Accounting Policies of Ahimsa Industries Ltd. Company

Mar 31, 2024

Note 2.Significant Accounting Policies:

1. Basis of Accounting: -

The financial statements of the Company have been prepared in accordance with the
Generally Accepted Accounting Principles in India ("Indian GAAP"), the Accounting
Standards ("AS") as specified under section 133 of The Companies Act, 2013, read with
applicable rules of Companies (Accounts) Rules 2014 and the relevant provisions of the
Companies Act, 2013 ("the 2013 Act"). The financial statements are prepared on the basis
of going concern under the historical cost convention using the accrual method of
accounting.

2. Use of Estimates: -

The preparation of financial statements in conformity with Indian GAAP requires the
Management to make estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities and disclosures of contingent liabilities.
Management believes that the estimates used in the preparation of financial statements
are prudent and reasonable. Actual results could differ from the estimates.

3. Valuation of Inventories:-

As per AS 2, the inventories are physically verified at regular intervals by the Management.
Raw materials, stores and Spares are valued at cost and net of credits under scheme under
CENVAT Rules, VAT Rules and GST Rules. Finished Goods and Trade Goods are valued at
Cost or Market Value/Contract Price Whichever is lower. Cost of inventories comprises of
cost of purchase, cost of conversion and other costs including manufacturing overheads
net of recoverable taxes incurred in bringing them to their respective present location and
condition.

Cost of raw materials, process chemicals, stores and spares, packing materials, trading and
other products are determined on weighted average basis.

4. Cash and Cash Equivalents (for the purpose of Cash Flow Statement): -

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank
and in hand, fixed deposits with banks which are short term, highly liquid investments that
are readily convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.

5. Cash Flow Statement: -

Cash flows are reported using the indirect method, whereby profit / loss before
extraordinary items and tax is adjusted for the effects of transactions of non-cash nature
and any deferrals or accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the company are segregated based on
available information.

6. Event Occurring After Balance Sheet Date:

As per AS 4 Events occurring after the balance sheet date are those significant events, both
favourable and unfavourable, that occur between the balance sheet date and the date on
which the financial statements are approved by the Board of Directors in the case of a
company, and by the corresponding approving authority in the case of any other entity.

These events can broadly be classified in two ways:

a) Those which provide further evidence of conditions that existed at the balance sheet
date; and

b) Those which are indicative of conditions that arose subsequent to the balance sheet
date.

Adjustments to assets and liabilities are required for events occurring after the balance
sheet date that provide additional information materially affecting the determination of
the amounts relating to conditions existing at the balance sheet date.

7. Revenue Recognition: -

Revenue has been considered as per AS 9 - Revenue Recognition issued by Institute of
Chartered Accountants of India. AS-12 Accounting for Government Grants have also been
considered for the purpose of recognition of Interest subsidy received from the State
Government. During the Financial Year 2023-24, subsidy is due or receivable from the
government in form of Government Grant is recorded.

Income from sale is recognized upon transfer of significant risks and rewards of ownership
of the goods to the customer which generally coincides with dispatch of Goods to
customer. Sales are recorded net of- Sales Tax / VAT, GST, returns, rebates, discounts and
excise duties.

Interest income is recognized on accrual basis.

Other operational revenue represents income earned from the activities incidental to the
business and is recognized when the right to receive the income is established as per the
terms of the contract.

Revenue is recognized when consideration receivable for the sale of goods, the rendering
of services or from the use by others of enterprise resources is reasonably determinable.
When such consideration is not determinable within reasonable limits, the recognition of
revenue is postponed.

When recognition of revenue is postponed due to the effect of uncertainties, it is
considered as revenue of the period in which it is properly recognized.

8. Property, Plant and Equipment & Capital Work-In-Progress:-

Property, Plant and Equipment represents a significant proportion of the asset base of the
company. The change in respect of periodic depreciation is derived after determining an
estimate of an asset''s expected useful life and the expected residual value at the end of its
life. The useful lives and the residual value of the company''s assets are determined by the
management at the time the asset is acquired and reviewed periodically, including at each
financial year end.

Property, Plant and Machinery are stated at cost less depreciation / amortisation and
impairment losses, if any. The cost of Fixed Assets comprises its purchase price net of any
taxes, duties, freight and other incidental expenses related to acquisition, improvements
and installation of the assets.

Borrowing costs that are directly attributable to the acquisition / construction of the
Qualifying asset are capitalised as part of the cost of such asset, up to the date of
acquisition / completion of construction.

Projects under which Property, Plant and Machinery are not yet ready for their intended
use are carried at cost, comprising direct cost, related incidental expenses and attributable
interest.

