DANDAGHAR KRISHI FIRM

Income Year: 2078-79

Annex - 1
Detail of Other Income
As per Income Non taxable Taxable
Particulars
Statement income Income
Dividend Income - - -
Interest Income - - -
Gain on Sale of Shares 7,279,649.15 - 7,279,649.15
Balances written back - -
Total 7,279,649.150 - 7,279,649.150

Annex - 2
Detail of Interest Expenses Deductible u/s 14 of Income Tax Act, 2058
As per Income Inadmissible Admissible
Particulars
Statement Expenses Expenses
Interest 3,802,143.88 3,802,143.88 -
Total 3,802,143.88 3,802,143.88 -

Annex - 3
Detail of exchange Expenses Deductible u/s 24(4) of Income Tax Act, 2058
As per Income Inadmissible Admissible
Particulars
Statement Expenses Expenses/(Income)
Foreign Exchange (Gain)/Loss (1,488,665.89) (1,488,665.89) -
Total (1,488,665.89) (1,488,665.89) -
 DANDAGHAR KRISHI FIRM
Income Year: 2078-79

Annex - 4
Calculation of Cost of Sales/ Direct Expenses deductible u/s 15 of Income Tax Act, 2058
As per Income Admissible Inadmissible Admissible under
Particulars Remarks
Statement Amount Amount other section

Not Applicable

Total - - - -
Annex - 5
Other Deductible Expenses

Particulars As per Income Admissible Inadmissible Admissible under Remarks

Statement Amount Amount other section
Cost of Sales/Operational Cost:
- - - -
- - - -
- - -
Staff Expenses
Staff Welfare - (191,480.00) 191,480.00
Staff Salary, allowance & other benefits - - -
Leave Encashments - - -
Staff Training Expenses - -
Other Administrative Expenses
Audit Fee - - -
Advertisement Expense - - -
Bank Charge - - -
Consultancy Fee (240,000.00) (240,000.00) -
Electricity and Utility Expenses - - -
Fine and Penalty Expenses - - -
Fuel - - -
Guest Entertainment - - -
Insurance Expenses - - -
Legal Expenses 240,000.00 240,000.00 -
Local Conveyance - - -
Parking Expenses - - -
Office Cleaning Expenses - - -
Office Expenses - - -
Office Rent (10,800,000.00) - (10,800,000.00)
Postage and Courier - - -
Printing & Stationary - - -
Processing Fee - - - -
Referral Bonus - - - -
Repair and Maintenance - Block A - - - - Sec 16
Repair and Maintenance - Block B - - - - Sec 16
Repair and Maintenance - Block C - - - - Sec 16
Telephone, Communication & Internet - - - -
Travelling Expenses - - -
Server Maintenance Charge - - -
Software Fee - - -
Water Expenses - - -
Depreciation & Amortisation Expenses 15,609,930.36 - - 15,609,930.36 Sec 19
CSR Expenses 1,546.94 - 1,546.94
Total 4,811,477.30 (191,480.00) (10,606,973.06) 15,609,930.36
Selling and Distribution Expenses
-
Total - - - -
 - -
Grand Total 4,811,477.30 (191,480.00) (10,606,973.06) 15,609,930.36
 DANDAGHAR KRISHI FIRM
Income Year: 2078-79
Annex 6
Calculation of Repair & Improvement Cost Deductible as per Sec. 16 of Income Tax Act, 2058

Capitalized Under
Actual Depreciation Admissible 7%
Block Admissible Expenes Respective Pool of Remarks
Expenses Basis Expenses
Assets
A - 5,731,989.25 401,239.25 - -
B - 18,629,637.88 1,304,074.65 - -
C - 18,342,475.22 1,283,973.27 - -
D - - - - -
- 42,704,102.35 2,989,287.17 - -
 DANDAGHAR KRISHI FIRM
Income Year: 2078-79
Depreciation as per Income Tax Act
Annex 6
Block A B C D E
Rate of Depreciation 5% 25% 20% 15% 20%

Office Equipuipment, Intangible

Particulars Building Vehicles Plant & Machinery Total
Computers & Furnitures Assets

Opening Block 5,731,989.25 13,056,091.97 18,342,475.22 - 442,520.00 37,573,076.44

Addition upto Poush 3,870,050.87 - - 3,870,050.87
Depreciable Assets 100% - 3,870,050.87 - - 3,870,050.87
Addition from Magh to Chaitra 1,262,496.78 - - 1,262,496.78
Depreciable Assets 2/3 - 841,664.52 - - 841,664.52
Addition from Baishak to Ashadh 2,585,491.55 - 29,000.00 2,614,491.55
Depreciable Assets 1/3 - 861,830.52 - - 861,830.52
Sales - - - -
Depreciation Base 5,731,989.25 18,629,637.88 18,342,475.22 - 442,520.00 43,146,622.35
Depreciation 286,599.00 4,657,409.00 3,668,495.00 - 88,504.00 8,701,007.00
Total Depreciation amount 286,599.00 4,657,409.00 3,668,495.00 - 88,504.00 8,701,007.00
WDV 5,445,390.25 13,972,228.88 14,673,980.22 - 354,016.00 34,445,615.35
Exp. Capitalised - - - - - -
Balance assets which was not - 2,144,493.29 - - 29,000.00 2,173,493.29
depreciated (Unabsorbed Addition)

Closing Block 5,445,390.25 16,116,722.17 14,673,980.22 - 383,016.00 36,619,108.64

Existence of Assets No Yes Yes Yes Yes
 Form-Income Tax-D-15-02-03-64
Annexure: 5
Calculation of Business Income as per Income Tax Act, 2058

Income Year : 2078.079

R Assessment of Tax (U/S - 99)

Pan Number
Name: DANDAGHAR KRISHI FIRM Amount (Rs.)
INCLUSIONS
1 Service Fees (Section 7.2.a) -
2 Amounts derived from the Disposal of Trading Stock (Section 7.2.b) -
3 Net Gains from the Disposal of the Person’s Business Assets or Liabilities (Section 7.2.c) -
4 Amounts treated as derived from the depreciable Assets (Section 7.2.d) -
5 Gifts received by the Person in Respect to the Business (Section 7.2.e) -
6 Amounts derived as Consideration for accepting a Restriction on the Capacity to conduct the Business (S. 7.2.f) -
7 Amounts derived from Investments that are effectively connected with the Business (Section 7.2.g) -
8 Amounts to be included by Reason of Change in the Accounting System (Section 22.6) -
9 Amounts to be included by Reason of Timing (Section 24.3) -
10 Excess Amount received by Reason of Exchange Rate (Section24.4) -
11 Recovered Amount of bad Debts deducted earlier (Section 25.1) -
12 Amounts to be included as per Contract of Completion Basis in the Case of a long term Contract (Section 25.1) -
13 Difference of actual Interest and Interest as per Market Rate in Case of a Soft Loan (Section 25.1.d) -
14 Amounts paid to third Person instead of actual Payee (Section 29) -
15 Amounts derived as Compensation (Section 31) -
16 Other Amounts to be included in Profit and Gains (details attached) -
17 TOTAL of Rows 1 to 16 -
DEDUCTIBLE EXPENSES INCURRED IN THAT YEAR TO EARN THE INCOME FROM BUSINESS
18 Interest (Section 14) -
19 Cost of trading Stock (Section 15) -
20 Repairs and Improvements (Section 16) -
21 Pollution Control (Section 17)
22 Research and Development (Section 18)
23 Depreciation (Section 19) 8,701,007.00
24 Deductible Reserve (Section 59.1)
25 Other Deductible Expenses as per Income Tax Act, 2058 (Detail to be enclosed) (191,480.00)
26 Tax Paid in Foreign Contries (Section 71.4)
27 TOTAL of Rows 18 to 25 8,509,527.00
DEDUCTIBLE LOSSES
28 Losses transferred from other Business in this Year -
29 Carried forward of unrelieved Losses from previous Years -
30 TOTAL of Rows 27 to 28 -

31 TOTAL DEDUCTIONS (add row 26 and row 29) 8,509,527.00

32 INCOME OR LOSS FROM THE BUSINESS (subtract row 30 from row 17) (8,509,527.00)
33 LOSS TRANSFERRED TO OTHER BUSINESSES (only if row 31 is less than 0) -
34 INCOME OR LOSS FROM THE BUSINESS (add row 32 to row 31) (8,509,527.00)
 Form-Income Tax-D-15-02-03-64
Annexure: 5
Calculation of Business Income as per Income Tax Act, 2058

Income Year : 2078.079

R Assessment of Tax (U/S - 99)

Pan Number 600323806

Name: DANDAGHAR KRISHI FIRM Amount (Rs.)
INCLUSIONS
1 Service Fees (Section 7.2.a)
2 Amounts derived from the Disposal of Trading Stock (Section 7.2.b)
3 Net Gains from the Disposal of the Person’s Business Assets or Liabilities (Section 7.2.c) -
4 Amounts treated as derived from the depreciable Assets (Section 7.2.d) -
5 Gifts received by the Person in Respect to the Business (Section 7.2.e) -
6 Amounts derived as Consideration for accepting a Restriction on the Capacity to conduct the Business (S. 7.2.f) -
7 Amounts derived from Investments that are effectively connected with the Business (Section 7.2.g) -
8 Amounts to be included by Reason of Change in the Accounting System (Section 22.6) -
9 Amounts to be included by Reason of Timing (Section 24.3) -
10 Excess Amount received by Reason of Exchange Rate (Section24.4)
11 Recovered Amount of bad Debts deducted earlier (Section 25.1) -
12 Amounts to be included as per Contract of Completion Basis in the Case of a long term Contract (Section 25.1) -
13 Difference of actual Interest and Interest as per Market Rate in Case of a Soft Loan (Section 25.1.d) -
14 Amounts paid to third Person instead of actual Payee (Section 29) -
15 Amounts derived as Compensation (Section 31) -
16 Other Amounts to be included in Profit and Gains (details attached) 7,279,649.15
17 TOTAL of Rows 1 to 16 7,279,649.15
DEDUCTIBLE EXPENSES INCURRED IN THAT YEAR TO EARN THE INCOME FROM BUSINESS
18 Interest (Section 14)
19 Cost of trading Stock (Section 15)
20 Repairs and Improvements (Section 16)
21 Pollution Control (Section 17)
22 Research and Development (Section 18)
23 Depreciation (Section 19)
24 Deductible Reserve (Section 59.1)
25 Other Deductible Expenses as per Income Tax Act, 2058 (Detail to be enclosed)
26 Tax Paid in Foreign Contries (Section 71.4)
27 TOTAL of Rows 18 to 25 -
DEDUCTIBLE LOSSES
28 Losses transferred from other Business in this Year -
29 Carried forward of unrelieved Losses from previous Years -
30 TOTAL of Rows 27 to 28 -

31 TOTAL DEDUCTIONS (add row 26 and row 29) -

32 INCOME OR LOSS FROM THE BUSINESS (subtract row 30 from row 17) 7,279,649.15
33 LOSS TRANSFERRED TO OTHER BUSINESSES (only if row 31 is less than 0) -
34 INCOME OR LOSS FROM THE BUSINESS (add row 32 to row 31) 7,279,649.15
 Form-Income Tax-C-01-03-01-064
Income Statement
Annexure - 10
Tax Payment Details

Income Year : 2078.079 Tax Office : Putalisadak

1 Taxpayer's Information

PAN Number 0
Name DANDAGHAR KRISHI FIRM

2 Tax Payment Details

SN Code Voucher Deposit Date Bank Whitholder Name PAN No Type Amount
Number
Opening Balance -
1st Installment 25,000,000.00
2nd Installment 17,000,000.00
3rd Installment 13,500,000.00
Withholdee Tax 1,274,958.91

Total 56,774,958.91
Signature of Taxpayer / Representative & Date
Signature of Auditor & Date
 Income Tax Return
Annexure 13
(Sales and Purchase Detail)

Income Year : 2078.079 Tax Office : Putalisadak

1 Taxpayer Details

PAN No. 0
Name DANDAGHAR KRISHI FIRM

2 Financial Details

S.No. Particulars Amount

1 Paid up Capital 1,500,000.00
2 Profit upto Previous Year 193,003,467.16
3 Current Year Profit (389,988.43)
4 Distributed Profit (190,000,000.00)
5 Reserves
6 Provisions
7 Deferred Tax Liabilities -
8 Long Term and Mid Term Loans -
9 Current Liabilities 9,848,202.29
10 Non Depreciable Assets (Land) -
11 Depreciable Assets 33,726,057.68
12 Investments 4,371,701.00
13 Current Assets (Trading Stock)
14 Current Assets (Loans and Advances) 1,912,748.07
15 Other Current Assets 58,698,613.67
16 Sales -
17 Cost of Trading Stock -
18 Gross Profit -
19 Other Incomes 8,768,315.04
20 Total Income 8,768,315.04
21 Staff Expenses -
22 Office Operating Expenses -
23 Other Expenses (10,798,453.06)
24 Profit before Depreciation and Interest 19,566,768.10
25 Provision Expenses -
26 Depreciation 15,609,930.36
27 Interest Expenses 3,802,143.88
28 Profit Before Tax 154,693.86
29 Tax Expenses
30 Current Year Tax 1,819,912.29
31 Deferred Tax (+/-) 1,275,230.00
32 Profit After Tax (389,988.43)
 3 Details of Sales/Purchase/Debtors/(Creditors) Less than Rs. 1 Lac

Opening Balance: (14,027.19) Others Service Purchase: 481,705.60

Capital Service Purchase: 29,000.00 Others Good Purchase: 631,420.51
Capital Good Purchase: 123,757.30 Good Sales:
Service Sales: - Closing Balance: (96,378.81)

Sales amount not included in S.No. 1 and 2 of Annex 5 (To be Deducted):

4 Detail of Sales/ Purchases/ Debtors/ (Creditors) more than Rs. 1 Lac:

Service
Opening Others Service Capital Good Others Good Goods Closing
PAN No. Particulars Purchase Service Sales
Balance Purchase Purchase Purchase Sales Balance
Capital

300369399 ABC Securties Pvt Ltd 3703312.98 650.00 16,901,287.02

603564761 Apple World Mobile Pvt Ltd 168,141.59

Black Roc Inc 8,367,372.31 -
Bombardier Recreational Products Inc 4,839,604.38
Lightning Source -5226852.32 46,667,181.97
Localiza Rent A Car S/A 600,091.81
Builderadius, INC 4,955,365.42

302816804 Chaya Devi Complex Pvt Ltd 125,590.00 (27,000.00)

Clavis Technology Ltd 146,875.00

606897288 Destino Travels & Tours Nepal P Ltd 189,390.00

606796086 Display Ideas Pvt Ltd 650,800.00 (64,430.00)

610627334 Eat Fit 20,081,756.45

610220087 Eat Fit Pvt Ltd 225,000.00

Edge by Ascetial LLC 381,592.91

606580391 Entrepreneurs Organization Nepal 313,603,037.86

302167869 Evolution Trading P(LTD) 41,938,003.93 (18,171,580.38)

Flywheel Digital 238,938.05 (133,415.93)
609513189 Genese Solution Pvt.Ltd. 450,000.00

