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Accounting Policies of Opto Circuits India Ltd. Company

Mar 31, 2015

1. SYSTEM OF ACCOUNTING

The financial statements are prepared in accordance with Indian Generally accepted Accounting principles( GAAP) under the historic cost convention on the accrual basis except for some financial instruments which are measured at fair value. GAAP comprises of accounting standards notified under Accounting Standards prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2. REVENUE RECOGNITION

Revenue from sale of products are recognized on dispatch of goods to customers and are net of sales tax, discounts, rebates for price adjustments, rejections and shortage in transit.

3. FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation. Cost prices include purchase price, duties, levies and any other cost relating to the acquisition and installation of the assets. Interest and financing charges on borrowed funds, if any, used to fiancé the acquisition of fixed assets, until the date the assets are ready for use are capitalized and included in the cost of the asset.

4. DEPRECIATION

During the year, the Company has adopted estimated useful life of fixed assets as stipulated by Schedule II to the Companies Act, 2013.

Accordingly, in respect of fixed assets acquired during the year, depreciation / amortization is charged on a straight line basis so as to write of the cost of the assets over the useful lives and for the assets acquired prior to April 01, 2014, the carrying amount as on April 01, 2014 is depreciated over the remaining useful life and depreciation on account of assets whose useful life is already exhausted on April 01, 2014 has been adjusted against opening balance of reserves and surplus.

5. INVENTORIES

Valuations of inventories are at the lower of cost and net realizable value. Cost of inventories are computed on a weighted average/FIFO basis.

6. RETIREMENT BENEFITS TO EMPLOYEES

The company's liability towards retirement benefit in the form of provident fund is fully funded and charged to revenue expenditure. The company contributes to the employee provident fund maintained under the employees provident fund scheme run by the Central Government. The gratuity liability is provided and charged of as revenue expenditure based on actuarial valuation. The company has subscribed to the group gratuity scheme policy of LIC of India. Unveiled encaseable earned leave is accounted on accrual basis.

7. INVESTMENTS

The investments are stated at cost.

8. DEFERRED TAX

Deferred Tax Asset in the nature of unabsorbed depreciation and losses are recognized only if there is virtual certainty of realization. Other deferred tax assets are recognized if there is reasonable certainty of realization.

9. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction. Foreign currency of assets & liabilities and realized gains and losses on foreign exchange transactions, other than those relating to fixed assets are recognized in the profit and loss account. Exchange difference arising on liabilities incurred for the purpose of acquiring fixed assets are adjusted in the carrying value of the respective fixed assets.

10. PROVISION FOR TAXATION

Provision is made for Income Tax annually based on the Tax Liability computed after considering Tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable

11. EARNINGS PER SHARE

The basic earnings per share is computed by dividing net profit after tax by the number of equity shares outstanding for the period.


Mar 31, 2014

1. SYSTEM OF ACCOUNTING

The financial statements are prepared in accordance with Indian Generally accepted Accounting principles (GAAP) under the historical cost convention on the accrual basis except for some financial instruments which are measured at fair value. GAAP comprises of accounting standards notified under section 211 (3C) of the Companies Act, 1956 ("the 1956 Act") [which continues to be applicable in respect of section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of general circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs] and the relevant provision of the 1956 Act/2013 Act as applicable. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to existing accounting standards requires a change in the accounting policy hitherto in use.

2. REVENUE RECOGNITION

Revenue from sale of products are recognized on dispatch of goods to customers and are net of sales tax, discounts, rebates for price adjustments, rejections and shortage in transit.

3. FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation. Cost prices include purchase price, duties, levies and any other cost relating to the acquisition and installation of the assets. Interest and financing charges on borrowed funds, if any, used to finance the acquisition of fixed assets, until the date the assets are ready for use are capitalized and included in the cost of the asset.

4. DEPRECIATION

Depreciation is provided on the straight line method at the rates specified under schedule XIV of the Companies Act, 1956 and on prorata basis on the additions made during the year.

