Accounting Policies of Apis India Ltd. Company

Mar 31, 2025

MATERIAL ACCOUNTING POLICIES

2.1 USE OF ESTIMATES

The preparation of the financial
statements in conformity with Ind AS
requires management to make estimates,
judgments and assumptions. These
estimates, judgments and assumptions
affect the application of accounting
policies and the reported amounts of
assets and liabilities, the disclosures
of contingent assets and liabilities at
the date of the financial statements
and reported amounts of revenues and
expenses during the period. Application
of accounting policies that require
critical accounting estimates involving
complex and subjective judgments and
the use of assumptions in these financial
statements. Accounting estimates could
change from period to period. Actual
results could differ from those estimates.
Appropriate changes in estimates are
made as 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.

2.2 PROPERTY PLANT & EQUIPMENT

a) a) Property, plant and equipment
are stated at cost net of taxes less
accumulated depreciation and/or
impairment loss, if any. All costs
such as freight, non recoverable
duties & taxes and other incidental
expenses until the property, plant
and equipment are ready for use,
as intended by management and
borrowing cost attributable to
the qualifing property, plant and

equipments are capitalized. Assets
costing less than Rs. 5,000/- are
fully depreciated in the year of
purchase in merging unit.

b) Subsequent expenditure relating
to property, plant and equipment
is capitalised only when it is
probable that future economic
benefits associated with these
will flow to the Company and the
cost of the item can be measured
reliably.

c) Capital work in progress represents
expenditure incurred in respect of
capital projects which are carried
at cost. Cost includes land, related
acquisition expenses, development
and construction costs, borrowing
costs and other direct expenditure.

d) The cost and related accumulated
depreciation are eliminated from
the financial statements upon
sale or retirement of the asset
and the resultant gains or losses
are recognized in the Statement
of Profit and Loss. Assets to be
disposed off are reported at the
lower of the carrying value or the
fair value less cost to sell.

e) Depreciation on property, plant
and equipment has been provided
in accordance with written down
value method and in the manner
prescribed in Schedule II to the
Companies Act, 2013.

Intangible assets, Brand
Developments and Trademarks,
have been amortised to their
nominal values and used SLM
method for amortisation of the
assets and computer software,
have been amortised to their
nominal values and used WDV
method for amortisation of the
Assets.

f) In respect of assets added/
disposed off during the year,
depreciation is charged on pro-rata
basis with reference to the month
of addition/disposal.

g) Depreciation methods, useful lives
and residual values are reviewed
periodically, including at each
financial year end.

2.3 INTANGIBLE ASSET

Intangible assets are recognized as per
the criteria specified in Indian Accounting
Standard (Ind As) 38 "Intangible Assets"
issued by the Ministry of Corporate
Affairs, Government of India.

2.4 FINANCIAL INSTRUMENTS
Initial recognition

The Company recognizes financial assets
and financial liabilities when it becomes
a party to the contractual provisions of
the instrument. All financial assets and
liabilities are recognized at fair value
on initial recognition, except for trade
receivables which are initially measured
at transaction price. Transaction costs
that are directly attributable to the
acquisition or issue of financial assets
and financial liabilities, that are not
at fair value through profit or loss,
are added to the fair value on initial
recognition. Regular way purchase and
sale of financial assets are accounted for
at trade date.

Subsequent measurement

Financial assets carried at amortised cost

A financial asset is subsequently
measured at amortised cost if it is
held within a business model whose
objective is to hold the asset in order to
collect contractual cash flows and the
contractual terms of the financial asset
give rise on specified dates to cash flows
that are solely payments of principal
and interest on the principal amount
outstanding.

Investment in subsidiaries

Investment in subsidiaries is carried at
cost in the separate financial statements.

Investment in associates

An associate is an entity over which
the Company has significant influence.
Significant influence is the power to
participate in the financial and operating
policy decisions of the investee, but is

not control or joint control over those
policies.

The Company''s investment in its
associates is accounted for using the
equity method. Under the equity
method, the investment in an associate
is initially recognised at cost. The carrying
amount of the investment is adjusted to
recognise changes in the Company share
of net assets of the associate since the
acquisition date. Goodwill relating to
the associate is included in the carrying
amount of the investment and is not
tested for impairment individually.

