Notes to Accounts of Shashwat Furnishing Solutions Ltd.

Mar 31, 2025

13. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

B. NOTES ON ACCOUNTS

1. The financial statements including financial information have been prepared after making such regroupings and adjustments, considered appropriate to comply with the same. As result of these regroupings and adjustments, the amount reported in the financial statements/information may not necessarily be same as those appearing in the respective audited financial statements for the relevant years.

2. Segment Reporting

The company is primarily engaged in manufacturing and Trading of Pharmaceutical, Nutraceutical, Herbal and Ayurvedic commodities which constitutes a single business segment. In view of above, primary and secondary reporting disclosures for business/ geographical segment as envisaged in AS -17 are not applicable to the Company.

3. Post Employment Benefits:

The Company has not valued its obligations related to Gratuity.

4. Provisions, Contingent Liabilities and Contingent Assets (AS 29)

Contingent liabilities and commitments (to the extent not provided for). There are no contingent liabilities as on March 31, 2025

C. Shares held by holding/ultimate holding company and/or their subsidiaries/associates_

There is one Subsidiery Company, which is Dhruvanshi Agrotech Private Limited_

D. Shares with rights preferences and restrictions attaching to each class including restriction on distribution of dividend and repayment of capital Equity shares

The company has only one class of Equity having a par value Rs. 10.00 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

2.4.1 Disclosure in respect of amount due to Micro, Small & Medium Enterprises:

The management has initiated the process of identifying enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31st March 2024 has been made in the financials statements based on information received and available with the Company as on date of financials. The Company has not received any claim for interest from any supplier under the said Act.

(^b) As per the best estimate of the management, there is no capital commitment and contingent liability exists as on the date of the financial statement.

(c) Disclosures required under mandatory accounting standards & Schedule III are given to the extent appplicable and possible.

(d) Additional information as required by para 5 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Applicable.

(e) Previous year figures are regrouped or rearranged wherever considered necessary.

(f) Figures have been rounded off to the nearest Lakhs

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Mar 31, 2024

SIGNIFICANT ACCOUNTING POLICIES

1. Accounting Convention

The financial statement are prepared under the historical cost convention on the “Accrual Concept” and Going
Concern assumption of accountancy in accordance with the accounting principles generally accepted in India and
comply with the accounting standards as prescribed by Companies (Accounting Standard) Rules, 2006 and with
the relevant provisions of the Companies Act, 2013 and rules made there under.

2. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the
reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues
and expenses during the reporting period. Difference between the actual results and estimates are recognized in the
period in witch results are known/materialized.

3. Property, Plant and Equipments

Property, Plant and Equitpment are stated at cost less accumulated depreciation and impairment losses, if any. Cost
comprises of all expenses incurred to bring the assets to its present location and condition. Borrowing cost directly
attributable to the acquisition /construction are included in the cost of fixed assets. Adjustments arising from
exchange rate variations attributable to the fixed assets are capitalized.

In case of new projects / expansion of existing projects, expenditure incurred during construction / preoperative
period including interest and finance charge on specific / general purpose loans, prior to commencement of
commercial production are capitalized. The same are allocated to the respective t on completion of construction /
erection of the capital project / fixed assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the
future economic benefits from the existing asset beyond its previously assessed standard of performance.

Capital assets (including expenditure incurred during the construction period) under erection / installation are
stated in the Balance Sheet as “Capital Work in Progress.”

4. Impairment of Assets

At each balance sheet date, the Company reviews the carrying amount of its fixed assets to determine whether
there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable
amount of the assets is estimated in order to determine the extent of impairment loss. 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 assets 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 assets.

5. Depreciation

All fixed assets, except capital work in progress, are depreciated on WDV Method. Depreciation is provided based
on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on additions to /
deletions from fixed assets made during the period is provided on pro-rata basis from / up to the date of such
addition / deletion as the case may be. Further the Land and Building held in the books of the company are treated
as Investment Property so that the Depreciation is not provided on them.

6. Investments

Investments are classified into current investments and non-current investments. Current investments i.e.
investments that are readily realizable and intended to be held for not more than a year valued at cost. Any
permanent reduction in the carrying amount or any reversals of such, reductions are charged or credited to the
Statement of Profit & loss Account.

Non-current investments are stated at cost. Provision for dimunintion in the value of these investments is made
only if such decline is other than temporary, in the opinion of the management.

7. Inventories

Inventories consist of Finished Goods & Stock in trade are valued at Cost or Net Realizable Value, whichever is
lower.

8. Revenue Recognition

Revenue from the operations is recognized on generally accepted accounting principal and when it is earned and
no significant uncertainity exists as to its ultimate collection and includes taxes, wherever applicable.

The capital gain on sale of investments if any are recognized on completion of transaction. No notional profit/loss
are recognized on such investments.

Interst income is recognized on time proportion basis, when it is accured and due for payment.

9. Borrowing Cost

Borrowing cost that are attributable to the acquisition, construction or production of qualifying assets are
capitalized as part of the cost of such assets. A qualifying assets is one that necessarily takes a substantial period of
time to get ready for its intended use. All other borrowing costs are charged to revenue.

10. Employee Benefits

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

Post employment and other long term employee benefits are recognized as an expense in the profit & loss account
for the year in which the liabilities are crystallized.

11. Taxes on Income

Income tax expenses for the year comprises of current tax and deferred tax. Current tax provision is determined on
the basis of taxable income computed as per the provisions of the Income Tax Act. Deferred tax is recognized for
all timing differences that are capable of reversal in one or more subsequent periods subject to conditions of
prudence and by applying tax rates that have been substantively enacted by the balance sheet date.

12. Foreign Currency Translation

a) Transaction denominated in foreign currencies are recorded at the exchange rate prevailing at the date of
the transaction.Monetary assets and liabilities denominated in foreign currencies at the year end are
restated at closing rate..

b) Any exchange difference on account of settlement of foreign currency transaction and restatement of
monetary assets and liabilities denominated in foreign currency is recognized in the statement of Profit &
loss Account.

13. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present

obligation as a result of past events and it is probable that there will be an outflow of resources.