5. INVENTORIES

Valuation of inventories are at the lower of cost and net realizable value. Cost of inventories are computed on a weighted average/FIFO basis

Raw Materials including stores and spares

Valued at lower of Cost and net realizable value

Work-in-Progress

Valued at lower of cost and net realizable value

Work in process includes costs incurred up to the stage of completion

Finished Goods

Valued at lower of cost and net realizable value

Finished goods include cost of conversion and cost incurred for bringing the same to the location or storage of completion

6. RETIREMENT BENEFITS TO EMPLOYEES

The company''s liability towards retirement benefit in the form of provident fund is fully funded and charged to revenue expenditure. The company contributes to the employee provident fund maintained under the employees provident fund scheme run by the Central Government. The gratuity liability is provided and charged off as revenue expenditure based on actuarial valuation. The company has subscribed to the group gratuity scheme policy of LIC of India. Unavailed encashable earned leave is accounted on accrual basis.

7. INVESTMENTS

The investments are stated at cost.

8. DEFERRED TAX

Deferred Tax Asset in the nature of unabsorbed depreciation and losses are recognized only if there is virtual certainty of realization. Other deferred tax assets are recognized if there is reasonable certainty of realization.

9. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction. Foreign currency of assets & liabilities and realized gains and losses on foreign exchange transactions, other than those relating to fixed assets are recognized in the profit and loss account. Exchange difference arising on liabilities incurred for the purpose of acquiring fixed assets are adjusted in the carrying value of the respective fixed assets.

10. PROVISION FOR TAXATION

Provision is made for Income Tax annually based on the Tax Liability computed after considering Tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable

11. EARNINGS PER SHARE

The basic earnings per share is computed by dividing net profit after tax by the number of equity shares outstanding for the period.

NOTE 4A - DETAILS OF REPAYMENT OF TERM LOANS

1) During January 2014, the company has borrowed INR 7,75,00,000 from HDFC Bank Limited. The interest rate is fixed @ 14% PA and is secured by Specified movable Fixed Assets. The loan is repayable in 8 quarterly installments of INR 96,87,500 each. The first installment is slated for April 2015 and the final installment is on January 2017,

2) In March 2009, Opto Circuits India Limited had borrowed US$ 7,000,000 from DBS Bank Limited. The interest rate was fixed @ 6.60% P.A. and is secured by specified movable fixed assets The loan is repayble in 8 half yearly installment of US$ 777,700 and one final balance installment of US$ 778,400. The first installment was on March 2010 and final installment was slated for March 2014 but as on 31 Marh 2014 the last 2 installment is still unpaid .

3) Opto Circuits India Ltd has borrowed Vehicle loans from Axis Bank Limited. The current outstanding balance with Axis Bank Limited is Rs. 46,406 which will be repaid in monthly installments. The final installment of Axis Bank is slated for July 2014.

NOTE 5A - SHORT TERM BORROWINGS

Notes:-

5.1. A ) Company has working capital facilities with State Bank of India.Hypothecation of Company''s present and future movable

fixed assets and current assets like stocks, raw materials, semi finished and finished goods, book debts, receivables, outstanding monies, bills, rights, stores, components, furniture and fittings; other movables, plant and machinery, vehicles and assets to be purchased out of bank finance. Pari Passu First Charge on the assets of the company. Equitable Mortgage on all the piece and parcel of land known as Sy. No. 62 part within the village limits of Doddathogur, Begur Hobli, Bangalore District containing by admeasuring 1.50 acre.

5.1. B) Company has obtained loans from DBS Bank Limited Hypothecation of the whole of the present and future stocks of raw materials, work in process, finished goods, semi finished goods, book debts, outstanding monies receivables, claims, bills, contracts, engagements, securities, investments, rights and assets belonging to the company, by way of first charge.

5.1. C) Company has working capital facilities with Indusind Bank Limited. These facilities are repayable on demand,secured by pari- passu charge on Stocks and Book Debts of the Company.