Derecognition of financial instruments

The Company derecognizes a financial
asset when the contractual rights to the
cash flows from the financial asset expire
or it transfers the financial asset and the
transfer qualifies for derecognition in
accordance with Ind AS 109 "Financial
Instruments" issued by the Ministry
of Corporate Affairs, Government of
India. A financial liability (or a part of a
financial liability) is derecognized from
the Company''s Balance Sheet when the
obligation specified in the contract is
discharged or cancelled or expires.

2.5 IMPAIRMENT
Financial assets

The Company recognizes loss allowances
using the expected credit loss (ECL)
model for the financial assets which are
not fair valued through profit or loss.
Loss allowance for trade receivables
with no significant financing component
is measured at an amount equal to
lifetime ECL. For all other financial
assets, expected credit losses are
measured at an amount equal to the
12-month ECL, unless there has been
a significant increase in credit risk from
initial recognition in which case those are
measured at lifetime ECL.The amount of
expected credit losses (or reversal) that
is required to adjust the loss allowance at
the reporting date to the amount that is
required to be recognised is recognized
as an impairment gain or loss in profit or
loss.

Non-financial assets

Property, plant and equipment are
evaluated for recoverability whenever
events or changes in circumstances
indicate that their carrying amounts may
not be recoverable. For the purpose of
impairment testing, the recoverable
amount (i.e. the higher of the fair value
less cost to sell and the value-in-use) is
determined on an individual asset basis
unless the asset does not generate cash
flows that are largely independent of
those from other assets. In such cases,
the recoverable amount is determined
for the cash generating unit (CGU) to
which the asset belongs.

If such assets are considered to be
impaired, the impairment to be
recognized in the Statement of Profit and
Loss is measured by the amount by which
the carrying value of the assets exceeds
the estimated recoverable amount of the
asset. An impairment loss is reversed in
the Statement of Profit and Loss, if there
has been a change in the estimates used
to determine the recoverable amount.
The carrying amount of the asset is
increased to its revised recoverable
amount, provided that this amount
does not exceed the carrying amount
that would have been determined (net
of any accumulated amortization or
depreciation) had no impairment loss
been recognized for the asset in prior
years.

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Mar 31, 2024

2 MATERIAL ACCOUNTING POLICIES

2.1 USE OF ESTIMATES

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as 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.

2.2 PROPERTY PLANT & EQUIPMENT

a) a) Property, plant and equipment are stated at cost net of taxes less accumulated depreciation and/or impairment loss, if any. All costs such as freight, non recoverable duties & taxes and other incidental expenses until the property, plant and equipment are ready for use, as intended by management and borrowing cost attributable to the qualifing property, plant and equipments are capitalized. Assets costing less than Rs. 5,000/- are

fully depreciated in the year of purchase in merging unit.

b) Subsequent expenditure relating to property, plant and equipment is capitalised only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.

c) Capital work in progress represents expenditure incurred in respect of capital projects which are carried at cost. Cost includes land, related acquisition expenses, development and construction costs, borrowing costs and other direct expenditure.

d) The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.

e) Depreciation on property, plant and equipment has been provided in accordance with written down value method and in the manner prescribed in Schedule II to the Companies Act, 2013.

Intangible assets, Brand Developments and Trademarks, have been amortised to their nominal values and used SLM method for amortisation of the assets and computer software, have been amortised to their nominal values and used WDV method for amortisation of the Assets.

f) In respect of assets added/ disposed off during the year, depreciation is charged on pro-rata basis with reference to the month of addition/disposal.

g) Depreciation methods, useful lives and residual values are reviewed

periodically, including at each financial year end.

2.3 INTANGIBLE ASSET

Intangible assets are recognized as per the criteria specified in Indian Accounting Standard (Ind As) 38 "Intangible Assets" issued by the Ministry of Corporate Affairs, Government of India.

2.4 FINANCIAL INSTRUMENTS Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Investment in subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

Investment in associates

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

The Company''s investment in its associates is accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Company share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment individually.

Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with Ind AS 109 "Financial Instruments" issued by the Ministry of Corporate Affairs, Government of India. A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.5 IMPAIRMENT Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.