600109529 Green Suppliers 1,210,715.00

HIDCL -147910.57 620,701.27 (120,288.43)
303731757 Home Automation Nepal Pvt Ltd 11,000.00 1,293,805.24 (1,000.00)
601871816 KTM Facility Management Services Pvt Ltd 6,108,651.73

300160132 Lalit Trading Company 3,610,734.45 -

301906010 Lumbini General Insurance Ltd 472,020.00

301553397 Mac Support Pvt Ltd 610,619.16

301586443 Neoteric Nepal Pvt Ltd 237,168.16

600521311 Neupane Law Associates 240,000.00

Ocean Insight Gmbh 1,223,128.58

304924389 One Globe Tours & Travels Pvt Ltd 439,076.00

121645049 Paras Thapa 900,000.00

304378375 Parth International Pvt.Ltd. 616,308.37 2,500.00

122894426 PK International 2,499,114.28 112,460.15 (627,500.00)

300012741 Pokhara Grande Pvt Ltd 465,118.17

601875911 Powermax Technology Solution Pvt Ltd 380,530.97

Quid INC 3,026,336.51

300048719 Radisson Hotel 165,294.00 100,000.00

607492374 Red Mars Enterprises 175,274.35 (5,875.00)
304379259 Rigo Technology Pvt.Ltd. 210,000.00
Roku INC 296,208.00

604265906 Shangrila Motors Pvt.Ltd. 137,991.70

300043875 Shraman Apparels 140,900.00 (19,735.50)

603700947 Shrestha Ply 343,170.00

302148480 Siddhartha Insurance Limited. 192,312.46

Snap Business 1,061,277.19
Stanford India Pvt Ltd 594,291.03
Step Learning (134,107.37) 135,400.68

500086364 Subisu Cablenet Ltd (204,268.00) 288,000.00 -

303738237 Telenet Pvt.Ltd. 12,746,763.56 (220,012.66)
300058143 Triveni Byapaar Company Pvt.Ltd. 1,411,426.00 (794,911.38)
301635046 Twenty First Nepal P Ltd (207,500.00) (207,500.00)
500176676 Universal Tours Travels Pvt Ltd 10,800,000.00

500176676 UTT- Ticketing 362,932.00

603581382 Venus Enterprises & Water Proofing 240,912.79

Vericred 21,226,475.93
Web Geo Services 274,443.75

300073250 World Link Commmunication Ltd -227368.00 270,166.59

- 73,405,867.55 7,598,706.68 1,225,755.99 452,242,861.55 - (19,082,534.28)

5 Certification
Signature of Taxpayer or Representative and Date
Auditors' Signature and Date
 Annexure 13 Contd.
6 Detail of Salaries & Wages Expenses (For Entities whose Annual Payment of Salary & Wages is in excess of Rs. 1 Crore)

Sr No. Month Wages & Salaries Administrative and Total Salary & Wages Remuneration Total TDS deducted
included in Cost of Selling & Distribution Tax Deposited on Total Payments
Sales Salaries (Including Amount
Wages)

1 Shrawan - 3,645,586.00 3,645,586.00 448,687.00 448,687.00

2 Bhadra - 5,657,884.00 5,657,884.00 699,919.00 699,919.00
3 Aswin - 4,758,641.00 4,758,641.00 727,442.00 727,442.00
4 Kartik - 4,949,038.00 4,949,038.00 731,554.00 731,554.00
5 Mansir - 5,163,168.00 5,163,168.00 650,323.00 650,323.00
6 Poush - 5,109,343.00 5,109,343.00 721,351.00 721,351.00
7 Magh - 4,892,147.00 4,892,147.00 702,495.00 702,495.00
8 Falgun - 4,793,412.00 4,793,412.00 630,378.00 630,378.00
9 Chaitra - 4,917,645.00 4,917,645.00 542,005.00 542,005.00
10 Baisakh - 4,636,023.00 4,636,023.00 508,134.00 508,134.00
11 Jestha - 5,065,214.00 5,065,214.00 521,707.00 521,707.00
12 Asadh - 5,132,633.00 5,132,633.00 479,625.80 479,625.80
Total - 58,720,734.00 58,720,734.00 7,363,620.80 7,363,620.80
 Form-Income Tax-D-11-02-03-64
Income Statement
Annexure - 2
Calculation of Tax (For Entity)

Income Year : 2078.079 Tax Office : Putalisadak

R Assessment of Tax (U/S - 99)

1 Taxpayer's Information

PAN Number
Name DANDAGHAR KRISHI FIRM

2 Income Tax Calculation

1 2 3 4 5 6 7 8 9 10 11 12 13 14
Type of Income Type of Tax Conuntry of Inclusions Deductible Profit / (Loss) Assessable Income Type of Exemption Assessable Donation Taxable Income Rate of Total Tax on
Source Amount Exemption Amount Income (7-9) u/s 12 (10-11) Tax % Taxable Profit

1 Normal Business A2-1 Nepal - 8,509,527.00 (8,509,527.00) - - - - 20% -

2 Investment Nepal 7,279,649.15 - 7,279,649.15 7,279,649.15 7,279,649.15 - 7,279,649.15 25% 1,819,912.29
Total 7,279,649.15 8,509,527.00 (1,229,877.85) 7,279,649.15 - 7,279,649.15 1,819,912.29

3 Certification if Submitted By Taxpayer Total Tax Liability 1,819,912.29

Date Fees & Interest U/S 117 -
Signature of Taxpayer or Representative
Fees on Lesser Payment U/S 118 -
Date Fees & Interest U/S 119 -
Signature of Auditor
Net Payable Tax 1,819,912.29
Fees & Interest calculated as on
Name: DANDAGHAR KRISHI FIRM
Subject: Auditors' Report & Annual Accounts for the F/Y 2078-79
As at: 32nd Ashad 2079 (16th July 2022)
Period: From Shrawan 01, 2078 to Asadh 32, 2079 (July 16, 2021 to July 16, 2022)

A.B.C. & Associates

(Chartered Accountants)
 XYZ78-79
16-Jul-2021 to 16-Jul-2022
Particulars Opening Transactions
Balance Debit
Capital Account
Reserves & Surplus
Share Capital
Loans (Liability)
SCB Loan (Mazda)
Standard Chartered Bank(Term Loan)
Current Liabilities
Duties & Taxes
Tds Payable
TDS Expenses
Tds On Advertisement
Tds on Audit Fee
Tds on Cleaning
TDS on Consultancy
TDS on Internet
Tds on Leave Encashment
Tds on Lunch
TDS on Machinery Rent
TDS On Office Rent
Tds on Refferal Bonus
TDS on Salary
TDS on Salary& Incentive 2077.78
Tds on Server Maintenance
Tds on Staff Training Exps
TDS on Wages
TDS Payable on Incentive
Dividend Tax
Reverse VAT
Social Security Tax
Value Added Tax
Provisions
Deffered Tax Liability
Provision for Income Tax
Sundry Creditors
Aakash Foods
ABC Securties Pvt Ltd
Akash Light
Apple World Mobile Pvt Ltd
Avish Acharya
Brand Boy Networks Pvt Ltd
B to B Hospitality Pvt.Ltd.
Chandragiri Hills Pvt Ltd
Chaya Devi Complex Pvt Ltd
CNC Pvt Ltd
Delight Houseware Pvt Ltd
Destino Travels & Tours Nepal P Ltd
Display Ideas Pvt Ltd
Doctors on Call
Eat Fit
Eat Fit Pvt Ltd
Electric Light Solution
 Entrepreneurs Organization Nepal
Evolution Trading P(LTD)
Express Eats Pvt Ltd
False Ceiling House and More Pvt Ltd
First Link Pvt Ltd
Genese Solution Pvt.Ltd.
G G Corporation Pvt Ltd
Global Trade Solutions and Suppliers Pvt Ltd
Gokarna Forest Resort
Greeland Auto Enterprises
Green Suppliers
Helpful Vehicle Service (P) Ltd
HIDCL
Home Automation Nepal Pvt Ltd
Incewell Venture
Jagarnath International
Kayo Creative
KTM Facility Management Services Pvt Ltd
Lalit Trading Company
Lekha Sahayatri Pvt Ltd
LGI-Claim
Lumbini General Insurance Ltd
Maas Planet IT Traders
Mac Support Pvt Ltd
Mahalaxmi Furnishing
Merojob Dot Com Private Limited
Mochanery Pvt Ltd
MSP Trading
My Space Pvt Ltd
Neoteric Nepal Pvt Ltd
Nepal Hospitality & Hotel Pvt Ltd
Nepal Vending Pvt.Ltd.
Neupane Law Associates
Nikki Diva Store
Oliz Store Pvt.Ltd.
One Globe Tours & Travels Pvt Ltd
Paramount Motors Pvt Ltd
Paras Thapa
Park Village Hotel
Parth International Pvt.Ltd.
Perks & Pines Pvt Ltd
Pioneer Business Service Pvt Ltd
PK International
Pokhara Grande Pvt Ltd
Powermax Technology Solution Pvt Ltd
Print Shop
Radisson Hotel
RD Suppliers Pvt Ltd
Red Mars Enterprises
Remax Enterprise Pvt Ltd
Rigo Technology Pvt.Ltd.
Shangrila Motors Pvt.Ltd.
Shraman Apparels
Shrestha Ply
Siddhartha Insurance Limited.
SIL-Claim
Soumya Enterprises
 S.P.G. Marketing Pvt Ltd
SRB Handicraft & Creations Pvt Ltd
Stanford India Pvt Ltd
Step Learning
Subisu Cablenet Pvt Ltd
Sumeez Kitchen
Tech Axis Pvt Ltd
Telenet Pvt.Ltd.
Three S Auto Solution
Triveni Byapaar Company Pvt.Ltd.
Twenty First Nepal P Ltd
Universal Tours Travels Pvt Ltd
Urban Girl Inc. Pvt. Ltd.
UTT- Ticketing
Venus Enterprises & Water Proofing
World Link Commmunication
Other Payables
Staff Payables
Additional SSF
Amit Chaudhary
Cit Payable
CIT Payable2077.78
Dashain Bonus Payable
Incentive Payable 77.78
Leave Encashment Payable
Nibha Shakya
Salary Payable - A/c Transfer
Social Security Fund
SSF 2077-78
Staff Incentive Payable
Staff Salary Payable2077-78
Stipend Payable
Subrat Basnet
Audit Fee Payable
Bijay (Cleaning Service)
Consultancy Fee Payable
Electricty & Utilty Exp. Payable

Fixed Assets
Block 'A'
Construction
Block 'B'
Ac & VRF
Batteries and UPS
Computer & Accessories

Electrical & Fittings

Furniture & Fixture

Other Office Equipment

Vaccum Cleaner
Video Conferencing System
Block 'C'
Vehicles
Block E
Current Assets
Opening Stock
 Deposits (Asset)
Other Deposit
Security Deposit

Security Deposit ( Lalita Bhawan)

Sundry Debtors
Black Rock Inc
Bombardier Recreational Products Inc
Builderadius, INC
Clavis Technology Ltd
Edge by Ascential LLC
Flywheel Digital
Lightning Source
Localiza Rent A Car S/A
Ocean Insight GmbH
Quid INC
Roku INC
Snap Business
Vericred
Web Geo Services
Cash-in-hand
Cash
Petty Cash
Bank Accounts

Advance Income Tax

Fixed Deposit
Prepaid Insurance Expenses
Vat Refund
Sales Accounts
Sales
Share Sales
Purchase Accounts
Shares Purchase
Direct Expenses
DP Fee
Indirect Incomes
Dividend
Interest Income
Misc
SSF liability written back
Indirect Expenses
Advertisement Expenses
Audit Fee
Bank Charge
Coffee Machine Rent
Consultancy Fees
Corona Expenses-Employees
Dashain Allowance
 Electricity and Utility Expenses
Exchange Gain/Loss A/c
Fine and Penalty Expenses
Incentive
Insurance Expenses
Interest on Vehicle Loan
Internet Expenses
Leave Encashment
Local Conveyance
Lunch & Snack
Office Cleaning Expenses
Office Expenses
Office Rent
Parking Expense
Printing & Stationary
Referral Bonus
Registration & Renewals
Repair & Maintenance- Block A
Repair & Maintenance Block B
Salary Expenses
Server Maintenance Charge
Software Fee
Staff Reward & Recognization
Staff Training Expenses
Staff Welfare
Stipend Expenses
Telephone &Communication
Travelling Expenses
Vehicle Repairing & Maintainance- Block C
Vehicle Running Expenses
Water Expenses
Work From Home Reimbursement
Diff. in Opening Balances
Grand Total
 XYZ78-79
16-Jul-2021 to 16-Jul-2022 -
Transactions Closing ``
Credit Balance
Other Equity
Other Equity
Other Equity

Loans
Loans

OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCL
OCA
OCL
DTL
OCL
TP
OCL

OCL

OFL
Provisions

OFL
OCL
OCL
OFL

OFL
OFL
OFL

OFL

PPE

PPE
PPE

PPE
PPE

PPE
PPE
PPE
PPE

PPE
PPE

Stock
OFA

OFA
OFA

Cash & Bank

Cash & Bank

Cash & Bank

Cash & Bank
Cash & Bank
Cash & Bank
Cash & Bank
Cash & Bank
Cash & Bank
Cash & Bank
Cash & Bank
Current tax assets/liabilities
Cash & Bank
OCA
OCA

Revenue from Operations

Sale of Shares

Sale of Shares

Sale of Shares

Other Income
Other Income
Other Income

Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Other Income
Admin Exp
Admin Exp
Admin Exp
Finance Cost
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
Admin Exp
``
504,397.62 504,397.62
Transitional Entry (1-4-2077):

Right-of-use asset 49,041,237.68 49,041,237.68

Reserve (Balancing Figure) 1,234,778.69 1,234,778.69
Lease Liability 50,276,016.37 (50,276,016.37)
(Being opening RoU created for Land & Office Space)

Closing Entry as at 31-3-2078:

Office Space:
Depreciation on RoU 8,654,336.06 8,654,336.06
Right-of-use asset 8,654,336.06 (8,654,336.06)
(Being depreciation on RoU)

Lease Liability 6,275,158.53 6,275,158.53

Interest on Lease Liability 4,524,841.47 4,524,841.47
rent expenses 10,800,000.00 (10,800,000.00)
(Being intallment paid)

Closing Entry as at 31-3-2079:

Office Space:
Depreciation on RoU 8,654,336.06 8,654,336.06
Right-of-use asset 8,654,336.06 (8,654,336.06)
(Being depreciation on RoU)

Lease Liability 6,839,922.79 6,839,922.79

Interest on Lease Liability 3,960,077.21 3,960,077.21
rent expenses 10,800,000.00 (10,800,000.00)
(Being intallment paid) -

Exchange entry
0 7,741.54
0 1,480,924.35
To foreign exchange 1,488,665.89
Transitional Entry (1-4-2077):
New deposit 1,609,921.78 1,609,921.78
lease assets 1,498,121.66 1,498,121.66
Reserve and surplus (408,043.44) (408,043.44)
depossit 2,700,000.00 (2,700,000.00)

Closing Entry as at 31-3-2078:

Office Space:

Deposit 144,892.96 144,892.96

To interest 144,892.96 (144,892.96)

