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Accounting Policies of Archidply Industries Ltd. Company
Mar 31, 2025
1. Corporate Information:
Archidply Industries Limited (the ''Company'') is a public
limited company domiciled in India incorporated under
the provisions of the Companies Act. Its shares are
listed on two recognized stock exchanges in India. The
registered office of the company is at Plot No. 7, Sector-9,
Integrated Industrial Estate, SIDCUL, Pant Nagar, Rudrapur
- 263 153, Uttarakhand, India.
The reportable segments have been identified on the
basis of the products of the Company. Company is
engaged in the business of manufacturing two broad
product segments and one trading product segment, as
follows:
i) Wood Based Products: Plywood & Allied Products.
ii) Paper Based Products: Laminate & Allied Products.
iii) Wood Based Products: Medium Density Fiber board
(MDF)
It has branches and dealers'' network spread all over
the country. The Company is procuring raw material &
trading goods locally as well as imports them. Goods are
sold both in domestic and overseas markets.
The company''s shares are listed in Bombay Stock
Exchange Ltd. (BSE) and National Stock Exchange of India
(NSE).
2. Basis of preparation of Financial Statements :
The Financial Statements have been prepared in
accordance with Indian Accounting Standards (Ind AS)
as prescribed under Section 133 of the Companies Act
2013 ("the Act"), as notified under the Companies (Indian
Accounting Standard) Rules, 2015 and other relevant
provision of the Act, to the extent applicable and
presentation requirements of Division II of Schedule III to
the Companies Act, 2013, (Ind AS compliant Schedule III),
as applicable to the Standalone Financial Statement.
The financial statements have been prepared under
historical cost convention and on an accrual basis, except
for the following items which have been measured as
required by relevant Ind AS:
a) Financial Instruments classified as fair value through
other comprehensive income.
b) The defined benefit (loss)/profit is recognized as
at the present value of defined benefit obligation
less fair value of plan assets through other
comprehensive income.
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. The Company''s management evaluates
all recently issued or revised accounting standards on an
on-going basis.
For the year ended 31st March, 2025, MCA has not
notified any new standards or amendments to the
existing standards applicable to the Company.
Where changes are made in presentation, the
comparative figures of the previous years are regrouped
and re-arranged accordingly.
3. Accounting Estimates And Assumptions:
The preparation of financial statements in conformity
with generally accepted accounting principles requires
management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the
financial statements and the results of operations during
the reporting year end. Although these estimates are
based upon management''s best knowledge of current
events and actions, actual results could differ from these
estimates.
4. Equity
a) Ordinary Shares
Ordinary shares are classified as Equity Share capital.
Incremental costs directly attributable to the
issuance of new shares and buyback are recognized
as a deduction from equity, net of any tax effects.
b) Capital redemption reserve
As per Companies Act, 2013, capital redemption
reserve is created when company purchases its own
shares out of free reserves or securities premium.
A sum equal to the nominal value of the shares
so purchased is transferred to capital redemption
reserve. The reserve is utilised in accordance with
the provisions of section 69 of the Companies Act,
2013.
c) Securities Premium
The amount received in excess of the par value
of equity shares has been classified as securities
premium.
d) Retained Earnings
Retained earnings represent the amount of
accumulated earnings of the company.
5. Property, Plant and Equipment
OWNED ASSET
a) Property, Plant and Equipment are stated at
original cost (net of tax/ duty credit availed) less
accumulated depreciation and impairment losses
except freehold land which is carried at cost. Cost
includes cost of acquisition, construction and
installation, taxes, duties, freight, other incidental
expenses related to the acquisition, trial run
expenses (net of revenue) and pre-operative
expenses including attributable borrowing costs
incurred during pre-operational period.
b) Subsequent costs are included in the asset''s
carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item will
flow to the company and the cost of the item can
be measured reliably. The carrying amount of any
component as a separate asset is derecognized
when replaced. All other repairs and maintenance
are charged to profit and loss during the reporting
period in which they are incurred.
c) Assets which are not ready for their intended use
on reporting date are carried as capital work-in¬
progress at cost, comprising direct cost and related
incidental expenses.
d) On transition to Ind AS, the Company has elected
to continue with the carrying value of all of its
property, plant and equipment as at 1st April 2016
measured as per the previous GAAP and use that
carrying value as the deemed cost of the property,
plant and equipment.
e) Property, Plant and Equipments including
continuous process plants are depreciated and/
or amortized on Straight line Method on the basis
of their useful lives as notified in Schedule II to the
Companies Act, 2013. The assets residual values and
useful lives are reviewed, and adjusted if appropriate,
at the end of each reporting period.
f) Depreciation in respect of additions to assets has
been charged on pro rata basis with reference to
the period when the assets are ready for use. The
provision for depreciation for multiple shifts has
been made in respect of eligible assets on the basis
of operation of respective units.
g) Useful lives of the Property, Plant and Equipment as
notified in Schedule II to the Companies Act, 2013
are as follows :
Buildings - 30 to 60 years
Plant and Equipments (Paper Division) - 15 years
(Triple Shift)
Plant and Equipments (Other Division) - 15 years
(Triple Shift) Furniture and Fixtures - 10 years
Vehicles - 8 to 10 years
Office Equipments - 5 to 10 years
Computers - 3 years
LEASED ASSET (RIGHT OF USE ASSETS)
a) The Company''s lease asset classes primarily consist
of leases for Land and Buildings. The Company
assesses whether a contract is or contains a lease, at
the inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control
the use of an identified asset for a period of time
in exchange for consideration. To assess whether a
contract conveys the right to control the use of an
identified asset, the Company assesses whether:
(i) the contract involves the use of an identified
asset
(ii) the Company has substantially all of the
economic benefits from use of the asset
through the period of the lease and
(iii) the Company has the right to direct the use of
the asset.
b) The right-of-use asset is a lessee''s right to use an asset
over the life of a lease. The Company recognizes
a right-of-use asset (''ROU'') and a corresponding
lease liability for all lease arrangements in which it
is a lessee, except for short-term leases (defined as
leases with a lease term of 12 months or less) and
leases of low value assets. For these leases of short¬
term and low value assets, the Company recognizes
the lease payments as an operating expense over
the term of the lease.
c) The right-of-use assets are initially recognized at
cost, which comprises the initial amount of the
lease liability adjusted for any lease payments
made (Deposits and Rentals) at or prior to the
commencement date of the lease plus any initial
direct costs less any lease incentives. They are
subsequently measured at cost less accumulated
depreciation and impairment losses, if any. Right-of-
use assets are depreciated from the commencement
date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset.
6. Lease Property
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.
7. Lease Liabilities
Lease liability is initially measured at the present value of
future lease payments. Lease payments are discounted
using the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rate.
Lease liability is subsequently remeasured by increasing
the carrying amount to reflect interest on the lease
liability and reducing the carrying amount to reflect the
lease payments made.
A lease liability is remeasured upon the occurrence of
certain events such as a change in the lease term or a
change in an index or rate used to determine lease
payments. The remeasurement also adjusts the related
leased assets
8. Intangible Assets
a) Intangible assets acquired by payment e.g., Goodwill
, Trademark and Computer Software are disclosed at
cost less amortization on a straight-line basis over
its estimated useful life.
b) Intangible assets are carried at cost, net of
accumulated amortization and impairment loss, if
any.
c) On transition to Ind AS, the Company has elected
to continue with the carrying value of all of its
intangible assets as at 1st April 2016 measured as
per the previous GAAP and use that carrying value
as the deemed cost of the intangible assets
d) Intangible assets are amortised on straight-line
method as follows :
Goodwill - 20 years
Computer Software - 3 years
Trademark- 10 years
9. Investment Property
Investment Property are stated at original cost less
accumulated depreciation and impairment losses except
freehold land which is carried at cost. Cost includes
cost of acquisition, construction and other incidental
expenses related to the acquisition, trial run expenses
(net of revenue) and pre-operative expenses including
attributable borrowing costs incurred during pre¬
operational period.
Investment properties are derecognised either when they
have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is
expected from their disposal.
10. Impairment of Assets
At each balance sheet date, the Company reviews the
carrying amount of property, plant and equipment to
determine whether there is any indication of impairment
loss. If any such indication exists, the recoverable amount
of the assets is estimated in order to determine the extent
of impairment loss. The recoverable amount is higher of
the net selling price and the value in use, determined by
discounting the estimated future cash flows expected
from the continuing use of the asset to their present
value.
11. Inventories
a) Inventories related to raw materials, packing
materials, stores & spares are valued at cost on
weighted average basis or net realizable value
whichever is lower.
b) Waste & scraps are valued at estimated realizable
value.
c) Materials in transit and Semi Finished goods are
valued at cost or market value which ever is lower.
d) Finished goods and process stock include all cost
of purchases, cost of conversion and other related
costs incurred in bringing the inventories to their
present location and condition.
e) Finished goods are valued at cost or net realizable
value whichever is lower. Net realizable value is the
estimated selling price in the ordinary course of
business less the estimated cost of completion and
the estimated costs necessary to make the sale.
f) Obsolete, defective and unserviceable stocks are
duly provided for.
12. Cash Flow Statement
Cash flows statement are reported using "Indirect
method" as set out in the Ind AS 7 on ''Statement of Cash
Flow'', whereby profit before tax is adjusted for the effects
of transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The
cash flow from regular revenue generating, financing and
investing activities of the Company is segregated.
Cash and cash equivalents in the balance sheet comprise
cash at bank, cash/cheques in hand and short term
investments (excluding pledged term deposits) with an
original maturity of less than twelve months.
13. Financial instruments:
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
A. Financial Assets
(i) Initial Recognition and Measurement
The Company classifies its financial assets as
those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss) and those to be measured at
amortized cost.