5.1. D) Company has working capital facilities with Standard Chartered Bank by hypothecation of the whole of the present and future stocks of raw materials, work in process and finished goods, book debts, outstanding monies, receivables, claims, bills, etc belonging to the company by way of paripassu charge. The company has also given the additional security of immovable property of its step down subsidiary M/s. Altron Hotels Private Limited comprising of all that piece and parcel of land measuring 0.90 Acres (3682.61 Smts) bearing V.P Khata No. 309, from out of land bearing Plot No. 24, Sy.No.14 of Konapaana Agrahara, Begur Hobli, Bangalore South Taluk 560100 together with buildings and structures standing thereon with all easement right, common right ingress and egress thereon.

5.1. E) Company has working facilities with Yes Bank Limited by hypothecation of Pari Passu charge on Current Assets of the borrower to cover loan amount plus costs, expenses, interest and other incidentals. Hypothecation of the whole of the Current Assets of raw material, semi finished & finished goods, stores and spares including consumable stores and spares relating to plant and machinery and other movables both present and future stored at Plot No.83, Electronics city, Bangalore South or wherever else in India and bills receivables and Book debts belonging to the Company.

5.1. F) Company has working capital facilities with The Bank of Nova Scotia by hypothecation of the whole of the present and future stocks of raw materials, work in process and finished goods, book debts, outstanding monies, receivables, claims, bills, etc belonging to the company by way of paripassu charge. The company has also given the security of immovable property of its Subsidiary Opto Infrastructure Limited comprising on all that piece and parcel of land known as Plot No''s 2A1, 2A2, 2A3, 2A3(P3), 2B1, 2B2, 2C1, 2C2, 3,4,5,6,7,8,9 and 10 in survey numbers in the Hassan Sector Specific Hard Ware Zone Industrial area within the limits of villages Doddabasavanahalli and Chikkabasavanahalli, Shantigrama Hobli, Hassan Taluk, Hassan dist. measuring an total extent of 250 acres.

5.2) The short term secured borrowings of Rs. 82,457.95 Lacs includes Cash credit facility of Rs. 14,545.51 Lacs with interest rate in the range of 11% p.a to 13% p.a, Preshipment Credit in Foreign Currency and bill discounting/Postshipment credit in Foreign currency facility of Rs. 31,911.84 Lacs with interest rate in the range of 4% p.a to 9% p.a ,Overdraft of Rs.36,000.59 Lacs with interest rate of 8 to 19.5%.

5.3) The short term interest free unsecured loans of Rs. 2,503.12 Lacs is from the Directors of the Company, Rs. 1,144.64 Lacs from the Subsidiaries director. The company has also borrowed Rs. 260.00 Lacs from the private finance with the interest rate of 15% to 24% which are repayable on short term basis.

5.4) Scotia bank has issued winding up notice dated 6th March 2014 for recovery of outstanding dues of Rs. 119 crores as on 31st March 2014. The Managment is making efforts to negotiate and settle with said bank for longer repayment. If the Bank does not agree, the managment will realise the debtors and will settle the account with said bank.

5.5) DBS Bank Limited, State Bank India has suspended charging the interest for the year ending 31st March 2014. However the company has provided for the interest in the books of accounts.


Mar 31, 2013

1. SYSTEM OF ACCOUNTING

The Financial statements have been prepared to comply in all material respects with the mandatory accounting standards issued by the Institute of Chartered Accountants of India (''ICAI'') and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those applied in the previous year.

2. REVENUE RECOGNITION

Revenue from sale of products are recognized on dispatch of goods to customers and are net of sales tax, discounts, rebates for price adjustments, rejections and shortage in transit.

3. FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation. Cost prices include purchase price, duties, levies and any other cost relating to the acquisition and installation of the assets. Interest and financing charges on borrowed funds, if any, used to finance the acquisition of fixed assets, until the date the assets are ready for use are capitalized and included in the cost of the asset.

4. DEPRECIATION

Depreciation is provided on the straight line method at the rates specified under schedule XIV of the Companies Act, 1956 and on prorata basis on the additions made during the year.