Office Space:
Depreciation on RoU 268,320.30 268,320.30
Right-of-use asset 268,320.30 (268,320.30)
(Being depreciation on RoU)

Closing Entry as at 31-3-2079:

Office Space:

Deposit 157,933.33 157,933.33

To interest 157,933.33 (157,933.33)

Office Space:
Depreciation on RoU 268,320.30 (268,320.30)
Right-of-use asset 268,320.30 268,320.30
(Being depreciation on RoU)
 DANDAGHAR KRISHI FIRM
Banepa, Kavre
STATEMENT OF FINANCIAL POSITION
As at 16th July 2022 (Ashad 32, 2079)
Amount in NPR

Restated
As at As at As at
Particulars Note
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Assets
Non Current Assets
Property, Plant and Equipment 4 33,370,967.68 34,169,003.82 12,019,617.86
Capital Work In Progress 4.1 - - 2,731,158.41
Intangible assets 4.2 355,090.00 442,520.00 -
Right-of-use Assets 4.3 32,694,046.62 41,616,702.98 50,539,359.34
Investment Property 5 4,371,701.00 20,320,044.42 -
Financial Assets -
Other financial assets 6 1,912,748.07 1,754,814.74 1,609,921.78
Deferred tax Assets (Net) 11 2,344,372.00 - -
Total Non Current Assets 75,048,925.37 98,303,085.96 66,900,057.39

Current Assets
Inventories - - -
Financial Assets
Trade receivables 7 - - -
Cash & Cash Equivalents 8 1,488,665.89 153,460,300.21 40,963,940.33
Other financial assets 9 - 26,500.00 38,445.00
Other Current Assets 10 1,311,139.50 12,476,105.00 8,108,213.56
Current Tax Assets (Net) 55,898,808.28 944,019.73 -
Total Current Assets 58,698,613.67 166,906,924.94 49,110,598.89
Total Assets 133,747,539.04 265,210,010.90 116,010,656.28
Equity and Liabilities
Liabilities
Non Current Liabilities
Financial Liabilities
Borrowings 13 - 15,181,894.96 6,804,891.95
Lease Liabilities 14 28,625,419.20 37,160,935.05 44,000,857.84
Other financial liabilities - - -
Deferred tax liabilities (Net) 11 - (1,069,142.00) 4,309.00
Provisions 12 - -
Total Non Current Liabilities 28,625,419.20 51,273,688.01 50,810,058.79

Current Liabilities
Financial Liabilities
Borrowings 13 - - -
Trade payable 15 1,311,139.50 937,881.13 1,548,734.33
Lease Liabilities 16 8,535,515.85 6,839,922.79 6,275,158.53
Other financial liabilities 17 - 7,538,184.75 4,169,306.78
Other Current Liabilities 18 - 10,061,877.53 8,579,544.66
Current Tax Liabilities (Net) 19 - - 12,458,799.39
Provisions 20 1,546.94 824,545.17 -
Total Current Liabilities 9,848,202.29 26,202,411.37 33,031,543.69
Total liabilities 38,473,621.49 77,476,099.38 83,841,602.48

Equity
Share Capital 21 1,500,000.00 1,500,000.00 1,500,000.00
Other Equity 22 (294,469.42) 193,003,467.16 30,919,138.80
Total equity 1,205,530.58 194,503,467.16 32,419,138.80
Total equity and liabilities 39,679,152.07 271,979,566.54 116,260,741.28
The accompanying notes are an integral part of the financial statements.

For and on Behalf of Board As per our report of even date

CA ABC
Director Director Partner
Place: Kathmandu, Nepal A.B.C. & Associates
Date: Chartered Accountants
 DANDAGHAR KRISHI FIRM
Statement of Profit or Loss
As on 16th July 2022 (Ashad 32, 2079)
Amount in NPR
For the year ended For the year ended
Particulars Note
Ashad 32, 2079 Ashad 31, 2078
Revenue From Operations 23 - 321,574,468.50
Operational Cost 24 - -
Gross Profit - 321,574,468.50

Other Income 25 8,768,315.04 2,832,664.49

Selling and Distribution Expenses - -
Administrative & Other Expenses 26 (4,811,477.30) (80,491,591.46)
Operating Profit 3,956,837.74 243,915,541.53

Finance Costs 27 (3,802,143.88) (4,932,711.59)

Profit/(Loss) Before Tax 154,693.86 238,982,829.94

Income Tax Expense 28 (544,682.29) (46,898,501.58)

Profit/(Loss) for the year (389,988.43) 192,084,328.36

Earnings Per Share (EPS)
Basic EPS (Rs) (26.00) 12,805.62
Diluted EPS (Rs) (26.00) 12,805.62

The accompanying notes are an integral part of the financial statements.

For and on Behalf of Board As per our report of even date

CA ABC
Director Director Partner
A.B.C. & Associates
Place: Kathmandu, Nepal Chartered Accountants
Date:
 DANDAGHAR KRISHI FIRM
Statement of Cash Flow
As on 16th July 2022 (Ashad 32, 2079)
Amount in NPR
For the year ended For the year ended
Particulars Note
Ashad 32, 2079 Ashad 31, 2078
A Cash Flow from Operating Activities:
Profit before Income Tax 154,693.86 238,982,829.94
Adjustments for Non Cash Items:
Depreciation & Amortization 15,609,930.36 12,661,385.36
Adjustments for non operating items: -
lnterest Expenses 3,802,143.88 4,932,711.59
Prior period tax - (366,679.10)
Profit on Sale of assets - (668,751.53)
Interest Income (946,922.85)
Change in Fair value of investment (2,907,948.15)
Operating profit before changes to receivables and payables 16,658,819.95 254,594,573.41

(Increase)/Decrease in Trade & Other Receivables 11,191,465.50 (4,355,946.44)

(Decrease)/Increase in Current Liabilities (18,049,802.14) 5,064,902.81
(Increase)/Decrease in Non-Current Assets 15,790,410.09 (144,892.96)
(Decrease)/Increase in Non-Current Liabilities - -
Cash Generated from Operations 25,590,893.40 255,158,636.82
Income Tax Paid (56,774,700.84) (61,008,092.60)
Net Cash Inflow from Operating Activities (31,183,807.44) 194,150,544.22

B Cash Flow from Investing Activities :

Proceeds from disposal of property and equipment -
Purchase of property and equipment and intangible assets (5,801,807.86) (22,930,725.02)
Interest Income - 946,922.85
Change in Investment Disposal/(Addition) - (20,320,044.42)
Investment Income -
Net Cash Used in Investing Activities (5,801,807.86) (42,303,846.59)

C Cash Flow from Financing Activities :

lssue of Share Capital - -
lncrease / (Decrease) in Long Term Loan (15,181,894.96) 8,377,003.01
Principle component of Lease liability (6,839,922.79) (6,275,158.53)
lnterest paid (3,802,143.88) (4,932,711.59)
Dividends paid (190,000,000.00) (30,000,000.00)
Net Cash Flow From Financing Activities (215,823,961.63) (32,830,867.11)

Net Increase in cash & cash equivalents A+B+C (252,809,576.93) 119,015,830.52

Opening Cash & Cash Equivalents 153,460,300.21 40,963,940.33
Closing Cash & Cash Equivalents (99,349,276.72) 159,979,770.85
The accompanying notes are an integral part of the financial statements.

For and on Behalf of Board As per our report of even date

CA ABC
Director Director Partner
A.B.C. & Associates
Place: Kathmandu, Nepal Chartered Accountants
Date:
 DANDAGHAR KRISHI FIRM
Statement of Changes in Equity
As on 16th July 2022 (Ashad 32, 2079)
Amount in NPR

Equity Share Revaluation Retained

Particulars OCI Total
Capital Reserve Earnings

Opening As at Shrawan 1, 2077

At start of year 1,500,000.00 - - 30,919,138.80 32,419,138.80
Fixed Assets NFRS Adjustment - Charged off to Reserve - - - -
Revaluation of Land & Building - -
Deferred Tax Reserves - - - - -
Provision for Gratuity - - - - -
Provision for Leave Encashment - - - - -
Deferred Tax Reserves on Revaluation Reserve - - - - -
NFRS Remeasurement Adjustments - - - - -

Restated Opening As at
Shrawan 1, 2077 1,500,000.00 - - 30,919,138.80 32,419,138.80
Profit for the year - - - 192,084,328.36 192,084,328.36
Earlier Years' Taxes - - - - -
Other comprehensive income - - - - -
Revaluation of Land and Building through OCI - - - -
Deferred Tax Reserves - - - - -
Transfer to retained earnings - - - -
Total comprehensive income for the year 1,500,000.00 - - 223,003,467.16 224,503,467.16
Transactions with owners: - - - -
Dividend declared (Proposed Last Year) - - - (30,000,000.00) (30,000,000.00)
Issue of Share Capital - - - - -
Final Dividend Paid - Ordinary Shares - - - - -
Interim Dividend Paid - Ordinary Shares - - - - -
Balance as at Ashad 31, 2078 1,500,000.00 - - 193,003,467.16 194,503,467.16
For the Year 2078-79
At start of year 1,500,000.00 - - 193,003,467.16 194,503,467.16
Profit for the year - - - (389,988.43) (389,988.43)
Other comprehensive income - - - - -
Change in fair value of financial assets through OCI (2,907,948.15) - - (2,907,948.15)
Deferred Tax Reserves - - - - -
Transfer to retained earnings - - -
Total comprehensive income for the year - - - - -
Transactions with owners: - - - - -
Ordinary Shares Dividend - Final - - - (190,000,000.00) (190,000,000.00)
Ordinary Shares Dividend - Interim - - - - -
Issue of Share Capital - - - - -
Balance as at Ashad 32, 2079 1,500,000.00 (2,907,948.15) - 2,613,478.73 1,205,530.58

The accompanying notes are an integral part of the financial statements.

For and on Behalf of Board As per our report of even date

CA ABC
Director Director Partner
A.B.C. & Associates
Place: Kathmandu, Nepal Chartered Accountants
Date:
 DANDAGHAR KRISHI FIRM
Statement of Other Comprehensive Income
As on 16th July 2022 (Ashad 32, 2079)

For the year ended

Particulars Note
Ashad 32, 2079
Profit for the year (389,988.43)
Other comprehensive income

Items that will not be reclassified to profit or loss

Revaluation of Land and Building -
Net fair value (Losses)/Gains on financial assets
Quoted Promoter Shares -
Quoted Ordinary Shares (2,907,948.15)

Items that are or/may be reclass ified subsequently to profit and Loss

Deferred Tax asset / (liability) on other comprehensive Income -

Total other comprehensive income, net of tax (2,907,948.15)

Total comprehensive income for the Year (3,297,936.58)

The accompanying notes are an integral part of the financial statements.

For and on Behalf of Board As per our report of even date

CA ABC
Director Director Partner
A.B.C. & Associates
Place: Kathmandu, Nepal Chartered Accountants
Date:
ANDAGHAR KRISHI FIRM
ment of Other Comprehensive Income
As on 16th July 2022 (Ashad 32, 2079)
Amount in NPR
For the year ended
Ashad 31, 2078
192,084,328.36

-
-

-
192,084,328.36

As per our report of even date

A.B.C. & Associates

Chartered Accountants
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

1 General Information
XYZ Pvt. Ltd.. (the "company") is a Private Limited Company incorporated under the Company Act, 2063 of Nepal. The
date of incorporation of the company is on ................ vide registration no .......... The Registered Office and the place of
business of the company is at Kathmandu-3, Bagmati, Nepal. The main objective of the company is to provide various IT
and software related services.

2 Basis of Preparation
The financial statements comprise the Statement of Financial Position, Statement of Profit or Loss and Statement
(including Other Comprehensive lncome), the Statement of Changes in Equity, the Statement of Cash Flows and the
Notes to the Accounts.

2.1 Statement of Compliance

The Financial Statements have been prepared in accordance with Nepal Financial Reporting Standards (NFRS) as
published by the Accounting Standards Board (ASB) Nepal and pronounced by The lnstitute of Chartered Accountants of
Nepal (ICAN).The financial statements have been prepared on accrual basis and approved by the Board of Directors on
------------------------.

These policies have been consistently applied to all the years presented except otherwise stated.

2.2 Reporting period and approval of financial statements

The Company has, for the preparation of financial statements, adopted the NFRS pronounced by ASB with effect from FY

2076/077. To comply the NFRS provisions following dates have been considered, in terms of first-time adoption.

Relevant Financial Statement Nepalese Calendar English Calendar

Opening NFRS SFP* date 1 Shrawan 2077 17th July, 2020
Comparative SFP* Date 31st Ashad 2078 15th July, 2021
Comparative reporting period 1 Shrawan 2077 - 31 Ashad 2078 16th July 2020-15th
July 2021
First NFRS SFP* Date 32 Ashad 2079 16th July, 2022
First NFRS reporting period 1 Shrawan 2078 - 32 Ashad 2079 16th July 2021-16th
July 2022
*SFP- Statemenent of Financial Position

2.3 Functional and Presentation Currency

The financial statements are presented in Nepalese Rupees (NPR) which is the Company's functional currency.

2.4 Use of Estimates, Assumptions and Judgements

The Company, under NFRS, has applied accounting policies which appropriately suit its circumstances and operating
environment. Further, the Company has made judgments in respect of items where the choice of specific policy,
accounting estimate or assumption to be followed could materially affect the financial statements. This may later be
determined that a different choice could have been more appropriate.

The accounting policies have been included in the relevant notes for each item of the financial statements and the effect
and nature of the changes, if any, have been disclosed.

The Company has made estimates and assumptions that will affect the assets, liabilities, disclosure of contingent assets
and liabilities, and profit or loss as reported in the financial statements. The Company applies estimates in preparing &
presenting the financial statements and such estimates and underlying assumptions are reviewed periodically. The
revision to accounting estimates are recognized in the period in which the estimates are revised and are applied
prospectively.

Disclosures of the accounting estimates have been included in the relevant sections of the notes wherever the estimates
have been applied along with the nature and effect of changes of accounting estimates, if any.

2.5 Going Concern

The financial statements are prepared on a going concern basis, as the Board of the Company is satisfied that the
Company has the resources to continue in business for the foreseeable future. ln making this assessment, the Board of
Directors have considered a wide range of information relating to present and future conditions, including future
projections of profitability, cash flows and capital resources.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079
2.6 Changes in Accounting Policies
The company has changed its accounting policies, wherever required, to ensure compliance with NFRS. The effect of

change in accounting policy at the date of transition has been given to the retained earnings (and reserves, if applicable).

2.7 Reporting Pronouncements

The Company has, for the preparation of financial statements, adopted the NFRS pronounced by ASB as effective on
September 13, 2013. The NFRS conform, in all material respect, to lnternational Financial Reporting Standards (IFRS) as
issued by the lnternational Accounting Standards Board (IASB).

