Mar 31, 2016
Note 1. Background: -
The Company was incorporated as Ahinsa Industries Private Limited under the provisions of the Companies Act, 1956 vide certificate of incorporation having CINU25200GJ1996PLC02867 dated January 24, 1996, in Ahmedabad. The name of the Company changed to "Ahimsa Industries Private Limited" vide fresh certification of Incorporation having CIN U25200GJ1996PLC02867 dated March 06, 1996 Further, Company was converted into public limited company i.e. Ahimsa Industries Limited having CIN L25200GJ1996PLC028679 vide fresh certificate of incorporation dated May 25, 2015.
The registered office of the company is situated at 102, Iscon Elegance, NR. Shapath-5, Prahlad Nagar Junction,S.G. Highway, Ahmedabad, Gujarat-380015, India.
Ahimsa Industries Limited was formed in 1996. Ahimsa Industries Limited (the "Company'''') is a limited company incorporated in India under the provisions of the Companies Act 1956. The company is engaged in Manufacturing PET of perform & trading of sugar confectionary machinery, plastic processing machinery, injection moulds and textiles. The Company''s registered office is in Ahmedabad and its factory is situated at Devraj Industrial Area. The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 2013.
Note 2.Significant Accounting Policies: -
1. Basis of Accounting: -
The financial statements are prepared in accordance with the applicable Accounting Standards as prescribed under section 133 of The Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules 2014 under the Historical cost convention, on accrual basis.
The Financial Statements are prepared under the Historical Cost Conversion using the accrual method of Accounting, in accordance with the accounting standards prescribed by the Institute of Chartered Accountants of India. However, the Insurance Claims and other than cash compensatory Incentives are accounted on the basis of receipt. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis, except in case of significant uncertainties relating to the income.
2. Revenue Recognition: -
Revenue has been considered as per AS 9- Revenue Recognition issued by Institute of Chartered Accountants of India. AS-12 Accounting for Government Grants have also been considered for the purpose of recognition of Interest subsidy received from the Government.
3. Government Grants: -
Grants/Subsidy is recognized until and unless it is reasonably assured to be realized and the company has complied with the conditions attached to the grant/subsidy.
Here Company has reasonable assurance that the it will comply with the conditions attached to Government Grants and also the company is reasonably certain about the ultimate receipt of the Grants. Hence government grants are recorded as Income in Books of Accounts on fulfillment of criteria for recognition of Grants as per AS 12 "Accounting for Government Grants." The schedule relating to government Grant is provided in Notes to Accounts.
4. Taxes on Income: -
Tax expense comprises both current and deferred taxes. Current tax is provided for on the taxable profit of the year at applicable tax rates.
Deferred taxes on income reflect the impact of timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years if any.
In the previous years deferred Tax Asset amounting to ''31,02,665 was standing in the balance sheet, the above Deferred Tax Asset was wrongly created on MAT Credit which is transferred to MAT Credit receivable in the current year.
5. Provisions and Contingent Liability: -
A Provision is recognized, if as a result of past event the company has a present obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the Obligation.
Contingent Liability is a possible Obligation that arises from past events and the existence of which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.
6. Tangible Assets & Capital Work-In-Progress: -
Tangible Assets are stated at cost less Depreciation. Cost includes taxes, duties, freight and other incidental expenses related to acquisition, improvements and installation of the assets.
During the year under Audit the Assets that are purchased not put to use are separately disclosed under the head Capital Work in Progress.
7. Impairment of Assets: -
Pursuant to "AS-28 Impairment of Assets" issued by the Central Government under the Companies (Accounting Standard) Rules 2006 for determining Impairment in the carrying amount of fixed assets, the management has concluded that since recoverable amount of fixed Assets is not less than its carrying amount, therefore no provision is required for impairment in respect of fixed Assets owned by the Company.
8. Deprecation: -
Deprecation on tangible assets is provided on "Written down Value Method" over the useful lives of the assets estimated by the Management. The Management estimates are based on the useful life provided in the Schedule II to Companies Act 2013, however for
9. Earnings Per Share: -
Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. The numbers of equity shares are adjusted retrospectively for all periods presented.
10. Investments: -
Investments are either classified as current or noncurrent based on management''s intention. Long Term Investments are carried at cost. Company has not made any Investments.
