portion
of long term investments'' in accordance with the current / noncurrent classification of investments
as per Schedule III Division I of the Companies Act, 2013.

• The cost of investments comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties.

• Investment transactions are accounted for on a trade date basis. In determining the holding cost
of investments and the gain or loss on sale of investments, the ''weighted average cost’ method is
followed.

e) Government Grants and Subsidies: -

The Company is entitled to receive any subsidy from the Government authorities or any other
authorities in respect of manufacturing or other facilities are dealt as follows:

Crants in the nature of subsidies which are non - refundable are credited to the respective
accounts to which the grants relate, on accrual basis, where there is reasonable assurance that the
Company will comply with all the necessary conditions attached to them.

• Crants in the nature of Subsidy which are Refundable are shown as Liabilities in the Balance Sheet
at the Reporting date.

f) Retirement Benefits: -

a) Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are classified as short¬
term benefits. Such benefits include salaries, wages, bonus, short term compensated absences,
awards, ex-gratia, performance pay etc. and the same are recognized in the period in which the
employee renders the related service.

b) Employment Benefits:

I) Provident Fund/ESIC:

The company has Defined Contribution Plans for post-employment benefit in the form of Provident
Fund which are administered by the Regional Provident Fund Commissioner. Provident Fund are
classified as defined contribution plans as the company has no further obligation beyond making
contributions. The company''s contributions to defined contribution plans are charged to the
Statement of Profit and Loss as and when incurred.

II) Gratuity:

The Management has decided to gratuity will be accounted in profit & loss AJc in each financial
year when the claim is recognized by the company which is against the prescribed treatment of AS
-15. The Quantum of provision required to be made for the said retirements benefits can be
decided on actuarial basis and the

said information could not be gathered. To the extent of such amount, the reserve would be lesser.

g) Prior Period items

All identifiable items or income and expenditure pertaining to prior period are accounted through
''Prior Period Income/ Expenses Account’.

h) Revenue Recognition

Revenue is recognized when it is probable that economic benefit associated with the transaction
flows to the Company in ordinary course of its activities and the amount of revenue can be
measured reliably, regardless of when the payment is being made. Revenue is measured at the fair
value of consideration received or receivable, taking into the account contractually defined terms of
payments, net of its returns, trade discounts and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise duty, received
and receivable by the Company, on its own account. Amount collected on behalf of third parties
such as sales tax, value added tax and goods and service tax (GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of
Sales tax, Vat, GST and Freight Charges if any. The revenue and expenditure are accounted on a
going concern basis.

Interest Income is Recognized on a time proportion basis taking into account the amount
outstanding and the rate applicable i.e. on the basis of matching concept.

Dividend from investments in shares / units is recognized when the company.

As per a recent ICAI opinion, the benefit of DEPB is recognized in the year of export itself, provided
no uncertainty exists,

Other items of Income are accounted as and when the right to receive arises.

i) Inventories:-

Inventories of the raw material, work-in-progress, finished goods, packing material, stores and
spares, components, consumables and stock in trade are carried at lower of cost and net realizable
value. However, raw material and other items held for use in production of inventories are not
written down below cost if the finished goods in which they will be incorporated are expected to
be sold at or above cost. The comparison of cost and net realizable value is made on an item-by¬
item basis.

Cost of inventories included the cost incurred in bringing each product to its present location and
conditions are accounted as follows:

a) Raw Material: - Cost included the purchase price and other direct or indirect costs incurred to
bring the inventories into their present location and conditions. Cost is determined on First in First
out basis (FIFO). _ „

b) Finished Goods and Work-in-Progress: - Work in progress are valued at cost which includes raw
materials and cost incurred till the stage of production of process. Finished Goods are valued at
cost or Net realizable value whichever is lower. Cost included cost of direct materials and the labor
cost and a proportion of manufacturing overhead based on the normal operating capacity, but
excluding the borrowing costs. Cost is determined on “First in First out basis (FIFO)".

c) Stock in Trade:- Cost included the purchase price and other direct or indirect costs incurred in
bringing the inventories to their present location and conditions. Cost is determined on “First in
First out basis (FIFO)".

