Craftroot Retail Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Property, plant and equipment
Tangible Assets:

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation
and any accumulated impairment losses. The cost of fixed assets comprises of its purchase price, non¬
refundable taxes & levies, freight and other incidental expenses related to the acquisition and installation of
the respective assets. Borrowing cost attributable to financing of acquisition or construction of the qualifying
fixed assets is capitalized to respective assets when the time taken to put the
assets to use is substantial.

When major items of property, plant and equipment have different useful lives, they are accounted for as
separate items of property, plant and equipment. The cost of replacement of any property, plant and
equipment is recognized in the carrying amount of the item if it is probable that the future economic benefit
associated with the item will flow to the Company and its cost can be measured reliably.

The Estimated Useful Lives of assets are in accordance with the Schedule II of the Companies Act, 2013.

2.2. Financial Instruments
2.2.1. 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 Company’s cash management are included as a component of cash and cash equivalent for the purpose of
statement of cash flow.

2.2.2. Trade Receivables

Trade receivables are amounts due from customers for sale of goods or services performed in the ordinary
course of business. Trade receivables are initially recognized at its transaction price which is considered to
be its fair value and are classified as current assets as it is expected to be received within the normal
operating cycle of the business.

2.2.3. Borrowings

Borrowings are initially recorded at fair value and subsequently measured at amortized costs using effective
interest method. Transaction costs are charged to statement of profit and loss as financial expenses over the
term of borrowing.

2.2.4. Trade payables

Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary course
of business and are classified as current liabilities to the extent it is expected to be paid within the normal
operating cycle of the business.

2.2.5. Other financial assets and liabilities

Other non-derivative financial instruments are initially recognized at fair value and subsequently measured at
amortized costs using the effective interest method.

2.3. Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence,
if any except inventory of shares and securities held for trading are valued at fair value through P&L.

Cost of inventories comprises of cost of purchase, cost of conversion and other costs including
manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of
raw materials, process, stores and spares, packing materials, trading and other products are determined on
weighted average basis.

2.4. Impairment of Assets
Financial assets

At each balance sheet date, the Company assesses whether a financial asset is to be impaired. Ind AS 109
requires expected credit losses to be measured through loss allowance. The Company measures the loss
allowance for financial assets at an amount equal to lifetime expected credit losses if the credit risk on that
financial asset has increased significantly since initial recognition. If the credit risk on a financial asset
has not increased significantly since initial recognition, the Company measures the loss allowance for
financial assets at an amount equal to 12- month expected credit losses. The Company uses both forward
looking and historical information to determine whether a significant increase in credit risk has occurred.

Non-financial assets

Tangible and intangible assets

Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever
there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the
recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on
an individual asset basis unless the asset does not generate cash flows that are largely independent of
those from other assets. In such cases, the recoverable amount is determined for the cash generating
unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is
recognized in the statement of profit and loss to such extent.

2.5. Employee Benefit
Short term employee benefits

Short term benefits payable before twelve months after the end of the reporting period in which the
employees have rendered service are accounted as expense in statement of profit and loss.

Long term employee benefits
Defined Contribution Plan

A defined contribution plan is a post-employment benefit plan under which the Company pays
specified contributions for provident fund and pension as per the provisions of the Provident Fund Act,
1952 to the government. The Company’s contribution is recognised as an expense in the Profit and
Loss Statement during the period in which the employee renders the related service. The company''s
obligation is limited to the amounts contributed by it.

Compensated absences and earned leaves

The company offers a short term benefit in the form of encashment of unveiled accumulate
compensated absence above certain limit for all of its employees and same is being provided for in the
books at actual cost.

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Mar 31, 2015

1. Basis of Accounting & Revenue Recognition:

a) The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 ("the 1956 Act") (which continues to be applicable in respect of Section 133 of the Companies Act, 2013("the 2013Act") in terms of General Circular 15/2013 Dated September 13, 2013 Act, as applicable.

b) The Company follows the mercantile system of accounting and recognizes income & expenditure on an accrual basis except those with significant uncertainties.