(ii) Subsequent Measurement
For purposes of subsequent measurement, financial
assets are classified in following categories:
(a) Debt instruments measured at amortized cost
using the effective interest rate method and
losses arising from impairment are recognized
in Profit and Loss if both the following
conditions are met:
⢠The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and
⢠Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on
the principal amount outstanding.
(b) Equity instruments at fair value through other
comprehensive income.
(c) Equity instruments at fair value through profit
or loss (FVTPL)
(d) Equity Instruments in subsidiaries are carried
at cost, in accordance with option available in
Ind AS 27 "Separate Financial Statements".
(iii) De-Recognition
A financial asset is de-recognized only when the
Company has transferred the rights to receive
cash flows from the financial asset, or when it has
transferred substantially all the risks and rewards of
the asset, or when it has transferred the control of
the asset.
(iv) Impairment of Financial Assets
In accordance with Ind AS 109, the Company
applies Expected Credit Loss (ECL) model for
measurement and recognition of impairment loss
on the Trade receivables or any contractual right
to receive cash or another financial asset that result
from transactions that are within the scope of Ind
AS 11 and Ind AS 18.
The Company follows ''simplified approach'' for
recognition of impairment loss allowance on trade
receivables.
The application of simplified approach does not
require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance
based on lifetime ECL at each reporting date, right
from its initial recognition.
As a practical expedient, the Company uses
historically observed default rates over the expected
life of the trade receivables and is adjusted for
forward-looking estimates to determine impairment
loss allowance on portfolio of its trade receivables.
B. Financial Liabilities:
i) Classification as debt or equity - Debt and equity
instruments are classified as either financial liabilities
or as equity in accordance with the substance of the
contractual arrangement.
ii) Equity instruments - An equity instrument is any
contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities.
Equity instruments issued by the Company are
recognised at the proceeds received, net of direct
issue costs.
iii) Initial Recognition and Measurement:
All Financials Liabilities are recognized net of
transaction costs incurred.
iv) Subsequent Measurement-
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the Effective Interest Rate
("EIR") method. Gains and losses are recognised in
profit or loss when the liabilities are derecognised
through the EIR amortisation process.
v) De-Recognition
All Financials Liabilities are removed from balance
sheet when the obligation specified in the contract
is discharged, cancelled or expired.
When an existing financial liability is replaced by
another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified, such an exchange or
modification is treated as the de-recognition of
the original liability and the recognition of a new
liability. The difference in the respective carrying
amounts is recognised in the statement of profit
and loss.
14. Revenue Recognition:
Revenue comprises of all economic benefits that arise in
the ordinary course of activities of the Company which
result in increase in Equity, other than increases relating
to contributions from equity participants. Revenue is
recognized to the extent that it is probable that the
economic benefits will flow to the Company and the
revenue can be reliably measured. Revenue is measured at
the fair value of the consideration received or receivable.
Sale of Goods: As per Ind AS 115 ''Revenue from contracts
with customers, Revenue from sale of goods is recognised
when control of the products being sold is transferred
to the customer and when there are no longer any
unfulfilled obligations. The Performance Obligations in
our contracts are fulfilled at the time of dispatch, delivery
or upon formal customer acceptance depending on
terms with customers. The Company derives revenue
principally from sale of Plywood, Laminates, Decorative
Veneers, MDF and Flush Doors. Revenue shown in the
Statement of Profit and Loss are inclusive of the value
of self-consumption, but excludes Goods & Service Tax
(GST), inter-transfers, returns, trade discounts, other
benefits passed to customers in kind.
Services: Revenue from Services is recognized as and
when the services are rendered. The Company collects
Goods & Service Tax on behalf of the government and
therefore, it is not an economic benefit flowing to the
Company and hence excluded from Revenue.
Interest: Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective
interest rate applicable.
Insurance Claims: Insurance Claims are accounted for on
acceptance and when there is a reasonable certainty of
receiving the same, on grounds of prudence.
Corporate Guarantee Fee: Corporate Guarantee Fee is
accounted for corporate Guarantee given to related
party''s Banker for their business use. Such revenue
is recognised in the accounting period in which the
services are rendered in accordance with agreement with
the parties.
15. Government grants
Government grants are recognized where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with. When
the grant relates to an expense item, it is recognized as
income on a systematic basis over the periods that the
related costs, for which it is intended to compensate,
are expensed. When the grant relates to an asset, it
is recognized as income in equal amounts over the
expected useful life of the related asset.
When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected
useful life in a pattern of consumption of the benefit of
the underlying asset i.e. by equal annual installments.
16. Foreign Currency Transactions:
The Company''s financial statements are presented
in Indian Rupees (''INR''), which is also the Company''s
functional currency.
Foreign currency transactions are recorded on initial
recognition in the functional currency, using the exchange
rate at the date of the transaction. At each balance sheet
date, foreign currency monetary items are reported using
the closing exchange rate. Exchange differences that arise
on settlement of monetary items or on reporting at each
balance sheet date of the Company''s monetary items at
the closing rate are recognised as income or expenses in
the period in which they arise.
Non-monetary items which are carried at historical
cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction.
Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rate at the
date when the fair value is determined.
17. Employee Benefits:
Short-term employee benefits are recognized as an
expense at the undiscounted amount in the Statement
of Profit and Loss of the year in which the related service
is rendered.
Post Employment and Retirement benefits in the form
of Gratuity and Leave Encashment are considered as
defined benefit obligations and is provided for on the
basis of third party actuarial valuation, using the projected
unit credit method, as at the date of the Balance Sheet.
Every Employee who has completed five years or more of
service is entitled to Gratuity on terms not less favorable
than the provisions of The Payment of Gratuity Act, 1972.
The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of
reporting period on government bonds that have terms
approximating to the terms of the related obligation
Re-measurement gains and losses arising from experience
adjustments and changes in acturial assumptions of the
defined benefit obligation are recognised in the period
in which they occur, directly in other comprehensive
income. They are included in retained earnings in the
statement of changes in equity and in the balance sheet.
Employee benefits in the form of Provident Fund
is considered as defined contribution plan and the
contributions to Employees'' Provident Fund Organisation
established under The Employees'' Provident Fund
and Miscellaneous Provisions Act 1952 is charged to
the Statement of Profit and Loss of the year when the
contributions to the respective funds are due. The
Company pays provident fund contributions to publicly
administered provident funds as per local regulations.
The Company has no further payment obligations once
the contributions have been paid.
18. Borrowing Costs:
Borrowing costs are interest and other costs (including
exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an
adjustment to interest costs) incurred in connection with
the borrowing of funds.
General and specific borrowing costs that are directly
attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of
such assets during the period of time that is required to
complete and prepare the asset for its intended use. A
qualifying asset is one that takes necessarily substantial
period of time to get ready for its intended use.
All other borrowing costs are expensed in the period in
which they are incurred.
19. Accounting for Taxes on Income:
Tax expenses comprise of current tax and deferred tax
including applicable surcharge and cess.
Current Income tax is computed using the tax effect
accounting method, where taxes are accrued in the
same period in which the related revenue and expenses
arise. 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.
Deferred tax is provided using the balance sheet
approach on temporary differences at the reporting date
between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the
reporting date. Deferred tax liabilities are recognised for
all taxable temporary differences. Deferred tax assets are
recognised for all deductible temporary differences, the
carry forward of unused tax credits and any unused tax
losses. Deferred tax assets are recognized to the extent
that it is probable that taxable profits against which the
deductible temporary differences, and the carry forward
unused tax credits and unused tax losses can be utilised.
Deferred tax is recognised in the statement of profit
and loss, except to the extent that it relates to items
recognized in other comprehensive income. As such,
deferred tax is also recognised in other comprehensive
income.
Deferred Tax Assets and Deferred Tax Liabilities are offset,
if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the Deferred
Tax Assets and Deferred Tax Liabilities relate to taxes on
income levied by same governing taxation laws.
Mar 31, 2024
1. Corporate Information:
Archidply Industries Limited (the ''Company'') is a public limited company domiciled in India incorporated under the provisions of the Companies Act. Its shares are listed on two recognized stock exchanges in India. The registered office of the company is at Plot No. 7, Sector-9, Integrated Industrial Estate, SIDCUL, Pant Nagar, Rudrapur - 263 153, Uttarakhand, India.
The reportable segments have been identified on the basis of the products of the Company. Company is engaged in the business of manufacturing two broad product segments and one trading product segment, as follows:
i) Wood Based Products: Plywood & Allied Products.
ii) Paper Based Products: Laminate & Allied Products.
iii) Wood Based Products: Medium Density Fibre board (MDF)
It has branches and dealers'' network spread all over the country. The Company is procuring raw material & trading goods locally as well as imports them. Goods are sold both in domestic and overseas markets.
The company''s shares are listed in Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India (NSE).
2. Basis of preparation of Financial Statements:
The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act 2013 ("the Act"), as notified under the Companies (Indian Accounting Standard) Rules, 2015 and other relevant provision of the Act, to the extent applicable and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Standalone Financial Statement.
The financial statements have been prepared under historical cost convention and on an accrual basis, except for the following items which have been measured as required by relevant Ind AS:
a) Financial Instruments classified as fair value through other comprehensive income.
b) The defined benefit (loss)/profit is recognized as at the present value of defined benefit obligation less fair value of plan assets through other comprehensive income.
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. The Company''s management evaluates all recently issued or revised accounting standards on an
on-going basis.
For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
Where changes are made in presentation, the comparative figures of the previous years are regrouped and re-arranged accordingly.