5. INVENTORIES

Valuation of inventories is at the lower of cost or market value as certified by the management. Cost of inventories are computed on a weighted average/FIFO basis

Raw Materials including stores and spares

Valued at lower of Cost and net realizable value

Work-in-Progress

Valued at lower of cost and net realizable value

Work in process includes costs incurred up to the stage of completion

Finished Goods

Valued at lower of cost and net realizable value

Finished goods include cost of conversion and cost incurred for bringing the same to the location or storage of completion

6. RETIREMENT BENEFITS TO EMPLOYEES

The company''s liability towards retirement benefit in the form of provident fund is fully funded and charged to revenue expenditure. The company contributes to the employee provident fund maintained under the employees provident fund scheme run by the Central Government. The gratuity liability is provided and charged of as revenue expenditure based on actuarial valuation. The company has subscribed to the group gratuity scheme policy of LIC of India. Unavailed encashable earned leave is accounted on accrual basis.

7. INVESTMENTS

The investments are stated at cost.

8. DEFERRED TAX

Deferred Tax Asset in the nature of unabsorbed depreciation and losses are recognized only if there is virtual certainty of realization. Other deferred tax assets are recognized if there is reasonable certainty of realization. Tax expenses towards deferred tax asset for UNIT II has been recognized and tax liability for the SEZ UNIT do not arise as the the income is covered under section 10AA of the Income Tax Act, 1961. The effect on Deferred Tax Asset & Liabilities of a change in rates is recognized in the income statement in the period of enactment of the change.

9. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction. Foreign currency of assets & liabilities and realized gains and losses on foreign exchange transactions, other than those relating to fixed assets are recognized in the profit and loss account. Exchange difference arising on liabilities incurred for the purpose of acquiring fixed assets are adjusted in the carrying value of the respective fixed assets.

10. PROVISION FOR TAXATION AND MAT

Provision is made for Income Tax annually based on the Tax Liability computed after considering Tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. The company is not charging of MAT on SEZ profit, as the MAT payment is in the nature of advance tax which will be set of against liability arising in future years. The unclaimable MAT amount will be written of as expenditure in the year in which carry forward/adjustment is not permissible.

11. EARNINGS PER SHARE

The basic earnings per share is computed by dividing net profit after tax by the number of equity shares outstanding for the period.


Mar 31, 2012

1. SYSTEM OF ACCOUNTING

The financial statements have been prepared to comply in all material respects with the mandatory accounting standards issued by the Institute of Chartered Accountants of India ('ICAI') and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those applied in the previous year.

2. REVENUE RECOGNITION

Revenue from sale of products are recognized on dispatch of goods to customers and are net of sales tax, discounts, rebates for price adjustments, rejections and shortage in transit.

3. FIXED ASSETS

Fixed assets are stated at cost, less accumulated depreciation. Cost prices include purchase price, duties, levies and any other cost relating to the acquisition and installation of the assets. Interest and fnancing charges on borrowed funds, if any, used to finance the acquisition of fixed assets, until the date the assets are ready for use are capitalized and included in the cost of the asset.

4. DEPRECIATION

Depreciation is provided on the straight line method at the rates specified under schedule xIV of the Companies Act, 1956 and on prorata basis on the additions made during the year.

5. INVENTORIES

Valuation of inventories is at the lower of cost or market value as certified by the management. Cost of inventories are computed on a weighted average/FIFO basis

Raw Materials including stores and spares

Valued at lower of Cost and net realizable value

Work-in-Progress

Valued at lower of cost and net realizable value

Work in process includes costs incurred up to the stage of completion

Finished Goods

Valued at lower of cost and net realizable value

Finished goods include cost of conversion and cost incurred for bringing the same to the location or storage of completion

6. RETIREMENT BENEFITS TO EMPLOYEES

The Company's liability towards retirement Benefit in the form of provident fund is fully funded and charged to revenue expenditure. The Company contributes to the employee provident fund maintained under the employees provident fund scheme run by the Central Government. The gratuity liability is provided and charged of as revenue expenditure based on actuarial valuation. The Company has subscribed to the group gratuity scheme policy of LIC of India. Unavailed encashable earned leave is accounted on accrual basis.

7. INVESTMENTS

The investments are stated at cost.