Non-financial assets

Property, plant and equipment are evaluated for recoverability whenever

events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Statement of Profit and Loss, if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

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Mar 31, 2023

3 SIGNIFICANT ACCOUNTING POLICIES

3.1 USE OF ESTIMATES

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and

expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as 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

3.2 PROPERTY PLANT & EQUIPMENT

a) Property, plant and equipment are stated at cost net of taxes less accumulated depreciation and/or impairment loss, if any. All costs such as freight, non recoverable duties & taxes and other incidental expenses until the property, plant and equipment are ready for use, as intended by management and borrowing cost attributable to the qualifing property, plant and equipments are capitalized. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase in merging unit.

b) Subsequent expenditure relating to property, plant and equipment is capitalised only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably.

c) Capital work in progress represents expenditure incurred in respect of capital projects which are carried at cost. Cost includes land, related acquisition expenses, development and construction costs, borrowing costs and other direct expenditure.

d) The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses

are recognized in the Statement of Profit and Loss. Assets to be disposed off are reported at the lower of the carrying value or the fair value less cost to sell.

e) Depreciation on property, plant and equipment has been provided in accordance with written down value method and in the manner prescribed in Schedule II to the Companies Act, 2013.

Intangible assets, Brand Developments and Trademarks, have been amortised to their nominal values and used SLM method for amortisation of the assets and computer software, have been amortised to their nominal values and used WDV method for amortisation of the Assets.

f) In respect of assets added/ disposed off during the year, depreciation is charged on pro-rata basis with reference to the month of addition/disposal.

g) Depreciation methods, useful lives and residual values are reviewed periodically, including at each financial year end.

3.3 INTANGIBLE ASSET

Intangible assets are recognized as per the criteria specified in Indian Accounting Standard (Ind As) 38 "Intangible Assets" issued by the Ministry of Corporate Affairs, Government of India.

3.4 FINANCIAL INSTRUMENTS Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair

value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent measurement

Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Investment in subsidiaries

Investment in subsidiaries is carried at cost in the separate financial statements.

Investment in associates

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

The Company''s investment in its associates is accounted for using the equity method. Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Company share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment individually.

Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with Ind AS 109 "Financial Instruments" issued by the Ministry of Corporate Affairs, Government of India. A financial liability (or a part of a

financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

3.5 IMPAIRMENT Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.

Non-financial assets

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the Statement of Profit and Loss, if there has been a change in the estimates used to determine the recoverable amount.

The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

3.6 PROVISIONS

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Contingent liabilities are not recognised but are disclosed by way of notes to the financial statements, after careful evaluation by the management of the facts and legal aspects of each matter involved. Contingent assets are neither recognised nor disclosed in the financial statements.

Contingent liabilities are assessed continually to determine whether an outflow of resources embodying the economic benefit has become probable. If it becomes probable that an outflow of future economic benefits will be required for an item previously dealt with as contingent liability, a provision is recognised in the financial statements of the period in which the change in probability occurs.

3.7 BORROWING COST

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets to the extent they relate to the period till such assets are ready to be put to use, while other borrowing costs are recognized as expenses in the year in which they are incurred. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

3.8 INVENTORIES

i) Raw materials, consumables stores and spares are valued at lower of cost and net realizable value. Work in progress and finished goods are valued at lower of cost and net realizable value.

The costs of work in progress and finished goods include costs of raw material, conversion cost and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average/FIFO/specific identification, as applicable.

ii) Scrap is valued at the net realisable value.

Net Realisable Value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

3.9 FOREIGN CURRENCY TRANSACTIONS

In preparing the financial statements of the Company, transactions in currencies other than the company''s functional currency i.e. foreign currencies are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in the Statement of Profit and Loss in the period in which they arise.

4.0 TAXATION

Income tax expense represents the sum of the tax currently payable and deferred tax.

Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported

in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred Tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available a gainst which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in

equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

5.00 REVENUE RECOGNITION

(i) Revenue from contracts with customers

Pursuant to the application of Ind AS-115, the Company has applied following accounting policy for revenue recognition:

The Company satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:

a) The customer simultaneously receives and consumes the benefits provided by the Company''s performance as the entity performs; or

b) The Company''s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

c) The Company''s performance does not create an asset with an alternative use to the Company and the entity has an enforceable right to payment for performance completed to date.

