Accounting Policies of Amrapali Industries Ltd. Company

Mar 31, 2015

A. Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 and other relevant provisions of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014.

B. Revenue Recognition

a. Sales are accounted on basis of dispatches.

b. Interest income is recognised on time basis.

c. Dividend income and interest on Income Tax refund is accounted as and when received.

d. Other incomes are recognised on accrual basis.

C. Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized.

D. Depreciation

The company has changed the method of providing depreciation on fixed assets from Written Down Value method to Straight Line Method based on the years as prescribed under Schedule II to the Companies Act 2013. On additions/deletions, pro rata depreciation has been provided.

E. Change In Accounting Policy

The company is using the Written Down Value (WDV) method for calculation of depreciation on tangible fixed assets for earlier years. Now, as per Schedule II of Companies Act, 2013 useful lives have been specified for various types of assets. Due to this change over, the company has changed accounting policy from Written Down Value (WDV) method to Straight Line Method (SLM) for charging depreciation.

F. Exceptional Item

The company has revised its policy of providing depreciation on fixed assets effective April 1, 2014. Depreciation is now provided on a straight line basis for all assets as against the policy of providing on written down value basis for all assets and straight basis for others. The carrying amount as on April 1, 2014 is depreciated over the revised remaining useful life. As a result of these changes, the impact on financial statement has been shown as an exceptional item in the Profit and Loss Account.

G. Inventories :

Inventories are valued at cost or net realizable value whichever is lower.

H. Investments :

Investments in unquoted shares are valued and shown at cost.

I. Borrowing Costs :

Borrowing costs that are attributable to acquisition or construction of assets are included as part of the cost of such assets. All other borrowing costs are charged to the profit and loss statement in the period in which they are incurred.

J. Provisions:

The company recognizes provision when there is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits which can be measured only by using a substantial degree of estimation.

Provision for contractual obligation has been provided for in accounts based on management's assessment of the probable outcome with reference to the available information supplemented by experience of similar transactions.

K. Contingent Liabilities:

The company recognizes contingent liability for disclosure in notes to accounts, if any of the following conditions are fulfilled:

i) a possible obligation that arises from past events and 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 enterprise; or ii) a present obligation that arises from past events but is not recognized because:

a. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

b. a reliable estimate of the amount of the obligation cannot be made.

L. Taxes on Income:

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.

The deferred tax liabilities recognized for the year ending as on 31st March, 2015 comprise of the following:

a. Related to Fixed Assets (Depreciation):

M. Impairment of assets

At every balance sheet date, the company determines whether the provisions should be made for the impairment loss on fixed assets by considering the indications that the carrying amount of fixed asset exceeds the recoverable amount as per AS-28 "Impairment of Assets". Considering this, the management is of opinion that there is no impairment of assets during the year under audit; hence no provision is required to be made.

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Mar 31, 2014

1. ACCOUNTING CONVENTIONS:

These financial statements have been drawn up using the historical cost convention and following the accrual method of accounting.

2. REVENUE RECOGNIITON:

a. Sales are accounted on basis of dispatches.

b. Entertainment segment income is recognised on accrual basis.

c. Interest income is recognised on time basis.

d. Dividend income and interest on Income Tax refund is accounted as and when received.

e. Other incomes are recognised on accrual basis.

3. FIXED ASSETS AND DEPRECIATION:

Fixed assets are stated at cost of acquisition and at the value at which they are taken over or vested. The cost of fixed assets comprise the purchase price including import duties and other non refundable taxes or levies and any directly attributable cost to bring the asset to the working condition for intended use.

The company has provided depreciation on fixed assets using the WDV method at the rates prescribed in the Income Tax Rules.

4. INVESTMENTS: Long term investments are stated at cost less provision for diminution in value other than temporary, if any. Short term investments are valued at cost or fair value whichever is lower.

5. INVENTORIES: Inventories are valued at cost or net realizable value, whichever is lower.

6. FOREIGN CURRENCY TRANSACTIONS: NIL

7. TAXES ON INCOME:

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.

8. BORROWING COSTS:

Borrowing costs that are attributable to acquisition or construction of assets are included as part of the cost of such assets.