11. Foreign Currency Transactions: -
i. Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of the transaction.
ii. Monetary items denominated in foreign currency at the year end and not covered under forward exchange contracts are translated at the yearend rates. However, in current year Company has not translated Monetary items at yearend rates.
iii. Any income or expense on account of exchange difference between the date of transaction and on settlement Date or on translation is recognized in the profit and loss account as income or expense except in cases where they relate to the acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.
iv. As per the information provided by the management, the company has not entered into any forward contracts.
12. Valuation of Inventories: -
The inventories are physically verified at regular intervals by the Management. Raw materials, stores and Spares are valued at cost and net of credits under scheme under CENVAT Rules and VAT Rules. Finished Goods and Trade Goods are valued at Cost or Market Value/Contract Price Whichever is lower.
13. Gratuity Valuation: -
The company has created a gratuity fund which is managed by the Life Insurance Corporation of India. The premium paid for the gratuity is treated as deductible expense for the company and is not treated as perks in the hands of the employees. The amount paid by the Company for the Gratuity fund to LIC is mentioned in the below mentioned table: -
14. Duty Drawback: -
Duty Drawback is recorded on Receipt basis. Management is not able to estimable the amount of Claim receivable, therefore the duty drawback is recorded on receipt basis rather than on Accrual basis.
15. Excise Duty: -
While valuing the inventories of final products, the cost of inputs consumed is taken at net as Net of Inputs i.e. the cost as reduced by the CENVAT Credit availed against the payment of Excise duty.
The balance under CENVAT Scheme available for adjustment against the excise duty payable on final products at the close of the year has been included in the ASSETS side under the head other current assets.
16. Preliminary Expenses: -
Preliminary Expenses for the current year relates to IPO Expenses under the companies Act 2013 they have been expensed out.
17. Prior Period Expenses: -
Prior Period Expenses for previous years have been expensed out during the current year and it is disallowed as per Income Tax Act. It relates to previous year TDS paid and for previous year exchange Gain Loss.
18. Management Remuneration: -
Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of Companies Act, 2013 and Rule 5 (l)Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been provided in the below mentioned table: -
19. Cash and Cash Equivalents: -
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, fixed deposits with banks which are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
20. Segment Reporting: -
The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the Financial Statements of the Company as a whole. The Company''s operating businesses are organized and managed separately according to the nature of products and services provided. The table showing details of Segment reporting has been provided in the note number 4 below.
Mar 31, 2015
The financial statement are prepared to the comply in all material aspects with the applicable accounting principles in India, the Accounting Standards notified under relevant previsions of the Companies Act, 2013 and the relevant previsions of the Companies Act, 2013. The significant accounting policies are as follows;
A. RECOGNITION OF INCOME AND EXPENDITURE:
Revenues/Income and costs/expenditure are generally accounted on accrual base as they are earned or incurred. The Financial Statements are presented in Indian Rupees and rounded off to the nearest rupees.
Unless otherwise slated hereunder the financial accounts have been drawn up on histoncal cost convention.
2, FIXED ASSETS
Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost of Fixed Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to it's the asset to its working condition for its intended use and adjustments arising from exchange rate variations attributable to the assets.
3, METHOD OF DEPRECIATION.
Depreciation is provided using the written down vaiue method and based on useful life of the assets as prescribed in the Schedule II of the Companies Act, 2013.
Depreciation on addition during the year Is provided on the pro-rata basis from.the date of addition/deduction.
For Addition of Fixed Assets, Next Month 1st Day have been considered for Depreciation Calculation purpose.
4. Valuation of Inventories
Raw materials, stores and Spares are valued at cost and net of credits under scheme under CENVAT Rules and VAT Rules. Finished Goods and Trade Goods are valued at Castor Market Value/Contract Price whichever is lower.
5 Deferred Tax Assets
The Deferred Tax Assets for the current period Rs.31,02,665/- and for the previous year amounting to Rs.36,82,032 has been provided in the books of account.
The company has created a gratuity fund under The Income Tax Act, 19B1 and Trust has taken a policy with Life Insurance Corporation of India,
7. Foreign Currencies.
Transactions denominated in foreign currencies are recorded at ihe exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction,
Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the Profit and Loss Statement, except in case of long term liabilities, where they relate to acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such assets.