Home  »  Company  »  Alps Industries  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Alps Industries Ltd. Company

Mar 31, 2015

A. USE OF ESTIMATES

The Preparation of the financial statements in conformity with accounting standard requires the Management to make estimates and assumptions that affect the reported accounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and the reported amount of income and expenses during the reporting period, like useful lives of fixed assets, provision for doubtful debts/ advances, provision for diminution in value of investments, provision for employee benefits, provision for warranties/ discounts, allowances for certain uncertainties, provision for taxation, provision for contingencies etc. Actual results could differ from those estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the financial statements.

B. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS

The Financial Statements have been prepared on a going concern basis under the historical cost convention, on accrual basis unless specifically stated herein below and in accordance with the applicable Accounting standards (AS) issued by the Institute of Chartered Accountants of India and relevant provisions ofthe Companies Act, 2013.

C. REVENUE RECOGNITION

Sales are recognized on completion of sale of goods (Export Sales are recognized on the basis of Shipping Bills prepared) and are net of trade discounts, rebates and inclusive of excise duty but excludes taxes on sales.

Export incentives are recognized as and when export sale is accounted for. Profit/ Loss on sale of DEPB license is recognized in the year of sale.

D. FIXED ASSETS

a) All fixed assets are stated at cost, net of MODVAT/CENVAT less accumulated depreciation. Cost comprises cost of acquisition and all expenses incurred which are directly attributable, including cost of borrowings and exchange fluctuation, for bringing the assets into working condition for its intended use.

b) Cost of assets not ready to put to use before year end are shown as 'Capital Work in Progress/lntangible Assets Under Development'.

E. DEPRECIATION

Depreciation on the Tangible Assets and Computer Software are provided on Straight Line Method as per useful life ofthe assets and in the manner as prescribed in Schedule II to The Companies Act, 2013. However having regard to materiality of assets upto Rs. 5000/- are fully depreciated in the year of purchase. Leasehold lands are amortised over the lease period.

F. INVESTMENTS

a) Investments are carried at cost. However, provision for diminution in value is made to recognize any decline, other than temporary, in the value of investments except investment in unquoted & subsidiary companies.

b) Investments that are readily realizable and intended to hold for not more than a year are classified as Current Investments. All other investments are classified as Non Current Investments.

G. INVENTORIES

Raw Material and Stores & Spares are valued at cost. Cost of raw material is determined by First in First Out (FIFO) method except cotton, which is valued at weighted average cost.

Finished and Semi Finished goods produced and purchased, are valued at lower of cost or net realizable value. The identification of Semi Finished goods is done on the basis of location ofthe goods.

H. BORROWING COST

Borrowing costs that are directly attributable to the acquisition or construction of fixed assets, which necessarily take a substantial period of time to get ready for their intended use, are capitalized. Other borrowing costs are recognized as expense in the year in which they are incurred.

I. RETIREMENT AND OTHER EMPLOYEE BENEFITS

The provision for gratuity liability and earned leaves are made in accordance with the actuarial valuation on projected unit credit actuarial method at the end of the year. The provisions for medical leaves are made on basis of leaves accrued to employees. Employer's Contribution to Employees Provident Fund are charged to Statement of Profit and Loss.

J. RESEARCH AND DEVELOPMENT COSTS

Research & Development expenses of revenue nature are charged to Statement of Profit and Loss and those of capital nature are capitalized as Tangible/intangible assets.

K. DEFERRED REVENUE EXPENDITURE

The expenses related to Preliminary and capital issue expenses are fully charged in the year in which these are incurred.

L. FOREIGN CURRENCY TRANSACTIONS

a) Transactions denominated in foreign currency are recorded at the exchange rate prevailing at the time of the transactions.

b) Monetary items denominated in foreign currencies at the year end are restated at the yearend rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

c) Non monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of profit and loss except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

M. IMPAIRMENT OF ASSETS

The carrying amounts of all the assets are reviewed at each balance sheet date. If there is any indication of impairment, based on internal /external factors, an impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

N. TAXATION

a) Provision for current income tax is made in accordance with the applicable provisions of the Income Tax Act, 1961.

b) Liability for deferred tax is provided while deferred tax asset is recognized only if there is virtual certainty of their realization in future in terms of Accounting Standard on "Deferred Tax Accounting" (AS-22) issued by the Institute of Chartered Accountants of India.