3. Accounting Estimates And Assumptions:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.
4. Equity
a) Ordinary Shares
Ordinary shares are classified as Equity Share capital. Incremental costs directly attributable to the issuance of new shares and buyback are recognized as a deduction from equity, net of any tax effects.
b) Capital redemption reserve
As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is utilised in accordance with the provisions of section 69 of the Companies Act, 2013.
c) Securities Premium
The amount received in excess of the par value of equity shares has been classified as securities premium.
d) Retained Earnings
Retained earnings represent the amount of accumulated earnings of the company.
5. Property, Plant and Equipment OWNED ASSET
a) Property, Plant and Equipment are stated at original cost (net of tax/ duty credit availed) less accumulated depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental expenses related to the acquisition, trial run
expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre-operational period.
b) Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.
c) Assets which are not ready for their intended use on reporting date are carried as capital work-inprogress at cost, comprising direct cost and related incidental expenses.
d) On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
e) Property, Plant and Equipments including continuous process plants are depreciated and/ or amortized on Straight line Method on the basis of their useful lives as notified in Schedule II to the Companies Act, 2013. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
f) Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are ready for use. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units.
g) Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act, 2013 are as follows :
Buildings - 30 to 60 years
Plant and Equipments (Paper Division) - 15 years (Triple Shift)
Plant and Equipments (Other Division) - 15 years (Triple Shift)
Furniture and Fixtures - 10 years Vehicles - 8 to 10 years Office Equipments - 5 to 10 years Computers - 3 years
LEASED ASSET (RIGHT OF USE ASSETS)
a) The Company''s lease asset classes primarily consist
of leases for Land and Buildings. The Company
assesses whether a contract is or contains a lease, at
the inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.
b) The right-of-use asset is a lessee''s right to use an asset over the life of a lease. The Company recognises a right-of-use asset (''ROU'') and a corresponding lease liability for all lease arrangements in which it is a lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases of shortterm and low value assets, the Company recognises the lease payments as an operating expense over the term of the lease.
c) The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made (Deposits and Rentals) at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the
6. Lease Property
The Company determines the lease term as the noncancellable 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.
7. Lease Liabilities
Lease liability is initially measured at the present value of future lease payments. Lease payments are discounted using the interest rate implicit in the lease or, if not readily
determinable, using the incremental borrowing rate. Lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability and reducing the carrying amount to reflect the lease payments made.
A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The remeasurement also adjusts the related leased assets.
8. Intangible Assets
a) Intangible assets acquired by payment e.g., Goodwill , Trademark and Computer Software are disclosed at cost less amortization on a straight-line basis over its estimated useful life.
b) Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.
c) On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the intangible assets
d) Intangible assets are amortised on straight-line method as follows :
Goodwill - 20 years Computer Software - 3 years Trademark- 10 years
9. Investment Property
Investment Property are stated at original cost less accumulated depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and other incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during preoperational period.
Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal.
10. Impairment of Assets
At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.
11. Inventories
a) Inventories related to raw materials, packing materials, stores & spares are valued at cost on weighted average basis or net realizable value whichever is lower.
b) Waste & scraps are valued at estimated realizable value.
c) Materials in transit and Semi Finished goods are valued at cost or market value which ever is lower.
d) Finished goods and process stock include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition.
e) Finished goods are valued at cost or net realizable value whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.
f) Obsolete, defective and unserviceable stocks are duly provided for.
12. Cash Flow Statement
Cash flows statement are reported using "Indirect method" as set out in the Ind AS 7 on ''Statement of Cash Flow'', whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated.
Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term investments (excluding pledged term deposits) with an original maturity of less than twelve months.
13. Financial instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A. Financial Assets
(i) Initial Recognition and Measurement
The Company classifies its financial assets as those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss) and those to be measured at amortized cost.
(ii) Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
(a) Debt instruments measured at amortized cost using the effective interest rate method and losses arising from impairment are recognized in Profit and Loss if both the following conditions are met:
⢠The asset is held within a business model
whose objective is to hold assets for collecting contractual cash flows, and ⢠Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
(b) Equity instruments at fair value through other comprehensive income.
(c) Equity instruments at fair value through profit or loss (FVTPL)
(d) Equity Instruments in subsidiaries are carried at cost, in accordance with option available in Ind AS 27 "Separate Financial Statements".
(iii) De-Recognition
A financial asset is de-recognized only when the Company has transferred the rights to receive cash flows from the financial asset, or when it has transferred substantially all the risks and rewards of the asset, or when it has transferred the control of the asset.
(iv) Impairment of Financial Assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18.
The Company follows''simplified approach''for recognition of impairment loss allowance on trade receivables.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.
As a practical expedient, the Company uses historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates to determine impairment loss allowance on portfolio of its trade receivables.
B. Financial Liabilities:
i) Classification as debt or equity - Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.
ii) Equity instruments - An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.
iii) Initial Recognition and Measurement:
All Financials Liabilities are recognized net of transaction costs incurred.
iv) Subsequent Measurement-
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate ("EIR") method. Gains and losses are recognised in profit or loss when the liabilities are derecognised through the EIR amortisation process.
v) De-Recognition
All Financials Liabilities are removed from balance sheet when the obligation specified in the contract is discharged, cancelled or expired.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
14. Revenue Recognition:
Revenue comprises of all economic benefits that arise in the ordinary course of activities of the Company which result in increase in Equity, other than increases relating to contributions from equity participants. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Sale of Goods: As per Ind AS 115 ''Revenue from contracts with customers, Revenue from sale of goods is recognised when control of the products being sold is transferred to the customer and when there are no longer any unfulfilled obligations. The Performance Obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on terms with customers. The Company derives revenue principally from sale of Plywood, Laminates, Decorative Veneers, MDF and Flush Doors. Revenue shown in the Statement of Profit and Loss are inclusive of the value of self-consumption, but excludes Goods & Service Tax (GST), inter-transfers, returns, trade discounts, other benefits passed to customers in kind.
Services: Revenue from Services is recognized as and when the services are rendered. The Company collects Goods & Service Tax on behalf of the government and therefore, it is not an economic benefit flowing to the Company and hence excluded from Revenue.
Interest: Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
Insurance Claims: Insurance Claims are accounted for on acceptance and when there is a reasonable certainty of receiving the same, on grounds of prudence.
Corporate Guarantee Fee: Corporate Guarantee Fee is accounted for corporate Guarantee given to related party''s Banker for their business use. Such revenue is recognised in the accounting period in which the services are rendered in accordance with agreement with the parties.
15. Government grants
Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset.
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e. by equal annual installments.
16. Foreign Currency Transactions:
The Company''s financial statements are presented in Indian Rupees (''INR''), which is also the Company''s functional currency.
Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing exchange rate. Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company''s monetary items at the closing rate are recognised as income or expenses in the period in which they arise.
Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value is determined.
17. Employee Benefits:
Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
Post Employment and Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit obligations and is provided for on the basis of third party actuarial valuation, using the projected
unit credit method, as at the date of the Balance Sheet. Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of reporting period on government bonds that have terms approximating to the terms of the related obligation
Re-measurement gains and losses arising from experience adjustments and changes in acturial assumptions of the defined benefit obligation are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Employee benefits in the form of Provident Fund is considered as defined contribution plan and the contributions to Employeesâ Provident Fund Organisation established under The Employees'' Provident Fund and Miscellaneous Provisions Act 1952 is charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. The Company pays provident fund contributions to publicly administered provident funds as per local regulations.
The Company has no further payment obligations once the contributions have been paid.
18. Borrowing Costs:
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.
General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets during the period of time that is required to complete and prepare the asset for its intended use. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use.
All other borrowing costs are expensed in the period in which they are incurred.
19. Accounting for Taxes on Income:
Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.
Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses arise. 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.
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profits against which the deductible temporary differences, and the carry forward unused tax credits and unused tax losses can be utilised.
Deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognized in other comprehensive income. As such, deferred tax is also recognised in other comprehensive income.
Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes on income levied by same governing taxation laws.
20. Contingent Liabilities & Contingent Assets:
Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts. Contingent liabilities is disclosed in case of a present obligation from past events
(a) when it is not probable that an outflow of resources will be required to settle the obligation;
(b) when no reliable estimate is possible;
(c) unless the probability of outflow of
resources is remote.
Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts where the inflow of economic benefits is probable.
21. Current And Non- Current Classification:
The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various assets and liabilities into "Current" and "NonCurrent".
The Company presents assets and liabilities in the balance sheet based on current and non-current classification.
An asset is current when it is
(a) expected to be realised or intended to be sold or consumed in normal operating cycle
(b) held primarily for the purpose of trading
(c) expected to be realised within twelve months after the reporting period
(d) Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
(e) All other assets are classified as non-current.
A liability is current when
(a) it is expected to be settled in normal operating cycle
(b) it is held primarily for the purpose of trading
(c) it is due to be discharged within twelve months after the reporting period
(d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
(e) All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
22. Corporate social responsibility (CSR) Activity
In case of CSR activities undertaken by the Company, if any expenditure of revenue nature is incurred or an irrevocable contribution is made to any agency to be spent by the latter on any of the activities mentioned in Schedule VII to the Companies Act, 2013, the same is charged as an expense to its Statement of Profit and Loss and if any extra material amount has been done the same has been carried forward as current asset.
23. Earnings Per Share
Earnings per share are calculated by dividing the net profit or loss before OCI for the year 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 before OCI 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.
24. Segment Reporting
The Company''s operating business segments are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.
25. Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
Mar 31, 2023
1. Corporate Information:
Archidply Industries Limited (the ''Company'') is a public limited company domiciled in India incorporated under the provisions of the Companies Act. Its shares are listed on two recognized stock exchanges in India. The registered office of the company is at Plot No. 7, Sector-9, Integrated Industrial Estate, SIDCUL, Pant Nagar, Rudrapur - 263 153, Uttarakhand, India.
