RAJESH POWER SERVICES PRIVATE LIMITED

SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
FOR THE YEAR ENDED ON 31ST MARCH, 2022.

NOTE-1
SIGNIFICANT ACCOUNTING POLICIES


BASIS FOR ACCOUNTING POLICIES (AS-1):

The Financial statements have been brpared on historical cost convention on accrual basis, except otherwise stated, In accordance with the generally accepted accounting principles in India and provisions of Companies Act, 2013 to the extent applicable.

Accounting policies have been consistently applied.

All assets and liabilities have been classified as current non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III of Companies Act, 2013. The company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

CASH FLOW STATEMENTS (AS-3):

The Cash Flow statement is brpared by the “Indirect method“ set           out in AS-3 on “ Cash Flow Statements” and brsents the cash flows by operating, investing and financing activities of the Company. Cash and cash equivalent brsented in the cash flow statement consists of cash on hand, Demand deposits and term deposits with banks.

REVENUE RECOGNITION (AS-9):

The revenue items are recognized only when it is reasonably certain that the ultimate collection will be made.

PROPERTY, PLANT AND EQUIPMENT (AS-10):

Property, plant and equipment are stated at acquisition cost net of accumulated debrciation and accumulated impairment losses, if any.

Gains or losses arising on retirement or disposal of property, plant and equipment are recognized in the Statement of Profit and Loss

Debrciation is provided on a pro-rata basis on the Written-down Value method based on estimated useful life brscribed under Schedule II to the Companies Act, 2013.

FOREIGN CURRENCY TRANSACTIONS (AS -11):

All foreign currency transactions are recorded at the rate of exchange brvailing on the date of transaction. Exchange differences calculated as difference between foreign currency amount of contract translated at the exchange rate at the settlement date and the corresponding foreign currency amount translated at the date of inception of the forward exchange contract. Such exchange differences are recognized in the statement of profit and loss.


INVESTMENT (AS-13): 

Investment in the capital of a Limited Liability Partnership firm is classified as “Fixed Capital Contribution” and “Current Capital Contribution”

Fixed Capital Contribution is long term investment and stated at cost.

Current Capital Contribution is a short-term investment and is also stated at cost 


EMPLOYEE BENEFITS (AS-15):

The company has not opted for Defined Contribution Plan. Therefore, recognition of contribution to such plan is not required.
Termination Benefits are recognized as and when incurred.


BORROWING COSTS (AS-16):

No Borrowing costs that can be attributable to qualifying assets is incurred during the year. Borrowing costs incurred during the year are charged to Statement of Profit and Loss.

RELATED PARTIES DISCLOSURE (AS-18):

List of Enterprises owned or significantly influenced by Key Management Personnel.

M/s Shashwat Electricals Private Limited.	M/s Polycoat Electra Services (INDIA) Private Limited.
M/s HKRP Innovations LLP.	M/s Shashwat Composite LLP.
M/s Shashwat Envirotech LLP.	M/s Shashwat Cleantech Private Limited.
M/s Marc Electro India Private Limited.	M/s Shashwat Bio Poly Plast LLP.

Key Transaction between the company and Directors during F.Y.2021-22

Name of Director	Loan Taken	Repayment Made
(Including Interest and TDS)
Mrs.Binaben Panchal	35,98,878/-	14,62,109/-
Mr. Daxesh Panchal	6,90,093/-	57,99,329/-
Mr. Kurang Panchal	2,78,56,947/-	59,03,803/-
Mr. Nehal Panchal	31,65,371/-	1,19,96,037/-
Mr. Praful Patel	2,18,80,491/-	95,71,549/-
Mr. Rajendra Patel	1,85,10,981/-	68,51,693/-
Mr. Vishal Patel	1,12,52,835/-	34,34,722/-
Mr. Utsav Panchal	11,06,624/-	7,87,662/-

Remuneration paid to Directors of the company during F.Y. 2021-22

Name of Director	Amount Rs. In Lacs
Mr.Kurang panchal	213.83
Mr.Rajendra Patel	104.03
Mr.Praful Patel	56.31
Mr.Daxesh Panchal	66.75
Mr.Vishal Patel	116.85
Mr. Kaxil P. Patel	56.97
Mr. Nehal R. Panchal	66.58
Mr. Utsav N. Panchal	30.76

Interest paid to Directors of the company during F.Y. 2021-22

Name of Director	Amount Rs. In Lacs
Mr. Daxesh Panchal	6.90
Mr. Prafulabhai Patel	41.75
Mr. Rajendrabhai Patel	65.36
Mr. Utsav N Panchal	0.77
Mr. Vishal Patel	23.17
Mr. Nehal Panchal	11.80
Mrs. Beenaben Panchal	18.99
Mr. Kurang Panchal	40.88

Other transactions recorded during F.Y. 2021-22 with related parties.