Gains or Losses arising from de-recognition of Property, Plant and Machinery are measured
as the difference between the net disposal proceeds and the carrying amount of the asset
and are recognized in the statement of profit and loss when the asset is derecognized.

Intangible Assets acquired separately are measured on initial recognition at cost. Following
initial recognition, Intangible Assets are carried at cost less accumulated amortization and
accumulated impairment, if any. Gains or losses arising from de-recognition of an
Intangible Asset are measured as the difference between the net disposal proceeds and
the carrying amount of the Asset and are recognized in the statement of profit and loss
when the asset is derecognized.

Depreciation on Property, Plant and Machinery is provided on "Written down Value
Method" over the useful lives of the assets estimated by the Management. The
Management estimates are based on the useful life provided in the Schedule II to

Companies Act 2013, however for certain assets the Management Estimates differs from
the useful life mentioned in Schedule II. The Useful Life of Various assets are mentioned in
the below mentioned Chart.

*As per Schedule II of Companies Act, 2013, The Useful life of General Plant and
Machinery is 15 Years. Company has purchased and installed Timing Belt for Plant
and Machinery in factory premises, However Company is of the opinion that it will
be required to replace it within 3 Years based upon past experiences.

9. Foreign Currency Transactions: -

On initial recognition, all foreign currency transactions are converted and recorded at
exchange rates prevailing on the date of the transaction.

As at the reporting date, foreign currency monetary assets and liabilities are translated at
the exchange rate prevailing on the Balance Sheet date and the exchange gains or losses
are recognized in the Statement of Profit and Loss.

Non-monetary items which are carried in terms of historical cost denominated in a foreign
currency are reported using the exchange rate at the date of the transaction.

Any income or expense on account of exchange difference between the date of transaction
and on settlement Date or on translation is recognized in the profit and Loss account as
income or expense except in cases where they relate to the acquisition of fixed assets in
which case they are adjusted to the carrying cost of such assets.

10. Government Grants: -

Grants/Subsidy is not recognized until and unless it is reasonably assured to be realized
and the company has reasonable assurance that it will comply with the conditions attached
to the grant/subsidy.

Here Company has reasonable assurance that it will comply with the conditions attached
to Government Grants and also the company is reasonably certain about the ultimate
receipt of the Grants. Hence government grants are recorded as Income in Books of
Accounts on fulfilment of criteria for recognition of Grants as per AS 12"Accounting for
Government Grants."

A contingency related to a government grant, arising after the grant has been recognized,
should be treated in accordance with Accounting Standard (AS) 4, Contingencies and
Events Occurring after the Balance Sheet Date.

Government grants that become refundable should be accounted for as an extraordinary
item (see Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior Period Items
and Changes in Accounting Policies).

11. Investments: -
Recognition and Measurement

Long-term investments are carried individually at cost, on disposal of investment, the
difference between its cost and net disposal proceeds is charged or credited to the
Statement of Profit and Loss.

Current investments are carried at lower of cost and fair value. The determination of
carrying amount of such investments is done on the basis of weighted average cost of each
individual investment.

Presentation and disclosures

Investments that are readily realisable and are intended to be held for not more than one
year from the date, on which such investments are made, are classified as current assets.
All other investments are classified as long term investments.

Interest and Rentals on Investment from long term and current investments, Gross Income
are stated and the amounts of Tax deducted at Source are disclosed separately.

12. Employee Benefits: -
Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are
classified as short term employee benefits. Benefits such as salaries, performance
incentives, etc., are recognised as an expense at the undiscounted amount in the
Statement of Profit and Loss of the year in which the employee renders the related service.

Post-Employment Benefits:

a) Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company
pays specified contributions to a separate entity. The Company makes specified monthly

contributions towards Provident Fund and Pension Scheme. The Company s contribution
is recognised as an expense in the Profit and Loss Statement during the period in which
the employee renders the related service.

b) Defined Benefit Plans

For defined benefit plans in the form of Gratuity Fund, the company is maintaining gratuity
fund with Life Insurance Corporation of India, premium paid to Life Insurance Corporation
of India is debited to Profit and Loss account for the respected accounting period in which
they occur.

13. Borrowing Cost¬
Borrowing costs that are attributable to the acquisition, construction or production of a
qualifying asset are capitalised as part of cost of such asset till such time the asset is ready
for its intended use or sale. A qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended use or sale. All other borrowing
costs are recognised as an expense in the period in which they are incurred.

14. Earnings Per Share: -

Basic earnings per share are 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.

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 same has been disclosed at the end of the Statement of Profit and Loss
separately.

15. Taxes on Income: -

Tax expense comprises both current and deferred taxes. Current tax is provided for on the
taxable profit of the year at applicable tax rates.

Deferred taxes on income reflect the impact of timing difference between taxable income
and accounting income for the year and reversal of timing differences of earlier years if
any.