Company is engaged in the business of manufacturing two broad product segments, as follows:
i) Wood Based Products: Plywood & Block Board.
ii) Paper Based Products: Laminated Sheets(HPL)
It has branches and dealers'' network spread all over the country. The Company is procuring raw material & trading goods locally as well as imports them. Goods are sold both in domestic and overseas markets.
The company''s shares are listed in Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India (NSE).
2. Basis of preparation of Financial Statements:
The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act 2013 ("the Act"), as notified under the Companies (Indian Accounting Standard) Rules, 2015 and other relevant provision of the Act, to the extent applicable and presentation requirements of Division II of Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the Standalone Financial Statement.
The financial statements have been prepared under historical cost convention and on an accrual basis, except for the following items which have been measured as required by relevant Ind AS:
a) Financial Instruments classified as fair value through other comprehensive income.
b) The defined benefit (loss)/profit is recognized as at the present value of defined benefit obligation less fair value of plan assets through other comprehensive income.
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. The Company''s management evaluates all recently issued or revised accounting standards on an on-going basis.
Where changes are made in presentation, the comparative figures of the previous years are regrouped and re-arranged accordingly.
3. Accounting Estimates And Assumptions:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.
a) Ordinary Shares
Ordinary shares are classified as Equity Share capital. Incremental costs directly attributable to the issuance of new shares and buyback are recognized as a deduction from equity, net of any tax effects.
b) Capital redemption reserve
As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is utilised in accordance with the provisions of section 69 of the Companies Act, 2013.
c) Securities Premium
The amount received in excess of the par value of equity shares has been classified as securities premium.
d) Retained Earnings
Retained earnings represent the amount of accumulated earnings of the company.
5. Property, Plant and Equipment
a) Property, Plant and Equipment are stated at original cost (net of tax/ duty credit availed) less accumulated depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre-operational period.
b) Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can
be measured reliably. The carrying amount of any component as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.
c) Assets which are not ready for their intended use on reporting date are carried as capital work-inprogress at cost, comprising direct cost and related incidental expenses.
d) On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
e) Property, Plant and Equipments including continuous process plants are depreciated and/ or amortized on Straight line Method on the basis of their useful lives as notified in Schedule II to the Companies Act, 2013. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
f) Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are ready for use. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units.
g) Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act, 2013 are as follows :
Buildings - 30 to 60 years
Plant and Equipments (Paper Division) - 15 years (Triple Shift)
Plant and Equipments (Other Division) - 15 years (Triple Shift)
Furniture and Fixtures - 10 years Vehicles - 8 to 10 years Office Equipments - 5 to 10 years Computers - 3 years
a) Intangible assets acquired by payment e.g., Goodwill , Trademark and Computer Software are disclosed at cost less amortization on a straight-line basis over its estimated useful life.
b) Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.
c) On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
intangible assets as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the intangible assets
d) Intangible assets are amortised on straight-line method as follows :
Goodwill - 20 years Computer Software - 3 years Trademark- 10 years
7. Investment Property
Investment Property are stated at original cost less accumulated depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and other incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during preoperational period.
However Company does not have any Investment Property as it is utilizing its Investment Property for Business purpose only.
8. Lease Property
The Company determines the lease term as the noncancellable 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.
9. Impairment of Assets
At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.
During the year Company has recognized B 1.99 Lakhs as impairment loss on its assets as it has retired assets which were of no use and no realizable value.
10. Inventories
a) Inventories related to raw materials, packing materials, stores & spares are valued at cost on weighted average basis or net realizable value whichever is lower.
b) Waste & scraps are valued at estimated realizable value.
c) Materials in transit and Semi Finished goods are valued at cost or market value which ever is lower.
d) Finished goods and process stock include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition.
e) Finished goods are valued at cost or net realizable value whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.
f) Obsolete, defective and unserviceable stocks are duly provided for.
11. Cash Flow Statement
Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated.
Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term investments (excluding pledged term deposits) with an original maturity of less than twelve months.
12. Financial instruments:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A. Financial Assets
(i) Initial Recognition and Measurement
The Company classifies its financial assets as those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss) and those to be measured at amortized cost.
(ii) Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
(a) Debt instruments measured at amortized cost using the effective interest rate method and losses arising from impairment are
recognized in Profit and Loss if both the following conditions are met:
⢠The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
⢠Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
(b) Equity instruments at fair value through other comprehensive income.
(c) Equity instruments at fair value through profit or loss (FVTPL)
(d) Equity Instruments in subsidiaries are carried at cost, in accordance with option available in Ind AS 27 "Separate Financial Statements".
(iii) De-Recognition
A financial asset is de-recognized only when the Company has transferred the rights to receive cash flows from the financial asset, or when it has transferred substantially all the risks and rewards of the asset, or when it has transferred the control of the asset.
(iv) Impairment of Financial Assets
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 11 and Ind AS 18.
The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivables.
The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.
As a practical expedient, the Company uses historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates to determine impairment loss allowance on portfolio of its trade receivables.
B. Financial Liabilities:
i) Classification as debt or equity - Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.
ii) Equity instruments - An equity instrument is any contract that evidences a residual interest in the
assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.
iii) Initial Recognition and Measurement:
All Financials Liabilities are recognized net of transaction costs incurred.
iv) Subsequent Measurement-
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate ("EIR") method. Gains and losses are recognised in profit or loss when the liabilities are derecognised through the EIR amortisation process.
v) De-Recognition
All Financials Liabilities are removed from balance sheet when the obligation specified in the contract is discharged, cancelled or expired.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Tax assets and Tax liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Revenue comprises of all economic benefits that arise in the ordinary course of activities of the Company which result in increase in Equity, other than increases relating to contributions from equity participants. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Sale of Goods: The Company derives revenue principally from sale of Plywood, Laminates, Particle boards, Decorative Veneers and Flush Doors. Revenue from sales of goods is recognized on transfer of significant risks and rewards of ownership to the customers. Revenue shown in the Statement of Profit and Loss are inclusive of Excise Duty and the value of self-consumption, but excludes Goods & Service Tax(GST), inter-transfers, returns, trade discounts, other benefits passed to customers in kind, value added tax and Central sales tax.
Services: Revenue from Services are recognized as and when the services are rendered. The Company collects Goods & Service Tax on behalf of the government and therefore, it is not an economic benefit flowing to the Company and hence excluded from Revenue.
Interest: Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
Insurance Claims: Insurance Claims are accounted for on acceptance and when there is a reasonable certainty of receiving the same, on grounds of prudence.
Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognized as income in equal amounts over the expected useful life of the related asset.
When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e. by equal annual installments.
16. Foreign Currency Transactions:
The Company''s financial statements are presented in Indian Rupees (''INR''), which is also the Company''s functional currency.
Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing exchange rate. Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company''s monetary items at the closing rate are recognised as income or expenses in the period in which they arise.
Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value is determined.
Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
Post Employment and Retirement benefits in the form of Gratuity and Leave Encashment are considered as defined benefit obligations and is provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of reporting period on government bonds that have terms approximating to the terms of the related obligation
Re-measurement gains and losses arising from experience adjustments and changes in acturial assumptions of the defined benefit obligation are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Employee benefits in the form of Provident Fund is considered as defined contribution plan and the contributions to Employees'' Provident Fund Organisation established under The Employees'' Provident Fund and Miscellaneous Provisions Act 1952 is charged to the Statement of Profit and Loss of the year when the contributions to the respective funds are due. The Company pays provident fund contributions to publicly administered provident funds as per local regulations.
The Company has no further payment obligations once the contributions have been paid.
Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.
General and specific borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets during the period of time that is required to complete and prepare the asset for its intended use. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use.
All other borrowing costs are expensed in the period in which they are incurred.
19. Accounting for Taxes on Income:
Tax expenses comprise of current tax and deferred tax including applicable surcharge and cess.
Current Income tax is computed using the tax effect accounting method, where taxes are accrued in the same period in which the related revenue and expenses
arise. 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.
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profits against which the deductible temporary differences, and the carry forward unused tax credits and unused tax losses can be utilised.
Deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items recog nized in other comprehensive income. As such, deferred tax is also recognised in other comprehensive income.
Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the Deferred Tax Assets and Deferred Tax Liabilities relate to taxes on income levied by same governing taxation laws.
20. Contingent Liabilities & Contingent Assets:
Contingent liabilities are not provided for but are disclosed by way of Notes on Accounts.
Contingent liabilities is disclosed in case of a present obligation from past events
(a) when it is not probable that an outflow of resources will be required to settle the obligation;
(b) when no reliable estimate is possible;
(c) unless the probability of outflow of resources is remote.
Contingent assets are neither accounted for nor disclosed by way of Notes on Accounts where the inflow of economic benefits is probable.
21. Current And Non- Current Classification:
The Normal Operating Cycle for the Company has been assumed to be of twelve months for classification of its various assets and liabilities into "Current" and "Non-Current".
The Company presents assets and liabilities in the balance sheet based on current and non-current classification.
An asset is current when it is
(a) expected to be realised or intended to be sold or consumed in normal operating cycle
(b) held primarily for the purpose of trading
(c) expected to be realised within twelve months after the reporting period
(d) Cash and cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
(e) All other assets are classified as non-current.
A liability is current when
(a) it is expected to be settled in normal operating cycle
(b) it is held primarily for the purpose of trading
(c) it is due to be discharged within twelve months after the reporting period
(d) there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
(e) All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
22. Corporate social responsibility (CSR) Activity
In case of CSR activities undertaken by the Company, if any expenditure of revenue nature is incurred or an irrevocable contribution is made to any agency to be spent by the later on any of the activities mentioned in Schedule VII to the Companies Act, 2013, the same is charged as an expense to its Statement of Profit and Loss and if any extra material amount has been done the same has been carried forward as current asset.
