NAME OF STUDENT - SAMBHAV JAIN

PROGRAMME – BBA HONS.

REGISTERATION NO. – 12219345

ROLL NO. – RQ2216A79

COURSE TITLE -FINANCIAL ACCOUNTING

COURSE CODE – ACC105

COMPANY PROFILE

Nykaa is an Indian e-commerce company, founded by Falguni Nayar in 2012

and headquartered in Mumbai. It sells beauty, wellness and fashion products
across websites, mobile apps and 100+ offline stores. In 2020, it became the
first Indian unicorn startup headed by a woman.
Nykaa sells products which are manufactured in India as well as internationally.
In 2015, the company expanded from online-only to an omnichannel model and
began selling products apart from beauty. As of 2020, it retails over 2,000
brands and 200,000 products across its platforms.

Nykaa is a beauty retail company that sells cosmetic commodities and fashion
products, including men's innerwear, both online and offline. The company also
offers comprehensive content that includes product reviews, beauty how-to
videos, expert-written articles, and even an e-beauty magazine. The Nykaa
helpline is designed to help its customers choose products and services that are
tailored to their needs. The products that beauty and wellness brand boasts of
are sourced directly from the manufacturing brands and are therefore authentic,
and are also available for delivery!

VISION OF THE COMPANY

Bring inspiration and joy to people, everywhere, everyday.

MISSION OF THE COMPANY

To create a world where our consumers have access to a finely curated,

authentic assortment of products and services that delight and elevate the human
spirit.

BUSINESS OF THE COMPANY (PRODUCTS)

MANAGEMENT OF THE COMPANY (BOD)

Falguni Nayar. Executive Chairperson, ...
Sanjay Nayar. Non-Executive Director.
Adwaita Nayar. Executive Director.
Anchit Nayar. Executive Director.
Anita Ramachandran. Independent Director.
Milan Khakhar. Non-Independent and Non-Executive Director.
Alpana Parida. Independent Director.
Pradeep Parameswaran. Independent Director.
Seshashayee shridhara Independent Director
Milind sarwate Independent Director

COMPETITORS

The top 5 competitors of Nykaa are as follows:

Purplle.
Plum.

MyGlamm.
Scentials.
FabAlley.
ACCOUNTING CONCEPT AND CONVENTIONS

For accounting information to be meaningful to your external and internal

users, it is important that such information is comparable and reliable. This
need can only be satisfied if the information provided by the financial
statements is based on some set of concepts known as accounting concepts.
These concepts provide uniformity and consistency to the accounting process
and improve its usefulness for the different users of accounting information.
We will discuss the various accounting concepts that the company follows as
stated in its annual report.
Going Concern Concept
Money Measurement Concept
Accounting Period Concept
Dual Aspect Concept
Business Entity Concept

1) GOING CONCERN CONCEPT :

The going concern concept of accounting implies that the business entity will
continue its operations in the future and will not liquidate or be forced to
discontinue operations due to any reason. A company is a going concern if no
evidence is available to believe that it will or will have to cease its operations
in foreseeable future.
Example of Going Concern concept being followed by Accel ltd and analysis
for the same-

As we can see in the Director’s responsibility statement of the

company, under point 4 that states- “Annual financial statements have
been prepared on a going concern basis”. Hence, we can conclude that
the financial accounts of NYKAA was prepared with the going
concern concept in mind.
2)MONEY MEASUREMENT CONCEPT :

In Financial Accounting, accountant’s records transaction which are measurable

in monetary terms. This is because, money provides a common denominator by
which different kind of facts about an entity or organisation can be expressed in
numerical term. This result in addition and subtraction easy.
According to Money Measurement concept in accounting, business records only
those transactions which are measurable in money or monetary terms.

• As we can see in the balance sheet of the company, all the

transactions are being recorded in India rupees. Which tells us that all
the transactions are being recorded in terms of money. Hence, we can
conclude that the money measurement concept is being followed.

3)ACCOUNTING PERIOD CONCEPT :

Accounting period refers to the span of time at the end of which the financial
statements of an enterprise are prepared, to know whether it has earned profits or
incurred losses during that period and what exactly is the position of its assets and
liabilities at the end of that period.
This interval of time is called accounting period.
The default period of Most companies is usually one year, but this doesn’t have
to be one calendar year. Many companies with odd fiscal year-ends open and
close their accounting periods in the middle of a calendar year. For example, a
company with a June fiscal year would start its period on June 1 and end it on
May 31 of the following year.

As we can see, the balance sheet of the company is being prepared for the time
period between 31st March 2020 to 31st March 2021. It shows us that Accel
company is preparing their accounts for a fiscal year which lasts 12 months.
Hence, we can conclude that the accounting period concept is being followed by
the company.

4)DUAL ASPECT CONCEPT :

Dual aspect concept states that since every transaction has a dual effect, the
accounting records must reflect the same to show the accurate movement of
funds. For instance, a buyer pays cash in return for a purchased item while the
seller gains cash in return for the sold item. This makes a transaction dual in
nature, affecting two accounts simultaneously and hence it should be registered
likewise.Dual Aspect Concept states that every transaction should be recorded in
two different accounts to show the funds’ accurate movement.
The concept acts as the foundation for double entry bookkeeping. If you want to
get your financial statements audited, you must use a dual-entry accounting
system.

As we can see the balance sheet of the company is balanced, meaning both the
assets and liability sides are equal which satisfies the condition for the dual
aspect concept which states: Assets = Liabilities + Equity. Hence, we can
conclude that Accel ltd. follows the dual aspect concept.
5)BUSINESS ENTITY CONCEPT :
Financial accounting is based on the premise that the transactions and balances
of a business entity are to be accounted for separately from its owners. The
business entity is therefore considered to be distinct from its owners for the
purpose of accounting.
Therefore, any personal expenses incurred by owners of a business will not
appear in the income statement of the entity. Similarly, if any personal expenses
of owners are paid out of assets of the entity, it would be considered to be
drawings for the purpose of accounting much in the same way as cash drawings.

The business entity concept also explains why owners’ equity appears on the
liability side of a balance sheet (i.e., credit side). Share capital contributed by a
sole trader to his business, for instance, represents a form of liability (known as
equity) of the ‘business’ that is owed to its owner which is why it is presented
on the credit side of the balance sheet.

Example of business entity concept being followed by Accel ltd. And analysis for
the same –

As we can see in the balance sheet of the company, the equity/capital

of the company is being treated as a liability, indicating that the owner
is not being treated as a part of the company but as an outsider.
Because of this we can say that the business entity concept is being
followed by NYKAA.