Home  »  Company  »  Ultracab (India) Ltd  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Ultracab (India) Ltd. Company

Mar 31, 2015

Company overview

Ultra cab is a leading player in the manufacturing of all types af cables & wires since 2007. During the FY 2014- 15, with the view to expand its horizons in this industry, the company has come out with a Initial Public Offer (IPO). The Ultra cab (India) Private Limited has been converted into Ultra cab (India) Limited w.e.f. 30.07.2014.

{a) Bastes of Preparation of fInancial Statements

The financial statements are prepared in accordance with India Generally Accepted Accounting Principles (GAAP} under the historical ccst convention on the accrual basis except for certain financial instruments which area measured at fair values- GAAP comprises mandatory accounting standards as 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 guidelines issued by the Securities and Exchange Board af India (SE6II. Accounting policies have been consistently applied except where a newly issued accounting standard Is initially adopted or a revision to an existing; standard requires a change In the accounting policy hitherto in use.

[b] Use of Estimates

The preparation of the Financial statements In conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income, and expenses during the period. Examples of such estimates include computation of percentage of completion which requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended, provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives Defied tangible assets and tangle assets.

Accounting estimates could change from period to period, Actual results coy id differ from those estimates, Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the 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 notes to the financial statements,

(c) Revenue Recognition

Revenue on sale of products: is recognised when the products are delieveried to customers, all significant contractual obligations have been satisfied and the collection of the resulting receivable is reasonably expected. Sales are stated net of trade discount, returns and taxes collected- Id] Provisions and contingent liabilities

A provision is recognized. If. as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will he required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure Is made as contingent liability. A disclosure for a contingent liability Is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there Is a possible obligation or a present obligation In respect of which the likelihood of outflow of resources is remote, no provision or disclosure Is made.

(e) Fixed Assets & Depreciation thereon

refaxed assets are stated at cost of acquision as reduced by accumulated depreciation, The cost of assets includes other direct/ indirect and incidental cost incurred to bring them into their present locati on,

ii) Pursuant to the enactment of Companies Act 2013; the company has applied the estimated use full lives as specified in Schedule II, except in respect of plants Si machineries where useful life is technically assessed as 25 years in place of 15 years. Accordingly the unamortized carrying value is being depreciated / amortized over the revised/remaining useful lives- The written down value of Fixed Assets whose lives have expired as at 1st Aptil, 2014 have been adjusted net of tax, in the opening balance of Profit and Loss Account amounting to Rs. 105,2 72/-.

(f) Retirement benefits to employees


The company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and tenure af employment with the company.

The provision for gratuity for the FV 201445 of Rs.355,388/-has been made by the management of the company on the basis of estimations.

-Provident Fund

Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the employee and the company make monthly contributions to the provident fund plan equal to 3 specified percentage of the covered employee's salary.

(g) Foreign currency transactions

Foreign currency denominated monetary assets and liabilities are translated at exchange rules In effect at the Balance sheet date. The gains Of losses resulting from Such translations are included in the Statement Of profit & loss.

Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction. Transaction gains or losses realized upon settlement of foreign

currency transactions are included in determining net profit for the period in which the transaction is settled. The net foreign exchance loss of Rs.6,847/- has been debited to the profit & loss account, (previous year net foreign exchange gain Rs.51,225/-)

|h) inventories

inventories are stated at lower of cost or net realisable value. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. We have not physically verified the inventories. The value of the inventories is taken as valued & certified by the management.

(j) Provision for Current Tax & Deferred Tax

Provision for Income tax is made on the basis of estimated taxable income for the year at current rates. Tax expenses comprises of Current Tax, Fringe Benefit Tax and Deferred Tax at applicable enacted or substantively enacted rates. Current Tax represents the amount of Income Tax payable/recoverable in respect ot the taxable income/loss for the reporting period. Deferred Tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originates in one period and are capable of reversal in one or more subsequent periods. The Deferred Tax asset is recognized and carry forward to the extent that there is a reasonable certainty that the assets will be realize in future. However, where there is un absorbed depreciation Or carry forward loss under taxation taws, deferred tax assets are recognized only if there is a virtual certainty of realization of assets.

(J) Expenses related to Initial Public Offer (IPOJ

The company ha-i brought an Initial Public Offer of 22,14,000 equity shares Do the SME platform of the Bombay Stock Exchange. The total 1PO expenses 0f Rs.43,49,727/- incurred by the company has been Written off against Securities premium account.

[k) taming* per share

Basic earnings per there are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting tan expenses] by the weighted average number of equity shares outstanding during the period.

(l) Current Assets, Loans and Advances & Liabilities

In the opinion of the Board of Directors; the. Current Assets, Loans and Advances and Current Liabilities are approximately stated if readied in the ordinary course of business. As no confirmatory letters were obtained from Debtors and Creditors, their balances are reflected in the Balance Sheet as appearing in the books- The provisions for a II other lablitles is adequate and not in excess of the amount reasonably necessary.

(m) Foreign Exchange Earning and Outgo

The foreign Exchange Remittances of the company in terms of exports of goods during the year is R fll. 1S lacs. (Previous year - Rs.228.41 lacs). The foreign Exchange Outgo during the year was Nil, (Previous year - Nil).

(n) Regrouping of Previous Year figures

The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the preceding year arc included as an integral part of the current year financial statements and are to be read In relation to the amounts and other disclosures relating to the current year.

(o) Rounding off of figures

Figures have been rounded off to the nearest rupee.

(P) Related Party Disclosures

II) Related party & their relationship i] Associates

Jigar Industries

Ultratab Tradelink Supreme Enterprise - Fusion Pumps Pyt, Ltd » Parmeshwar Trading Co-

ii) Key Managerial Personnel Niteshbhai P. Vaghaslya, Managing Director

Pankajbhai V. Shingala, Whole Time Director if Relatives of Key Managerial Personnel Artiben P. Shingala Parshotambhai L. Vaghasiya

Bhumiben R. Vaghasiya

Gurudutt industries Jayaben P. Vaghaslya Kanchanben V, Shingata -MebulbhaiV.Shingala s 5angitaben N. Vaghasiya » Vasantbhai H. Shingala