The Company has Policy of offsetting deferred tax asset and deferred tax liabilities as it is
a legally enforceable right to set off assets against liabilities representing current tax and
it relates to same governing taxation laws.

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.

16. Impairment of Assets: -

Pursuant to "AS-28 Impairment of Assets" issued by the Central Government under the
Companies (Accounting Standard) Rules 2006 for determining Impairment in the carrying
amount of fixed assets, the management has concluded that since recoverable amount of
fixed Assets is not less than its carrying amount, therefore no provision is required for
impairment in respect of fixed Assets owned by the Company.

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Mar 31, 2016

Note 1. Background: -

The Company was incorporated as Ahinsa Industries Private Limited under the provisions of the Companies Act, 1956 vide certificate of incorporation having CINU25200GJ1996PLC02867 dated January 24, 1996, in Ahmedabad. The name of the Company changed to "Ahimsa Industries Private Limited" vide fresh certification of Incorporation having CIN U25200GJ1996PLC02867 dated March 06, 1996 Further, Company was converted into public limited company i.e. Ahimsa Industries Limited having CIN L25200GJ1996PLC028679 vide fresh certificate of incorporation dated May 25, 2015.

The registered office of the company is situated at 102, Iscon Elegance, NR. Shapath-5, Prahlad Nagar Junction,S.G. Highway, Ahmedabad, Gujarat-380015, India.

Ahimsa Industries Limited was formed in 1996. Ahimsa Industries Limited (the "Company'''') is a limited company incorporated in India under the provisions of the Companies Act 1956. The company is engaged in Manufacturing PET of perform & trading of sugar confectionary machinery, plastic processing machinery, injection moulds and textiles. The Company''s registered office is in Ahmedabad and its factory is situated at Devraj Industrial Area. The Company is a Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 2013.

Note 2.Significant Accounting Policies: -

1. Basis of Accounting: -

The financial statements are prepared in accordance with the applicable Accounting Standards as prescribed under section 133 of The Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules 2014 under the Historical cost convention, on accrual basis.

The Financial Statements are prepared under the Historical Cost Conversion using the accrual method of Accounting, in accordance with the accounting standards prescribed by the Institute of Chartered Accountants of India. However, the Insurance Claims and other than cash compensatory Incentives are accounted on the basis of receipt. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis, except in case of significant uncertainties relating to the income.

2. Revenue Recognition: -

Revenue has been considered as per AS 9- Revenue Recognition issued by Institute of Chartered Accountants of India. AS-12 Accounting for Government Grants have also been considered for the purpose of recognition of Interest subsidy received from the Government.

3. Government Grants: -

Grants/Subsidy is recognized until and unless it is reasonably assured to be realized and the company has complied with the conditions attached to the grant/subsidy.

Here Company has reasonable assurance that the it will comply with the conditions attached to Government Grants and also the company is reasonably certain about the ultimate receipt of the Grants. Hence government grants are recorded as Income in Books of Accounts on fulfillment of criteria for recognition of Grants as per AS 12 "Accounting for Government Grants." The schedule relating to government Grant is provided in Notes to Accounts.

4. Taxes on Income: -

Tax expense comprises both current and deferred taxes. Current tax is provided for on the taxable profit of the year at applicable tax rates.

Deferred taxes on income reflect the impact of timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years if any.

In the previous years deferred Tax Asset amounting to ''31,02,665 was standing in the balance sheet, the above Deferred Tax Asset was wrongly created on MAT Credit which is transferred to MAT Credit receivable in the current year.

5. Provisions and Contingent Liability: -

A Provision is recognized, if as a result of past event the company has a present obligation that is reasonably estimable and it is probable that an outflow of economic benefits will be required to settle the Obligation.

Contingent Liability is a possible Obligation that arises from past events and the existence of which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.

6. Tangible Assets & Capital Work-In-Progress: -

Tangible Assets are stated at cost less Depreciation. Cost includes taxes, duties, freight and other incidental expenses related to acquisition, improvements and installation of the assets.

During the year under Audit the Assets that are purchased not put to use are separately disclosed under the head Capital Work in Progress.

7. Impairment of Assets: -

Pursuant to "AS-28 Impairment of Assets" issued by the Central Government under the Companies (Accounting Standard) Rules 2006 for determining Impairment in the carrying amount of fixed assets, the management has concluded that since recoverable amount of fixed Assets is not less than its carrying amount, therefore no provision is required for impairment in respect of fixed Assets owned by the Company.

8. Deprecation: -

Deprecation on tangible assets is provided on "Written down Value Method" over the useful lives of the assets estimated by the Management. The Management estimates are based on the useful life provided in the Schedule II to Companies Act 2013, however for

9. Earnings Per Share: -

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. The numbers of equity shares are adjusted retrospectively for all periods presented.

