Magenta Lifecare Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1. Corporate information

MAGENTA LIFECARE LIMITED ("the company") is a limited company domiciled in India and
incorporated under the provisions of the Companies Act, 2013. Corporate Identity Number:
L74120GJ2015PLC084050, the registered office of the company is located at N P Patel Estate, A & T
Padamla, Vadodara, Vadodara, Gujarat, India, 391350

2. Basis of preparation

The Financial Statements of the Company have been prepared in accordance with the Generally
Accepted Accounting Principles in India to comply with the Accounting Standards notified under
Section 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and
relevant provisions of the Companies Act, 2013 ("the 2013 Act").

The accounting policies adopted in the preparation of Financial Statements are consistent with
those of previous period.

3. Use of estimates

The preparation of Financial Statements requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income, expenses and disclosures of contingent liabilities at the date of these Financial
Statements. Although these estimates are based on the management''s best knowledge of current
events and actions, uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future
periods.

4. 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.

Interest

Interest income is recognized on the Accrual basis determined by the amount outstanding and the
rate applicable and where no significant uncertainty as to measurability or collectability exists.

5. Tangible fixed assets

Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. The
cost comprises purchase price, borrowing costs if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for the intended use. Any trade
discounts and rebates are deducted in arriving at the purchase price.

6. Depreciation

Depreciation on fixed assets is provided on Straight Line Method basis in the manner and at the
rates prescribed in Schedule II to the Companies act 2013.

7. Impairment

The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists or when annual impairment testing for an asset is required, the
Company estimates the asset''s recoverable amount. An assets recoverable amount is higher of an
assets or Cash generating unit''s (CGU) net selling price and its value in use. The recoverable amount
is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets.

Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount. In assessing value in use, the
estimated future cash flows are discontinued to their present value using a pre-tax discount rate
that reflects current market assessments of time value of money and the risks specific to the asset.
In determining net selling price, recent market transactions are taken into account, if available. If
no such transactions can be identified, an appropriate valuation model is adopted.

8. Employee benefit expenses

Short-term employee benefits are recognized as an expense at the undiscounted amount in the
profit and loss account of the year in which the related service is rendered.

Defined contribution plans

Retirement benefit in the form of provident fund is considered as defined contribution scheme and
the contributions are charged to the statement of profit and loss of the year when the contributions
to respective funds are due. There are no other obligations other than the contribution payable to
the respective fund.

9. Taxation:

Tax expense comprises current and deferred tax. Current income tax is measured at the amount
expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in
India. The tax rates and tax Laws used to compute the amounts are those that are enacted, at the
reporting date.

Deferred Taxes reflect the impact of timing differences between taxable income and accounting
income originating during the current year and reversal of timing differences for the earlier years.
Deferred tax is measured using the tax rates and the tax laws enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets including
the unrecognized deferred tax assets, if any, at each reporting date, are recognized for deductible
timing differences only to the extent that there is reasonable certainty that sufficient future taxable
income will be available against which deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date and are adjusted
for its appropriateness.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set
off current tax assets against current tax liabilities and deferred tax assets and deferred taxes relate
to the same taxable entity and the same taxation authority.

Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as
current tax. The company recognizes MAT credit available as an asset only to the extent there is
convincing evidence that the company will pay normal income tax during the specified period, i.e.,
the period for which MAT Credit is allowed to be carried forward. In the year in which the Company
recognizes MAT Credit as an asset in accordance with the Guidance Note on Accounting for Credit
Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is
created by way of credit to the statement of Profit and Loss and shown as "MAT Credit Entitlement."
The Company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down
the asset to the extent the company does not have convincing evidence that it will pay normal tax
during the sufficient period.

10. Investment

Investments, which are readily realizable and intended to be held for not more than one 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.

Current investments are carried in the Financial Statements at lower of cost and fair value
determined on an individual investment basis. Long term investments are carried at cost.

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

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Mar 31, 2024

Note 1: Significant Accounting Policies:

1. Basis of Accounting & Revenue Recognition:

The Accounts are prepared under the historical cost convention applying accrual method of
accounting and as a going concern, complying with the applicable Accounting Standards and the
generally accepted accounting principles prevailing in the country.

Revenue is recognized only when it can be reliably measured and it is reasonable to expect
ultimate collection. Revenue from Operations include sale of goods and supply of services.

Interest income, if any is recognized on time proportion basis taking into account the amount
outstanding and the rate applicable.

2. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting
principles requires estimates and assumptions to be made that affect the reported amounts of
revenues and expenses during the reporting period. Differences between actual results and
estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets:

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct
costs are capitalized until such assets are ready for use. Capital work in progress comprises the
cost of fixed assets that are not yet ready for their intended use at the reporting date.

4. Intangible assets:

Intangible assets acquired separately are measured on initial recognition at cost. The useful lives of
intangible assets are assessed as either finite or indefinite.