All other inventories of stores and spares, consumables, project material at site are valued at cost.
The stock of waste or scrap is valued at net realizable value.

"Net Realizable Value" is the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated cost necessary to make the sales of the products.

j) Accounting for effects of changes in foreign exchange rates: -

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

Any income or expenses on account of exchange difference either on settlement or on Balance
sheet Valuation is recognized in the profit and loss account except in cases where they relate to
acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

Foreign currency transactions accounts are given in the notes of accounts, if any.

k) Borrowing Cost¬
Borrowing Cost includes the interest, commitments charges on bank borrowings, amortization of
ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of qualifying
property, plants and equipment’s are capitalized as a part of cost of that property, plants and
equipment’s. The amount of borrowing costs eligible for capitalization is determined in accordance
with the Accounting Standards - 16 “Borrowing Costs”. Other Borrowing Costs are recognized as
expenses in the period in which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences arising from foreign
currency borrowings to the extent that they are regarded as adjustments to interest costs are
recognized as Borrowing Costs and are capitalized as a part of cost of such property, plants and
equipment’s if they are directly attributable to their acquisition or charged to the Standalone
Statement or Profit and Loss.

l) Related Party Disclosure :-

The Disclosures of Transaction with the related parties as defined in the related parties as defined in
the Accounting Standard are given in notes of accounts.

m) Accounting for Leases :-

A lease is classified at the inception date as finance lease or an operating lease. A lease that
transfers substantially all the risk and rewards incidental to the ownership to the Company is
classified as a finance lease.

The Company as a lessee:

a) Operating Lease:- Rental payable under the operating lease are charged to the Standalone
Statement of Profit and Loss on a Straight line basis over the term of the relevant lease.

b) Finance Lease:- Finance lease are capitalized at the commencement of the lease, at the lower of
the fair value of the property or the present value of the minimum lease payments. The
corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and the reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance of the liability.
Finance charges are charged directly against the income over the period of the lease.

The Company has not provided any of its assets on the basis of operating lease or finance lease to
others.

n) Cash flow:-

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

o) Earnings Per Share :-

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with
Accounting Standard 20. "Earnings per Share". Basic EPS is computed by dividing the Net Profit or
Loss attributable to the Equity Shareholders for the year by the weighted average number of equity
shares outstanding during the year. Diluted EPS is computed by dividing the Net Profit or Loss
attributable to the Equity Shareholders for the year by the weighted average number of Equity
Shares outstanding during the year as adjusted for the effects of all potential Equity Shares, except
where the results are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the period is adjusted for
events such a Bonus Issue, Bonus elements in right issue, share splits, and reverse share split
(consolidation of shares) that have changed the number of Equity Shares outstanding, without a
corresponding change in resources.

a) Taxes on Income:-
Current Tax: -

Provision for current tax is made after taken into consideration benefits admissible under the
provisions of the Income Tax Act, 1961.

¦ Deferred Taxes: -

Deferred Income Tax is provided using the liability method on all temporary difference at the
balance sheet date between the tax basis of assets and liabilities and their carrying amount for
financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary difference available in the future
against which this item can be utilized.

II. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the
period when the assets is realized or the liability is settled, based on tax rates (and the tax) that
have been enacted or enacted subsequent to the balance sheet date.

b) Discontinuing Operations: -

During the year the company has not discontinued any of its operations.

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Mar 31, 2024

Annexure: - 1 Significant accounting policies:

1.0 Corporate Information

Kizi Apparels Limited is a Limited Company, incorporated under the provisions of Companies Act, 2013 and having CIN: U14109RJ2023PLC086522. The Company is mainly engaged in the business of Manufacturing and trading business of women garments. The Registered office of the Company is situated H - 629 Phase _ II, RIICO Industries Area, Jaipur, Rajasthan - 302022.