For performance obligations, where one of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied.

Revenue is recognised either at point of time and over a period to time based on various conditions as included in the contracts with customers.

(ii) Other

a) Sales are recognised on dispatch of goods except in the case of exports which are accounted for on the

date of custom clearance. However in some cases export is accounted on the terms of contract executed with respective customers.

b) Interest income is recognized using effective interest method.

c) Export benefits are recognised on accrual basis at the anticipated realisable value.

d) Forfeiture due to non fulfilment of obligations by counter parties is accounted as Revenue on unconditional appropriation.

e) Service receipts and interest from customers is accounted for on accrual basis.

f) Divided income is recognised when the shareholder or unit holder''s right to receive payment is established, which is generally when shareholder approve the dividend.

g) Share of profit/loss from firm in which the Company is a partner is accounted for in the financial year ending on the date of the Balance Sheet.

h) Interest on arrears of allotment money is accounted in the year of receipt.

5.01 OPERATING SEGMENT

Operating segments are reported in the manner consistent with the internal reporting provided to the chief operating decision (CODM). The Cheif financial officer of APIS India Limited has been identified as CODM and he is responsible for allocating the resources, assess the financial performance and position of the Company and makes strategic decisions.

The Company has identified one

reportable segment based on the information reviewed by the CODM."

5.02 CASH FLOW STATEMENT

The Cash Flow Statement is prepared by the indirect method set out in Indian Accounting Standard-7 on Cash Flow Statements and presents cash flows by operating, investing and financing activities of the Company. The Company considers all highly liquid financial instruments,which are readily convertible into cash, to be cash equivalents.

5.03 EARNING PER SHARE

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period .The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

5.04 FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measuredat fair value. Transaction costs that are directly attributableto the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

Transaction costs directly attributable to the acquisition of financial assets or

financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

5.05 FINANCIAL ASSETS

All recognised financial assets are

subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

5.06 CURRENT VERSUS NON-CURRENT CLASSIFICATION

The Company presents assets and

liabilities in the balance sheet based on current/non-current classification. An asset is treated as current when it is:

i) Expected to be realised or intended to be sold or consumed in normal operating cycle.

ii) Held primarily for the purpose of trading.

iii) Expected to be realised within

twelve months after the reporting period, or

iv) Cash or cash equivalent unless

restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as noncurrent.

A liability is current when:

i) It is expected to be settled in normal operating cycle.

ii) It is held primarily for the purpose of trading.

iii) It is due to be settled within twelve months after the reporting period, or

iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

5.07 LEASES

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company revises the lease term if there is a change in the non-cancellable period of a lease. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

5.08 RECENT PRONOUNCEMENTS

On March 23, 2022, the Ministry of Corporate Affairs ("MCA") notified new standards or amendments to the existing standards under Companies (Indian

Accounting Standards) Rules as issued from time to time as below:

Ind AS 16- Property, plant and equipment:

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant and equipment. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2022. The Company has evaluated the amendment and there is no impact on its financial statements.

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Mar 31, 2014

1.1 Basis of preparation of Financial statements:

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 2013 as adopted consistently by the Company. There is no change in the accounting policies as compared to the preceding year.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis, if determinable.

1.2 Fixed Assets and Capital work-in-progress

a) Tangible assets are stated at their original cost of acquisition including taxes, duties, freight, and other incidental expenses related to acquisition and installation of the concerned assets less accumulated depreciation and impairment losses, if any.

b) Subsequent expenditure related to an item of tangible asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure are charged to the statement of profit and loss for the period during which such expenses are incurred.

c) Pre-operative expenses including eligible borrowing cost incurred during construction period are charged to Capital Work-in-Progress and on completion, the cost is allocated to the respective fixed assets in the year of commencement of commercial production.

d) Capital work-in-progress comprises cost of fixed assets that are not yet ready for their intended use at the balance sheet date.

1.3 Intangible Assets:

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/Depletion. All costs, including financing costs till commencement of commercial production, net changes on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

1.4 Depreciation and Amortization:

In respect of Fixed Assets, depreciation is provided Block wise on Straight Line Method in accordance with the provisions of schedule XIV of the Companies Act, 1956. Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis.