Name	Relationship	Nature of transaction	Amount Rs. In Lacs
Mrs. Sangitaben Panchal	Director’s wife	Salary	3.19
Mr. Krunal D Panchal	Director’s son	Salary	16.85
Shashwat Composite LLP	Sister Concern	Sales	25.83
Marc Electro Infra Private Limited	Sister Concern	Sales	7.98
Sarthak Enterprise	Sister Concern	Purchase	11.67
Shashwat Composite LLP	Sister Concern	Purchase	67.88
Mr. Ankur D Panchal	Director’s son	Salary	15.97
Polycoat Electra Services (I) Pvt. Ltd.	Sister Concern	Purchase	94.08
Shashwat Cleantech Pvt Ltd	Sister Concern	Purchase	0.14
Marc Electro Infra Pvt. Ltd.	Sister Concern	Purchase	1.20
Polycoat Electra Services (I) Pvt. Ltd.	Sister Concern	Interest Expense	53.88
Shashwat Cleantech Pvt Ltd	Sister Concern	Interest Expense	1.18
Shashwat Electrical Pvt Ltd	Sister Concern	Interest Expense	21.82
Rajendra B Patel HUF	Director’s Relative	Interest Expense	9.72
Praful B Patel HUF	Director’s Relative	Interest Expense	4.07
Kurang R Panchal HUF	Director’s Relative	Interest Expense	27.53
Mrs. Kokilaben B Patel	Director’s Relative	Interest Expense	3.76
Mr. Kaxil P Patel	Director’s Relative	Interest Expense	11.52
Mrs. Bhavnaben R Patel	Director’s Relative	Interest Expense	14.82
Mrs. Anjana P Patel	Director’s Relative	Interest Expense	16.91
Mrs. Diptiben H Patel	Director’s Relative	Interest Expense	15.62
Ankur D Panchal HUF	Director’s Relative	Interest Expense	9.43
Mr. Krunal D Panchal	Director’s Relative	Interest Expense	0.14
Ankur D Panchal	Director’s Relative	Interest Expense	0.17
Hemant B Patel HUF	Director’s Relative	Interest Expense	37.36
Mrs. Sangitaben Panchal	Director’s Relative	Interest Expense	3.70

EARNING PER SHARE (EPS) (AS-20) :

Basic Earnings Per Share is calculated by dividing the net profit/(loss) for the period attributable to the Equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted Earnings Per Share is calculated by dividing the net profit/(loss) attributable to Equity Share Holders and the weighted average number of shares outstanding to the effect of all dilutive potential equity shares. (viz: Conversion of unissued share capital into Equity Share Capital etc. is also recognized.)



TAXES ON INCOME (AS-22):

Deferred Tax according to AS 22 is the Tax effect of timing differences. Timing differences are the differences between taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods.

The Company has provided for Deferred Tax Pursuant to Accounting Standard 22 being “Accounting for Tax on Income” issued by ICAI. According to the said Standard the Deferred Tax of current year is debited to Profit and Loss Account.



(12)  PROVISIONS, CONTIGENT LIABILITIES AND CONTIGENT   ASSETS (AS-29)

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

The company does not have any contingent liability as on the date of Balance Sheet. But the Company has given following bank guarantee against loan taken by others from Banks and Financial Institutions and hence the question of terms and conditions brjudicial to the interest of the company does not arise. The details are as under:-

Company has given a corporate guarantee in favour of M/s. Sarthak Enterprise for Rs.2.25 crore to Union Bank of India as a security for loans obtained by the said company

Contingent Assets are neither recognized nor disclosed in the financial statements


(13)  OTHER ACCOUNTING STANDARD:

As there are no transaction relating to AS-5, AS-7, AS14, AS-19, AS-23 & AS-26 respectively, separate comments are not given for the same.

EMPLOYEE BENEFITS (AS-15):

The company has not opted for Defined Contribution Plan. Therefore, recognition of contribution to such plan is not required.
Termination Benefits are recognized as and when incurred.