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Accounting Policies of Atlas Cycles (Haryana) Ltd. Company

Mar 31, 2015

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention, except for certain Fixed Assets which are carried at revalued amounts. The financial statements are presented in Indian rupees rounded off to the nearest rupees in lacs.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

3. FIXED ASSETS

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Projects under which assets are not ready for their intended use are disclosed under Capital Work-in-Progress.Land and Building at Sonepat and at Rasoi were revalued on 30th June, 1986. Subsequent additions to these units are shown at cost.

4. Depreciation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written down Value (WDV) Method except in case of assets pertaining to Sahibabad, Malanpur and Bawal Unit where depreciation is provided on Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

5. Revenue Recognition

Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Gross sales are inclusive of applicable excise duty and but are exclusive of sales tax.Dividend income is recognised when the right to receive payment is established.Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

6. Investments

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non-Current investments are stated at cost. Provision for diminution in the value of Non-Current investments is made only if such a decline is other than temporary

7. Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any, except in case of by-products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

8. Borrowing Costs

Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

9. Provisions, Contingent Liabilities and Contingent Assets

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements.

10. Income Taxes

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

11. Research and Development Expenses

Revenue expenditure pertaining to research is charged to the Profit and Loss Statement. Development costs of products are charged to the Profit and Loss Statement unless a product's technological feasibility has been established, in which case such expenditure is capitalised.


Mar 31, 2014

TURNOVER:

Sales are net of excise duty and rebates.

FIXED ASSETS:

Fixed assets are valued at cost. Land and Building at Sonepat and at Rasoi were revalued on 30th June, 1986.

Subsequent additions to these units are shown at cost.

DEPRECIATION:

In case of Sahibabad, Malanpur and Bawal units depreciation is calculated at straight line method. All other units the written down value method has been followed.

INVENTORIES:

Raw material, Components and spare parts are valued at weighted average basis cost concept. Finished goods and work in progress are valued at cost. The cost includes material cost plus appropriate share of labour and overheads.

INVESTMENTS:

Long term Investments are valued at cost. Current Investment is valued at cost or market Value which ever is less.

CONTIGENT LIABILITIES:

Contingent Liabilities are not provided for in accounts and are shown separately.

RECOGNISATION OF INCOME AND EXPENDITURE:

Items of Income & Expenditure recognised on accrual basis.

RETIREMENT/GRATUITY BENEFITS:

Liabilities in respect of gratuity benefits, Provident Fund and Superannuation benefits, for its senior employees are provided for by the company via Gratuity Fund Trust and Superannuation Trust maintained with LIC. Earned leave has been provided for on acturial valuation.

RESEARCH AND DEVELOPMENT EXPENSES:

Revenue Expenditure on Research and Development is charged to the Profit and Loss Account in the year in which it is incurred, while the capital expenditure is shown as an addition to the Fixed Assets.

TAX ON INCOME:

Current Tax is determined as the amount of Tax Payable in respect of Taxable income for the year.

Deferred Tax is recognised, subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

Recognition of opening and closing balances of Defined Benefit Obligation.

GRATUITY Gratuity (Funded)

2013-14 2012-13

Defined Benefit obligation at the beginning of the year 1264.00 1196.01

Current Service Cost 142.00 66.18

Interest cost 102.00 101.15

Benefit paid -291.00 -99.34

Defined Benefit obligation at the year end 1217.00 1264.00

INVESTMENT DETAILS Investement as on Investement as on 3/31/2014 3/31/2013

Investment Detail: Value % Value %

GOI Securities 43.77 16.69 43.77 18.13

Public Securities 94.01 35.84 94.01 38.94 State Government Securities 30.43 11.60 30.43 12.61

Private Securities 21.97 8.38 21.97 9.10

In banks 72.10 27.49 51.23 21.22

262.28 100 241.41 100

Acturial assumptions Gratuity (Funded)

2013-14 2012-13

Discount rate (Per Annum) 8.00 8.00

Expected rate of return plan (Per Annum) 9.40 9.40

Rate of escalation of salary (Per Annum) 7.00 7.00

The estimate of rate of escalation in salary considered in acturial valuation, takes into account seniority and promotion other relevant factors The above information is certified by the actuary As per the Accounting Standard 15 "Employees benefit", the disclosure as defined in the accounting Standard are given below:

Defined Contribution Plan 31.3.2014 31.3.2013

Employer''s Contribution to Provident Fund 56.69 58.48

Employers Contribution to Supper Annuation Fund 38.63 70.45

Employers Contribution to Gratuity Fund 106.22 131.71


Mar 31, 2013

TURNOVER:

Sales are net of excise duty and rebates.

FIXED ASSETS:

Fixed assets are valued at cost. Land and Building at Sonepat and at Rasoi were revalued on 30th June, 1986. Subsequent additions to these units are shown at cost.