1.5 Impairment of Asset:

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the company recognizes an impairment loss as a difference between the carrying value and fair value net of cost of sale in accordance with AS-28 "Impairment of Assets", issued by the Institute of Chartered Accountants Of India. None of the company''s fixed assets are considered for impairment as on the Balance Sheet date.

1.6 Inventory:

(i) Raw materials, consumables stores and spares are valued at lower of cost and net realizable value. Work in progress and finished goods are valued at lower of cost and net realizable value.

(ii) The costs of work in progress and finished goods include costs of raw material, conversion cost and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average/FIFO/specific identification, as applicable.

1.7 Cash Flow Statement:

a) The statement has been prepared under indirect method except in case of dividends, sale/purchase of investments and taxes which have been considered on the basis of actual movement of case, with corresponding adjustments in assets and liabilities as set out in the Accounting Standard 3 issued by ICAI.

b) Cash and Cash equivalents represent Cash and Bank balances only.

1.8 (i) Foreign Currency Transactions:

All income or expense on account of exchange difference between the date of transaction and on settlement date or translation is recognized in the Profit & Loss account as income or expense except in cases where they relate to the acquisition of fixed assets.

(ii) Conversion and exchange differences

Monetary Assets and Liabilities denominated in foreign currency are translated at the rate of exchange at the Balance Sheet date and resultant gain or loss is recognized in the Statement of Profit and Loss. Non monetary assets and liabilities denominated in foreign currency are carried at historical cost using the exchange rate at the date of transaction.

(iii) Forward exchange contracts

The premium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit and Loss in the period in which the exchange rates change.

1.9 Provisions and Contingencies:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

1.10 Revenue Recognition:

Sales of goods are recognized at the point of dispatch of Finished Goods to Customers net of returns.

1.11 Retirement Benefits:

Provision of gratuity has been made in the books but there is no amount of leave encashment or any other retirement benefits for which the company may be made liable to pay. Hence no provision for the same has been made, except provision for the gratuity as on the date of Balance sheet.

1.12 Prior Period Items:

Prior Period expenses, if any significant, are charged to Profit and Loss Account and shown in Notes to Accounts.

1.13 Borrowing Costs:

Borrowing cost attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the Profit & Loss account.

1.14 Preliminary Expenses:

Preliminary expenses are amortized over a period of five (5) years.

1.15 Taxation:

Tax expense for the year comprises of current tax and deferred tax.

i) Current tax is determined on the amount of tax payable in respect of taxable income for the period, using the applicable tax rates and tax laws in accordance with the provisions of Income Tax Act 1961. The Company is eligible for deduction under section 80-IC of Income Tax Act, 1961 in respect of income of the Unit situated in Roorkee (Uttarakhand).

ii)Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date.

1.16 Other Accounting Policies

Accounting policies not referred to otherwise are consistent with generally accepted Accounting principles.

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Mar 31, 2013

1.1 Basis of preparation of Financial statements :

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 as adopted consistently by the Company. There is no change in the accounting policies as compared to the preceding year.

b) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis, if determinable.

1.2 Fixed Assets and Capital work-in-progress

a) Tangible assets are stated at their original cost of acquisition including taxes, duties, freight, and other incidental expenses related to acquisition and installation of the concerned assets less accumulated depreciation and impairment losses, if any.

b) Subsequent expenditure related to an item of tangible asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure are charged to the statement of profit and loss for the period during which such expenses are incurred.

c) Pre-operative expenses including eligible borrowing cost incurred during construction period are charged to Capital Work-in-Progress and on completion, the cost is allocated to the respective fixed assets in the year of commencement of commercial production.

d) Capital work-in-progress comprises cost of fixed assets that are not yet ready for their intended use at the balance sheet date.

1.3 Intangible Assets:

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization /Depletion. All costs, including financing costs till commencement of commercial production, net changes on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

1.4 Depreciation and Amortization:

In respect of Fixed Assets, depreciation is provided Block wise on Straight Line Method in accordance with the provisions of schedule XIV of the Companies Act, 1956. Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis.