Earnings per share are calculated by dividing the net profit or loss before OCI for the year 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 before OCI 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 Company''s operating business segments are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
Mar 31, 2018
b) The defined benefit loss/(profit) is recognized as at the present value of defined benefit obligation less fair value of plan assets through other comprehensive income.
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. The Company''s management evaluates all recently issued or revised accounting standards on an ongoing basis.
Where changes are made in presentation, the comparative figures of the previous years are regrouped and re-arranged accordingly.
3. Accounting Estimates And Assumptions:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.
4. Property, Plant and Equipment
a) Property, Plant and Equipment are stated at original cost (net of tax/ duty credit availed) less accumulated depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre-operational period.
b) Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. The carrying amount of any component as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit and loss during the reporting period in which they are incurred.
c) Assets which are not ready for their intended use on reporting date are carried as capital work-in-progress at cost, comprising direct cost and related incidental expenses.
d) On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property,
1. Corporate Information:
Archidply Industries Limited (the ''Company'') is a public limited company domiciled in India incorporated under the provisions of the Companies Act. Its shares are listed on two recognized stock exchanges in India. The registered office of the company is located at Plot No. 7, Sector-9, Integrated Industrial Estate, SIDCUL, Pant Nagar, Rudrapur - 263 153, Uttarakhand, India.
Company is engaged in the business of manufacturing two broad product segments, as follows:
i)Wood Based Products: Decorative Laminates, Decorative Veneers, Plywood & Block Board, Prelaminated Particle Board.
ii)Paper Based Products: Laminated Sheets(HPL) It has branches and dealers'' network spread all over the country. The Company is procuring raw material & trading goods locally as well as imports them. Goods are sold both in domestic and overseas markets.
The company''s shares are listed in Bombay Stock Exchange Ltd.(BSE) and National Stock Exchange of India(NSE).
2. Basis of preparation of Financial Statements :
The Financial Statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015. The Financial Statements upto year ended 31st March 2017 were prepared in accordance with accounting standards notified under the Company (Accounting Standards) Rules 2006 read with Rule 7(1) of the Companies (Accounts) Rules, 2014 and the provisions of the Companies Act, 2013 (hereinafter referred to as the ''previous GAAP'').
These Financial Statements are the first financial statements of the company under Ind AS - the transition date being 1 April 2016 and accordingly Balance Sheet for FY 2017-2018, 2016-2017 and 2015-2016 are presented. The information as to how the company has adopted Ind AS and the impact thereof on Company''s financial position, financial performance and cash flows is presented in notes to financial statements.
The financial statements have been prepared under historical cost convention and on an accrual basis, except for the following items which have been measured as required by relevant Ind AS:
a) Financial Instruments classified as fair value through other comprehensive income.
Investment property are amortized on straight line method as follows:
Building - 30 years
7. Impairment of Assets
At each balance sheet date, the Company reviews the carrying amount of property, plant and equipment to determine whether there is any indication of impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and the value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.
8. Inventories
a. Inventories related to raw materials, packing materials, stores & spares are valued at cost on weighted average basis or net realizable value whichever is lower.
b. Waste & scraps are valued at estimated realizable value.
c. Materials in transit and Semi Finished goods are valued at cost or market value which ever
is lower.
d. Finished goods and process stock include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition.
e. Finished goods are valued at cost or net realizable value whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.
f. Obsolete, defective and unserviceable stocks are duly provided for.
9. Cash Flow Statement
Cash flows are reported using indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow from regular revenue generating, financing and investing activities of the Company is segregated.
Cash and cash equivalents in the balance sheet comprise cash at bank, cash/cheques in hand and short term investments (excluding pledged term deposits) with an original maturity of three months or less. plant and equipment as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
e) Property, Plant and Equipmentâs including continuous process plants are depreciated and/or amortized on the basis of their useful lives as notified in Schedule II to the Companies Act, 2013. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
f) Depreciation in respect of additions to assets has been charged on pro rata basis with reference to the period when the assets are ready for use. The provision for depreciation for multiple shifts has been made in respect of eligible assets on the basis of operation of respective units.
g) Useful lives of the Property, Plant and Equipment as notified in Schedule II to the Companies Act, 2013 are as follows :
Buildings - 30 to 60 years
Plant and Equipmentâs - 15 years (Triple Shift)
Furniture and Fixtures - 10 years
Vehicles - 8 to 10 years
Office Equipmentâs - 5 to 10 years
Computers - 3 years
5. Intangible Assets
a) Intangible assets acquired by payment e.g., Goodwill and Computer Software are disclosed at cost less amortization on a straight-line basis over its estimated useful life.
b) Intangible assets are carried at cost, net of accumulated amortization and impairment loss, if any.
c) On transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets as at 1st April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the intangible assets
d) Intangible assets are amortized on straight-line method as follows :
Goodwill - 20 years Computer Software - 3 years
6. Investment Property
Investment Property are stated at original cost less accumulated depreciation and impairment losses except freehold land which is carried at cost. Cost includes cost of acquisition, construction and other incidental expenses related to the acquisition, trial run expenses (net of revenue) and pre-operative expenses including attributable borrowing costs incurred during pre-operational period.
13. Revenue Recognition:
Revenue comprises of all economic benefits that arise in the ordinary course of activities of the Company which result in increase in Equity, other than increases relating to contributions from equity participants. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Sale of Goods: Revenue from sales of goods is recognized on transfer of significant risks and rewards of ownership to the customers. Revenue shown in the Statement of Profit and Loss are inclusive of Excise Duty and the value of self-consumption, but excludes Goods & Service Tax(GST), inter-transfers, returns, trade discounts, other benefits passed to customers in kind, value added tax and Central sales tax. Excise Duty expense has been disclosed in Statement of Profit and Loss as expenditure.
Services: Revenue from Services are recognized as and when the services are rendered. The Company collects service tax/Goods & Service Tax on behalf of the government and therefore, it is not an economic benefit flowing to the Company and hence excluded from Revenue.
Interest: Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
Insurance Claims: Insurance Claims are accounted for on acceptance and when there is a reasonable certainty of receiving the same, on grounds of prudence.
14. Foreign Currency Transactions:
The Company''s financial statements are presented in Indian Rupees (''INR''), which is also the Company''s functional currency.
Foreign currency transactions are recorded on initial recognition in the functional currency, using the exchange rate at the date of the transaction. At each balance sheet date, foreign currency monetary items are reported using the closing exchange rate. Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company''s monetary items at the closing rate are recognized as income or expenses in the period in which they arise.
Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rate at the date when the fair value is determined.
10. Financial Assets
The Company classifies its financial assets as those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss) and those to be measured at amortized cost.
Trade receivables represent receivables for goods sold by the Company up to to the end of the financial year. The amounts are generally unsecured and are usually received as per the terms of payment agreed with the customers and are classified under Current Assets.
A financial asset is de-recognized only when the Company has transferred the rights to receive cash flows from the financial asset, or when it has transferred substantially all the risks and rewards of the asset, or when it has transferred the control of the asset.
Investments that are readily realizable and intended to be held for not more than a year are classified as Current investments. All other investments are classified as Non-Current/Long-term Investments. Current investments are carried at lower of cost or market value on individual investment basis. Noncurrent Investments are considered at cost, unless there is an "other than temporary" decline in value, in which case adequate provision is made for the diminution in the value of Investments.
11. Financial Liabilities:
Borrowings are initially recognized and subsequently measured at amortized cost, net of transaction costs incurred.
Borrowings are removed from balance sheet when the obligation specified in the contract is discharged, cancelled or expired.
Borrowings are classified as current liabilities unless the company has an Un-conditional right to defer settlement of the liability for at least 12 months after the reporting period.
Trade Payables represent liabilities for goods and services provided to the Company up to the end of the financial year. The amounts are unsecured and are usually paid as per the terms of payment agreed with the vendors. The amounts are presented as current liabilities unless payment is not due within 12 months after the reporting period.
12. Tax Asset
Tax assets and Tax liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
Mar 31, 2016
1. BASIS OF ACCOUNTING:
The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principle (GAAP), and in compliance with the Accounting Standards referred to in Section 133 and other requirements of the Companies Act, 2013.
2. USE OF ESTIMATES:
The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of financial statements are correct. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Actual results could differ from these estimates.
3. FIXED ASSETS: TANGIBLE & INTANGIBLE:
a) Tangible Fixed Assets are stated at cost less accumulated Depreciation and impairment loss if any. Cost comprises of purchase price and any attributable cost of bringing the assets to its working conditions for its intended use. Revenue expenses incurred in connection with project implementation in so far as such expenses relate to the period prior to the commencement of commercial production are treated as preoperative expenses and will be written off over five years.
b) Intangible assets are stated at cost less accumulated amortization. Cost includes any directly attributable expenditure on making the asset ready for its intended use.
4. DEPRECIATION & AMORTIZATIONS:
a) Depreciation on the fixed assets has been provided on Straight line Method at the rates and in the manner prescribed in schedule II to the Companies Act, 2013 over the useful life of the assets prescribed as per schedule II of the Companies Act, 2013.
b) Depreciation on additions/ deductions is calculated prorata from/to the date of additions/ deductions.
c) Intangible assets are amortized over their estimated useful life on straight line basis over a period of 20 years.
d) Preliminary and Demerger expenses are amortized over a period of five years.
5. IMPAIRMENT:
The carrying amounts of the assets are reviewed at each balance sheet date if there is an indication of impairment based on the internal and external factors.
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to Profit & Loss account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years is recorded when there is an indication that impairment losses recognized for the assets no longer exists or has decreased.
6. LEASES:
Lease payments under an operating lease recognized as an expense in the statement of profit and loss as per terms of lease agreement.