O. GOVERNMENT GRANTS

Capital grants are accounted for and deducted from the respective assets in the year of receipt. Non specific Capital Subsidy in the nature of promoters'contribution is credited to Capital Reserve.

The interest subsidy under TUF scheme is considered on accrual basis and deducted from the interest expenditure.

P. OPERATING LEASE

Lease payments are recognized as an expense in the Statement of Profit and Loss according to the terms and conditions ofthe respective agreement.


Mar 31, 2014

A. USE OF ESTIMATES:

The Preparation ofthe financial statements in conformity with accounting standard requires the Management to make estimates and assumptions that affect the reported accounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and the reported amount of income and expenses during the reporting period , like useful lives of fixed assets, provision for doubtful debts/advances, provision for diminution in value of investments, provision for employee benefits, provision for warranties/ discounts, allowances for certain uncertainties, provision for taxation, provision for contingencies etc. Actual results could differ from those estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the financial statements.

B. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements have been prepared on a going concern basis under the historical cost convention, on accrual basis unless specifically stated herein below and in accordance with the applicable Accounting standards (AS) issued by the Institute of Chartered Accountants of lndia and relevant provisions ofthe Companies Act, 1956.

C. REVENUE RECOGNITION:

Sales are recognized on completion of sale of goods (Export Sales are recognized on the basis of Shipping Bills prepared) and are net of trade discounts, rebates and inclusive of excise duty but excludes taxes on sales.

Export incentives are recognized as and when export sale is accounted for. Profit/ Loss on sale of DEPB license is recognized in the year of sale.

D. FIXED ASSETS:

a) All fixed assets are stated at cost, net of MODVAT/CENVAT less accumulated depreciation. Cost comprises cost of acquisition and all expenses incurred which are directly attributable, including cost of borrowings and exchange fluctuation, for bringing the assets into working condition for its intended use.

b) Cost of assets not ready to put to use before year end are shown as ''Capital Work in Progress''/'' Intangible Assets Under Development''.

E. DEPRECIATION:

Depreciation on the Tangible Assets and computer software are provided on Straight Line Method at the rates and in the manner as prescribed in Schedule XIV to The Companies Act, 1956. Leasehold lands are amortised over the lease period. Brand & Trade Mark are being amortised over a period often years.

F. INVESTMENTS:

a) Investments are carried at cost. However, provision for diminution in value is made to recognize any decline, other than temporary, in the value of investments except investment in unquoted & subsidiary companies.

b) Investments that are readily realizable and intended to hold for not more than a year are classified as Current Investments. All other investments are classified as Non Current Investments.

G. INVENTORIES:

Raw Material and Stores & Spares are valued at cost. Cost of raw material is determined by First in First Out (FIFO) method except cotton, which is valued at weighted average cost.

Finished and Semi Finished goods produced and purchased, are valued at lower of cost or net realizable value. The identification of Semi Finished goods is done on the basis of location ofthe goods.

H BORROWING COST:

Borrowing costs that are directly attributable to the acquisition or construction of fixed assets, which necessarily take a substantial period of time to get ready for their intended use, are capitalized. Other borrowing costs are recognized as expense in the year in which they are incurred.

I. RETIREMENT AND OTHER EMPLOYEE BENEFITS:

The provision for gratuity liability and earned leaves are made in accordance with the actuarial valuation on projected unit credit actuarial method atthe end ofthe year. The provisions for medical leaves are made on basis of leaves accrued to employees. Employers contribution to Employees Provident Fund are charged to Statement of Profit and Loss.

J. RESEARCH AND DEVELOPMENT COSTS:

Research & Development expenses of revenue nature are charged to Statement of Profit and Loss and those of capital nature are capitalized as Tangible/intangible assets.

K. DEFERRED REVENUE EXPENDITURE:

The expenses related to Preliminary and capital issue expenses are fully charged in the year in which these are incurred.