2. Fixed assets:

Fixed Assets are stated at cost of acquisition and inclusive of freight, taxes and incidental expenses related to acquisition of the said fixed assets.

3. Depreciation:

Depreciation on tangible assets is provided on the straight line method as per Schedule II of the Companies Act, 2013 over the useful lives of assets estimated by the Management.

4. Inventories:

Inventories are valued at the lower of the cost & estimated net realizable value.

5. Retirement benefits:

As per the Company's management, the Gratuity and Provident Fund are not provided in the books as the same is not applicable.

6. 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 is reasonably estimate, and it is probable that an outflow of economic benefit 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 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 obligations or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

7. Earnings Per Sharer-

Basic and diluted earnings per share are computed in accordance with Accounting Standard-20. Basic earnings per share is calculated by dividing the net profit or loss after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where the results are anti-dilutive.

8. Cash Flow Statement

Cash flow are reported using indirect method, whereby profit before tax is adjusted for the effects of the 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 flow from operating, investing and financing activities of the Company is segregated.

9. Capital Issue Expenditure:

Company has write off Preliminary and Pre-operative expenses partially during the year.

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Mar 31, 2014

The accounts have been prepared in accordance with the Mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and other applicable provisions of the other Laws.

(A) METHOD OF ACCOUNTING:

The Accounts of the Company are prepared under the Historical Cost Convention using the Mercantile Method of Accounting.

(B) FIXED ASSETS:

Company has no fixed Assets at the end of financial year hence question of its valuation does not arise.

(C) DEPRECIATION:

The question of providing Depreciation in absence of Fixed Assets does not arise.

(D) INVESTMENTS:

The investments are shown at cost and are inclusive of related expenses. Income from these deposit & Investment is accounted on Receipt basis from the available information.

(E) INVENTORY:

Company h as not done any Commercial activities during the year hence no details of Inventory is provided.

(F) RETIREMENT BENEFITS:

Gratuity and Provident Fund are not provided in the books since not applicable.

(G) CAPITAL ISSUE EXPENDITURE:

Company has not written off Preliminary and Pre-operative expenses during the year in absence of Commercial Activities or any Income.

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Mar 31, 2012

The accounts have been prepared in accordance with the Mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and other applicable provisions of the other Laws.

(A) METHOD OF ACCOUNTING:

The Accounts of the Company are prepared under the Historical Cost Convention using the Mercantile Method of Accounting.

(B) FIXED ASSETS:

Company has no fixed Assets at the end of financial year hence question of its valuation does not arise.

(C) DEPRECIATION:

The question of providing Depreciation in absence of Fixed Assets does not arise.

(D) INVESTMENTS:

The investments are shown at cost and are inclusive of related expenses. Income from these deposit & Investment is accounted on Receipt basis from the available information.

(E) INVENTORY:

Company h as not done any Commercial activities during the year hence no details of Inventory is provided.

(F) RETIREMENT BENEFITS:

Gratuity and Provident Fund are not provided in the books since not applicable.

(G) CAPITAL ISSUE EXPENDITURE:

Company has not written off Preliminary and Pre-operative expenses during the year in absence of Commercial Activities or any Income.

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Mar 31, 2010

The accounts have been prepared in accordance with the Mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and other applicable provisions of the other Laws.

(A) METHOD OF ACCOUNTING:

The Accounts of the Company are prepared under the Historical Cost Convention using the Mercantile Method of Accounting.

(B) FIXED ASSETS:

Company has no fixed Assets at the end of Financial year hence question of its valuation does not arise.

(C) DEPRECIATION:

The question of providing Depreciation in absence of Fixed Assets does not arise.

(D) INVESTMENTS:

The investments are shown at cost and is inclusive of related expenses. Income from these deposit & Investment is accounted on Receipt basis from the available information.

(E) INVENTORY:

Company h as not done any Commercial activities during the year hence no details of Inventory is provided.

(F) RETIREMENT BENEFITS:

Gratuity and Provident Fund are not provided in the books since not applicable.

(I) CAPITAL ISSUE EXPENDITURE :

Company has not written off Preliminary and Pre-operative expenses during the year in absence of Commercial Activities or any Income.