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Accounting Policies of Auto Pins (India) Ltd. Company

Jun 30, 2014

A) Basis of accounting:

The Financial Statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies [Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (1) (a) of Section 642 and the relevant provisions of the Companies Ad, 1956 (the "Act:).

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act. 1956.

b) Use of estimates:

The preparation of Financial Statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the Financial Statements and the results of operations during the reporting periods. Although these estimates are based upon management''s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

c) Fixed assets and depreciation:

Fixed Assets are stated at cost of acquisition plus direct costs which are incidental to acquisition and installation till the assets are ready for put to use, less accumulated depreciation.

i) The company follows the Straight Line Method of depreciation (SLM) in the case of Plant & Machinery and written down value method of depreciation (WDV) in all other remaining assets.

ii) Depreciation is provided on pro-rata basis.

Intangible assets, if any are amortised on straight line basis over a period of five years, being their estimated useful life.

d) Investments:

Investments are classified as non-current or current, based on management s intention at the time of purchase Investments that are readily realisable end intended to be held for not more than a year are classified as current investments All other investments are classified as non-current investments

Trade investments are the investments made for or to enhance the Company''s business interests. Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non-current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the Financial statements.

e) Inventories:

Raw material, Stores and Packing Materials are valued at lower of cost or net realizable value, Semi-Finished and finished goods are valued at lower of cost or estimated net realizable value.

f) Revenue recognition:

Revenue from Sale of goods, if any, is recognized when the sale has been completed with the passing of title. Turnover represents invoiced amount of goods end services net of discount, Sales Tax and Excise.

Revenue from Sale of Services, if any, is recognized as the service is performed and booked based upon arrangements with the concerned parties Interest income is recognized on time proportion basis, inclusive of related tax deducted at source.

g) Expenditure:

Expenditure is booked on accrual basis and provision is made for all known losses and liabilities,

h) Borrowing costs:

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are recognized as part of the cost of such assets, in accordance with notified Accounting Standard 16 "Borrowing Costs" A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the statement of profit and loss as incurred.

i) Taxation:

Tax expense for the year comprises current income tax and deferred tax. Current income tax is determined in respect of taxable income with deferred tax being determined as the tax effect of timing differences representing the difference between taxable income and accounting income that originate in one period, and are capable of reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or substantively enacted as at the end of the financial year.

j) Foreign currency transactions:

i) Transactions in foreign currency, if any, are accounted for ai the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are concerted into Indian rupees at the year-end exchange rate.

ii) The exchange differences arising on such conversion and on settlement of the transactions are recognized in the statement of profit and loss.

k) Employee benefits:

Expenses and liabilities in respect of employee benefits are recorded in accordance with the notified Accounting Standard 15 - Employee Benefits.

i) Provident Fund

The Company makes contribution to statutory provident fund, in accordance with the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. In terms of the Guidance on implementing the revised AS - 15, issued by the Accounting Standards Board of the ICAI.

ii) Gratuity and Accrued leave Salary

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The company has no provision in the books of accounts regarding accrued leave salary and gratuity (if any), if applicable. However, the same is taken at the time of payment to employee''s on retirement or otherwise.

I) Impairment of assets:

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset, if such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to Its recoverable amount and the reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed Impairment loss no longer exists, the recoverable amount is reassessed and the asset is reacted at the amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

m) Contingent liabilities and provisions:

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company are accounted for as either provisions or disclosed as contingent liabilities In respect of statutory dues disputed and contested by the Company contingent liabilities are provided for and disclosed as per original demand without taking into account any interest or penally that may accrue thereafter. The Company makes a provision when there is a present obligation as a result of past event where the outflow of economic resources is probable and a reliable estimate of the amount of obligation can be made. Possible future or present obligation that may but will probably not require outflow of resources or where the same cannot be reliably estimated, is disclosed as contingent liability in the Financial Statement.

n) Segment information:

i) Business Segment: The Company is primarily engaged in the business of manufacture and sale of leaf spring of automobiles.

ii) Geographical Segment: The Company primarily operates in India and therefore the analysis of geographical segment is based on the areas in which customers of the Company are located.

o) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period are adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based on a mean date in the quarter, as impact is immaterial on earnings per share.


Jun 30, 2013

A) Basis of accounting:

The Financial Statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (1) (a) of Section 642 and the relevant provisions of the Companies Act, 1956 (the "Act").