1.1 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India ("Indian GAAP"). Indian GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with the Rule 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the Historical Cost Convention. and the Companies (Accounting Standards) Amendment Rules 2016 and the relevant provisions of the Companies Act, 2013.

b. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees. This financial statement is presented in Indian rupees.

All amounts disclosed in the financial statements and notes are rounded off to lakhs the nearest INR rupee in compliance with Schedule III of the Act, unless otherwise stated.

Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting standard requires the Management to make estimates, judgments, and assumptions. These estimates, judgments and assumptions affects the

application of accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of financial statement and reported amounts of revenue and expenses during the period. Accounting estimates could change form period to period. Actual result could differ from those estimates. As soon as the Management is aware of the changes, appropriate changes in estimates are made. The effect of such changes are reflected in the period in which such changes are made and, if material, their effect are disclosed in the notes to financial statement.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in future periods affected.

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the following criteria:

i. It is expected to be realized / settled, or is intended for sales or consumptions, in the Company''s Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after the end of reporting date;

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as non-current.

For the purpose of Current / Non - Current classification of assets and liabilities, the Company has ascertained its operating cycle as twelve months. This is based on the nature of services and the time between the acquisition of the assets or liabilities for processing and their realization in Cash and Cash Equivalents.

1.2 Basis of Preparationa) Property, Plant & Equipment and Intangible Assets: -

i. The company has adopted Cost Model to measure the gross carrying amount of Property Plant & Equipment.

ii. Tangible Property Plant & Equipment are stated at cost of acquisition less accumulated depreciation. Cost includes the purchase price and all other attributable costs incurred for bringing the asset to its working condition for intended use.

iii. Intangible assets are stated at the consideration paid for acquisition and customization thereof less accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is disclosed as Capital Work in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is disclosed as Intangible Assets under Development.

b) Depreciation / Amortization: -

Depreciation has been provided under Written down Method at the rates prescribed under schedule III of the Companies Act, 2013 on single shift and Pro Rata Basis to result in a more appropriate preparation or presentation of the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule II.

Intangible assets being Software and Website are amortized over a period of its useful life on a straight-line basis, commencing from date the assets is available to the company for its use.

c) Impairment of Assets: -

An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior period is reversed if there has been a change in the estimate of the recoverable amount.

d) Investments: -

• Investments that are readily realizable 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 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 and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident. There is no investment made by Company.

• Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value of long-term investments is made to recognize a decline, other than temporary, on an individual investment basis.

• Current investments are carried in the financial statements at lower of cost and market value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

• Long term investments which are expected to be realized within twelve months from the balance sheet date are presented under ''current investments'' as ''current portion of long-term investments'' in accordance with the current / noncurrent classification of investments as per Schedule III Division I of the Companies Act, 2013.

• The cost of investments comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

• Investment transactions are accounted for on a trade date basis. In determining the holding cost of investments and the gain or loss on sale of investments, the ''weighted average cost'' method is followed.

e) Government Grants and Subsidies: -

The Company is entitled to receive any subsidy from the Government authorities or any other authorities in respect of manufacturing or other facilities are dealt as follows:

• Grants in the nature of subsidies which are non - refundable are credited to the respective accounts to which the grants relate, on accrual basis, where there is reasonable assurance that the Company will comply with all the necessary conditions attached to them.

• Grants in the nature of Subsidy which are Refundable are shown as Liabilities in the Balance Sheet at the Reporting date.

f) Retirement Benefits: -a) Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are classified as short-term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc. and the same are recognised in the period in which the employee renders the related service.

b) Employment Benefits:

I) Provident Fund/ESIC:

The company has Defined Contribution Plans for post-employment benefit in the form of Provident Fund which are administered by the Regional Provident Fund Commissioner. Provident Fund are classified as defined contribution plans as the company has no further obligation beyond making contributions. The company''s contributions to defined contribution plans are charged to the Statement of Profit and Loss as and when incurred.