L. FOREIGN CURRENCY TRANSACTIONS:

a) Transactions denominated in foreign currency are recorded at the exchange rate prevailing at the time ofthe transactions.

b) Monetary items denominated in foreign currencies at the year end are restated at the year end rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

c) Non monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of profit and loss except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

M. IMPAIRMENT OF ASSETS:

The carrying amounts of all the assets are reviewed at each balance sheet date. If there is any indication of impairment, based on internal / external factors, an impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

N. TAXATION:

a) Provision for current income tax is made in accordance with the applicable provisions ofthe Income Tax Act, 1961.

b) Liability for deferred tax is provided while deferred tax asset is recognized only if there is virtual certainty of their realization in future in terms of Accounting Standard on "Deferred Tax Accounting" (AS-22) issued by the Institute of Chartered Accountants of India.

O. GOVERNMENT GRANTS:

Capital grants are accounted for and deducted from the respective assets in the year of receipt. Non specific Capital Subsidy in the nature of promoters'' contribution is credited to Capital Reserve.

The interest subsidy under TUF scheme have been considered on accrual basis and deducted from the interest expenditure.

P. OPERATING LEASE:

Lease payments are recognized as an expense in the Statement of Profit and Loss according to the terms and conditions ofthe respective agreement.


Mar 31, 2012

A. USEOFESTIMATES:

The Preparation of the financial statements in conformity with accounting standard requires the Management to make estimates and assumptions that affect the reported accounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and the reported amount of income and expenses during the reporting period , like useful lives of fixed assets, provision for doubtful debts/advances, provision for diminution in value of investments, provision for employee benefits, provision for warranties/ discounts, allowances for certain uncertainties, provision for taxation, provision for contingencies etc. Actual results could differ from those estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the financial statements.

B. BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements have been prepared on a going concern basis under the historical cost convention, on accrual basis unless specifically stated herein below and in accordance with the applicable Accounting standards (AS) issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

C. REVENUERECOGNITION:

Sales are recognized on completion of sale of goods (Export Sales are recognized on the basis of Shipping Bills prepared) and are net of trade discounts, rebates and inclusive of excise duty but excludes taxes on sales.

Export incentives are recognized as and when export sale is accounted for. Profit/ Loss on sale of DEPB license is recognized in the year of sale.

D. FIXEDASSETS:

a) All fixed assets are stated at cost, net of MODVAT/CENVAT less accumulated depreciation. Cost comprises cost of acquisition and all expenses incurred which are directly attributable, including cost of borrowings and exchange fluctuation, for bringing the assets into working condition for its intended use.

b) Cost of assets not ready to put to use before year end are shown as 'Capital Work in Progress'.

E. DEPRECIATION:

Depreciation on the Tangible Assets and computer software are provided on Straight Line Method at the rates and in the manner as prescribed in Schedule XIV to The Companies Act, 1956. Leasehold lands are amortised over the lease period. Brand & Trade Mark are being amortised over a period often years.

F. INVESTMENTS:

a) Investments are carried at cost. However, provision for diminution in value is made to recognize any decline, other than temporary, in the value of investments except investment in unquoted & subsidiary companies.

b) Investments that are readily realizable and intended to hold for not more than a year are classified as Current investments. All other investments are classified as Non Current Investments.

G. INVENTORIES:

Raw Material and Stores & Spares are valued at cost. Cost of raw material is determined by First in First Out (FIFO) method except cotton, which is valued at weighted average cost.

Finished and Semi Finished goods produced and purchased, are valued at lower of cost or net realizable value. The identification of Semi Finished goods is done on the basis of location of the goods.

H BORROWINGCOST:

Borrowing costs that are directly attributable to the acquisition or construction of fixed assets, which necessarily take a substantial period of time to get ready for their intended use, are capitalized. Other borrowing costs are recognized as expense in the year in which they are incurred.

I. RETIREMENT ANDOTHER EMPLOYEE BENEFITS:

The provision for gratuity liability and earned leaves are made in accordance with the actuarial valuation on projected unit credit actuarial method at the end of the year. The provisions for medical leaves are made on basis of leaves accrued to employees. Employer's Contribution to Employees Provident Fund are charged to Statement of Profit and Loss.

J. RESEARCH AND DEVELOPMENT COSTS:

Research & Development expenses of revenue nature are charged to Statement of Profit and Loss and those of capital nature are capitalized as Tangible/intangible assets.