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956.

b) Use of estimates:

The preparation of Financial Statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the Financial Statements and the results of operations during the reporting periods. Although these estimates are based upon management''s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

c) Fixed assets and depreciation:

Fixed Assets are stated at cost of acquisition plus direct costs which are incidental to acquisition and installation till the assets are ready for put to use, less accumulated depreciation.

i) The company follows the Straight Line Method of depreciation (SLM) in the case of Plant & Machinery and written down value method of depreciation (WDV) in all other remaining assets.

ii) Depreciation is provided on pro-rata basis.

Intangible assets, if any, are amortised on straight line basis over a period of five years, being their estimated useful life.

d) Investments:

Investments are classified as non-current or current, based on management''s intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non-current investments.

Trade investments are the investments made for or to enhance the Company''s business interests. Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non-current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the Financial statements.

e) Inventories:

Raw material, Stores and Packing Materials are valued at lower of cost or net realizable value. Semi Finished and finished goods are valued at lower of cost or estimated net realizable value.

f) Revenue recognition:

Revenue from Sale of goods, if any, is recognized when the sale has been completed with the passing of title. Turnover represents invoiced amount of goods and services net of discount, Sales Tax and Excise.

Revenue from Sale of Services, if any, is recognized as the service is performed and booked based upon arrangements with the concerned parties

Interest income is recognized on time proportion basis, inclusive of related tax deducted at source.

g) Expenditure:

Expenditure is booked on accrual basis and provision is made for all known losses and liabilities.

h) Borrowing costs:

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are recognized_ as part of the cost of such assets, in accordance with notified Accounting Standard 16 "Borrowing Costs". A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use.. All other borrowing costs are charged to the statement of profit and loss as incurred.

i) Taxation:

Tax expense for the year comprises current income tax and deferred tax. Current income tax is determined in respect of taxable income with deferred tax being determined as the tax effect of timing differences representing the difference between taxable income and accounting income that originate in one period, and are capable of reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or substantively enacted as at the end of the financial year.

j) Foreign currency transactions:

i) Transactions in foreign currency, if any, are accounted for at the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are converted into Indian rupees at the year-end exchange rate.

ii) The exchange differences arising on such conversion and on settlement of the transactions are recognized in the statement of profit and loss.

k) Employee benefits:

Expenses and liabilities in respect of employee benefits are recorded in accordance with the notified Accounting Standard 15 - Employee Benefits.

i) Provident fund

The Company makes contribution to statutory provident fund, in accordance with the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. In terms of the Guidance on implementing the revised AS - 15, issued by the Accounting Standards Board of the ICAI,

ii) Gratuity and Accrued leave Salary

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The company has no provision in the books of accounts regarding accrued leave salary and gratuity (if any), if applicable. However, the same is taken at the time of payment to employee''s on retirement or otherwise.

I) Impairment of assets:

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is re ected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

m) Contingent liabilities and provisions:

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company are accounted for as either provisions or disclosed as contingent liabilities. In respect of statutory dues disputed and contested by the Company, contingent liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. The Company makes a provision when there is a present obligation as a result of past event where the outflow of economic resources is probable and a reliable estimate of the amount of obligation can be made. Possible future or present obligation that may but will probably not require outflow of resources or where the same cannot be reliably estimated, is disclosed as contingent liability in the Financial Statement.

n) SEGMENT INFORMATION:-

i) Business Segment". The Company is primarily engaged in the business of manufacture and sale of leaf spring of automobiles. ii) Geographical Segment: The Company primarily operates in India and therefore the analysis of geographical segment is based on the areas in which customers of the Company are located.

o) Earnings per share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period are adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based on a mean date in the quarter, as impact is immaterial on earnings per share.


Jun 30, 2012

A) RECOGNITION OF INCOME & EXPENDITURE.