II) Gratuity:

The Management has decided to gratuity will be accounted in profit & loss A/c in each financial year when the claim is recognized by the company which is against the prescribed treatment of AS -15. The Quantum of provision required to be made for the said retirement''s

benefits can be decided on actuarial basis and the said information could not be gathered. To the extent of such amount, the reserve would be lesser.

g) Prior Period Items: -

All identifiable items or income and expenditure pertaining to prior period are accounted through ''Prior Period Income/ Expenses Account''.

h) Revenue Recognition: -

Revenue is recognized when it is probable that economic benefit associated with the transaction flows to the Company in ordinary course of its activities and the amount of revenue can be measured reliably, regardless of when the payment is being made. Revenue is measured at the fair value of consideration received or receivable, taking into the account contractually defined terms of payments, net of its returns, trade discounts and volume rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the excise duty, received and receivable by the Company, on its own account. Amount collected on behalf of third parties such as sales tax, value added tax and goods and service tax (GST) are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers, sales are exclusive of Sales tax, Vat, GST and Freight Charges if any. The revenue and expenditure are accounted on a going concern basis.

Interest Income is Recognized on a time proportion basis taking into account the amount outstanding and the rate applicable i.e. on the basis of matching concept.

Dividend from investments in shares / units is recognized when the company.

As per a recent ICAI opinion, the benefit of DEPB is recognized in the year of export itself, provided no uncertainty exists,

Other items of Income are accounted as and when the right to receive arises.

i) Inventories: -

Inventories of the raw material, work-in-progress, finished goods, packing material, stores and spares, components, consumables and stock in trade are carried at lower of cost and net realizable value. However, raw material and other items held for use in production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost. The comparison of cost and net realizable value is made on an item-by-item basis.

Cost of inventories included the cost incurred in bringing each product to its present location and conditions are accounted as follows:

a) Raw Material: - Cost included the purchase price and other direct or indirect costs incurred to bring the inventories into their present location and conditions. Cost is determined on First in First out basis (FIFO).

b) Finished Goods and Work-in-Progress: - Work in progress are valued at cost which includes raw materials and cost incurred till the stage of production of process. Finished Goods are valued at cost or Net realizable value whichever is lower. Cost included cost of direct materials and the labor cost and a proportion of manufacturing overhead based on the normal operating capacity, but excluding the borrowing costs. Cost is determined on "First in First out basis (FIFO)".

c) Stock in Trade: - Cost included the purchase price and other direct or indirect costs incurred in bringing the inventories to their present location and conditions. Cost is determined on "First in First out basis (FIFO)".

All other inventories of stores and spares, consumables, project material at site are valued at cost. The stock of waste or scrap is valued at net realizable value.

"Net Realizable Value" is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated cost necessary to make the sales of the products.

j) Accounting for effects of changes in foreign exchange rates: -

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

Any income or expenses on account of exchange difference either on settlement or on Balance sheet Valuation is recognized in the profit and loss account except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

Foreign currency transactions accounts are given in the notes of accounts, if any.

k) Borrowing Cost

Borrowing Cost includes the interest, commitments charges on bank borrowings, amortization of ancillary costs incurred in connection with the arrangement of borrowings.

Borrowing costs that are directly attributable to the acquisition or construction of qualifying property, plants and equipment''s are capitalized as a part of cost of that property, plants and equipment''s. The amount of borrowing costs eligible for capitalization is determined in accordance with the Accounting Standards - 16 "Borrowing Costs". Other Borrowing Costs are recognized as expenses in the period in which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences arising from foreign currency borrowings to the extent that they are regarded as adjustments to interest costs are recognized as Borrowing Costs and are capitalized as a part of cost of such property, plants and equipment''s if they are directly attributable to their acquisition or charged to the Standalone Statement or Profit and Loss.

l) Related Party Disclosure: -

The Disclosures of Transaction with the related parties as defined in the related parties as defined in the Accounting Standard are given in notes of accounts.

m) Accounting for Leases: -

A lease is classified at the inception date as finance lease or an operating lease. A lease that transfers substantially all the risk and rewards incidental to the ownership to the Company is classified as a finance lease.