9. IMPAIRMENT OF ASSETS:

At every balance sheet date, the company determines whether the provisions should be made for the impairment loss on fixed assets by considering the indications that the carrying amount of fixed asset exceeds the recoverable amount as per AS-28 "Impairment of Assets". Considering this, the management is of opinion that there is no impairment of assets during the year under audit; hence no provision is required to be made.

10. PROVISIONS

The company recognizes provision when there is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits which can be measured only by using a substantial degree of estimation.

Provision for contractual obligation has been provided for in accounts based on management''s assessment of the probable outcome with reference to the available information supplemented by experience of similar transactions.

11. CONTIGNET LIABILITIES:

The company recognizes contingent liability for disclosure in notes to accounts, if any of the following conditions are fulfilled:

i) a possible obligation that arises from past events and 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 enterprise; or

ii) a present obligation that arises from past events but is not recognized because:

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Mar 31, 2013

1. ACCOUNTING CONVENTIONS:

These financial statements have been drawn up using the historical cost convention and following the accrual method of accounting in accordance with the applicable mandatory accounting standards notified by the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of Companies Act, 1956.

2. REVENUE RECOGNIITON:

a. Sales are accounted on basis of dispatches.

b. Entertainment segment income is recognised on accrual basis.

c. Interest income is recognised on time basis.

d. Dividend income and interest on Income Tax refund is accounted as and when received.

e. Other incomes are recognised on accrual basis.

3. FIXED ASSETS AND DEPRECIATION:

Fixed assets are stated at cost of acquisition and at the value at which they are taken over or vested. The cost of fixed assets comprise the purchase price including import duties and other non refundable taxes or levies and any directly attributable cost to bring the asset to the working condition for intended use.

The company has provided depreciation on fixed assets using the WDV method at the rates prescribed in the Income Tax Rules.

4. INVESTMENTS: Long term investments are stated at cost less provision for diminution in value other than temporary, if any. Short term investments are valued at cost or fair value whichever is lower.

5. INVENTORIES: Inventories are valued at cost or net realizable value, whichever is lower.

6. FOREIGN CURRENCY TRANSACTIONS : NIL

7. TAXES ON INCOME:

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.

8. BORROWING COSTS:

Borrowing costs that are attributable to acquisition or construction of assets are included as part of the cost of such assets.

9. IMPAIRMENT OF ASSETS:

At every balance sheet date, the company determines whether the provisions should be made for the impairment loss on fixed assets by considering the indications that the carrying amount of fixed asset exceeds the recoverable amount as per AS-28 "Impairment of Assets". Considering this, the management is of opinion that there is no impairment of assets during the year under audit; hence no provision is required to be made.

10. PROVISIONS

The company recognizes provision when there is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits which can be measured only by using a substantial degree of estimation.

Provision for contractual obligation has been provided for in accounts based on management''s assessment of the probable outcome with reference to the available information supplemented by experience of similar transactions.

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Mar 31, 2012

1. ACCOUNTING CONVENTIONS:

These financial statements have been drawn up using the historical cost convention and following the accrual method of accounting in accordance with the applicable mandatory accounting standards notified by the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of Companies Act, 1956.

2. REVENUE RECOGNIITON:

a. Sales are accounted on basis of dispatches.

b. Entertainment segment income is recognised on accrual basis.

c. Interest income is recognised on time basis.

d. Dividend income and interest on Income Tax refund is accounted as and when received.

e. Other incomes are recognised on accrual basis.

3. FIXED ASSETS AND DEPRECIATION:

Fixed assets are stated at cost of acquisition and at the value at which they are taken over or vested. The cost of fixed assets comprise the purchase price including import duties and other non refundable taxes or levies and any directly attributable cost to bring the asset to the working condition for intended use.

The company has provided depreciation on fixed assets using the WDV method at the rates prescribed in the Income Tax Rules.

4. INVESTMENTS: Long term investments are stated at cost less provision for diminution in value other than temporary, if any. Short term investments are valued at cost or fair value whichever is lower.

5. INVENTORIES: Inventories are valued at cost or net realizable value, whichever is lower.

6. FOREIGN CURRENCY TRANSACTIONS : NIL

7. TAXES ON INCOME:

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.