However, the lnstitute of Chartered Accountants of Nepal (ICAN) vide its notice dated 20 September 2018 has resolved
that Carve-outs in NFRS with alternative treatment and effective period shall be provided to Banks and Financial
lnstitutions regulated by NRB on the specific recommendation of Accounting Standard Board (ASB). ln the same decision
the ASB has outlined that the other entities may also use those carve-outs with necessary disclosures. Accordingly the
company has decided to adopt those carve-outs. Details of carve out provided are as follows:

2.7.1 NAS 39: Financial lnstruments: Recognition and Measurement

a) lmpracticability to determine transaction cost of all previous years which is the part of effective interest rate
ln para 9, The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the
financial asset or financial liability. When calculating the effective interest rate, an entity shall estimate cash flows
considering all contractual terms of the financial instrument (for example, prepayment, call and similar options) but shall
not consider future credit losses. The calculation includes all fees and points paid or received, unless it is immaterial or
impracticable to determine reliably, between parties to the contract that are an integral part of the effective interest rate
(see NAS 18 Revenue), transaction costs and all other premiums or discounts. There is a presumption that the cash flows
and the expected life of a group of similar financial instruments can be estimated reliably. However, in those rare cases
when it is not possible to estimate reliably the cash flows or the expected life of a financial instrument (or group of
financial instruments), the entity shall use the contractual cash flows over the full contractual term of the financial
instrument (or group of financial instruments).

The carve out is optional and has been provided till FY 2080-81. Accordingly, the Company has opted the carve out.

b) NFRS 9 'Financial lnstruments'-Impairment

NFRS 9 'Financial lnstruments' was issued by the ASB in July 2014 and effective internationally for the financials
beginning on or after 1 January 2018. Accounting Standard Board of Nepal endorsed NFRS 9 Financial lnstruments with
some exceptions, mainly in the lmpairment. Currently, lncurred Loss Model as specified in NAS 39 is used. The
requirement of NFRS 9 is Expected Credit Loss Model.

The management is still assessing the potential impact on its financial statements, if Expected Credit Loss (ECL) model is
introduced.

The carve out is optional and has been provided till FY 2080-81. Accordingly, the Company has opted the carve out.

2.8 New Standards in issue but not yet effective

For the reporting of financial instruments, NAS 32 Financial lnstruments, Presentation, NAS 39 Financial lnstruments
Recognition and Measurements and NFRS 7 Financial lnstruments - Disclosures have been applied. NRFS I has been
complied for the classification of Financial lnstruments.A number of new standards and amendments to the existing
standards and interpretations have been issued by IASB after the pronouncements of NFRS with varying effective dates.
Those become applicable when ASB Nepal incorporates them within NFRS.

2.9 Limitation of NFRS lmplementation

Wherever the information is not adequately available, and/or it is impracticable to develop the, such exception to NFRS
implementation has been noted and disclosed in respective sections.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

3 Significant Accounting Policies

3.1 Basis of Measurement

The financial statements have been prepared on historical cost basis except for the following material items in the statement
of financial position:
- Financial assets other than measured at amortized cost are measured at fair value.
- lnventories are measured at cost or net realizable value
whichever is lower

3.2 Presentation - Current versus Non-Gurrent Classification

The Company presents assets and liabilities in statement of financial position based on current/non-current classification.
Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and
cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current
classification of assets and liabilities.

The Company classifies an asset as current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle,
- Held primarily for the purpose of trading,
- Expected to be realized within twelve months after the reporting period, or

All other assets are classified as non-current.

The Company classifies a liability as current when:

- lt is expected to be settled in normal operating cycle,
- lt is held primarily for the purpose of trading ,
- lt is due to be settled within twelve months after the reporting period, or
-There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

3.3 Critical accounting estimates

The preparation of the financial statements in conformity with Nepal Financial Reporting Standards requires the use of
certain critical accounting estimates and judgments. The management has exercised judgments in the process of applying
the Company's accounting policies. The Company makes certain estimates and assumptions regarding the future
events.Estimates and judgments are continuously evaluated based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances. ln the future, actual result may
differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year primarily includes:

a) Recognition of deferred tax assets

Deferred tax assets are recognised for taxable temporary difference to the extent that it is probable that taxable profit will be
available against which the losses can be utilized. Significant management judgment is required to determine the amount of
deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with
future tax planning strategies.

The Company based its assumptions and estimates on parameters available when the financial statements were prepared.

Existlng circumstances and assumptions aboul future developments, however, may change due to market changes or

circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

b) Provision for depreciation and amortisation

Depreciation and amortisation is calculated over the estimated useful lives of the assets. An item of property, plant and

equlpment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits

are expected from its use or disposal. The residual values, useful lives and methods of depreciation of property, plant and

equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

The Company based its assumptions and estimates on parameters available when the financial statements were prepared.

Existing circumstances and assumptions about future developments, however, may change due to market changes or

circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

3.4 Capital management

For the purpose of the Company's capital management, capital includes issued capital and all other equity reserves
attributable to the equity holders of the company. The primary objective of the company's capital management is to
maximize the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the
Company may adjust the dividend payment to shareholders or issue new shares.

3.5 lmpairment of non- financial assets (excluding inventories and deferred tax assets)
Non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their
carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e. the
higher of value in use and fair value less costs to sell), the asset is written down accordingly. The recoverable amount is
determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those
from other assets or groups of assets. When the carrying amount of an asset or Cash generating units exceeds its recoverable
amount, the asset is considered impaired and is written down to its recoverable amount.

An assessment is also done for whether there is any indication that an impairment loss recognized for an asset in prior
accounting periods may no longer exist or may have been decreased. lf any such indication exists the asset's recoverable
amount is estimated. The carrying amounl of the fixed asset is increased to the revised estimate of its recoverable amount
such that the increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognized for the asset in prior years.

lmpairment loss or reversal shall be included in profit or loss if any. The company has no impairment loss/ gain during the
relevant reporting periods.

3.6 Foreign Currency Transactions

Transactions entered into by the Company in a currency other than Nepali Rupees (the currency of primary economic
environment in which it operates) are recorded at the rates ruling when the transactions occur. Exchange differences arising
on foreign currency transactions settled during the year are recognized in the Statement of Profit or Loss. Unsettled foreign
currency monetary assets & liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on
the retranslation of unsettled monetary assets and liabilities are recognized immediately in proflt or loss statement.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

3.7 Lease

The Company as a lessee:

The Company enters into an arrangement for lease of buildings and office equipment. Such arrangements are generally for
a fixed period but may have extension or termination options. In accordance with NFRS 16 – Leases, at inception of the
contract, the Company assesses whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a
contract, that conveys the right to control the use an asset (the underlying asset) for a period of time in exchange for
consideration.

To Assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

- The contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be
physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a
substantive substitution right, then the asset is not identified;
- The Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the
period of use; and

The Company assesses whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period
of use. At inception or on reassessment of a contract that contains a lease component, the Company allocates the
consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the
leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and
account for the lease and non-lease components as a single lease component.

Measurement and recognition of leases as a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is

initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at

or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove

the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses
(unless such right of use assets fulfills the requirements of NAS 40 - Investment Property and is accounted for as there
under), if any and adjusted for any re-measurement of the lease liability. The right-of-use assets is depreciated using the
straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. Right-of-
use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable.
Impairment loss, if any, is recognised in the Statement of profit and loss.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement

date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s

incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:
- fixed payments, including in-substance fixed payments;
- variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
- amounts expected to be payable under a residual
- value guarantee;
the exercise priceand
under a purchase option that the Company is reasonably certain to exercise, lease payments in an
optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early
termination of a lease unless the Company is reasonably certain not to terminate early.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change
in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the
amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it
will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in Statement of profit and
loss if the carrying amount of the right-of-use asset has been reduced to zero, as the case may be.

The Company presents right-of-use assets that do not meet the definition of investment property on the face of balance
sheet below ‘property, plant and equipment’ and lease liabilities under ‘financial liabilities’ in the balance sheet.

The Company has elected not to apply the requirements of NFRS 16-Leases to short-term leases of all assets that have a
lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated
with these leases are recognized as an expense on a straight-line basis over the lease term, unless the payments are
structured to increase in line with the expected general inflation to compensate the lessor’s expected inflationary cost
increases.

The Company as a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating
lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers substantially all of the
risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not,
then it is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease
is for the major part of the economic life of the asset.

The Company recognises lease payments received under operating leases as income on a straight-line basis over the lease
term as part of ‘other income’.

The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease
term unless the payments are structured to increase in line with the expected general inflation to compensate the lessor’s

Majority of lease agreements entered into by the Company have generally an average increment rate of 15% in every two

years, which the management assumes are in line with the lessor's expected inflationary cost increases. Payments and

receipts under such leases are charged or credited to the Statement of Profit and Loss as per the terms of the agreements.

3.8 Revenue Recognition

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, regardless of when the payment is being made. Revenue is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or
duties collected on behalf of the Government.

The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and specific criteria have been met for each of the company’s activities as described
below. The company bases its estimates on historical results, taking into consideration the type of customer, the type of
transaction and the specific of each arrangement.

Revenue is measured at the fair value of the consideration received or receivable net of trade discounts. Revenue include all
revenue from ordinary activities of the company that are recorded excluding Value Added Taxes collected from customers
that are remitted or are to be remitted to the governrnent authorities.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

(a) Sale of Services

Revenue from sale of services is recognized when Service is rendered.

(b) Other Operating Revenues

Other operating income is recognised when when no significant uncertainties as to the amount of consideration that would
be derived and to its ultimate collection exist.

(c) Other Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable
interest rate.
- Balance written back is recognized when the liability no longer exists on the balance sheet date.

3.9 Property, Plant & Equipments:

A) Recognition and Measurement

The cost of an item of property and equipment shall be recognized as an asset, initially recognized at cost, if, and only if:
- it is probable that future economic benefits associated with the item will flow to the entity; and
- the cost of the item can be measured reliably.
Cost includes expenditure that is directly attributable lo the acquisition of the asset. The cost of self-constructed assets
includes the following:
- the cost of materials and direct labor;
- any other costs directly attributable to bringing the assets to a working condition for their intended use;
- when the Company has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and
removing the items and restoring the site on which they are located; and
- Capitalized borrowing costs.

The Company has adopted revaluation model for Land and Building and cost model for remaining class of property and
equipment. Land and Building are measured at restated revalued figure at the date of transition. An annual transfer from
the asset revaluation surplus to retained earnings is made for the difference between depreciation based on the revalued
carrying amount of the asset and depreciation based on the asset’s original cost. Additionally, accumulated depreciation as
at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the
revalued amount of the asset. Upon disposal, any revaluation surplus relating to the particular asset being sold is
transferred to retained earnings. The remaining items of property and equipment are measured at cost less accumulated
depreciation and any accumulated impairment losses.

Purchased software that is integral to the functionality of the related equipment is capitalized as part of that equipment.

Subsequent expenditure is capitalized if it is probable that the future economic benefits from the expenditure will flow to
the Company. Ongoing repairs and maintenance to keep the assets in working condition are expensed as incurred. Any
gain or loss on disposal of an item of property and equipment (calculated as the difference between the net proceeds from
disposal and the carrying amount of the item) is recognized within other income in profit or loss.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

B) Depreciation
Depreciation on assets under construction does not commence until they are complete and available for use. Depreciation is
provided on all other items of property, plant and equipment so as to write-off their depreciable amount over the expected
useful economic lives.

Depreciation is provided on a pro-rata basis on the straight-line method based on the estimated useful life of the assets
determined by management as per application guidance to NAS 16 issued by Accounting Standard Board.

The estimated useful lives of various class of PPE for the current year and comparative years are as follows:

Revised Useful Life Depreciation rate under

CIass of PPE under SLM Method Diminishing Balance
Method (Previous Year)
Furniture and Fixtures 10 Years 25.00%
Computer and lT Equipments 3-6 Years 25.00%
Office Equipment 5-10 Years 25.00%
Vehicles - 4 Wheelers 8 Years 20.00%
Vehicles - 2 Wheelers 10 Years 20.00%
Plant and Machinery 15 Years 10%-20%
Server 6 Years 25.00%

AS Per Earlier GAAP, Depreciation had been charged under Written value Method. However for the FY 2077-78, due to
adoption of NFRS, Depreciation has been charged as per useful life as estimated by management.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate

C) Effect of Change in Depreciation Method in Existing Assets:

During the year, the Company has changed its method of depreciation from the Written Down Method (WDV) into Straight

Line method based on useful life of the assets. Due to change in estimate of useful life of assets, adjustment of previous

years and excess depreciation of F .Y 2077-78 of amount Rs. 6478616.37/-is charged to Statement of Profit or Loss.

D) De-Recognition
An item of property plant and equipment is de-recognised on disposal or when no future economic benefits are expected
from the use of that asset. The gain or loss arising from the disposal of an item of property plant and equipments is the
difference between net disposal proceeds if any, and the carrying amount of that item and is recognised in the statement of
Profit and Loss.

E) Capital Work in Progress

Capital work-in-progress represents expenditure incurred in respect of capital projects not ready for use and are carried at
cost. Cost comprises of purchase cost, related acquisition expenses, development / construction costs, borrowing costs and
other direct expenditures.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

3.10 Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost of acquisition. The cost comprises of
purchase price and directly attributable costs of bringing the assets to its working condition for intended use.

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and
accumulated impairment losses, if any.

The Company’s intangible assets comprises assets with finite useful life which are amortised on a straight-line basis over the
period of their expected useful life

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

The estimated useful lives of Intangible assets for the current year and comparative years are as follows:

Particulars Useful Life

Computer Software 5 years

3.11 Investment property

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the
Company, is classified as investment property. Investment property is measured initially at its cost, including related
transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalised to the asset’s carrying
amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company
and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.
When part of an investment property is replaced, the carrying amount of the replaced part is derecognised.

3.12 Financial Instruments : Financial Assets

Financial Asset is any asset that is:
a) Cash
b) an equity instrument of another entity
c) a contractual right:
i) to receive cash or other financial asset from another entity, or
ii) to exchange financial assets or financial liabilities with another equity under conditions that are potentially favourable
to the entity, or
d) a contract that will or may be settled in the entity's own equity instruments and is:
i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity
instruments, or
ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset
for a fixed number of the entity's own equity instruments.

A) Recognition
All financial assets are initially recognized on the date on which the company becomes a party to the contractual
provisions of the instrument. The classification of financial instruments at the initial recognition depends on their
purpose and characteristics and the management’s intention in acquiring them.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

B) Classification
The financial assets are measured at amortized cost or fair value on the basis of the Company’s business model for
managing the financial assets and the contractual cash flow characteristics of the financial assets.

The two classes of financial assets are as follows:

i) Financial assets measured at amortized cost

Financial asset are measured at amortized cost if both of the following conditions are met:
• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows
and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

ii) Financial asset measured at fair value

Financial assets other than those measured at amortized cost are measured at fair value. Financial assets measured at
fair value are further classified into two categories as below:
a) Financial assets at fair value
through profit
Financial assetsorare
loss
classified as fair value through profit or loss (FVTPL) if they are held for trading or are
(FVTPL)
designated at fair value through profit or loss. Upon initial recognition, transaction cost is directly attributable to
the acquisition are recognized in profit or loss as incurred. Such assets are subsequently measured at fair value
and changes in fair value are recognized in Statement of Profit or Loss.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Investment in an equity instrument that is not held for trading and at the initial recognition, the Company
makes an irrevocable election that the subsequent changes in fair value of the instrument is to be recognized in
other comprehensive income are classified as financial assets at fair value though other comprehensive income.
Such assets are subsequently measured at fair value and changes in fair value are recognized in other
comprehensive income.