8. DEFERRED TAx

Deferred Tax Asset in the nature of unabsorbed depreciation and losses are recognized only if there is virtual certainty of realization. Other deferred tax assets are recognized if there is reasonable certainty of realization. Tax expenses towards deferred tax asset for UNIT II has been recognized and tax liability for the SEZ UNIT do not arise as the income is covered under section 10AA of the Income Tax Act, 1961. The effect on deferred tax asset & liabilities of a change in rates is recognized in the income statement in the period of enactment of the change.

9. FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction. Foreign currency of assets & liabilities and realized gains and losses on foreign exchange transactions, other than those relating to fixed assets are recognized in the profit and loss account. Exchange difference arising on liabilities incurred for the purpose of acquiring fixed assets are adjusted in the carrying value of the respective fixed assets.

10. PROVISION FOR TAXATION AND MAT Provision is made for Income Tax annually based on the Tax Liability computed after considering Tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. The company is not charging of MAT on SEZ profit, which will be set of against liability arising in future years. In the event of non set of due to the effect of not carrying forward, it will be written of in that financial year.

11. EARNINGS PER SHARE

The basic earnings per share is computed by dividing net profit after tax by the number of equity shares outstanding for the period.


Mar 31, 2011

1. System of Accounting the financial statements have been prepared to comply in all material respects with the mandatory accounting standards issued by the institute of Chartered accountants of india ('iCai') and the relevant provisions of the Companies act, 1956. the financial statements have been prepared under the historical cost convention on an accrual basis. the accounting policies have been consistently applied by the Company and are consistent with those applied in the previous year.

2. Revenue recognition revenue from sale of products are recognized on dispatch of goods to customers and are net of sales tax, discounts, rebates for price adjustments, rejections and shortages in transit.

3. Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation. Cost price includes purchase price, duties, levies and any other costs relating to the acquisition and installation of the assets. interest and financing charges on borrowed funds, if any, used to finance the acquisition of fixed assets, until the date the assets are ready for use are capitalized and included in the cost of the asset.

4. Depreciation

Depreciation is provided on the straight line method at the rates specifed under schedule xiV of the Companies act, 1956 and on prorata basis on the additions made during the year.

5. Inventories

Valuation of inventories is at the lower of cost or market value as certified by the management. Cost of inventories are computed on a weighted average/FiFO basis.

raw materials including stores and spares

Valued at lower of cost and net realizable value

Work in process

Valued at lower of cost and net realizable value. Work in process includes costs incurred up to the stage of completion

Finished Goods

Valued at lower of cost and net realizable value. Finished goods include cost of conversion and cost incurred for bringing the same to the loca- tion or storage of completion

6. Retirement benefits To Employees

The Company's liability towards retirement benefit in the form of provident fund is fully funded and charged to revenue expenditure. the Company contributes to the employee provident fund maintained under the employees provident fund scheme run by the Central Government. the gratuity liability is provided and charged off as revenue expenditure based on actuarial valuation. the Company has subscribed to the group gratuity scheme policy of LiC of india. unavailed encashable earned leave is accounted on accrual basis.

7. Investments

The investments are stated at cost.

8. Deferred tax

Deferred tax asset in the nature of unabsorbed depreciation and losses are recognized only if there is virtual certainty of realization. Other deferred tax assets are recognized if there is reasonable certainty of realization. tax expenses towards deferred tax asset for unit ii has been recognized and tax liability for the seZ unit do not arise as the income is covered under section 10aa of the income tax act, 1961. the effect on deferred tax asset & liabilities of a change in rates is recognized in the income statement in the period of enactment of the change.

9. Foreign Currency Transactions

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of transaction. Foreign currency of assets & liabilities and realized gains and losses on foreign exchange transactions, other than those relating to fixed assets are recognized in the profit and loss account. exchange difference arising on liabilities incurred for the purpose of acquiring fixed assets are adjusted in the carrying value of the respective fixed assets.

10. Provisions For Taxation

A provision is made for income tax annually based on the tax liability computed after considering tax allowances and exemptions. provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. minimum alternate tax (mat) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability is considered as asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period.

11. Earnings Per Share

The basic earnings per share is computed by dividing net profit after tax by the number of equity shares outstanding for the period.

 
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