8. BORROWING COSTS:

Borrowing costs that are attributable to acquisition or construction of assets are included as part of the cost of such assets.

9. IMPAIRMENT OF ASSETS:

At every balance sheet date, the company determines whether the provisions should be made for the impairment loss on fixed assets by considering the indications that the carrying amount of fixed asset exceeds the recoverable amount as per AS-28 "Impairment of Assets". Considering this, the management is of opinion that there is no impairment of assets during the year under audit; hence no provision is required to be made.

10. PROVISIONS

The company recognizes provision when there is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits which can be measured only by using a substantial degree of estimation.

Provision for contractual obligation has been provided for in accounts based on management''s assessment of the probable outcome with reference to the available information supplemented by experience of similar transactions.

11. CONTIGNET LIABILITIES:

The company recognizes contingent liability for disclosure in notes to accounts, if any of the following conditions are fulfilled:

i) a possible obligation that arises from past events and 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 enterprise; or

ii) a present obligation that arises from past events but is not recognized because:

a. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

b. a reliable estimate of the amount of the obligation cannot be made.

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Mar 31, 2010

1. ACCOUNTING CONVENTIONS :

These financial statements have been drawn up using the historical cost convention and following the accrual method of accounting in accordance with the applicable mandatory accounting standards notified by the Companies (Accounting Standard) Rules, 2006 and the relevant previsions of Companies Act, 1956.

2. REVENUE RECOGNITION :

a. Sales are accounted on basis of dispatches.

b. Entertainment segment income is recognized on accrual basis.

c. Interest income is recognized on time basis.

d. Dividend income and interest on Income Tax refund is accounted as and when received.

e. Other Incomes are recognized on accrual basis.

3. FIXED ASSETS AND DEPRECIATION :

Fixed assets are stated at cost of acquisition and at the value at which they are taken over of vested. The cost of fixed assets comprise the purchase price including import duties and other non refundable taxes or levies and any directly attributable cost to bring the asset to the working condition for intended use.

The Company has provided depreciation on fixed assets using the WDV method at the rates prescribed in the Income Tax Rules.

4. INVESTMENTS :

Long term investments are stated at cost less provision for diminution in value other than temporary, if any. Short term investments are valued at cost of fair value whichever is lower.

5. INVENTORIES :

Inventories are valued at cost or net realizable value, whichever is lower.

6. FOREIGN CURRENCY TRANSACTIONS :

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of acquisition.

7. TAXES ON INCOME :

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.

8. BORROWING COSTS :

Borrowing costs that are attributable to acquisition or construction of assets are included as part of the cost of such assets.

9. IMPAIRMENT OF ASSETS :

At every balance sheet date, the company determines whether the provisions should be made for the impairment loss on fixed assets by considering the indications that the carrying amount of fixed asset exceeds the recoverable amount as per AS-28 “Impairment of Assets”. Considering this, the management is of opinion that there is no impairment of assets during the year under audit; hence no provision is required to be made.

10. PROVISIONS :

The company recognizes provision when there is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits which can be measured only by using a substantial degree of estimation.

Provision for contractual obligation has been provided for in accounts based on managements assessment of the probable outcome with reference to the available information supplemented by experience of similar transaction.

11. CONTIGNET LIABILITIES :

The company recognizes contingent liability for disclosure in notes to accounts, if any of the following conditions are fulfilled :

i. a possible obligation that arises from past events and 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 enterprise; or

ii. a present obligation that arises from past events but is not recognized because :

a. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

b. a reliable estimate of the amount of the obligation cannot be made.

12. MISCELLANEOUS EXPENDITURE :

Miscellaneous expenditure relates to the expenditure incurred on amalgamation as well as increase in authorized capital of the company. These are being written off over the period of five years.

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Mar 31, 2009

1. Method of Accounting

1.1 The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

1.2 Financial Statements are based on historic cost. The costs are not adjusted to reflect the impact of the changing value in the purchasing power of money.

2. Fixed Assets and Depreciation

2.1 Fixed assets are stated at the cost of acquisition or construction, including expenses less accumulated depreciation.

2.2 The company has provided depreciation on fixed assets using the WDV method at the rates prescribed in the Income Tax Rules.

3. Investments : Investments are valued at cost.

4. Taxes on Income:

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.