7. INVESTMENTS:
a) Long term Investments are carried at cost after deducting provision, if any, for diminution in value considered to be other than temporary in nature.
b) Current investments are stated at lower of cost and fair value.
8. INVENTORIES:
a) Inventories related to raw materials, packing materials, stores & spares are valued at cost on weighted average basis or net realizable value whichever is lower.
b) Waste & scraps are valued at net realizable value.
c) Materials in transit and Semi Finished goods are valued at cost or market value whichever is lower.
d) Finished goods and process stock include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
e) Finished goods are valued at cost or net realizable value whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.
f) Obsolete, defective and unserviceable stocks are duly provided for.
9. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are accounted for at the rates prevailing on the dates of the transactions/ converted at contracted rate. Foreign currency assets and liabilities covered by forward contracts are stated at the forward contract rates while those not covered are restated at year end rate. Premium in respect of forward contract is recognized over the life of contracts. Exchange differences relating to fixed assets acquired from a country outside India are adjusted to the cost of the asset. Exchange differences in case of borrowed funds and liabilities in foreign currency for the acquisition of fixed assets from a country outside India are adjusted to the cost of fixed assets. Hedging Charges on foreign currency term loan obtained for the purchases of fixed assets is added to the cost of the asset. Any other exchange difference is dealt with in the Profit and Loss Account.
10. RETIREMENT BENEFITS:
Provisions for / contributions to retirement benefits schemes are made as follows:
a) Fixed Contribution to Provident fund and other benefits are recognized in the accounts on actual cost to the Company.
b) Liability for leave encashment & gratuity are provided based on the valuation done by the Actuarial appointed by the Company at the end of the year.
11. REVENUE RECOGNITION:
a) Sales revenue is recognized on the transfer of significant risk and rewards of the ownership of goods to the buyer.
b) Interest income and expenses and income incidental to it, are accounted for on an accrual basis.
12. BORROWING COST:
Borrowing cost directly attributable to the acquisition or construction of qualifying assets are being capitalized. Other borrowing costs are recognized as expenses in the period in which they are incurred. In determining the amount of borrowing costs eligible for capitalization during a period, any income earned on the temporary investment of those borrowings is deducted from the borrowing costs incurred.
13. TAXATION:
Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty except for carried forward losses and unabsorbed depreciation which is recognized on virtual certainty that the assets will be realized in future.
14. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
Provision is recognized when there is a 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 the obligation. Disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote. Contingent Asset is neither recognized nor disclosed in the financial statements.
15. RESEARCH AND DEVELOPMENT:
Expenditure incurred during research phase is charged to revenue when no intangible asset arises from such research. Assets procured on research and development activities are generally capitalized.
Mar 31, 2015
1. BASIS OF ACCOUNTING:
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principle (GAAP), and in compliance with the Accounting
Standards referred to in Section 133 and other requirements of the
Companies Act, 2013.
2. USE OF ESTIMATES:
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that the reported amounts of income and expenses of the
period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of
financial statements are correct. Examples of such estimates include
the useful lives of fixed assets, provision for doubtful
debts/advances, future obligations in respect of retirement benefit
plans, etc. Actual results could differ from these estimates.
3. FIXED ASSETS: TANGIBLE & INTANGIBLE
a) Tangible Fixed Assets are stated at cost less accumulated
Depreciation and impairment loss if any. Cost comprises of purchase
price and any attributable cost of bringing the assets to its working
conditions for its intended use. Revenue expenses incurred in
connection with project implementation in so far as such expenses
relate to the period prior to the commencement of commercial production
are treated as preoperative expenses and will be written off over five
years.
b) Intangible assets are stated at cost less accumulated amortization.
Cost includes any directly attributable expenditure on making the asset
ready for its intended use.
4. DEPRECIATIoN & AMoRTIzATIoNS:
a) Depreciation on the fixed assets has been provided on Straight line
Method at the rates and in the manner prescribed in schedule II to the
Companies Act, 2013 over the useful life of the assets prescribed as
per schedule II of the Companies Act, 2013.
b) As per Transitional provision under Schedule II when the remaining
useful life of the asset is Nil, the residual value of those assets
have been charged to statement of Profit & Loss Account under the head
Depreciation.
c) Depreciation on additions/ deductions is calculated prorata from/to
the date of additions/ deductions.
d) Intangible assets are amortized over their estimated useful life on
straight line basis over a period of 20 years.
e) Preliminary and Demerger expenses are amortized over a period of
five years.
5. IMPAIRMENT:
The carrying amounts of the assets are reviewed at each balance sheet
date if there is an indication of impairment based on the internal and
external factors.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss, if any, is charged
to Profit & Loss account in the year in which the asset is identified
as impaired. Reversal of impairment loss recognized in prior years is
recorded when there is an indication that impairment losses recognized
for the assets no longer exists or has decreased.
6. LEASES:
Lease payments under an operating lease recognized as an expense in the
statement of profit and loss as per terms of lease agreement.
7. INVESTMENTS:
a) Long term Investments are carried at cost after deducting provision,
if any, for diminution in value considered to be other than temporary
in nature.
b) Current investments are stated at lower of cost and fair value.
8. INVENToRIES:
a) Inventories related to raw materials, packing materials, stores &
spares are valued at cost on weighted average basis or net realisable
value which ever is lower.
b) Waste & scraps are valued at net realizable value.
c) Materials in transit and Semi Finished goods are valued at cost or
market value which ever is lower.
d) Finished goods and process stock include cost of conversion and
other costs incurred in bringing the inventories to their present
location and condition.
e) Finished goods are valued at cost or net realizable value whichever
is lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
the estimated costs necessary to make the sale.
f) Obsolete, defective and unserviceable stocks are duly provided for.
9. foreign CURRENCY transactions:
Foreign currency transactions are accounted for at the rates prevailing
on the dates of the transactions/ converted at contracted rate. Foreign
currency assets and liabilities covered by forward contracts are stated
at the forward contract rates while those not covered are restated at
year end rate. Premium in respect of forward contract is recognized
over the life of contracts. Exchange differences relating to fixed
assets acquired from a country outside India are adjusted to the cost of
the asset. Exchange differences in case of borrowed funds and
liabilities in foreign currency for the acquisition of fixed assets from
a country outside India are adjusted to the cost of fixed assets.
Hedging Charges on foreign currency term loan obtained for the purchases
of fixed assets is added to the cost of the asset. Any other exchange
difference is dealt with in the Profit and Loss Account.
10. RETIREMENT BENEFITS:
Provisions for / contributions to retirement benefits schemes are made
as follows:
a) Fixed Contribution to Provident fund and other benefits are
recognized in the accounts on actual cost to the Company.
b) Liability for leave encashment & gratuity are provided based on the
valuation done by the Actuarial appointed by the Company at the end of
the year.
11. REVENUE RECOGNITION:
a) Sales revenue is recognized on the transfer of significant risk and
rewards of the ownership of goods to the buyer.
b) Interest income and expenses and income incidental to it, are
accounted for on an accrual basis.
12. BORROWING COST:
Borrowing cost directly attributable to the acquisition or construction
of qualifying assets are being capitalized. Other borrowing costs are
recognized as expenses in the period in which they are incurred. In
determining the amount of borrowing costs eligible for capitalization
during a period, any income earned on the temporary investment of those
borrowings is deducted from the borrowing costs incurred.
13. TAXATION:
Provision for Current Tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions as per the Income Tax Act, 1961. Deferred Tax resulting from
"timing difference" between book and taxable profit for the year is
accounted for using the tax rates and laws that have been enacted or
substantively enacted as on the balance sheet date. The deferred tax
asset is recognized and carried forward only to the extent that there
is a reasonable certainty except for carried forward losses and
unabsorbed depreciation which is recognized on virtual certainty that
the assets will be realized in future.
14. PROVIsION, CONTINGENT LIABILITIEs AND CONTINGENT AssETs:
Provision is recognized when there is a 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 the obligation.
Disclosure for contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. No provision is recognized or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
15. REsEARCH AND DEVELOPMENT:
Expenditure incurred during research phase is charged to revenue when
no intangible asset arises from such research. Assets procured on
research and development activities are generally capitalized.
Mar 31, 2014
1. BASIS OF ACCOUNTING:
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principle (GAAP), and in compliance with the Accounting
Standards referred to in section 211 (3C) and other requirements of the
Companies Act, 1956.
2. USE OF ESTIMATES:
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that the reported amounts of income and expenses of the
period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of
financial statements are correct. Examples of such estimates include
the useful lives of fixed assets, provision for doubtful
debts/advances, future obligations in respect of retirement benefit
plans, etc. Actual results could differ from these estimates.
3. FIXED ASSETS: TANGIBLE & INTANGIBLE
a) Tangible Fixed Assets are stated at cost less accumulated
Depreciation and impairment loss if any. Cost comprises of purchase
price and any attributable cost of bringing the assets to its working
conditions for its intended use. Revenue expenses incurred in
connection with project implementation in so far as such expenses
relate to the period prior to the commencement of commercial production
are treated as preoperative expenses and will be written off over five
years.
b) Intangible assets are stated at cost less accumulated amortization.
Cost includes any directly attributable expenditure on making the asset
ready for its intended use.
4. DEPRECIATION & AMORTIZATIONS:
a) Depreciation on fixed assets has been provided for on straight line
method at the rates and manner prescribed under schedule XIV to the
Companies Act, 1956, of India.
b) Depreciation on additions/ deductions is calculated prorata from/to
the date of additions/ deductions.
c) Intangible assets are amortized over their estimated useful life on
straight line basis over a period of 20 years.
d) Prelimnary and Demerger expenses are amortized over a period of five
years.