1.5 Impairment of Asset:

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the company subjects such assets to a test of recoverability, based on discounted cash flows expected from use or disposal thereof. If the assets are impaired, the company recognizes an impairment loss as a difference between the carrying value and fair value net of cost of sale in accordance with AS-28 "Impairment of Assets", issued by the Institute of Chartered Accountants Of India. None of the company''s fixed assets are considered for impairment as on the Balance Sheet date.

1.6 Inventory:

(i) Raw materials, consumables stores and spares are valued at lower of cost and net realizable value. Work in progress and finished goods are valued at lower of cost and net realizable value.

(ii) The costs of work in progress and finished goods include costs of raw material, conversion cost and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average/FIFO/specific identification, as applicable.

1.7 Cash Flow Statement:

a) The statement has been prepared under indirect method except in case of dividends, sale / purchase of investments and taxes which have been considered on the basis of actual movement of case, with corresponding adjustments in assets and liabilities as set out in the Accounting Standard 3 issued by ICAI.

1.9 Provisions and Contingencies:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

The Company has given a corporate guarantee of Rs. 9 crores in on behalf of M/s Apis India Incorporated, a proprietorship firm.

1.10 Revenue Recognition :

Sales of goods are recognized at the point of dispatch of Finished Goods to Customers net of returns.

1.11 Retirement Benefits:

There is no amount of gratuity liability or leave encashment or any other retirement benefits for which the company may be made liable to pay. Hence no provision for the same has been made as on the date of Balance sheet.

1.12 Prior Period Items:

Prior Period expenses, if any significant, are charged to Profit and Loss Account and shown in Notes to Accounts.

1.13 Borrowing Costs:

Borrowing cost attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the Profit & Loss account.

1.14 Preliminary Expenses:

Preliminary expenses are amortized over a period of five (5) years.

1.15 Taxation:

Tax expense for the year comprises of current tax and deferred tax.

i) Current tax is determined on the amount of tax payable in respect of taxable income for the period, using the applicable tax rates and tax laws in accordance with the provisions of Income Tax Act 1961. The Company is eligible for deduction under section 80-IC of Income Tax Act, 1961 in respect of income of the new Unit situated in Roorkee (Uttarakhand) which started its commercial production in March 2012.

ii) Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date.

1.16 Other Accounting Policies

Accounting policies not referred to otherwise are consistent with generally accepted Accounting principles.

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Mar 31, 2010

A. Basis of Preparation of financial statements

1) The Financial statements have been prepared under the historical cost convention and in accordance with the normally accepted accounting principles, mandatory accounting stan- dards and the provisions of the Companies Act, 1956, as adopted consistently by the com- pany.

2) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

3) The preparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities including the dis- closure of contingent liabilities as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could vary from these estimates. Any revision to accounting estimates is recognised in the period in which the results are known / materialized.

B. Fixed Assets

1) Fixed assets are stated at cost of acquisition less accumulated depreciation.

2) Depreciation on fixed assets is provided on straight line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956.

3) Impairment is done when carrying cost of the assets exceeds its recoverable amount; im- pairment loss is charged to the profit and loss account in the year in which the assets are identified as impaired. An impairment loss recognized in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

C. Sales

Sales of goods are recognized at the point of dispatch of Finished Goods to customers but net of returns.

D. Inventories

1) Raw materials, Components, Stores and spares, packing materials and work-in-progress are val- ued at cost.

2) Finished Goods are valued at cost or market price whichever is less.

E. Employment & Retirement Benefits

Contributions are made under the relevant rules/statues for provident fund and family pension fund which are charged to the profit and loss account on accrual basis. The liability for gratuity, leave with wages & Bonus not been provided by the company.

F. Preliminary Expenses

Preliminary expenses are amortized over a period of five years.

G. Foreign Currency Transactions

All income or expenses on account of exchange difference between the date of transaction and on settlement date or translation is recognized in the profit and loss account as income or expense except in cases where they relate to the acquisition of the fixed assets.

H. Taxation

1) In view of previous year losses, provision for previous years been made for MAT payable U/s 115 JB, whereas current tax applicable at Normal Rate adjusting previous years MAT Credit.

2) Deferred Tax resulting from “timing difference” between book profit and taxable profit accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward only to extent that there is a reasonable certainty that the assets will be realized in future.