The accounts of the Company are Prepared on the Historical Cost Convention using accrual method of accounting.

b) FIXED ASSETS:-

Fixed assets are recorded at cost of acquisition inclusive of related expenses there on towards putting the assets into use.

c) INVESTMENTS:-

Investments are stated at cost.

d) DEPRECIATION:-

i) The company follows the Straight Line Method of depreciation (SLM) in the case of Plant & Machinery and written down value method of depreciation (WDV) in all other remaining assets.

ii) Depreciation is provided on pro-rata basis.

e) INVENTORIES:-

Raw material, Stores and Packing Materials are valued a lower of cost or net realizable value Semi Finished and finished goods are valued at lower of cost or estimated net realizable value.

f) RETIREMENT BENEFIT:-

The company has no provision in the books of account regarding accrued leave salary and Gratuity. However this been taken on the time of Payment to employee''s at the time of retirement.

g) FOREIGN CURRENCY TRANSACTION:

i) All foreign currency assets and liabilities, if any, as at the Balance Sheet date are stated at the applicable exchange rates prevailing at that date.

ii) Transaction completed during the year accounted for at the prevailing rates.

h) EXPORT BENEFITS

Export benefits are accounted for on cash basis.

i) SEGMENT INFORMATION:-

i) Business Segment: The Company is primarily engaged in the business of manufacture and sale of leaf spring of automobiles.

ii) Geographical Segment. The Company primarily operates in India and therefore the analysis of geographical segment is based on the areas in which customers of the Company are located.

j) IMPAIRMENT OF ASSETS:-

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price or its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of an assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable willing parties, less the cost of the disposal.

k) CONTINGENT LIABILITIES:-

Unprovided contingent liabilities are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.


Jun 30, 2011

1. Recognition of Income & Expenditure

The accounts of the Company are prepared on the Historical Cost Convention using accrual method of accounting.

2. FIXED ASSETS:-

Fixed assets are recorded at cost of acquisition inclusive of related expenses there on towards putting the assets into use.'

3. INVESTMENTS:-

Investments are stated at cost. 4. DEPRECIATION:- a) The company follows the Straight Line Method of depreciation (SLM) in the case of Plant & Machinery and written down value method of depreciation (WDV) in all other remaining assets. b) Machinery depreciation is provided on pro-rata basis.

5. INVENTORIES:- Raw material, Stores and Packing Materials are valued at lower of cost or net realizable value. Semi Finished and finished goods are valued at lower of cost or estimated net realizable value.

5. RETIREMENT BENEFIT:-

The company has no provision in the books of account regarding accrued leave salary and Gratuity. However this been taken on the time of payment to employee's at the time of retirement or otherwise.

6. FOREIGN CURRENCY TRANSACTION;-

a) All foreign currency assets and liabilities, if any, as at the Balance Sheet date are stated at the applicable exchange rates prevailing at that date.

b) Transaction completed during the year accounted for at the prevailing rates.

7. EXPORT BENEFITS :- Export benefits are accounted for on cash basis.

8. SEGMENT INFORMATION:-

a) Business Segment: The Company is primarily engaged in the business of manufacture and sale of Leaf Springs of automobiles.

b) Geographical Segment: The Company primarily operates in India and therefore the analysis of geographical segment is based on the areas in which Customers of the Company are located.

9. IMPAIRMENT OF ASSETS;-

Impairment loss is provided to the extent the carrying amount of, assets exceeds their recoverable amount. Recoverable amount is the higher of. an asset's net selling price or its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of an assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable willing parties, less the cost of the disposal.

10. CONTINGENT.LIABILITIES:- ' .

Un provided contingent liabilities are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.


Mar 31, 2010

1. Recognition of Income & Expenditure

The accounts of the Company are prepared on the Historical Cost Convention using accrual method of accounting.

2. FIXED ASSETS:-

Fixed assets are recorded at cost of acquisition inclusive of related expenses there on towards putting the assets into use.

3. INVESTMENTS:-

Investments are stated at cost.

4. DEPRECIATION:-

a) The company follows the Straight Line Method of depreciation (SLM) in the case of Plant & Machinery and written down value method of depreciation (WDV) in all other remaining assets.

b) Machinery depreciation is provided on pro-rata basis.

5. INVENTOR1ES:-

Raw material, Stores and Packing Materials are valued at lower of cost or net realizable value. Semi Finished and finished goods are valued at lower of cost or estimated net realizable value.

6. RETIREMENT BENEFIT:-

The company has no provision in the books of account regarding accrued leave salary and Gratuity. However this been taken on the time of payment to employees at the time of retirement or otherwise.

7. IMPAIRMENT OF ASSETS:-

Impairment loss is provided to the extent the carrying-amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an assets net selling price or its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of an assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an. asset in an arms length transaction between knowledgeable willing parties, less the cost of the disposal.

8. CONTINGENT LIABILITIES:-

Unprovided contingent liabilities are disclosed in the accounts by way of notes giving nature and quantum of such liabilities.

 
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