PROJECT PEACOCK DISTILLERIES PRIVATE LIMITED
Notes forming part of the financial statements for the Year ended March 31, 2025
Note 1: Significant Accounting Policies
A. Basis of Accounting
These financial statements have been prepared to comply with the Generally accepted Accounting Principles in India
(Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.
The financial statements are prepared on accrual basis under the historical cost convention.
B. Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires that management make judgements,
estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on
the date of the financial statements and the reported amount of revenues and expenses during the reported period.
Difference between the actual results and estimates are recognised in the period in which the results are known /
materialized.
C. Property, Plant and Equipments
Tangible Assets
Property, Plant and Equipments are carried at historical cost less depreciation and impairement loss, if any. The cost of
Property, Plant and Equipments includes interest on borrowings attributable to acquisition of qualifying assets up to the
date the asset is ready for its intended use and other incidental expenses incurred upto that date.
Subsequent expenditures relating to fixed asset is capitalised only if such expenditure results in an increase in the
future benefits from such asset beyond the previously assessed standard of performannce.
D. Investments
Current investments are carried at lower of cost and market value. Non-current investments are stated at cost. Provision
for diminution in the value of Non current investment is made only if such a decline is other than temporary.
E. Retirement Benefit
Employee benefits are provided in the books as per AS-15 (revised) in the following manner:
(i) Retirement benefit in form of provident fund scheme whether in pursuance of any law or otherwise is accounted on
accrual basis and charged to profit and loss account.
(ii) Gratuity:
Provisions for payment to the Employees Gratuity, is based on actuarial valuation carried out at the close of the year.
Company has obtained Gratuity Policy from LIC.
(iii) Provision for Leave Encashment is not made. However, in the opinion of the management leave encashment
liability, if any, will not be material.
F. Provision for Current and Defered tax
Income Tax is accounted with Accounting Standard 22 on Accounting for Taxes on Income. Taxes Comprises both
current and deffered tax.
Current tax is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the
applicable tax rates and tax laws.
The tax effect of the timing differences that result between taxable income and accounting income are capable of
reversal in one or more subsequent periods are recorded as deferred tax assets or deferred tax [Link] are
measured using the substantively enacted tax rates and tax [Link] carrying amount of deferred tax assets at
each balance sheet date is reduced to the extent that it is no longer reasonably certain that sufficient future taxable
income will be available against which the deferred tax asset can be realized.
G. Provision, contingent Liabilities and Contingent Assets
Provisions:
Provisions where measurement requires a substantial degree of estimation, are recognised in the books, only in the
event of present obligation arising from past events, the settlement of which is expected to result in an outflow of
resources, embodying economic benefits.
Contingent Liabilities:
Contingent Liabilities, where existence will be confirmed either by the occurrence or the non-occurrence of one or more
uncertain future events, are not recognised in the books of the company, but are disclosed by way of a note to the
Balance Sheet. Contingent Liabilities are periodically assessed by the management, and provision is made in the books
where it becomes probable that an outflow of Future Economic Benefits will be required for an item previously dealt with,
as a contingent liability, in the period in which there is a change in probability.
Contingent Assets :
Contingent Assets are neither recognised in the books of accounts nor disclosed in any manner in the financial
statement.
H. Cash and Cash Equivalents
Cash and cash equivalents comprise cash and cash on deposit with banks. The company considers all highly liquid
investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to
known amounts of cash to be cash equivalents.
I. Revenue Recognition
Revenue from service is recognised based on certain measurable criteria as per relevent agreements. In some case
where there is no agreement, revenue is booked when the services are rendered.
J. Prior Period Items and Extraordinary and Exceptional Items :
Income or expenses that arise due to error of omission to record them in the period of incurrence are classified as prior
period items. A separate disclosure along with the nature and amount is made in the financial statement. Income or
expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the company are
classified as extraordinary items. Specific disclosure of such events/transactions is made in the financial statement.
Similarly, any external event beyond the control of the company, significantly impacting income or expense, is also
treated as extraordinary item and disclosed as such.
K. Audit Trail
The Company has used accounting software for maintaining its books of accounts for the financial year ended 31st
March, 2025 which has feature of recording audit trail (edit log) facility and the same was not enabled during the year
L. Earning per share
The Company reports Earning Per Share(EPS) in accordance with Accounting Standard 20 on Earning Per Share.
Basic EPS is computed by dividing the net profit for the year by the weighted average number of Equity shares
outstanding during the year.