C) Measurement
i) Initial Measurement
A financial asset or financial liability is measured initially at fair value plus or minus, for an item not at fair value
through profit or loss, transaction costs that are directly attributable to its acquisition or issue. Transaction cost in
relation to financial assets and liabilities at fair value through profit or loss are recognized in Statement of Profit or
Loss.

ii) Subsequent Measurement

A financial asset or financial liability is subsequently measured either at fair value or at amortized cost based on the
classification of the financial asset or liability. Financial asset or liability classified as measured at amortized cost is
subsequently measured at amortized cost using effective interest rate method.

The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial
liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization
using the effective interest method of any difference between that initial amount and the maturity amount, and minus
any reduction for impairment or uncollectibility.

Financial assets classified at fair value are subsequently measured at fair value. The subsequent changes in fair value of
financial assets at fair value through profit or loss are recognized in Statement of Profit or Loss whereas of financial
assets at fair value through other comprehensive income are recognized in other comprehensive income.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

D) Derecognition
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or
it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of
ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all the
risks and rewards of ownership and it does not retain control of the financial asset.

Any interest in such transferred financial assets that qualify for derecognition that is created or retained by the Company is
recognized as a separate asset or liability. On derecognition of a financial asset, the difference between the carrying amount
of the asset (or the carrying amount allocated to the portion of the asset transferred), and the sum of (i) the consideration
received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had
been recognized in other comprehensive income is recognized in profit or loss.

In transactions in which the Company neither retains nor transfers substantially all the risks and rewards of ownership of a

financial asset and it retains control over the asset, the Company continues to recognize the asset to the extent of its

continuing involvement, determined by the extent to which it is exposed to changes in the value of the transferred asset.

E) Determination of Fair Value

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing

parties in an arm’s length transaction on the measurement date. The fair value of a liability reflects its non-performance risk.

When available, the Company measures the fair value of an instrument using quoted prices in an active market for that
instrument. A market is regarded as active if quoted prices are readily and regularly available and represent actual and
regularly occurring market transactions on an arm's length basis. lf a market for a financial instrument is not active, the
Company establishes fair value using a valuation technique. Valuation techniques include using recent arm's length
transactions between knowledgeable, willing parties (if available), reference to the current fair value of other instruments
that are substantially the same, discounted cash flow analyses.

The best evidence of the fair value of a financial instrument at initial recognition is the transaction price - i.e. the fair value
of the consideration given or received. However, in some cases, the fair value of a financial instrument on initial recognition
may be different to its transaction price. lf such fair value is evidenced by comparison with other observable current market
transactions in the same instrument (without modification) or based on a valuation technique whose variables include only
data from observable markets, then the difference is recognized in profit or loss on initial recognition of the instrument. ln
other cases, the difference is not recognized in profit or loss immediately but is recognized over the life of the instrument on
an appropriate basis or when the instrument is redeemed, transferred or sold, or the fair value becomes observable.

All unquoted equity investments are recorded at cost, considering the non trading of promoter shares up to the date of
balance sheet, the market price of such shares could not be ascertained with certainty. Hence, these investments are
recognized at cost net of impairment, if any.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

F) Impairment
At each reporting date the Company assesses whether there is any indication that an asset may have been impaired. If such
indication exists, the recoverable amount is determined. A financial asset or a group of financial assets is impaired and
impairment losses are incurred if, and only if, there is objective evidence of impairment as a result of one or more events
occurring after the initial recognition of the asset (a loss event), and that loss event (or events) has an impact on the
estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.

The Company considers evidence of impairment for loans and advances and held-to-maturity investment securities at both
a specific asset and collective level. All individually significant loans and advances and held-to-maturity investment
securities are assessed for specific impairment. Those found not to be specifically impaired are then collectively assessed for
any impairment that has been incurred but not yet identified.

Loans and advances and held-to-maturity investment securities that are not individually significant are collectively assessed
for impairment by grouping together loans and advances and held-to-maturity investment securities with similar risk
characteristics. Impairment test is done on annual basis for trade receivables and other financial assets based on the internal
and external indication observed.

In assessing collective impairment, the Company uses statistical modelling of historical trends of the probability of default,
the timing of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current
economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical
trends. Default rates, loss rates and the expected timing of future recoveries are regularly benchmarked against actual
outcomes to ensure that they remain appropriate.

3.13 Income taxes

Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the
extent that they relate to items recognised directly in equity or in other comprehensive income.

Current tax
Current tax is the expected tax payable or recoverable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred Income Tax

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount
of deferred tax provided is based on the expected realization or settlement of the carrying amount of assets and liabilities
using tax rates at the balance sheet date. The carrying amount of Deferred tax liabilities and assets are reviewed at the end
of each reporting period.

3.23 Borrowing cost

Borrowing cost that are directly attributable to the acquisition, construction, or production of a qualifying asset are
capitalized as a part of the cost of such asset till such time the asset is ready for its intended use or sale.

Borrowing cost consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
Borrowing costs also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. A
qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All
other borrowing cost are recognized as expense in the period in which they are incurred.

3.24 Cash and Cash Equivalents

Cash and cash equivalents are defined as cash on hand, demand deposits and short term highly liquid investments, readily
convertible to known amounts of cash and subject to insignificant risk of changes in value.

For the purpose of cash flow statements, cash and cash equivalents consist of cash in hand and balance in bank accounts.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

3.25 Non-current Assets Held for Sale

Non-current assets or disposal groups are classified as held for sale if their carrying amounts will be recovered principally
through a sale transaction rather than through continuing use. Such assets or disposal groups are classified only when both
the conditions are satisfied –
a. The sale is highly probable, and
b. The asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual
and customary for sale of such assets.

Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within
one year from the date of classification as held for sale, and actions required to complete the plan of sale should indicate
that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Noncurrent assets or
disposal group are presented separately from the other assets in the balance sheet. The liabilities of a disposal group
classified as held for sale are presented separately from other liabilities in the balance sheet.

Upon classification, non-current assets or disposal group held for sale are measured at the lower of carrying amount and
fair value less costs to sell. Non-current assets which are subject to depreciation are not depreciated or amortized once those
classified as held for sale.

3.26 Employee benefits

Employee benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment towards un-availed
leave, compensated absences and other terminal benefits.

a. Short-term employee benefits

Wages and salaries, including non-monetary benefits that are expected to be settled within 12 months after the end of the

period in which the employees render the related service are recognised in respect of employees’ services up to the end of

the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are

presented as current employee benefit obligations in the Statement of Financial Position.

b. Post-employment benefits
Defined contribution plan
The Company has Social Security Fund as defined contribution plan. The obligation of the Company is limited to the
amount contributed and it has no further contractual nor any constructive obligation. Therefore, contributions paid and
payable under the scheme are recognised in the period when the employee renders the related service.

3.27 Financial Instruments : Financial Liabilities

Financial Liability is any liability that is:
a) a contractual obligation:
i) to deliver cash or other financial asset to another entity, or
ii) to exchange financial assets or financial liabilities with another equity under conditions that are potentially
unfavourable to the entity, or

b) a contract that will or may be settled in the entity's own equity instruments and is:
i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity's own equity
instruments, or
ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset
for a fixed number of the entity's own equity instruments.

Recognition
All financial liabilities are initially recognized on the date on which the company becomes a party to the contractual
provisions of the instrument. The classification of financial instruments at the initial recognition depends on their purpose
and characteristics and the management’s intention in acquiring them.

Classification
The Company classifies its financial liabilities, other than financial guarantees and loan commitments, as follows:
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

i) Financial Liabilities at Fair Value through Profit or Loss (FVTPL)

Financial liabilities are classified as fair value through profit or loss if they are held for trading or are designated at fair

value through profit or loss. Upon initial recognition, transaction costs are directly attributable to the acquisition are

recognized in Statement of Profit or Loss as incurred. Subsequent changes in fair value is recognized at profit or loss.

ii) Financial Liabilities measured at amortized cost

All financial liabilities other than measured at fair value though profit or loss are classified as subsequently measured at
amortized cost using effective interest rate method.

Measurement
i) Initial Measurement
A financial asset or financial liability is measured initially at fair value plus or minus, for an item not at fair value
through profit or loss, transaction costs that are directly attributable to its acquisition or issue. Transaction cost in
relation to financial assets and liabilities at fair value through profit or loss are recognized in Statement of Profit or
Loss.

ii) Subsequent Measurement

A financial asset or financial liability is subsequently measured either at fair value or at amortized cost based on the
classification of the financial asset or liability. Financial asset or liability classified as measured at amortized cost is
subsequently measured at amortized cost using effective interest rate method.

The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial
liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortization
using the effective interest method of any difference between that initial amount and the maturity amount, and minus
any reduction for impairment or uncollectibility.

3.28 Provisions
Provisions are recognized when the company has a present obligation, legal or constructive, as a result of a past event, it is
probable that a transfer of a economic benefits will be required to settle the obligation and when reliable estimate can be
made of the amount of obligation. If these conditions are not met, no provision is recognized.

The amount of provision recognized is the management's best estimate of expenditure required to settle the present
obligation at the reporting date.

Management reviews provisions at each reporting date and is adjusted to reflect the best estimate. If it is no longer probable
that a transfer of economic benefits will be required to settle the obligation, the provision is reversed.

3.38 Contingent Liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of
resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

The Company records a liability for any claims where a potential loss is probable and capable of being estimated and
discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not
probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless
the loss becomes probable.

3.39 Earnings Per Share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. The basic EPS is calculated
by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of
ordinary shares outstanding during the period.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average
number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

4 Property, Plant & Equipments (PPE)

The changes in the carrying value of Property, Plant & Equipments (PPE) for the year ended Asadh 32, 2079, Asadh 31, 2078 and Asadh 31, 2077 are as follows: Amount in NPR
Deemed Cost:
As on Shrawan 1, 2077 - - - 151,652.68 9,868,298.27 1,999,666.86 12,019,617.81
Addition during the Year
Acquisition - 6,031,995.36 - 3,908,334.46 13,355,752.22 4,894,424.80 28,190,506.84
Capitalization - - - - - -
Disposal during the year - - - (151,652.72) (2,048,000.00) (540,740.15) (2,740,392.87)
Adjustment/Revaluation - - - - - -
Balance as on Ashad end 2078 - 6,031,995.36 - - 3,908,334.42 21,176,050.49 6,353,351.51 37,469,731.78

Addition during the Year -

Acquisition - - - 728,118.77 - 5,044,689.13 5,772,807.90
Capitalization - - - - - - -
Disposal during the year - - - - - - -
Adjustment/Revaluation - - - - - - -
Balance as on Ashad end 2079 - 6,031,995.36 - - 4,636,453.19 21,176,050.49 11,398,040.64 43,242,539.68
Depreciation & Impairment
As on Shrawan 1, 2077 - - - - - - -
Adjustment/Revaluation - - - - - - -
Restated opening as on Shrawan 1, 2077 - - - - - - -
Depreciation charge for the Year - 150,060.00 - 325,941.00 1,745,361.00 1,406,737.00 3,628,099.00
lmpairment for the year - - - - - - -
Disposals - - - - (327,371.00) - (327,371.00)
Adjustment - - - - - - -
As on Ashad end 2078 - 150,060.00 - 325,941.00 1,417,990.00 1,406,737.00 3,300,728.00
Depreciation charge for the Year - 301,600.00 - 413,870.00 2,973,112.00 2,882,262.00 6,570,844.00
lmpairment for the year - - - - - -
Disposals - - - - - - -
Adjustment - - - - - -
As on Ashad end 2079 - 451,660.00 - 739,811.00 4,391,102.00 4,288,999.00 9,871,572.00
Net Book Value
As on Ashad end 2077 - - - 151,652.68 9,868,298.27 1,999,666.86 12,019,617.81
As on Ashad end 2078 - 5,881,935.36 - 3,582,393.42 19,758,060.49 4,946,614.51 34,169,003.78
As on Ashad end 2079 - 5,580,335.36 - 3,896,642.19 16,784,948.49 7,109,041.64 33,370,967.68

All categories of Property, Plant and Equipment are initially recorded at cost. Property, Plant and Equipment are subsequently measured at historical cost less depreciation and impairment losses.
Historical cost includes expenditure . Subsequent cost are included in the assets carrying amount or recognised as separate asset, as appropraite, only when it is probable that future economic benefits
are associated with the item will flow to the company and the cost of the item can be measured reliably.All other repairs and maintenance are charged to profit or loss during the financial period in
which they are incurred.

The rates have been applied consistently over the years. The assets residual values and useful lives are reviewed and adjusted if appropraite, at each reporting period. An asset's carrying amount is
written down immediately to its estimated recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and Losses on disposal of property and equipment are determined by reference to their carrying amount and are included in profit or loss.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended Ashad 32, 2079

4.1 Capital work-in-progress

The changes in the carrying value of capital work-in-progress for the year ended Ashad 32, 2079 and
Ashad 31, 2078 are as follows:
Amount in NPR
Plant &
Particulars Buildings Total
Machinery
Balance as at Shrawan 1, 2076 -
Addition during the Year 2,731,158.41
Transfer to property, plant and equipment - -
Foreign currency translation difference - - -
Balance as at Ashad end 2077 2,731,158.41 - 2,731,158.41
Addition during the Year
Transfer to property, plant and equipment 2,731,158.41
Foreign currency translation difference - - -
Balance as at Ashad end 2078 - - -
Addition during the Year -
Transfer to property, plant and equipment -
Foreign currency translation difference - - -
Balance as at Ashad end 2079 - - -
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

4.2 Intangible Assets

The changes in the carrying value of Intangible Assets for the year ended Asadh 31, 2077, Asadh 31, 2078 and Asadh 32, 2079 are as
follows:

Accounting Networking Billing

Particulars
Software Software Software
Cost:
As on Shrawan 1, 2077 - - -
Addition during the Year 517,650.00 35,500.00 -
Acquisition - -
Capitalization - -
Disposal During the Year - -
Adjustment/Revaluation - -
Balance as on Ashad end 2078 517,650.00 35,500.00 -
Addition during the Year
Acquisition - - 29,000.00
Capitalization - - -
Disposal During the Year - - -
Adjustment/Revaluation - - -
Balance as on Ashad end 2079 517,650.00 35,500.00 29,000.00

Amortisation and impairment losses

As on Shrawan 1, 2077 - -
Amortization charge for the Year 103,530.00 7,100.00 -
Impairment for the Year - -
Disposals - -
Adjustment - -
As on Ashad end 2078 103,530.00 7,100.00 -
Amortization charge for the Year 103,530.00 7,100.00 5,800.00
Impairment for the Year - -
Disposals - -
Adjustment
As on Ashad end 2079 207,060.00 14,200.00 5,800.00

Net Book Value

As on Ashad end 2077 - -
As on Ashad end 2078 414,120.00 28,400.00 -
As on Ashad end 2079 310,590.00 21,300.00 23,200.00
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended Ashad 32, 2079