K. DEFERRED REVENUE EXPENDITURE:

The expenses related to Preliminary and capital issue expenses are fully charged in the year in which these are incurred.

L. FOREIGN CURRENCY TRANSACTIONS:

a) Transactions denominated in foreign currency are recorded at the exchange rate prevailing at the time of the transactions.

b) Monetary items denominated in foreign currencies at the year end are restated at the yearend rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

c) Non monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of profit and loss except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

M. IMPAIRMENT OF ASSETS:

The carrying amounts of all the assets are reviewed at each balance sheet date. If there is any indication of impairment, based on internal /external factors, an impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

N. TAXATION:

a) Provision for current income tax is made in accordance with the applicable provisions of the Income Tax Act, 1961.

b) Liability for deferred tax is provided while deferred tax asset is recognized only if there is virtual certainty of their realization in future in terms of Accounting Standard on "Deferred Tax Accounting" (AS-22) issued by the Institute of Chartered Accountants of India.

O. GOVERNMENT GRANTS:

Capital grants are accounted for and deducted from the respective assets in the year of receipt.

The interest subsidy under TUF scheme have been considered on accrual basis and deducted from the interest expenditure.

P. OPERATING LEASE:

Lease payments are recognized as an expense in the Statement of Profit and Loss according to the terms and conditions of the respective agreement.


Mar 31, 2010

BASIS FOR PREPARATION OF ACCOUNTS:

The Financial Statements are prepared on a going concern basis under the historical cost convention, on accrual basis unless specifically stated herein below and in accordance with the applicable Accounting standards (AS) issued by the Institute of Chartered Accountants of India.

REVENUE RECOGNITION:

Sales are recognized on completion of sale of goods (Export Sales are recognized on the basis of Shipping Bills prepared) and are net of trade discounts, rebates and inclusive of excise duty & exchange fluctuation but excludes taxes on sales.

FIXED ASSETS:

a) All fixed assets are stated at cost, net of MODVAT/CENVAT less accumulated depreciation. Cost comprises cost of acquisition and all expenses incurred which are directly attributable, including cost of borrowings and exchange fluctuation, for bringing the assets into working condition for its intended use.

b) Cost of assets not ready to put to use before year end and advances paid for acquisition or construction of Capital Assets are shown as Capital Work in Progress.

DEPRECIATION:

Depreciation on the fixed assets is provided on Straight Line Method atthe rates and in the manner prescribed in ScheduleXIVtoTheCompaniesAct,1956

INVESTMENTS:

a) Investments are carried at cost. However, provision for diminution in value is made to recognize any decline, other than temporary, in the value of investments.

b) Investments that are readily realizable and intended to hold for not more than a year are classified as Current investments. All other investments are classified as Long Term Investment.

INVENTORIES:

Raw Materials and stores & spares are valued at cost. Cost of raw material is determined by using the First in First out (FIFO) method except for cotton, which is valued at weighted average cost.

Finished and Semi Finished goods produced and purchased, are valued at lower of cost or net realizable value. The identification of Semi Finished goods is done on the basis of location of the goods.

BORROWING COST:

Borrowing costs that are directly attributable to the acquisition or construction of fixed assets, which necessarily take a substantial period of time to get ready for their intended use, are capitalized. Other borrowing costs are recognized as expense in the year in which they are incurred.

RETIREMENT AND OTHER EMPLOYEE BENEFITS:

The provision for gratuity Liability and earned leaves is made in accordance with the actuarial valuation on projected unit credit actuarial method atthe end of the year. The provisions for medical leaves are made on basis of leaves accrued to employees.

RESEARCH AND DEVELOPMENT COSTS:

Research & Development expenses of revenue nature are charged to Profit and Loss Account and those of capital nature are capitalized as Fixed Assets.

MISCELLANEOUS EXPENDITURE:

Preliminary expenses and capital issue expenses are amortised over a period often years.

Deferred revenue expenditure includes product research & development, design development, sampling expenses and human resource development expenses and are written off over a period of five years.

