Notes to Accounts for Non-Corporate Entities

For the year ended 31st March 202x

1. Compliance

The financial statements have been prepared in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India (ICAI) for the presentation of financial statements of non-corporate entities. This is the first year of compliance with the ICAI framework. Accordingly, the previous year’s figures have been regrouped or recast wherever necessary to make them comparable.

2. Going Concern

The entity has prepared its accounts on the assumption of going concern basis, as there is no intention or necessity to liquidate or significantly curtail its operations.

3. Method of Accounting

The entity follows the accrual basis of accounting. Revenues and expenses are recognized on accrual basis unless otherwise stated.

4. Fixed Assets and Depreciation

The fixed assets are stated at written down value (WDV) as per records available. Depreciation is provided on the WDV method in accordance with the rates prescribed under the Income Tax Act, 1961. No revaluation of fixed assets has been carried out during the year.

5. Investments

The entity has not made any investments during the financial year. Hence, this note is not applicable.

6. Stock-in-Trade

Proper and updated quantitative records of inventory are not maintained. The stock has been valued and certified by the management based on estimated realizable values. No independent verification of inventory valuation has been carried out.

7. Contingent Liabilities

There are no contingent liabilities outstanding as at the balance sheet date.

8. MSME Trade Payables

The management has not provided bifurcation of creditors under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). Accordingly, the disclosure regarding the amount payable to such enterprises and the interest, if any, due thereon, is not made. Further, the status of payment to such parties has not been independently verified by us.

9. Revenue Recognition

The total turnover of ₹5 Crores for the financial year has been recognized on accrual basis in accordance with the applicable accounting policies. Revenue is recognized when the significant risks and rewards of ownership are transferred to the customer.

10. Loans and Advances

Loans and advances are unsecured and considered good, recoverable in the ordinary course of business. No interest is charged on such advances.

11. Taxation

Provision for Income Tax has been made as per the applicable rates. No deferred tax assets or liabilities have been recognized during the year as the impact is considered immaterial.

12. Prior Period Adjustment

Being the first year of compliance with ICAI’s Guidance Note, the comparative figures of the previous year have been regrouped or reclassified wherever required.

13. Significant Accounting Policies

The significant accounting policies adopted by the entity form an integral part of these financial statements and are disclosed separately in the annexed statement.