10. Investments: -

Investments are either classified as current or noncurrent based on management''s intention. Long Term Investments are carried at cost. Company has not made any Investments.

11. Foreign Currency Transactions: -

i. Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of the transaction.

ii. Monetary items denominated in foreign currency at the year end and not covered under forward exchange contracts are translated at the yearend rates. However, in current year Company has not translated Monetary items at yearend rates.

iii. Any income or expense on account of exchange difference between the date of transaction and on settlement Date or on translation is recognized in the profit and loss account as income or expense except in cases where they relate to the acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

iv. As per the information provided by the management, the company has not entered into any forward contracts.

12. Valuation of Inventories: -

The inventories are physically verified at regular intervals by the Management. Raw materials, stores and Spares are valued at cost and net of credits under scheme under CENVAT Rules and VAT Rules. Finished Goods and Trade Goods are valued at Cost or Market Value/Contract Price Whichever is lower.

13. Gratuity Valuation: -

The company has created a gratuity fund which is managed by the Life Insurance Corporation of India. The premium paid for the gratuity is treated as deductible expense for the company and is not treated as perks in the hands of the employees. The amount paid by the Company for the Gratuity fund to LIC is mentioned in the below mentioned table: -

14. Duty Drawback: -

Duty Drawback is recorded on Receipt basis. Management is not able to estimable the amount of Claim receivable, therefore the duty drawback is recorded on receipt basis rather than on Accrual basis.

15. Excise Duty: -

While valuing the inventories of final products, the cost of inputs consumed is taken at net as Net of Inputs i.e. the cost as reduced by the CENVAT Credit availed against the payment of Excise duty.

The balance under CENVAT Scheme available for adjustment against the excise duty payable on final products at the close of the year has been included in the ASSETS side under the head other current assets.

16. Preliminary Expenses: -

Preliminary Expenses for the current year relates to IPO Expenses under the companies Act 2013 they have been expensed out.

17. Prior Period Expenses: -

Prior Period Expenses for previous years have been expensed out during the current year and it is disallowed as per Income Tax Act. It relates to previous year TDS paid and for previous year exchange Gain Loss.

18. Management Remuneration: -

Disclosures with respect to the remuneration of Directors and employees as required under Section 197 of Companies Act, 2013 and Rule 5 (l)Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been provided in the below mentioned table: -

19. Cash and Cash Equivalents: -

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, fixed deposits with banks which are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

20. Segment Reporting: -

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the Financial Statements of the Company as a whole. The Company''s operating businesses are organized and managed separately according to the nature of products and services provided. The table showing details of Segment reporting has been provided in the note number 4 below.

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Mar 31, 2015

The financial statement are prepared to the comply in all material aspects with the applicable accounting principles in India, the Accounting Standards notified under relevant previsions of the Companies Act, 2013 and the relevant previsions of the Companies Act, 2013. The significant accounting policies are as follows;

A. RECOGNITION OF INCOME AND EXPENDITURE:

Revenues/Income and costs/expenditure are generally accounted on accrual base as they are earned or incurred. The Financial Statements are presented in Indian Rupees and rounded off to the nearest rupees.

1. GENERAL

Unless otherwise slated hereunder the financial accounts have been drawn up on histoncal cost convention.

2, FIXED ASSETS

Fixed Assets are stated at cost of acquisition less accumulated depreciation. The cost of Fixed Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to it's the asset to its working condition for its intended use and adjustments arising from exchange rate variations attributable to the assets.

3, METHOD OF DEPRECIATION.

Depreciation is provided using the written down vaiue method and based on useful life of the assets as prescribed in the Schedule II of the Companies Act, 2013.

Depreciation on addition during the year Is provided on the pro-rata basis from.the date of addition/deduction.

For Addition of Fixed Assets, Next Month 1st Day have been considered for Depreciation Calculation purpose.

4. Valuation of Inventories

Raw materials, stores and Spares are valued at cost and net of credits under scheme under CENVAT Rules and VAT Rules. Finished Goods and Trade Goods are valued at Castor Market Value/Contract Price whichever is lower.

5 Deferred Tax Assets

The Deferred Tax Assets for the current period Rs.31,02,665/- and for the previous year amounting to Rs.36,82,032 has been provided in the books of account.

6. Gratuity:

The company has created a gratuity fund under The Income Tax Act, 19B1 and Trust has taken a policy with Life Insurance Corporation of India,

7. Foreign Currencies.

Transactions denominated in foreign currencies are recorded at ihe exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction,

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the Profit and Loss Statement, except in case of long term liabilities, where they relate to acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such assets.