Grill Splendour Services Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

Note 1: Significant Accounting PoliciesI Background

- GRILL SPLENDOUR SERVICES LIMITED (hereinafter referred to as "Company") was incorporated on November 11, 2019. The Company is engaged in the restaurent and cafe services and specialized in Cakes, Snacks, Chocolates and Other Food Items.

II Basis of preparation of financial statements

(a) Basis of Accounting:

- The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

(b) Classification as per Companies (Accounting Standard) Rules, 2006:

- The Company is a Small and Medium sized Company (SMC) as defined in the General Instructions in respect of accounting standards as notified by the Companies (Accounting Standards) Rules, 2006.

(c) Use of estimates:

- The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the period reported. Actual results could differ from those estimates.

(d) Presentation and disclosure in financial statements:(i) Basis of presentation:

- Schedule II to the Companies Act, 2013 contains Part I - Form of the Balance Sheet and Part II - Requirements as to Statement of Profit and Loss account, has been revised. Accordingly the Balance Sheet as at 31st March 2025 and Statement of Profit and Loss for the year ended on that date, have been prepared. All assets and liabilities have been classified and disclosed as current or non-current as per the criteria set out in the said Schedule II to the Companies Act, 2013.

III Significant Accounting Policies

(a) Fixed Assets and Depreciation:

- Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss if any. Depreciation has been provided as per the Schedule II of the Companies'' Act 2013 in the SLM Method (Straight Line Value). Earlier depreciation has been provided on WDV (Written Down Value) Method, however due to change in assumption the same has been changed to SLM Mehtod. The impact of changing the depreciation method from WDV to SLM have been recalculated retrospectively from the beginning and the impact has been provided in the statement of Profit and Loss for current half yearly statement. Effect of Retrospective is considered as Change in Accounting Principle so we have shown changes under Adjustment column under PPE note 10.

- Depreciation is provided on a pro-rata basis for assets purchased during the year.

- Direct costs are capitalized up to the date the assets are ready to be put to use. Cost includes all expenses related to acquisition and installation of the concerned asset

- Improvements to the leasehold premises are being written off over unexpired period of lease.

- Intangible assets comprise of software and the licenses (right to use) acquired from third parties. The Licenses acquired from third parties have been written off on a SLM over the period of licence.

(b) 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.

(c) Foreign Currency transactions:(i) Foreign Currency Transaction

- Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date of transactions. Company not entered into any foreign transcation during the year

- Exchange differences arising on foreign exchange transactions settled during the year are recognized in the statement of

profit and loss of the year. Company not entered into any foreign transcation during the year

- Monetary assets and liabilities denominated in foreign currency which are outstanding as at the year-end, are translated at

the year end closing exchange rate and the resultant exchange differences are recognized in the profit and loss account. Company not entered into any foreign transcation during the year

(d) Employee Benefits:(i) Short term employee benefits

- All employee benefits which fall due wholly within six months after the end of the period in which employee renders the related service are classified as short-term employee benefits. Undiscounted value of short term benefits such as salaries, bonus are recognised in the period in which the employee renders the related service.

(e) Operating Lease:

- Lease arrangements where risks and rewards incident to ownership of an asset substantially vests with lessor are classified as operating lease. Rental expense on assets obtained under operating lease arrangements is recognized in a statement of profit and loss on a straight-line basis.

(f) Earnings Per Share:

- Basic earnings per share (EPS) is calculated by dividing the net profits for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year. The Company does not have any dilutive potential equity shares.

(g) Taxes on Income:

(i) Current Tax:

- Tax on income for the current period is determined on the basis of the Actual Tax payable or Minimum Alternate Tax, if applicable, and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and based on expected outcome of assessment/appeals.

(ii) Deferred Tax:

- Deferred tax is recognized on timing differences between the accounting income and the taxable income for the period, and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

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

(h) Impairment of assets:

- The Company assesses at each balance sheet date whether there is any indication that an asset or a group of assets (cash generating unit) may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset or a group of assets. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized as provided in Scedule II of the Companies'' Act 2013.

(i) Provisions:

- Provisions are recognized when the Company recognizes that it has a present obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

- Disclosures for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When 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.

- Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.

(j) Disclosure under Micro, Small and Medium Enterprise Development Act, 2006:

Under the Micro, Small and Medium Enterprise Development Act, 2006 which came into force from October 2, 2006 certain disclosures are required to be made relating to Micro, Small and Medium enterprises. The disclosures required under the said act are made only to the extent relevant information is readily available with the Company and is relied upon by the auditors. Based on the information available, the dues payable to Micro, Small and Medium Enterprises are either Nil or not reportable.

(k) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

(l) Utilisation of borrowed funds and share premium:

The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:“(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or“(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:“(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or“(ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

(m) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(n) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(o) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(p) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year

(q) Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(v) The company has not granted any loans or advances to any Directors, KMPs, Promoters or any other related parties (as defined under Companies Act, 2013) in the nature of loans either repayable on demand or without specifying any terms or period of repayment.

(w) The Company has not been declared as a Wilful Defaulter by any bank or financial institution or government or any government authority.

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Mar 31, 2024

Note 1: Significant Accounting Policies

1 COMPANY INFORMATION

- GRILL SPLENDOUR SERVICES LIMITED (hereinafter referred to as "Company") was incorporated on November 11, 2019. The Company is engaged in the restaurant and cafe services and specialized in Cakes, Snacks, Chocolates and Other Food Items.

2 SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation:

- These Financial Statements have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the accounting standard specifies under section 133 of the Companies Act, 2013 has applicable. The Financial Statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

(b) Use of estimates:

- The preparation of financial statements requires the management of the company to make the estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to the contingent assets and liabilities has at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include Provision for Income Taxes, Useful life of Depreciable Property, Plant and Equipments and Provision for Imparement. Future result could defer due to changes in estimates and the difference between the actual results and the estimates are recognised in the period in which the results are known/materialised.

(c) Property, Plant and Equipment

- Property, Plant and Equipments are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

(d) Depreciation / Amortisation

In respect of Property, Plant and Equipments (other than freehold land and capital work-in-progress)“acquired during the year, depreciation/amortisation is charged on a straight line basis so as to write-off the cost of the assets over the useful lives.

(e) Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight-line basis.

(f) Imparement

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the statement of profit and loss.

(g) Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, except for current maturities of longterm investments, comprising investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

(h) Revenue Recognition

- Revenue is recognized when there is a transfer of significant risk and rewards of ownership in goods to the buyer.““Interest income is recognized on time proportion basis taking into account amount outstanding and the applicable interest

rates.““Service income is recognized on the basis of completion of service method......‘“Dividend is recorded when the right

to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable."

(i) Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after offsetting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

(j) Foreign currency transactions

- Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in nonintegral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise’s net investments in a nonintegral foreign operation are accumulated in a foreign currency translation reserve.

(k) Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.