5. IMPAIRMENT:
The carrying amounts of the assets are reviewed at each balance sheet
date if there is an indication of impairment based on the internal and
external factors.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss, if any, is charged
to Profit & Loss account in the year in which the asset is identified
as impaired. Reversal of impairment loss recognized in prior years is
recorded when there is an indication that impairment losses recognized
for the assets no longer exists or has decreased.
6. LEASES:
Lease payments under an operating lease recognized as an expense in the
statement of profit and loss as per terms of lease agreement.
7. INVESTMENTS:
a) Long term Investments are carried at cost after deducting provision,
if any, for diminution in value considered to be other than temporary
in nature.
b) Current investments are stated at lower of cost and fair value.
8. INVENTORIES:
a) Inventories related to raw materials, packing materials, stores &
spares are valued at cost on weighted average basis or net realisable
value which ever is lower.
b) Waste & scraps are valued at net realizable value.
c) Materials in transit and Semi Finished goods are valued at cost or
market value which ever is lower.
d) Finished goods and process stock include cost of conversion and
other costs incurred in bringing the inventories to their present
location and condition.
e) Finished goods are valued at cost or net realizable value whichever
is lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
the estimated costs necessary to make the sale.
f) Obsolete, defective and unserviceable stocks are duly provided for.
9. FOREIGN CURRENCY TRANSACTIONS:
Foreign currency transactions are accounted for at the rates prevailing
on the dates of the transactions/ converted at contracted rate. Foreign
currency assets and liabilities covered by forward contracts are stated
at the forward contract rates while those not covered are restated at
year end rate.
Premium in respect of forward contract is recognized over the life of
contracts. Exchange differences relating to fixed assets acquired from
a country outside India are adjusted to the cost of the asset. Exchange
differences in case of borrowed funds and liabilities in foreign
currency for the acquisition of fixed assets from a country outside
India are adjusted to the cost of fixed assets. Hedging Charges on
foreign currency term loan obtained for the purchases of fixed assets
is added to the cost of the asset. Any other exchange difference is
dealt with in the Profit and Loss Account.
10. RETIREMENT BENEFITS:
Provisions for / contributions to retirement benefits schemes are made
as follows:
a) Fixed Contribution to Provident fund and other benefits are
recognized in the accounts on actual cost to the Company.
b) Liability for leave encashment & gratuity are provided based on the
valuation done by the Company at the end of the year.
11. REVENUE RECOGNITION:
a) Sales revenue is recognized on the transfer of significant risk and
rewards of the ownership of goods to the buyer.
b) Interest income and expenses and income incidental to it, are
accounted for on an accrual basis.
12. BORROWING COST:
Borrowing cost directly attributable to the acquisition or construction
of qualifying assets are being capitalized. Other borrowing costs are
recognized as expenses in the period in which they are incurred. In
determining the amount of borrowing costs eligible for capitalization
during a period, any income earned on the temporary investment of those
borrowings is deducted from the borrowing costs incurred.
13. TAXATION:
Provision for Current Tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions as per the Income Tax Act, 1961. Deferred Tax resulting from
"timing difference" between book and taxable profit for the year is
accounted for using the tax rates and laws that have been enacted or
substantively enacted as on the balance sheet date. The deferred tax
asset is recognized and carried forward only to the extent that there
is a reasonable certainty except for carried forward losses and
unabsorbed depreciation which is recognized on virtual certainty that
the assets will be realized in future.
14. provision, contingent liabilities and
CONTINGENT ASSETS:
Provision is recognized when there is a 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 the obligation.
Disclosure for contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. No provision is recognized or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
15. RESEARCH AND DEVELOPMENT:
Expenditure incurred during research phase is charged to revenue when
no intangible asset arises from such research. Assets procured on
research and development activities are generally capitalized.
Mar 31, 2013
1. BAsIs OF ACCOUNTING :
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principle (GAAP), and in compliance with the Accounting
Standards referred to in section 211 (3C) and other requirements of the
Companies Act, 1956.
2. UsE OF EsTIMATEs :
The preparation of fnancial statements in conformity with GAAP requires
that the management of the Company makes estimates and assumptions that
the reported amounts of income and expenses of the period, the reported
balances of assets and liabilities and the disclosures relating to
contingent liabilities as of the date of fnancial statements are
correct. Examples of such estimates include the useful lives of fxed
assets, provision for doubtful debts/advances, future obligations in
respect of retirement beneft plans, etc. Actual results could difer
from these estimates.
3. FIXED AssETs : TANGIBLE & INTANGIBLE
a) Tangible Fixed Assets are stated at cost less accumulated
Depreciation and impairment loss if any. Cost comprises of purchase
price and any attributable cost of bringing the assets to its working
conditions for its intended use. Revenue expenses incurred in
connection with project implementation in so far as such expenses
relate to the period prior to the commencement of commercial production
are treated as preoperative expenses and will be written of over fve
years.
b) Intangible assets are stated at cost less accumulated amortization.
Cost includes any directly attributable expenditure on making the asset
ready for its intended use.
4. DEPRECIATION & AMORTIzATIONs :
a) Depreciation on fxed assets has been provided for on straight line
method at the rates and manner prescribed under schedule XIV to the
Companies Act, 1956, of India.
b) Depreciation on additions/ deductions is calculated prorata from/to
the date of additions/ deductions.
c) Intangible assets are amortized over their estimated useful life on
straight line basis over a period of 20 years.
d) Prelimnary and Demerger expenses are amortized over a period of fve
years.
5. IMPAIRMENT :
The carrying amounts of the assets are reviewed at each
balance sheet date if there is an indication of impairment based on the
internal and external factors.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss, if any, is charged
to Proft & Loss account in the year in which the asset is identifed as
impaired. Reversal of impairment loss recognized in prior years is
recorded when there is an indication that impairment losses recognized
for the assets no longer exists or has decreased.
6. LEAsEs :
Lease payments under an operating lease recognized as an expense in the
statement of proft and loss as per terms of lease agreement.
7. INVEsTMENTs :
a) Long term Investments are carried at cost after deducting provision,
if any, for diminution in value considered to be other than temporary
in nature.
b) Current investments are stated at lower of cost and fair value.
8. INVENTORIEs :
a) Inventories related to raw materials, packing materials, stores &
spares are valued at cost on weighted average basis or net realisable
value which ever is lower.
b) Waste & scraps are valued at net realizable value.
c) Materials in transit and Semi Finished goods are valued at cost or
market value which ever is lower.
d) Finished goods and process stock include cost of conversion and
other costs incurred in bringing the inventories to their present
location and condition.
e) Finished goods are valued at cost or net realizable value whichever
is lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
the estimated costs necessary to make the sale.
f) Obsolete, defective and unserviceable stocks are duly provided for.
9. FOREIGN CURRENCY TRANsACTIONs :
Foreign currency transactions are accounted for at the rates prevailing
on the dates of the transactions/ converted at contracted rate. Foreign
currency assets and liabilities covered by forward contracts are stated
at the forward contract rates while those not covered are restated at
year end rate. Premium in respect of forward contract is recognized
over the life of contracts. Exchange diferences relating to fxed assets
acquired from a country outside India are adjusted to the cost of the
asset. Exchange diferences in case of borrowed funds and liabilities in
foreign currency for the acquisition of fxed assets from a country
outside India are adjusted to the cost of fxed assets. Hedging Charges
on foreign currency term loan obtained for the purchases of fxed assets
is added to the cost of the asset. Any other exchange diference is
dealt with in the Proft and Loss Account.
10. RETIREMENT BENEFITs :
Provisions for / contributions to retirement benefts schemes are made
as follows:
a) Fixed Contribution to Provident fund and other benefts are
recognized in the accounts on actual cost to the Company.
b) Liability for leave encashment & gratuity are provided based on the
valuation done by the Company at the end of the year.
11. REVENUE RECOGNITION :
a) Sales revenue is recognized on the transfer of signifcant risk and
rewards of the ownership of goods to the buyer.
b) Interest income and expenses and income incidental to it, are
accounted for on an accrual basis.
12. BORROWING COsT :
Borrowing cost directly attributable to the acquisition or construction
of qualifying assets are being capitalized. Other borrowing costs are
recognized as expenses in the period in which they are incurred. In
determining the amount of borrowing costs eligible for capitalization
during a period, any income earned on the temporary investment of those
borrowings is deducted from the borrowing costs incurred.
13. TAXATION :
Provision for Current Tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions as per the Income Tax Act, 1961. Deferred Tax resulting from
"timing diference" between book and taxable proft for the year is
accounted for using the tax rates and laws that have been enacted or
substantively enacted as on the balance sheet date. The deferred tax
asset is recognized and carried forward only to the extent that there
is a reasonable certainty except for carried forward losses and
unabsorbed depreciation which is recognized on virtual certainty that
the assets will be realized in future.
14. PROVIsION, CONTINGENT LIABILITIEs AND CONTINGENT AssETs :
Provision is recognized when there is a present obligation as a result
of a past event that probably requires an outfow of resources and a
reliable estimate can be made of the amount of the obligation.
Disclosure for contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outfow of resources. No provision is recognized or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outfow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the fnancial statements.
15. REsEARCH AND DEVELOPMENT :
Expenditure incurred during research phase is charged to revenue when
no intangible asset arises from such research. Assets procured on
research and development activities are generally capitalized.
Mar 31, 2012
1. BASIS OF ACCOUNTING :
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with Generally Accepted
Accounting Principle (GAAP) and in compliance with the Accounting
Standards referred to in Section 211 (3C) and other requirements of the
Companies Act, 1956.
2. USE OF ESTIMATES :
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that the reported amounts of income and expenses of the
period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of
financial statements are correct. Examples of such estimates include
the useful lives of fixed assets, provision for doubtful debts /
advances, future obligations in respect of retirement benefit plans,
etc. Actual results could differ from these estimates.