FOREIGN CURRENCYTRANSACTIONS:

a) Transactions denominated in foreign currency are generally recorded at the exchange rate prevailing at the time of the transactions.

b) Monetary items denominated in foreign currencies atthe year end are restated at the year end rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of contract is recognized as exchange difference and the premium paid on forward contracts is recognized overthe life of the contract.

c) Non monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the profit and loss account except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

IMPAIRMENT OF ASSETS:

The carrying amounts of assets are reviewed at each balance sheet date. If there is any indication of impairment, based on internal / external factors, an impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

TAXATION:

a) Provision for current income tax is made in accordance with the provisions of the Income Tax Act, 1961.

b) Liability for deferred tax is provided while deferred tax asset is recognized only if there is virtual certainty of their realization in future in terms of Accounting Standard on "Deferred Tax Accounting" (AS-22) issued bythe Institute ofChartered Accountants of India.

OPERATING LEASE:

Lease payments are recognized as an expense in the Profit and Loss Account according to the terms and conditions of the respective agreement.


Jun 30, 2009

- BASIS FOR PREPARATION OF ACCOUNTS:

The Financial Statements are prepared on a going concern basis under the historical cost convention, on accrual basis unless specifically stated hereinbelow and in accordance with applicable Accounting standards (AS) issued by the Institute of Chartered Accountants of India.

- REVENUE RECOGNITION:

Sales are recognized on completion of sale of goods and are net of trade discounts, rebates and inclusive of excise duty & exchange fluctuation but excludes tax.

- FTXED ASSETS:

a) All fixed assets are stated at cost, net of MODVAT/CENVAT less accumulated depreciation. Cost of fixed assets include cost of acquisition and all expenses incurred which are directly attributable, including cost of borrowings and exchange fluctuation, for bringing the assets into working condition for its intended use.

b) Cost of assets not ready to put to use before year end and advances paid for acquisition or construction of Capital Assets are being shown as Capital Work in Progress.

- DEPRECIATION:

Depreciation on the fixed assets has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956

- INVESTMENTS:

a) Investments are carried at cost. However, provision for diminution in value is made to recognize any decline, other than temporary, in the value of investments.

b) Investments that are readily realizable and intended to hold for not more than a year are classified as Current investments. All other investments are classified as Long Term Investment.

- INVENTORIES:

Raw Materials and stores & spares are valued at cost. Cost of raw material is determined by using the First in First out (FIFO) method except for cotton, which is valued at weighted average cost.

Finished and Semi Finished goods produced & purchased, are valued at lower of cost or net realizable value. The identification of Semi Finished goods is being done on the basis of location of the goods.

- BORROWING COST:

Borrowing cost, directly attributable to acquisition or construction of those fixed assets, which necessarily take a substantial period of time to get ready for their intended use, is capitalized and other borrowing cost is charged to revenue.

- TERMINAL BENEFITS:

The provision for gratuity liability is made in accordance with the actuarial valuation at the end of the year. The provision for earned leave/medical leaves has been made on the basis of leaves accrued to the employees.

- RESEARCH AND DEVELOPMENT:

Research & Development expenses of revenue nature are charged to Profit and Loss Account and those of capital nature are capitalized as Fixed Assets.

- MISCELLANEOUS EXPENDITURE:

Preliminary expenses & capital issue expenses are amortised over a period of ten years.

Deferred revenue expenditure includes product research & development, design development, sampling expenses and human resource development expenses and are written off over a period of five years.

- FOREIGN CURRENCY TRANSACTIONS:

a) Transactions denominated in foreign currencies are generally recorded at the exchange rate prevailing at the time of the transactions.

b) Monetary items denominated in foreign currencies at the year end are restated at the year end rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

c) Non monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or translation is recognised in the profit and loss account except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

- IMPAIRMENT OF ASSETS:

Carrying amount of Assets are reviewed at each balance sheet date. If there is any indication of impairment, based on internal / external factors, an impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

- TAXATION:

a) Provision for current income tax and fringe benefit tax are made in accordance with the provisions of the Income Tax Act, 1961.

b) Liability for deferred tax is provided while deferred tax asset is recognized only if there is virtual certainty of their realization in future in terms of Accounting Standard on "Deferred Tax Accounting" (AS-22) issued by the Institute of Chartered Accountants of India

- OPERATING LEASE:

Lease payments are recognized as an expense in the Profit and Loss Account according to the terms and conditions of the respective agreement.

 
Subscribe now to get personal finance updates in your inbox!