The Company as a lessee:

a) Operating Lease: - Rental payable under the operating lease are charged to the Standalone Statement of Profit and Loss on a Straight-line basis over the term of the relevant lease.

b) Finance Lease: - Finance lease is capitalized at the commencement of the lease, at the lower of the fair value of the property or the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between finance charges and the reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against the income over the period of the lease.

The Company has not provided any of its assets on the basis of operating lease or finance lease to others.

n) Cash flow: -

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

o) Earnings Per Share: -

The Company reports the basic and diluted Earnings per Share (EPS) in accordance with Accounting Standard 20, "Earnings per Share". Basic EPS is computed by dividing the Net Profit or Loss attributable to the Equity Shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the Net Profit or Loss attributable to the Equity Shareholders for the year by the weighted average number of Equity Shares outstanding during the year as adjusted for the effects of all potential Equity Shares, except where the results are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the period is adjusted for events such a Bonus Issue, Bonus elements in right issue, share splits, and reverse share split (consolidation of shares) that have changed the number of Equity Shares outstanding, without a corresponding change in resources.

p) Taxes on Income: -• Current Tax: -

Provision for current tax is made after taken into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

• Deferred Taxes: -

Deferred Income Tax is provided using the liability method on all temporary difference at the balance sheet date between the tax basis of assets and liabilities and their carrying amount for financial reporting purposes.

I. Deferred Tax Assets are recognized for all deductible temporary difference available in the future against which these items can be utilized.

II. Deferred Tax Assets and liabilities are measured at the tax rates that are expected to apply to the period when the assets are realized or the liability is settled, based on tax rates (and the tax) that have been enacted or enacted subsequent to the balance sheet date.

q) Discontinuing Operations: -

During the year the company has not discontinued any of its operations.

r) Provisions Contingent liabilities and contingent assets: -

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, 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.

Possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation is reported as Contingent Liability. In the rare cases, when a liability cannot be measures reliable, it is classified as Contingent Liability. The Company does not recognize a Contingent Liability but disclosed its existence in the standalone financial statements.

s) Event after Reporting Date: -

Where events occurring after the Balance Sheet date provide evidence of condition that existed at the end of reporting period, the impact of such events is adjusted within the standalone financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

All the events occurring after the Balance Sheet date up to the date of the approval of the restated financial statement of the Company by the board of directors, have been considered, disclosed and adjusted, wherever applicable, as per the requirement of Accounting Standards.

25. The previous year''s figures have been reworked, regrouped, and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current annual financial statements and are to be read in relation to the amounts and other disclosures relating to the current financial year.

26. Since the company has taken Unsecured loan which Is given by director or other unsecured loan of company but for that company has not any agreement in writing.

27. The Company has not revalued its Property, Plant and Equipment for the restated period.

28. There has been no Capital work in progress for the rested period under consideration.

29. There have been no Intangible assets under development for the rested period under consideration.

30. Credit and Debit balances of unsecured loans, Trade Payables, sundry Debtors, loans and Advances are subject to confirmation and therefore the effect of the same on profit could not be ascertained.

31. The Company does not have any charges or satisfaction which is yet to be registered with ROC or beyond the statutory period.

32. The Company have not 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.

33. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

34. No proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

35. The company has not been declared as willful defaulter by any bank or financial institution or government or government authority.

36. The company does not have transaction with the struck off under section 248 of companies act, 2013 or section 560 of Companies act 1956.

37. The company is in compliance with the number of layers prescribed under clause (87) of section 2 of company''s act read with companies (restriction on number of layers) Rules, 2017.

38. Related party discloser: -

The disclosers of transaction with related parties are define in the related parties as defined in the accounting standards are given blow:

As per AS18 issued by the charted accountants of India, the discloser of transaction with related parties as defined in the related party parties as defined in the accounting standards are given below:

Sr No	Nature of Relationship	Name of the parties
1	Key managerial person/ Directors	Kiran Nathani Abhishek Nathani Monica Mahaveer Jain