DEPRECIATION:

In case of Sahibabad , Malanpur and Bawal units depreciation is calculated at straight line method. All other units the written down value method has been followed.

INVENTORIES:

Raw material, Components and spare parts are valued at weighted average basis cost concept. Finished goods and work in progress are valued at cost. The cost includes material cost plus appropriate share of labour and overheads.

INVESTMENTS:

Long term Investments are valued at cost. Current Investment is valued at cost or market Value which ever is less.

CONTIGENT LIABILITIES:

Contingent Liabilities are not provided for in accounts and are shown separately.

RECOGNISATION OF INCOME AND EXPENDITURE:

Items of Income & Expenditure recognised on accrual basis.

RETIREMENT/GRATUITY BENEFITS:

Liabilities in respect of gratuity benefits, Provident Fund and Superannuation benefits, for its senior employees are provided for by the company via Gratuity Fund Trust and Superannuation Trust maintained with LIC. Earned leave has been provided for on acturial valuation.

RESEARCH AND DEVELOPMENT EXPENSES:

Revenue Expenditure on Research and Development is charged to the Profit and Loss Account in the year in which it is incurred, while the capital expenditure is shown as an addition to the Fixed Assets.

TAX ON INCOME:

Current Tax is determined as the amount of Tax Payable in respect of Taxable income for the year.

Deferred Tax is recognised, subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.


Mar 31, 2011

I. ACCOUNTING POLICIES: TURNOVER:

Sales are net of excise duty and rebates.

FIXED ASSETS:

Fixed assets are valued at cost. Land and Building at Sonepat and at Rasoi were revalued on 30th June, 1986. Subsequent additions to these units are shown at cost.

DEPRECIATION:

In case of Sahibabad , Malanpur and Bawal units depreciation is calculated at straight line method. All other units the written down value method has been followed.

INVENTORIES:

Raw material, Components and spare parts are valued at weighted average basis cost concept. Finished goods and work in progress are valued at cost. The cost includes material cost plus appropriate share of labour and overheads.

INVESTMENTS:

Long term Investments are valued at cost. Current Investment is valued at cost or market Value which ever is less.

CONTIGENT LIABILITIES:

Contingent Liabilities are not provided for in accounts and are shown separately.

RECOGNISATION OF INCOME AND EXPENDITURE:

Items of Income & Expenditure recognised on accrual basis.

RETIREMENT/GRATUITY BENEFITS:

Liabilities in respect of gratuity benefits, Provident Fund and Superannuation benefits, for its senior employees are provided for by the company via Gratuity Fund Trust and Superannuation Trust maintained at LIC. Earned leave has been provided for on actuarial valuation.

RESEARCH AND DEVELOPMENT EXPENSES:

Revenue Expenditure on Research and Development is charged to the Profit and Loss Account in the year in which it is incurred, while the capital expenditure is shown as an addition to the Fixed Assets.

TAX ON INCOME:

Current Tax is determined as the amount of Tax Payable in respect of Taxable income for the year.

Deferred Tax is recognised, subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.


Mar 31, 2010

TURNOVER:

Sales are net of excise duty and rebates.

FIXED ASSETS:

Fixed assets are valued at cost. Land and Building at Sonepat and at Rasoi were revalued on 30th June, 1986. Subsequent additions to these units are shown at cost.

DEPRECIATION:

Incase of Sahibabad , Malanpur and Bawal units depreciation is calculated at straight line method. All other units the written down value method has been followed.

INVENTORIES:

Raw material, Components and spare parts are valued at weighted average basis cost concept. Finished goods and work in progress are valued at cost. The cost includes material cost plus appropriate share of labour and overheads.

INVESTMENTS:

Long term Investments are valued at cost. Current Investment is valued at cost or market Value which ever is less.

CONTIGENT LIABILITIES:

Contingent Liabilities are not provided for in accounts and are shown separately.

RECOGNISATION OF INCOME AND EXPENDITURE:

Items of Income & Expenditure recognised on accrual basis.

RETIREMENT/GRATUITY BENEFITS:

Liabilities in respect of gratuity benefits, Provident Fund and Superannuation benefits, for its senior employees are provided for by the company via Gratuity Fund Trust and Superannuation Trust maintained at LIC. Earned leave has been provided for on actuarial valuation.

RESEARCH AND DEVELOPMENT EXPENSES:

Revenue Expenditure on Research and Development is charged to the Profit and Loss Account in the year in which it is incurred, while the capital expenditure is shown as an addition to the Fixed Assets.

TAX ON INCOME:

Current Tax is determined as the amount of Tax Payable in respect of Taxable income for the year.

Deferred Tax is recognised, subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

 
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