4.3 The changes in the carrying value of Right-of-use (ROU) of Assets for the year ended Ashad 32,
2079 is as follow: Amount in NPR
Particulars Office Space Other Total
Gross Value:
Adjusted Balance as at Shrawan 1, 2077 50,539,359.34 - 50,539,359.34
Additions/disposals/adjustments during - -
the year
Balance as at Ashad end 2078 50,539,359.34 - 50,539,359.34
Additions/disposals/adjustments during
the year
Balance as at Ashad end 2079 50,539,359.34 - 50,539,359.34
Accumulated Depreciation:
Adjusted Balance as at Shrawan 1, 2077 - - -
Additions/disposals/adjustments during 8,922,656.36 8,922,656.36
the year
Elimination on Disposal/Adjustment of - - -
Assets
Balance as at Ashad end 2078 8,922,656.36 - 8,922,656.36
Additions/disposals/adjustments during 8,922,656.36 8,922,656.36
the year
Elimination on Disposal/Adjustment of - - -
Assets
Balance as at Ashad end 2079 17,845,312.72 - 17,845,312.72
Net Carrying Amount:
As on Ashad end 2077 50,539,359.34 50,539,359.34
As on Ashad end 2078 41,616,702.98 41,616,702.98
As on Ashad end 2079 32,694,046.62 32,694,046.62

Effective from Shrawan 1, 2077, the Company has adopted NFRS 16 ‘Leases’ using the modified

retrospective approach.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

5 Investment Property

5.1 Equity Investments at FVTOCI

Amount in NPR
As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Corporate Equity shares:
Book value of investemnt 8,553.00 - 7,279,649.15 35,986 - 20,320,044.42 -
Changes due to Fair value
adjustment - (2,907,948.15) - - -
Total 8,553.00 - 4,371,701.00 35,986.00 - 20,320,044.42 - - -

5.2 Fair Value Disclosure As at As at As at

Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Particulars
No. of Shares Cost Fair Value** No. of Shares Cost Fair Value** No. of Shares Cost Fair Value**
Listed:
Investment in listed share 8,553 7,279,649.15 4,371,701.00 35,986 20,320,044.42 20,320,044.42

Total Fair Value 8,553.00 7,279,649.15 4,371,701.00 35,986.00 20,320,044.42 20,320,044.42 - - -

-

**Closing Market Price listed in NEPSE as on last trading day of relevant Financial Year has been considered for deriving the fair value of Investment in Equity Shares.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

6 Other Non-Current financial assets

As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Security Deposits** 1,912,748.07 1,754,814.74 1,609,921.78
Total 1,912,748.07 1,754,814.74 1,609,921.78
**The Company has initially applied NFRS 16, Leases, using the modified retrospective method. Accordingly, deposit
amount connected to such lease is presented seperately.

7 Trade Receivables
Trade receivables comprises of amount receivable from our customers and are non-interest bearing. Such trade receivables
are generally on credit terms of 30 - 90 days.

As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Trade Receivable - - -
Total - - -

8 Cash and Cash Equivalents

Amount in NPR
As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Cash In Hand (as certified) - 516,163.26 421,314.41
Balances with Banks 1,488,665.89 152,944,136.95 40,542,625.92
Fixed Deposits - - -
Total 1,488,665.89 153,460,300.21 40,963,940.33

9 Other Financial Assets

Amount in NPR
As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Security Deposits - 26,500.00 38,445.00
Total - 26,500.00 38,445.00

The fair values of all the above financial assets approximates to their carrying amounts. These advances are non-interest
bearing and are expected to be settled in the normal course of operations.

10 Other Current Assets Amount in NPR

As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Advance to Creditors 1,311,139.50 3,706,012.98 17,704.86
Prepaid Expenses - 215,021.83 89,616.97
Value Added Tax - 8,555,070.19 3,898,453.73
Advance for New Building - - 4,102,438.00
Total 1,311,139.50 12,476,105.00 8,108,213.56
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

11 Deferred Income Tax

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078

Deferred Tax Asset 8,310,156.00 8,800,172.00

Deferred Tax Liability 5,965,784.00 7,731,030.00
Net Deferred Tax Asset / (Liability) 2,344,372.00 1,069,142.00
Net Changes 1,275,230.00 1,073,451.00
Deferred Tax charged in OCI - -
Deferred Tax charged in SPL 1,275,230.00 1,073,451.00

Deferred Tax charged directly in Equity due to change in

estiamte of the life of asset - -

Deferred tax Assets:

Recognized in profit or loss 8,310,156.00 8,800,172.00
Recognized in OCI - -
Recognized in Equity - -
Deferred tax Assets at the end of year 8,310,156.00 8,800,172.00

Deferred tax liability:

Recognized through profit or loss 5,965,784.00 7,731,030.00
Recognized through OCI - -
Deferred tax liability at the end of year 5,965,784.00 7,731,030.00
NDAGHAR KRISHI FIRM
nting Policies and Notes to Financial Statements
or the year ended on Ashad 32, 2079

Amount in NPR
As at
Shrawan 1, 2077

10,055,203.00
10,059,512.00
(4,309.00)
(4,309.00)
-
(4,309.00)

10,055,203.00
-
-
10,055,203.00

10,059,512.00
-
10,059,512.00
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

11.1 Deferred Income Tax Assets and Liabilities, deferred tax charge/ (credit) in the profit or loss and OCI
Amount in NPR
Deferred Tax Recognised through Recognised Recognised in
As at Ashad 32, 2079 Book Value Base Tax Base Difference
Assets profit or loss through OCI Equity
Corporate Social Responsibility - - - - - - -
Property Plant and Equipments - - - - - - -
Lease Liability 37,160,935.05 - 37,160,935.05 7,432,187.00 7,432,187.00 -
Fair Value Change on Investment 2,907,948.15 - 2,907,948.15 872,384.00 - 872,384.00 -
Intangible Assets 355,090.00 383,016.00 27,926.00 5,585.00 5,585.00 - -
Total 40,423,973.20 383,016.00 40,096,809.20 8,310,156.00 7,437,772.00 872,384.00 -

Deferred Tax Recognised through Recognised Recognised in

As at Ashad 32, 2079 Book Value Base Tax Base Difference
Liabilities profit or loss through OCI Equity
Property Plant and Equipments 33,370,967.68 36,236,092.64 (2,865,124.96) (573,025.00) (573,025.00) - -
Right-of-use Assets 32,694,046.62 - 32,694,046.62 6,538,809.00 6,538,809.00
Intangible Assets - - - - - - -
Fair Value Change on Investment - - - - - -
Total 66,065,014.30 36,236,092.64 29,828,921.66 5,965,784.00 5,965,784.00 - -

Amount in NPR
Deferred Tax Recognised through Recognised Recognised in
As at Ashad 31, 2078 Book Value Base Tax Base Difference
Assets profit or loss through OCI Equity
Corporate Social Responsibility - - - - - - -
Property Plant and Equipments - - - - - - -
Lease Liability 44,000,857.84 - 44,000,857.84 8,800,172.00 8,800,172.00 -
Fair Value Change on Investment - - - - - - -
Intangible Assets - - - - - - -
Total 44,000,857.84 - 44,000,857.84 8,800,172.00 8,800,172.00 - -

Deferred Tax Recognised through Recognised Recognised in

As at Ashad 31, 2078 Book Value Base Tax Base Difference
Liabilities profit or loss through OCI Equity

Property Plant and Equipment 34,169,003.82 37,130,556.44 (2,961,552.62) (592,311.00) (592,311.00) - -

Right-of-use Assets 41,616,702.98 - 41,616,702.98 8,323,341.00 8,323,341.00
Intangible Assets 442,520.00 442,520.00 - - - - -
Fair Value Change on Investment - - - - - - -
Total 76,228,226.80 37,573,076.44 38,655,150.36 7,731,030.00 7,731,030.00 - -
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

Amount in NPR
Deferred Tax Recognised through Recognised Recognised in
Opening As at Shrawan 1, 2077 Book Value Base Tax Base Difference
Assets profit or loss through OCI Equity
Corporate Social Responsibility - - - - - - -
Property Plant and Equipments - - - - - - -
Lease Liability 50,276,016.37 - 50,276,016.37 10,055,203.00 10,055,203.00 -
Intangible Assets - - - - - -
Deferred Tax charged directly in equity due to change in - - - -
estimate of the life of asset - - -
Total 50,276,016.37 - 50,276,016.37 10,055,203.00 10,055,203.00 - -

Deferred Tax Recognised through Recognised Recognised in

Book Value Base Tax Base Difference
Liabilities profit or loss through OCI Equity
Corporate Social Responsibility - - - - - - -
Property Plant and Equipments 12,019,617.86 12,261,419.46 (241,801.60) (48,360.00) (48,360.00) - -
Right-of-use Assets 50,539,359.34 - 50,539,359.34 10,107,872.00 10,107,872.00
Intangible Assets - - - - - - -
Fair Value Change on Investment - - - - - - -
Total 62,558,977.20 12,261,419.46 50,297,557.74 10,059,512.00 10,059,512.00 - -
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

12 Provisions

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078

Total - -

13 Borrowings (Non Current)

Non Current Borrowings are interest bearing financial liabilities consisting of Bank Borrowings. For these financial liabili
interest charged by the bank approximates effective interest rate and such rate is considered for calculation of amortiz
cost of liability and the finance cost. The effect of initial charges and its impact on effective rate is considered not mate
and the carrying value is considered approximate amortized cost.

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078
Secured Loans from Banks
Hire Purchase Loan
- 5,509,665.92
- 9,672,229.04
Total - 15,181,894.96

Vehicle Loan have been secured against hypothecation of vehicle finanaced.

14 Non-Current Lease Liabilities

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078
Lease Liability 37,160,935.05 44,000,857.84
Less: Current portion (Refer Note no. 16) 8,535,515.85 6,839,922.79
Total 28,625,419.20 37,160,935.05

15 Trade payables
Trade payables are amount payable to creditors for goods and services and are non interest bearing. These trade payab
are normally settled on credit period of 30 to 90 days.

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078
Trade Payables* 1,311,139.50 937,881.13
Total 1,311,139.50 937,881.13
*Net of advances
16 Lease Liabilities (Current)

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078
Less: Current portion (Refer Note no. 14) 8,535,515.85 6,839,922.79
Total 8,535,515.85 6,839,922.79
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079
17 Other Financial Liabilities

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078
Consultancy Fee Payable - 177,300.00
Audit Fee Payable - 98,500.00
Provision for Expenses - 22,937.00
Incentive Payable - 4,893,895.88
Salary Payable - 2,345,551.87
Total - 7,538,184.75
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

18 Other Current Liabilities

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078
Statutory Dues:
- Dividend Tax - -
- TDS - 2,670,496.21
- Provident Fund Payable - -
- Gratuity Payable - -
- CIT Payable - 1,274,150.00
- Reverse VAT 20,510.00
- Social Security Fund - 869,869.00
Advance From Customer - 5,226,852.32
Total - 10,061,877.53

19 Current Tax Assets/Liabilities (Net)

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078
Opening Balance 944,019.73 (12,458,799.39)
Less: Current tax payable for the year (1,819,912.29) (47,605,273.48)
Add: Taxes paid (including Advance tax & TDS) 56,774,700.84 61,008,092.60
Current Tax Assets / (Liabilities) 55,898,808.28 944,019.73

20 Provisions

As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078
Provision for Leave Encashment - 824,545.17
Provision for CSR 1,546.94
Closing Balance 1,546.94 824,545.17
ANDAGHAR KRISHI FIRM
counting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

As at
Shrawan 1, 2077
-
-

bearing financial liabilities consisting of Bank Borrowings. For these financial liabilities
ximates effective interest rate and such rate is considered for calculation of amortized
The effect of initial charges and its impact on effective rate is considered not material
approximate amortized cost.

Amount in NPR
As at
Shrawan 1, 2077

6,804,891.95
-
6,804,891.95

nst hypothecation of vehicle finanaced.

Amount in NPR
As at
Shrawan 1, 2077
50,276,016.37
6,275,158.53
44,000,857.84

to creditors for goods and services and are non interest bearing. These trade payables
of 30 to 90 days.

Amount in NPR
As at
Shrawan 1, 2077
1,548,734.33
1,548,734.33

Amount in NPR
As at
Shrawan 1, 2077
6,275,158.53
6,275,158.53
ANDAGHAR KRISHI FIRM
counting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

Amount in NPR
As at
Shrawan 1, 2077
177,300.00
19,700.00
64,804.32
2,383,049.46
1,524,453.00
4,169,306.78
ANDAGHAR KRISHI FIRM
counting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

Amount in NPR
As at
Shrawan 1, 2077

4,210,526.00
1,514,701.65
1,892,007.00
788,028.01
174,282.00
-
-
-
8,579,544.66

As at
Shrawan 1, 2077
215,562.30
(28,843,418.40)
16,169,056.71
(12,458,799.39)

As at
Shrawan 1, 2077
-

-
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

20.1 Provisions
Provisions are recognized when the company has a present obligation, legal or constructive, as a result of a past event, it is
probable that a transfer of a economic benefits will be required to settle the obligation and when reliable estimate can be
made of the amount of obligation. If these conditions are not met, no provision is recognized.

The amount of provision recognized is the management's best estimate of expenditure required to settle the present
obligation at the reporting date.

Management reviews provisions at each reporting date and is adjusted to reflect the best estimate. If it is no longer
probable that a transfer of economic benefits will be required to settle the obligation, the provision is reversed.

20.2 Non- Current Provisions Amount in NPR

As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
I. Provision for employee benefits
Provision for Leave Encashment
Opening Balance - - -
Addition - - -
Adjustment - -
Closing Balance - - -
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

21 Share Capital
The Company classifies capital instruments as financial liabilities or equity instruments in accordance with the substance of the
contractual terms of the instruments. Equity is defined as residual interest in total assets of the Company after deducting all its
liabilities.

