GHAR O BAR HOSPITALITY PRIVATE LIMITED

CIN No: U55101DL2019PTC348049

NOTES TO AND FORMING PART OF BALANCE SHEET AS AT 31 ST MARCH 2020

Note: 1 Company Overview

GHAR O BAR HOSPITALITY PRIVATE LIMITED (the Company) was incorporated on 30th March, 2019
as a Private Limited Company under the Indian Companies Act, 2013. The Company is engaged in
the business of providing hospitality services and restaurant.

Note: 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 Standards specified
under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts)
Rules, 2014 and the relevant provisions of the Companies Act, 2013. 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 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. Although these estimates are based upon management’s best
knowledge of current events and actions, actual results could differ from these estimates.

c. Revenue Recognition

The Company follows the mercantile system of accounting and recognized income on accrual
basis except in case of significant uncertainties. 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.

d. Fixed Assets and Depreciation

i. Fixed Assets

Fixed assets are stated at cost of acquisition or construction, net of impairment loss if any, less
accumulated depreciation/amortization. The Company capitalizes all costs including duties and
taxes relating to the acquisition and installation of fixed assets. Assessment of indication of
impairment of an asset is made at the year end and impairment loss, if any, recognized. During
the year company has purchased some old fixed Assets on scrap value.
 ii. Depreciation

The Depreciation on fixed assets is provided from the date of installation/ acquisition on a pro-
rata basis using the written down value method in the manner and at the periods specified in
Schedule II of the Companies Act, 2013.

e. Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of
impairment based on internal /external factors. An asset is treated as impaired when the carrying
cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss
account in the year in which an asset is identified as impaired. The impairment loss recognized in
prior accounting period is reversed if there has been a change in the estimate of recoverable
amount. After impairment, depreciation is provided on the revised carrying amount of the asset
over its remaining useful life.

f. Expenditure

All expenditures are accounted on accrual basis.

g. Income Tax

i. Current Tax

Provision for Current Tax is made on the basis of estimated taxable income for the current
accounting period and in accordance with the provisions as per Income Tax Act, 1961.

ii. Deferred Tax

Deferred tax for timing difference between the book and tax profits for the year is accounted
for, using the tax rates and laws that have been enacted or substantively enacted as on the
balance sheet date.

Deferred tax assets arising from temporary timing differences are recognized 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. Transactions in Foreign Currency

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign
currency amount the exchange rate between the reporting currency and the foreign currency at
the date of transaction.
 Conversion

Foreign currency monetary items are reported using the closing rate.

Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting company’s

monetary items at rates different from those at which they were initially recorded during the year,
or reported in previous financial statements, are recognized as income or as expenses in the year
in which they arise.

i. Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to
equity shareholders by weighted average number of equity share outstanding during the period.

j. Preliminary Expenses

These are written off in first year of commencement of business.

k. Contingent Liabilities & Provisions

In terms of the requirement of the Accounting Standard - 29 (AS-29) “Provisions, Contingent

Liabilities and Contingent Assets” prescribed by Companies (Accounting Standards) Rules, 2006:

i. Where as a result of past events, there is a present obligation that probably requires an
outflow of resources and a reliable estimate can be made of the amount of obligation – an
appropriate provision is created and disclosed.

ii. Where as a result of past events, there is a possible obligation that may, but probably will
not require an outflow of resources – no provision is recognized but appropriate disclosure
made as contingent liability unless the possibility of outflow is remote.

l. Earning Per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted
average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the profit / (loss) after as adjusted for dividend, interest and other charges
to expense or income relating to the dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share and the weighted
average number of equity shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share from continuing ordinary
operations. Potential dilutive equity shares are deemed to be converted as at the beginning of
the period, unless they have been issued at a later date. The dilutive potential equity shares are
adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential equity shares are
determined independently for each period presented. The number of equity shares and
potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus
shares, as appropriate.