Following, initial recognition, intangible assets with finite lives are carried at cost less
accumulated amortization and accumulated impairment losses, if any. Internally generated
intangible assets, excluding capitalized development

5. Depreciation:

Depreciation has been charged on cost of fixed assets, adopting the following methods / rates:

1. Depreciation is calculated using Straight Line Method (SLM) to allocate their cost, net
of their residual values, over their estimated useful lives prescribed in Schedule II of the
Companies Act, 2013.

2. If the cost of a part of the asset is significant to the total cost of the asset and useful life
of that part is different from the useful life of the remaining asset, useful life of that
significant part is determined separately for depreciation.

3. For other assets acquired / sold during the period pro-rata charge has been made from the
date of first use or till the date of sale.

6. Impairment:

Impairment loss from fixed assets is assessed as at the close of each financial period and
appropriate provision, if required, is considered in the accounts.

7. Segment Information:

Identification of segments:

The Company''s operating businesses are organized and managed separately according to the
nature of products and services provided, with each segment representing a strategic business unit
that offers different products and serves different markets. The analysis of geographical segments
is based on the geographical location of the customers wherever required.

Segment Policies:

The company prepares its segment information in conformity with the accounting policies adopted
for preparing and presenting the financial statements of the company as a whole.

8. Borrowing Cost:

Interest and other costs in connection with the borrowing of the funds to the extent
related/attributed to the acquisition/construction of qualifying fixed assets are capitalized as a
part of the cost of such asset up-to the date when such assets are ready for its intended use and
other borrowing costs are charged to statement of Profit & Loss.

9. Inventories:

Inventories of Finished Goods & Stores and Spares are valued at cost or estimated net realizable
value whichever is lower using weighted average cost method. The cost comprises of purchase
price, freight, taxes and duties. The cost is further reduced to the extent of value of Input tax
benefits availed by the company.

10. Sales:

Revenue from sale of goods is recognized on transfer of significant risk and rewards of ownership
to buyer that coincides with the delivery of goods. The company present revenue net of sales tax,
value added tax and goods and service tax in its Statement of Profit and Loss.

Export incentives on sales under various schemes notified by the Government has been recognized
on accrual basis in the year of export. Other incentives and subsidies under various schemes
notified by the Government has been recognized on the basis of amount received.

Interest income is recognized on time proportion basis taking into account the amount outstanding
and rate applicable.

Other items of income are accounted as and when the right to receive such income arises and it is
probable that the economic benefits will flow to the company and the amount of income can be
measured reliably.

11. Employee Benefits:

a) Provident Fund:

The Company''s contributions paid and payable during the year towards Provident Fund are made to
Regional Provident Fund Commissioner & are charged in Profit & Loss Statement every year.

b) Gratuity:

The Company has policy of giving gratuity to its employees who complete period of qualifying
service which is 5 years.

The employees of the company are entitled for Gratuity as per Payment of Gratuity Act, 1972.
However, the company has not provided for any liability towards the payment of gratuity towards
employees. In absence of detailed working, its impact on the financial statements is not ascertainable.

The company does not have any further information about fair value of plan assets under the plan,
accordingly disclosures related to Planned assets and underlying assumption has not been disclosed

c) Compensated Absences:

The Company extends the benefit of leave encashment to its employees on retirement I separation.
The same is accounted on the basis of actual liability on the date of balance sheet.

12. Provision for Current and Deferred Tax:

Income tax expense is accounted for in accordance with AS 22- “Accounting for Taxes on
Income” prescribed under the Companies (Accounting Standard) Rules, 2006 which includes
current tax and deferred taxes.

Current taxes reflect the impact of tax on income of the previous period as defined under the
Income Tax Act, 1961 as per applicable rates.

Deferred taxes reflect the impact of Current period timing differences between taxable income
and accounting income for the period and reversal of timing differences of earlier periods if any.
Deferred tax assets are recognized only to the extent that there is reasonable certainty that
sufficient future taxable income will be available.

13. Amount Due to Micro, Small and Medium Enterprises:

(i) Based on the information available with the Company in respect of MSME (as defined in
the Micro, Small and Medium Enterprises Development Act, 2006) there are no delays in
payment of dues to such enterprise during the period.

(ii) The identification of Micro, Small and Medium Enterprises Suppliers as defined under
“The Micro, Small and Medium Enterprises Development Act, 2006” is based on the
information available with the management. As certified by the management, the amounts

overdue as on March 31, 2024 to Micro, Small and Medium Enterprises on account of
principal amount together with interest, aggregate to Rs. Nil.

14. Cash and Cash Equivalents :

Cash and Cash equivalents includes cash and cheque on hand, demand deposits with banks, fixed
deposits and other long term and short term highly liquid investments with original maturities of
three months or less.