Accordingly the share capital of the company comprises following:

Amount in NPR
As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Authorised Capital
100,000 Equity Shares of Rs. 100/- each 10,000,000 10,000,000 10,000,000
10,000,000 10,000,000 10,000,000
Issued Capital
100,000 Equity Shares of Rs. 100/- each 10,000,000 10,000,000 10,000,000
10,000,000 10,000,000 10,000,000
Subscribed and fully Paid-up
15,000 Equity Shares of Rs. 100/- each 1,500,000 1,500,000 1,500,000
Total 1,500,000 1,500,000 1,500,000

21.1 Reconciliation of the number of ordinary shares outstanding at the beginning and end of the year:
As at As at As at
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Particulars No of No of No of
Amount Amount Amount
Shares Shares Shares

Balance as at the beginning of the year 15,000 1,500,000 15,000 1,500,000 15,000 1,500,000
Add: Shares issued during the year - - - - - -
Balance as at the end of the year 15,000 1,500,000 15,000 1,500,000 15,000 1,500,000

21.2 Shareholding pattern of the company

As at As at As at
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Particulars No of No of No of
Amount Amount Amount
Shares Shares Shares
7,500 750,000 7,500 750,000 7,500 750,000
7,500 750,000 7,500 750,000 7,500 750,000
Balance as at the end of the year 15,000 1,500,000 15,000 1,500,000 15,000 1,500,000

21.3 The Board of Directors of the company has proposed the dividend of Rs. 22,50,0000/- (i.e. at the rate of Rs. 15000/- per equity shares)
subject to approval at the ensuing Annual general meeting.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079
22 Other Equity

22.1 Retained Earnings Amount in NPR

As at As at As at
Particulars
Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077
Balance up to Last Year 193,003,467.16 30,919,138.80 38,678,483.75
Profits for the Year (389,988.43) 192,084,328.36 115,282,225.30
Other Comprehensive Income for the Year (2,907,948.15) - -
Provision for Gratuity NFRS Adjustment-
Charged to Reserve - - -

Deferred Tax charged directly in Equity

due to change in estimate of Provision from
Gratuity - - -
Revaluation Reserve - - -
NFRS Adjustment - Compound Financial
Instruments - - -
Changes in accounting policy (on account
of adoption of NFRS 16, leases)* - - (826,735.25)
Fixed Assets NFRS Adjustment - Charged
off to Reserve - - -

Deferred Tax adjustment directly in Equity

due to change in estimate of the life of asset
- - (4,309.00)
Total Comprehensive Income 189,705,530.58 223,003,467.16 153,129,664.80
Less:
Earlier Years' Tax - - -
Earlier Years' Gratuity - - -
Dividend Distribution (190,000,000.00) (30,000,000.00) (122,210,526.00)
Total (294,469.42) 193,003,467.16 30,919,138.80

*The Company has initially applied NFRS 16, Leases, using the modified retrospective method for further details. (Refer Note no. 31)
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

23 Revenue from Operations

Amount in NPR
For the year ended For the year ended
Particulars
Ashad 32, 2079 Ashad 31, 2078
Sales of Service
Service Income - 321,573,730.25

Other Operating Income

Discount - 738.25
Total - 321,574,468.50

24 Operational Cost
Amount in NPR
For the year ended For the year ended
Particulars
Ashad 32, 2079 Ashad 31, 2078

- -
Total Cost of Sales - -

25 Other Income
Amount in NPR

For the year ended For the year ended

Particulars
Ashad 32, 2079 Ashad 31, 2078

Dividend Income - -
Interest Income - 946,922.85
Foreign Exchange Gain 1,488,665.89 742,189.21
Gain on Sale of Shares 7,279,649.15 472,030.90
Balances written back - -
Misc. Income - 2,770.00
Profit on Sale of assets - 668,751.53
Total 8,768,315.04 2,832,664.49
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

26 Administrative & Other Expenses

Amount in NPR

For the year ended For the year ended

Particulars
Ashad 32, 2079 Ashad 31, 2078

Audit Fee - 100,000.00

Advertisement Expense - 508,236.00
Bank Charge - 9,297.39
Consultancy Fee (240,000.00) 2,162,000.00
Electricity and Utility Expenses - 224,622.48
Fine and Penalty Expenses - 340,652.22
Fuel - 287,709.01
Guest Entertainment - -
Staff Welfare - 3,016,824.50
Insurance Expenses - 376,744.32
Legal Expenses 240,000.00 120,000.00
Local Conveyance - 400.00
Parking Expenses - -
Office Cleaning Expenses - 435,980.70
Office Expenses - 413,191.20
Office Rent (10,800,000.00) 142,222.00
Postage and Courier - 15,205.00
Printing & Stationary - 27,318.35
Processing Fee - 49,000.00
Referral Bonus - 40,000.00
Repair and Maintenance - Block A - -
Repair and Maintenance - Block B - 523,137.17
Repair and Maintenance - Block C - 79,613.13
Staff Salary, allowance & other benefits - 46,176,003.74
Leave Encashments - -
Telephone, Communication & Internet - 786,074.28
Travelling Expenses - 580,509.89
Server Maintenance Charge - 10,924,337.99
Software Fee - 125,000.00
Staff Training Expenses - 324,288.07
Water Expenses - 41,838.66
Depreciation & Amortisation Expenses 15,609,930.36 12,661,385.36
CSR Expenses 1,546.94 -
Total 4,811,477.30 80,491,591.46

27 Finance Cost
Finance Cost comprises of interest on short term loan, interest on Bank Overdraft and allied charges. All these costs are
carried at amortized cost using effective interest rate which is assumed to be bank interest rate.
Amount in NPR

For the year ended For the year ended

Particulars
Ashad 32, 2079 Ashad 31, 2078

Interest Expense on vehicle Loan - 552,763.08

Interest on Lease Liabilities 3,802,143.88 4,379,948.51
Total 3,802,143.88 4,932,711.59
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

28 Income Tax
Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the
extent that they relate to items recognised directly in equity or in other comprehensive income.

A) Current Tax
Current tax is the expected tax payable or recoverable on the taxable income or loss for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

B) Deferred Tax
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of
deferred tax provided is based on the expected realization or settlement of the carrying amount of assets and liabilities using
tax rates at the balance sheet date.

Amount in NPR

For the year ended For the year ended

Particulars
Ashad 32, 2079 Ashad 31, 2078

Current tax expense

Provision for income tax 1,819,912.29 47,605,273.48
Previous years tax - 366,679.10
Total Current Tax Expense 1,819,912.29 47,971,952.58

Deferred Tax
Origination and reversal of temporary differences (1,275,230.00) (1,073,451.00)
Recognition of previously unrecognized deferred tax assets -
Total Deferred Tax Income / (Expense) (1,275,230.00) (1,073,451.00)

Total Tax Expense for the Year 544,682.29 46,898,501.58

 Particulars 16-J
Opening Balance Inwards
Quantity Rate Value Quantity Rate Value

Shares 35986 Unit 564.67 20320044.42 4680 Unit 100.00 468,000.00

1000 Unit 289.00 289000.00
1000 Unit 457.76 457755.60

1000 Unit 279.00 279000.00

500 Unit 823.00 411500.00
1000 Unit 305.00 305000.00
2250 Unit 436.03 981065.80
1500 Unit 373.00 559500.00
2500 Unit 245.90 614761.38
4500 Unit 100.00 450,000.00
1000 Unit 294.00 294000.00
2000 Unit 310.00 620000.00
2000 Unit 367.00 734000.00
250 Unit 1348.00 337000.00
1500 Unit 428.66 642988.79
885 Unit 1295.15 1146204.26
3174 Unit 492.00 1561608.00
350 Unit 2138.92 748621.15
1000 Unit 1594.00 1594000.00
596 Unit 1545.00 920820.00
500 Unit 431.68 215840.27
1000 Unit 302.00 302000.00
1000 Unit 449.24 449236.53
19 Unit 21600.00 410400.00
497 Unit 867.00 430899.00
3000 Unit 424.00 1272000.00
600 Unit 1952.00 1171200.00 180 Unit 100.00 18,000.00
750 Unit 253.90 190423.61

1000 Unit 475.00 475000.00

1115 Unit 712.30 794220.03
3000 Unit 704.00 2112000.00
Grand Total 35986 Unit 20320044.42 4680 Unit 468000.00
TB 20320044.42 468,000.00
Diff. 0.00 -
 Grepsr78-79
16-Jul-2021 to 16-Jul-2022
Outwards Closing Balance
Quantity Rate Value Consumption Gross Profit Perc % Quantity Rate

32,497.00 520.09 16,901,287.02 13,508,395.27 3,392,891.75 20.07 8,169.00 891.13

1,000.00 348.65 348,652.50 289,000.00 59,652.50 17.11
1,000.00 507.03 507,033.16 457,755.60 49,277.56 9.72
3811.67 3811.67 100.00 %
1,000.00 345.66 345,664.05 279,000.00 66,664.05 19.29
500.00 1,297.78 648,892.11 411,500.00 237,392.11 36.58
1,000.00 368.58 368,575.50 305,000.00 63,575.50 17.25
2,250.00 485.13 1,091,535.48 981,065.80 110,469.68 10.12
1,500.00 461.46 692,183.99 559,500.00 132,683.99 19.17
2,500.00 324.92 812,305.59 614,761.38 197,544.21 24.32
4,500.00 352.72 1,587,259.68 450,000.00 1,137,259.68 71.65
1,000.00 342.97 342,974.44 294,000.00 48,974.44 14.28
2,000.00 368.69 737,373.00 620,000.00 117,373.00 15.92
2,000.00 383.55 767,100.44 734,000.00 33,100.44 4.32
250.00 1,348.00
1,500.00 448.96 673,444.65 642,988.79 30,455.86 4.52
885.00 1,494.77 1,322,875.56 1,146,204.26 176,671.30 13.36
3,174.00 492.00
350.00 2,138.92
1,000.00 1,718.32 1,718,317.29 1,594,000.00 124,317.29 7.23
596.00 1,545.00
500.00 461.22 230,608.72 215,840.27 14,768.45 6.40
1,000.00 344.07 344,070.21 302,000.00 42,070.21 12.23
1,000.00 473.18 473,182.18 449,236.53 23,945.65 5.06
19.00 21,600.00
497.00 1,115.22 554,263.01 430,899.00 123,364.01 22.26 -
3,000.00 554.66 1,663,980.83 1,272,000.00 391,980.83 23.56
780.00 1,524.62
750.00 341.75 256,313.72 190,423.61 65,890.11 25.71
10683.25 10683.25 100.00 %
1,000.00 592.51 592,510.02 475,000.00 117,510.02 19.83
1,115.00 737.37 822,170.89 794,220.03 27,950.86 3.40
3,000.00 704.00
32497 Unit 16915781.94 13508395.27 3407386.67 20.14 % 8169 Unit
16,915,781.94
-
Closing Balance Value (Lower of Cost or MV)
Value Quantity Rate Value

Market Value as
on 32.03.2079
7,279,649.15

337,000.00 689.00 250.00 689.00 172,250.00

1,561,608.00 242.00 3,174.00 242.00 768,108.00

748,621.15 745.00 350.00 745.00 260,750.00

920,820.00 859.00 596.00 859.00 511,964.00

410,400.00 13,500.00 19.00 13,500.00 256,500.00

1,189,200.00 805.00 780.00 805.00 627,900.00

2,112,000.00 540.00 3,000.00 540.00 1,620,000.00

7279649.15 8,169.00 4,217,472.00
3,062,177.15
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

28.1 Reconciliation of tax expense and the accounting profit multiplied by Company’s tax rate for 2077-78 and 2078-79:
Amount in NPR
For the year ended For the year ended
Particulars
Ashad 32, 2079 Ashad 31, 2078
Profit before income tax 154,693.86 238,982,829.94
Effects on income tax of:
Income not subject to income tax (1,488,665.89) (668,751.53)
Expenses (deductible)/ Not deductable for tax purposes 104,094.18 (287,711.02)
Prior year under/(over) provision - -
Net effect (1,384,571.71) (956,462.55)
Taxable Income (1,229,877.85) 238,026,367.39

Income not subject to income tax

Profit on sale of assets - 668,751.53
Exchange gain 1,488,665.89 -
Dividend - -
Total 1,488,665.89 668,751.53

Expenses (deductible)/ Not deductable for tax purposes

Difference in Depreciation as per Income tax & Books 6,908,923.36 5,791,688.26
(Allowed)/Disallowed Other Expenses (21,406,973.06) 340,652.21
(Allowed)/Disallowed Rent expense 10,800,000.00 (10,800,000.00)
Disallowed Finance charges - 4,379,948.51
Disallowed finance cost 3,802,143.88 -
Disallowed Repairs and maintenance Expenses - -
Total 104,094.18 (287,711.02)

Prior year under/(over) provision

Prior Period Expenses - -
Total - -
Tax - -

For the year ended Ashad 32, 2079 For the year ended Ashad 31, 2078
Tax on Taxable lncome
Taxable Income Tax Amount Taxable Income Tax Amount
Normal lncome @ 30% - - 238,026,367.40 47,605,273.48
lnvestment lncome @ 25% 7,279,649.15 1,819,912.29 - -
Total lncome 7,279,649.15 1,819,912.29 238,026,367.40 47,605,273.48
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

29 Related Party Disclosure

I) List of related parties where control exists and also other related parties with whom transactions have taken place and
relationships:
S. No. Name of Related Parties Nature of Relationship

(a) Key Management Personnel (KMP):

Mr. A Director/CEO
Mr S Director/Chief Technical Officer

II. The following transactions were carried out with the related parties in the ordinary course of business:
Name of Related Parties Relationship 2078-79 2077-78
(d) Salary & Allowances:
Mr. A 2,389,355 2,378,312
Mr S 2,389,355 2,378,312
(d) Payment of Dividend:
Mr. A 95,000,000 15,000,000
Mr S 95,000,000 15,000,000

III. Outstanding Balances

As at As at As at
Name of Related Parties Ashad 32, 2079 Ashad 31, 2078 Shrawan 1, 2077

Payables
Mr. A - - -
Mr S - - -
Receivables
Mr. A - - -
Mr S - - -

Terms and Conditions of Transactions with related parties

There is no outstanding balance as at year end.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

30 Declared and Proposed Dividends

Dividends payable to the Company’s shareholders are charged to equity in the period in which they are declared. Proposed
dividends are disclosed in notes separately until declared.

30.1 Declared and Approved during the year Amount in NPR

Particulars 78-79 77-78
Dividend on Ordinary Shares for the FY 2076-77 : Rs. 2000/- per share 30,000,000.00
Dividend on Ordinary Shares : Rs. 12666.67/- per share 190,000,000.00 -
Total Dividend Declared 190,000,000.00 30,000,000.00

30.2 Proposed for approval at the general meeting (not recognised as a liability as at balance sheet date)
As at
Particulars Ashad 32, 2079

Dividend on Ordinary Shares for the FY : 2078-79: Rs. 14666.67/- per share 220,000,000.00
Total Dividend Proposed 220,000,000.00

31 Leases
31.1 Company as lessee :
Disclosures for operating leases other than leases covered in NFRS 16
Except as specified below, the company has consistently applied the accounting policies to all periods presented in this
financial statement. The company has applied NFRS 16 with the date of initial application of Shrawan 1, 2077. As a result, the
company has changed its accounting policy for lease contracts as detailed below.
The company has applied NFRS 16 using the modified retrospective approach using incremental borrwong rate, under which
the cumulative effect of initial application is recognized in retained earnings at Shrawan 1, 2077.

31.2 Practical expedients applied:

In applying NFRS 16 for the first time, the Company has used the following practical expedients:
- Applying a single discount rate to a portfolio of leases with reasonably similar characteristics.
- Accounting for operating leases with a remaining lease term of less than 12 months as at Shrawan 1, 2078 as
short-term leases
- Using hindsight in determining the lease term where the contract contains options to extend or terminate the
lease.

31.3 Movement in the lease liability during the year:

For the year ended For the year ended
Particulars
Ashad 32, 2079 Ashad 31, 2078
Opening Balance 44,000,857.84 50,276,016.37
Add: Recognition on account of adoption of NFRS 16
Add: Additions during the year - -
Add: Interest accrued during the year 3,802,143.88 4,379,948.51
Add: Interest accrued during the year on deposit 157,933.33 144,892.96
Less: Payment of lease liabiities (10,800,000.00) (10,800,000.00)
Less: Derognition during the year - -
Total 37,160,935.05 44,000,857.84

31.4 Amounts recognised in Statement of profit and loss:

For the year ended For the year ended
Particulars
Ashad 32, 2079 Ashad 31, 2078
Lease expense recognised in the statement of profit and loss for the year (10,800,000.00) 142,222.00
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079
31.2 Company as lessor :
The Company has not entered into any operating lease during the year.
Future minimum lease receipts over non cancellable period of operating leases are as follows :
For the year ended For the year ended
Particulars
Ashad 32, 2079 Ashad 31, 2078
Lease income recognised in the statement of profit and loss for the year - -
The future minimum lease receivable over the next one year - -
The future minimum lease receivable later than one year but not later than five - -
years

32 Earnings Per Share

Amount in NPR
For the year ended For the year ended
Particulars Ashad 32, 2079 Ashad 31, 2078
I. Net profit attributable to Shareholders for Basic (389,988.43) 192,084,328.36
earnings
II. Net profit attributable to Shareholders for diluted - -
earnings
III. Weighted average number of Ordinary Shares for basic EPS 15,000.00 15,000.00
Effects of dilution:
IV. Preference Shares outstanding for conversion -
V. Weighted average number of ordinary shares adjusted for the effect of 15,000.00 15,000.00
dilution
Basic earnings per ordinary share (26.00) 12,805.62
Diluted earnings per ordinary share (26.00) 12,805.62

33 Contingent Liabilities and Commitments

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources
will be required to settle the obligation or a reliable estimate of the amount cannot be made.

The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses
such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the
Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes
probable.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

35 First Time Adoption reconciliations and disclosures

NFRS 1 (First-time Adoption of Nepal Financials Reporting Standards) provides a suitable starting point for accounting in
accordance with NFRS and is required to be mandatorily followed by first-time adopters.

The Company has prepared the opening Statement of Financial Position as per NFRS as of 1st Shrawan, 2077 (16 July, 2020)
(the transition date) by:
a) Recognizing all assets and liabilities whose recognition is required by NFRS,
b) Derecognizing items of assets or liabilities which are not permitted by NFRS,
c) Reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to NFRS as required under NFRS,
and
d) Applying NFRS in measurement of recognized assets and liabilities.

35.1 Significant changes from the policies adopted in the past

Significant changes from the accounting policies adopted under previous GAAP (erstwhile Nepal Accounting Standards )
and the adoption of NFRS has been disclosed in the respective segments, including the impact. The detailed impact
disclosure is given below.
Amount in NPR
35.2 Reconciliation of Equity
Explantory As at Opening As at
Particulars
Notes * Ashad 31, 2078 Shrawan 1, 2077
Total equity (shareholders’ funds) under previous GAAP 193,067,720.03 33,250,183.04

NFRS Adjustments:
Depreciation adjustments 1 (5,762,101.37) -
Change in Profit on sale of Asset 2 498,037.67 -
Change in Deferred Tax through SPL 3 1,106,494.59
Lease adjustment charged off to Reserve 4 (826,735.25) (826,735.25)
Change in Administrative exp-rent 4 10,800,000.00
Change in Finance Cost 4 (4,379,948.51) -
Deferred Tax charged directly in Equity due to change in temporary -
timing difference of assets & liabilities (4,309.00)
Total Adjustment to Equity 1,435,747.13 (831,044.25)

Total Equity as per NFRS 194,503,467.16 32,419,138.79

35.3 Reconciliation of Profit or Loss Amount in NPR

Explantory For the Year
Notes * 2077 -78
Profit as per previous GAAP 189,817,536.99
NFRS Adjustments:
Deprecation Adjustment 1 (5,762,101.37)
Change in Profit on sale of Asset 2 498,037.67
Change in Deferred tax 3 1,110,803.59
Change in Finance Cost 4 (4,379,948.51)
Change in Administrative exp-rent 4 10,800,000.00
Change in Foreign Exchange Gain/(Loss) -
Provision for Gratuity -
Total Adjustment to profit or loss 2,266,791.38

Profit or loss under NFRS 192,084,328.37

Explantorv Notes *
1 Change in depreciation due to change in method of depreciation using estimate life of the asset on a straight line basis for
NFRS implementation.
2 Change in profit on sale of asset is due to change in method of Depreciation on account of change in estimate of life of those
assets.
3 Change in Deferred Tax through SPL due to change in Book Value of Fixed Assets on account of change in estimate of life of
those assets.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079
3 Change in Administrative exp due to change rent expenses on account of implementation of Lease accounting as Per NFRS.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

35.4 Effect of NFRSs adoption on the Statement of Financial Position

35.4.1 Effect of NFRSs adoption for the Statement of Financial Position as at Ashad 31, 2078
Amount in NPR
Explanatory Cumulative Effect of Amount as per
Particulars Previous GAAP
Notes* Transition to NFRS NFRSs
Assets
Non Current Assets
Property, Plant and Equipment 1 37,279,966.80 (3,110,962.98) 34,169,003.82
Intangible assets 442,520.00 - 442,520.00
Right-of-use Assets 2 - 41,616,702.98 41,616,702.98
Investment 20,320,044.42 - 20,320,044.42
Deferred tax assets - - -
Other Financial Assets 3 1,754,814.74 1,754,814.74
Total Non Current Assets 58,042,531.22 40,260,554.74 98,303,085.96

Current Assets
Inventories - - -
Trade receivables - - -
Cash & Cash Equivalents 153,460,300.21 - 153,460,300.21
Other Financial Assets 3 - 26,500.00 26,500.00
Other Current Assets 3 63,751,898 (51,275,793.00) 12,476,105.00
Advances & Deposits 3 - - -
Current Tax Assets (Net) 944,019.73 944,019.73
Total Current Assets 217,212,198.21 (50,305,273.27) 166,906,924.94

Total Assets 275,254,729.43 (10,044,718.53) 265,210,010.90

Liabilities
Non Current Liabilities
Borrowings 15,181,894.96 - 15,181,894.96
37,160,935.05 37,160,935.05
Other financial liabilities - - -
Deferred tax liabilities 4 37,352.59 (1,106,494.59) (1,069,142.00)
Other Non Current Liabilities - - -
Provisions - - -
Total Non Current Liabilities 15,219,247.55 36,054,440.46 51,273,688.01

Current Liabilities
Borrowings - - -
Trade payable 5 - 937,881.13 937,881.13
6,839,922.79 6,839,922.79
Financial Liabilities 5 - 7,538,184.75 7,538,184.75
Other Current Liabilities 5 58,903,769.14 (48,841,891.61) 10,061,877.53
Current Tax Liabilities (Net) 5 - - -
Employee Benefit Obligation 5 8,063,992.92 (7,239,447.75) 824,545.17
Total Current Liabilities 66,967,762.06 (40,765,350.69) 26,202,411.37

Total liabilities 82,187,009.61 (4,710,910.23) 77,476,099.38

Equity
Share Capital 1,500,000.00 - 1,500,000.00
Reserves/Other equity 6 191,567,720.03 1,435,747.13 193,003,467.16
Total equity 193,067,720.03 1,435,747.13 194,503,467.16
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

35.4 Effect of NFRSs adoption on the Statement of Financial Position

Total liabilities and equity 275,254,729.64 (3,275,163.10) 271,979,566.54

- 6,769,555 6,769,556
Explanatory Notes*
1 Change in Property, Plant & Equipment due to change in method of depreciation using estimate life of the asset on a
straight line basis for NFRS implementation.
2 Right to use-assets/Lease liability has been created due to Implementation of lease accounting as per NFRS.
3 Other Current Assets under previous GAAP have been reclassified as Other Non-currrent Financial Assets, Other Financial
Assets and other Current Assets as per their respective nature for NFRS presentation
4 Change in Deferred Tax is due to change in method of depreciation using estimate life of the asset on a straight line
basis/Implementation of Lease accounting.
5 Other Current liabilities & Employee benefit obligation under previous GAAP has been regrouped under Other Non-
Current Financial Liabilities, Current Financial Liabilities and Other Current Liabilities as per their respective nature for
NFRS presentation
6 Change in the Reserves due to creation of deferred tax /Implementation of lease accounting as per NFRS.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

35.4.2 Effect of NFRSs adoption for the Statement of Financial Position as at Shrawan 1,2077

Explanatory Cumulative Effect of Amount as per

Particulars Previous GAAP
Notes* Transition to NFRS NFRSs

Assets
Non Current Assets
Property, Plant and Equipment 1 15,000,861.26 (2,981,243.40) 12,019,617.86
Intangible assets - -
Capital Work In Progress 1 2,731,158.41 2,731,158.41
Right-of-use Assets 2 50,539,359.34 50,539,359.34
Other Financial Assets 3 1,609,921.78 1,609,921.78
Deferred tax assets - - -
Total Non Current Assets 15,000,861.26 51,899,196.13 66,900,057.39

Current Assets
Inventories - -
Trade receivables - -
Cash & Cash Equivalents 40,963,940.33 - 40,963,940.33
Other Financial Assets 3 38,445.00 38,445.00
Other Current Assets 3 27,231,277.57 (19,123,064.01) 8,108,213.56
Current Tax Assets (Net) - -
Total Current Assets 68,195,217.90 (19,084,619.01) 49,110,598.89
- -
Total Assets 83,196,079.16 32,814,577.12 116,010,656.28

Liabilities
Non Current Liabilities
Borrowings 6,804,891.95 - 6,804,891.95
Lease Liabilities 2 44,000,857.84 44,000,857.84
Other financial liabilities - -
Deferred tax liabilities 4 4,309.00 4,309.00
Other Non Current Liabilities - -
Total Non Current Liabilities 6,804,891.95 44,005,166.84 50,810,058.79

Current Liabilities
Borrowings - - -
Trade payable 5 - 1,548,734.33 1,548,734.33
Lease Liabilities 5 - 6,275,158.53 6,275,158.53
Financial Liabilities 5 - 4,169,306.78 4,169,306.78
Other Current Liabilities 5 39,233,501.71 (30,653,957.05) 8,579,544.66
Current Tax Liabilities (Net) 5 - 12,458,799.39 12,458,799.39
Employee Benefit Obligation 5 3,907,502.46 (3,907,502.46) -
Total Current Liabilities 43,141,004.17 (10,109,460.48) 33,031,543.69

Total liabilities 49,945,896.12 33,895,706.36 83,841,602.48

Equity
Share Capital 1,500,000.00 - 1,500,000.00
Reserves/Other equity 6 31,750,183.05 (831,044.25) 30,919,138.80
Total equity 33,250,183.05 (831,044.25) 32,419,138.80

Total liabilities and equity 83,196,079.17 33,064,662.11 116,260,741.28

 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

Explanatory Notes*
1 Change in Property, Plant & Equipment due to change in method of depreciation using estimate life of the asset on a
straight line basis for NFRS implementation.
2 Right to use-assets/Lease liability has been created due to Implementation of lease accounting as per NFRS.
3 Other Current Assets under previous GAAP have been reclassified as Other Non-currrent Financial Assets, Other Financial
Assets and other Current Assets as per their respective nature for NFRS presentation
4 Change in Deferred Tax is due to change in method of depreciation using estimate life of the asset on a straight line
basis/Implementation of Lease accounting.
5 Other Current liabilities & Employee benefit obligation under previous GAAP has been regrouped under Other Non-
Current Financial Liabilities, Current Financial Liabilities and Other Current Liabilities as per their respective nature for
NFRS presentation
6 Change in the Reserves due to creation of deferred tax /Implementation of lease accounting as per NFRS.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

35.5 Effect of NFRS adoption on Statement of Profit or loss and other Comprehensive income

35.5.1 Effect of NFRSs adoption for Statement of Profit or loss and other Comprehensive income for the year ended Ashad 31
2078:

Explanatory Effect of Transition

Particulars Previous GAAP
Notes* to NFRS
Revenue from Operations 1 321,573,730.25 738.25
Cost of Sales - -
Gross Profit 321,573,730.25 738.25

Other Income 1 1,593,175.86 1,239,488.63

Exchange Gain/(Loss) 2 742,189.21 (742,189.21)
Selling and Distribution Expenses - -
Administrative Expenses 3,4 (78,630,206.09) (1,861,385.37)
Depreciation 4 (6,899,283.99) 6,899,283.99
Operating Profit 238,379,605.24 5,535,936.29

Finance costs 4 (552,763.08) (4,379,948.51)

Profit Before Tax 237,826,842.16 1,155,987.78
Income tax expense
Provision for income tax (47,605,273.48) -
Previous years tax (366,679.10) -
Deferred tax income/(expense) 5 (37,352.59) 1,110,803.59
Profit for the year 189,817,536.99 2,266,791.37

Explanatory Notes*
1 Discount amount has been reclassified to Revenue from Operations from Other Income.
2 Exchange gain has been reclassified to Other Income from Exchange Gain /(loss)
3 Depreciation on fixed assets has been regrouped under administrative expenses as per NFRS presentation which wa
shown separately under previous GAAP
4 Rent expenses has been reclassified as per Lease accuntiong under administrative expenses & Finance expenses as pe
NFRS presentation.
5 Change in Deferred Tax is due to change in method of depreciation using estimate life of the asset on a straight lin
basis/Implementation of Lease accounting.
 NDAGHAR KRISHI FIRM
nting Policies and Notes to Financial Statements
or the year ended on Ashad 32, 2079

t of Profit or loss and other Comprehensive income

nt of Profit or loss and other Comprehensive income for the year ended Ashad 31,

Amount in NPR
Amount as Per
NFRS
321,574,468.50
-
321,574,468.50

2,832,664.49

-
(80,491,591.46)

243,915,541.53

(4,932,711.59)
238,982,829.94

(47,605,273.48)
(366,679.10)
1,073,451.00
192,084,328.36

to Revenue from Operations from Other Income.

Other Income from Exchange Gain /(loss)
n regrouped under administrative expenses as per NFRS presentation which was
AP
s per Lease accuntiong under administrative expenses & Finance expenses as per

ange in method of depreciation using estimate life of the asset on a straight line
ting.
 DANDAGHAR KRISHI FIRM
Significant Accounting Policies and Notes to Financial Statements
For the year ended on Ashad 32, 2079

35.6 Effect of NFRS adoption on the Statement of Cash Flows

35.6.1 Effect of NFRS adoption on the Statement of Cash Flows for the year ended Ashad 31, 2078:
Amount in NPR

Effect of
Explanatory Amount as Per
Particulars Previous GAAP Transition to
Notes* NFRS
NFRS
Net Cash Flows from Operating Activities 1 184,613,073.90 9,537,470.32 194,150,544.22
Net Cash Flows from Investing Activities 2 (49,940,953.95) 7,637,107.36 (42,303,846.59)
Net Cash Flows from Financing Activities 3 (22,175,760.07) (10,655,107.04) (32,830,867.11)
Net increase/(decrease) in cash and cash Equivalents 112,496,359.88 6,519,470.64 119,015,830.52
Cash and Cash Equivalent at the beginning of the Period 40,963,940.33 - 40,963,940.33
Cash and Cash Equivalent at the end of the Period 153,460,300.21 6,519,470.64 159,979,770.85

Explanatory Notes*
1 Change in Net Cash Flows from Operating Activities is due to treatment of change in depreciation amount, regrouping of
Incomes and impact of Deferred Tax.
2 Change in Net Cash Flows from lnvesting Activities is due to regrouping of Other Income to Investment Income, Discount
income and restated gain on dispsal of PPE.
3 Change in Net Cash Flows from Financing Activities is due to regrouping of interest /Principle on lease liability.