3. FIXED ASSETS : TANGIBLE & INTANGIBLE
a) Tangible Fixed Assets are stated at cost less accumulated
Depreciation and impairment loss if any. Cost comprises of purchase
price and any attributable cost of bringing the assets to its working
conditions for its intended use. Revenue expenses incurred in
connection with project implementation in so far as such expenses
relate to the period prior to the commencement of commercial production
are treated as preoperative expenses and will be written off over five
years.
b) Intangible assets are stated at cost less accumulated amortization.
Cost includes any directly attributable expenditure on making the asset
ready for its intended use.
4. DEPRECIATION & AMORTIZATIONS :
a) Depreciation on fixed assets has been provided for on straight line
method at the rates and manner prescribed under Schedule XIV to the
Companies Act, 1956, of India.
b) Depreciation on additions / deductions is calculated prorata from /
to the date of additions / deductions.
c) Intangible assets are amortized over their estimated useful life on
straight line basis over a period of 20 years.
d) Preliminary and Demerger expenses are amortized over a period of
five years.
5. IMPAIRMENT :
The carrying amounts of the assets are reviewed at each balance sheet
date if there is an indication of impairment based on the internal and
external factors.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss, if any, is charged
to Profit & Loss account in the year in which the asset is identified
as impaired. Reversal of impairment loss recognized in prior years is
recorded when there is an indication that impairment losses recognized
for the assets no longer exists or has decreased.
6. LEASES :
Lease payments under an operating lease recognized as an expense in the
statement of profit and loss as per terms of lease agreement.
7. INVESTMENTS :
a) Long term Investments are carried at cost after deducting provision,
if any, for diminution in value considered to be other than temporary
in nature.
b) Current investments are stated at lower of cost and fair value.
8. INVENTORIES :
a) Inventories related to raw materials, packing materials, stores &
spares are valued at cost on weighted average basis or net realisable
value which ever is lower.
b) Waste & scraps are valued at net realizable value.
c) Materials in transit and Semi Finished goods are valued at cost or
market value which ever is lower.
d) Finished goods and process stock include cost of conversion and
other costs incurred in bringing the inventories to their present
location and condition.
e) Finished goods are valued at cost or net realizable value whichever
is lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
the estimated costs necessary to make the sale.
f) Obsolete, defective and unserviceable stocks are duly provided for.
9. FOREIGN CURRENCY TRANSACTIONS :
Foreign currency transactions are accounted for at the rates prevailing
on the dates of the transactions / converted at contracted rate.
Foreign currency assets and liabilities covered by forward contracts
are stated at the forward contract rates while those not covered are
restated at year end rate. Premium in respect of forward contract is
recognized over the life of contracts. Exchange differences relating to
fixed assets acquired from a country outside India are adjusted to the
cost of the asset. Exchange differences in case of borrowed funds and
liabilities in foreign currency for the acquisition of fixed assets
from a country outside India are adjusted to the cost of fixed assets.
Any other exchange difference is dealt with in the Profit and Loss
Account.
10. RETIREMENT BENEFITS :
Provisions for / contributions to retirement benefits schemes are made
as follows :
a) Fixed Contribution to Provident fund and other benefits are
recognized in the accounts on actual cost to the Company.
b) Liability for leave encashment & gratuity are provided based on the
valuation done by the Company at the end of the year.
11. REVENUE RECOGNITION :
a) Sales revenue is recognized on the transfer of significant risk and
rewards of the ownership of goods to the buyer.
b) Interest income and expenses and income incidental to it, are
accounted for on an accrual basis.
12. BORROWING COST :
Borrowing cost directly attributable to the acquisition or construction
of qualifying assets are being capitalized. Other borrowing costs are
recognized as expenses in the period in which they are incurred. In
determining the amount of borrowing costs eligible for capitalization
during a period, any income earned on the temporary investment of those
borrowings is deducted from the borrowing costs incurred.
13. TAXATION :
Provision for Current Tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions as per the Income Tax Act, 1961. Deferred Tax resulting from
"timing difference" between book and taxable profit for the year is
accounted for using the tax rates and laws that have been enacted or
substantively enacted as on the balance sheet date. The deferred tax
asset is recognized and carried forward only to the extent that there
is a reasonable certainty except for carried forward losses and
unabsorbed depreciation which is recognized on virtual certainty that
the assets will be realized in future.
14. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :
Provision is recognized when there is a 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 the obligation.
Disclosure for contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. No provision is recognized or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
15. RESEARCH AND DEVELOPMENT :
Expenditure incurred during research phase is charged to revenue when
no intangible asset arises from such research. Assets procured on
research and development activities are generally capitalized.
Mar 31, 2011
1.Basis of Accounting:
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principle (GAAP), and in compliance with the Accounting
Standards referred to in section 211 (3C) and other requirements of the
Companies Act, 1956.
2.Use of Estimates:
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that the reported amounts of income and expenses of the
period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of
financial statements are correct. Examples of such estimates include
the useful lives of fixed assets, provision for doubtful
debts/advances, future obligations in respect of retirement benefit
plans, etc. Actual results could differ from these estimates.
3.Fixed Assets: Tangible & Intangible
a)Tangible Fixed Assets are stated at cost less accumulated
Depreciation and impairment loss if any. Cost comprises of purchase
price and any attributable cost of bringing the assets to its working
conditions for its intended use. Revenue expenses incurred in
connection with project implementation in so far as such expenses
relate to the period prior to the commencement of commercial production
are treated as preoperative expenses and will be written off over five
years.
b)Intangible assets are stated at cost less accumulated amortization.
Cost includes any directly attributable expenditure on making the asset
ready for its intended use.
4.Depreciation & Amortizations:
a)Depreciation on fixed assets has been provided for on straight line
method at the rates and manner prescribed under schedule XIV to the
Companies Act, 1956, of India.
b)Depreciation on additions/ deductions is calculated prorata from/to
the month of additions/ deductions.
c)Intangible assets are amortized over their estimated useful life on
straight line basis over a period of 20 years.
d)Prelimnary and Demerger expenses are amortized over a period of five
years.
5.Impairment:
The carrying amounts of the assets are reviewed at each balance sheet
date if there is an indication of impairment based on the internal and
external factors.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss, if any, is charged
to Profit & Loss account in the year in which the asset is identified
as impaired. Reversal of impairment loss recognized in prior years is
recorded when there is an indication that impairment losses recognized
for the assets no longer exists or has decreased.
6.Leases:
Lease payments under an operating lease recognized as an expense in the
statement of profit and loss as per terms of lease agreement.
7.Investments:
a)Long term Investments are carried at cost after deducting provision,
if any, for diminution in value considered to be other than temporary
in nature.
b)Current investments are stated at lower of cost and fair value.
8.Inventories:
a)Inventories related to raw materials, packing materials, stores &
spares are valued at cost on weighted average basis or net realisable
value which ever is lower.
b)Waste & scraps are valued at net realizable value.
c)Materials in transit and Semi Finished goods are valued at cost or
market value which ever is lower.
d)Finished goods and process stock include cost of conversion and other
costs incurred in bringing the inventories to their present location
and condition.
e)Finished goods are valued at cost or net realizable value whichever
is lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
the estimated costs necessary to make the sale.
f)Obsolete, defective and unserviceable stocks are duly provided for.
9. Foreign Currency Transactions:
Foreign currency transactions are accounted for at the rates prevailing
on the dates of the transactions / converted at contracted rate.
Foreign currency assets and liabilities covered by forward contracts
are stated at the forward contract rates while those not covered are
restated at year end rate. Premium in respect of forward contract is
recognized over the life of contracts. Exchange differences relating to
fixed assets acquired from a country outside India are adjusted to the
cost of the asset. Exchange differences in case of borrowed funds and
liabilities in foreign currency for the acquisition of fixed assets
from a country outside India are adjusted to the cost of fixed assets.
Any other exchange difference is dealt with in the Profit and Loss
Account.
10. Retirement Benefits:
Provisions for / contributions to retirement benefits schemes are made
as follows:
a)Fixed Contribution to Provident fund and other benefits are
recognized in the accounts on actual cost to the Company.
b)Liability for leave encashment & gratuity are provided based on the
valuation done by the Company at the end of the year.
11. Revenue Recognition:
a)Sales revenue is recognized on the transfer of significant risk and
rewards of the ownership of goods to the buyer. b)Interest income and
expenses and income incidental to it, are accounted for on an accrual
basis.
12. Borrowing Cost:
Borrowing cost directly attributable to the acquisition or construction
of qualifying assets are being capitalized. Other borrowing costs are
recognized as expenses in the period in which they are incurred. In
determining the amount of borrowing costs eligible for capitalization
during a period, any income earned on the temporary investment of those
borrowings is deducted from the borrowing costs incurred.
13. Taxation:
Provision for Current Tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions as per the Income Tax Act, 1961. Deferred Tax resulting from
"timing difference" between book and taxable profit for the year is
accounted for using the tax rates and laws that have been enacted or
substantively enacted as on the balance sheet date. The deferred tax a
sset is recognized a nd carried forward only to the extent that there
is a reasonable certainty except for carried forward losses and
unabsorbed depreciation which is recognized on virtual certainty that
the assets will be realized in future.
14. Provision, Contingent Liabilities and Contingent Assets:
Provision is recognized when there I s a 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 the obligation.
Disclosure for contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. No provision is recognized or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
15. Research and Development:
Expenditure incurred during research phase is charged to revenue when
no intangible asset arises from such research. Assets procured on
research and development activities are generally capitalized.
Mar 31, 2010
1.Basis of Accounting:
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with generally accepted
accounting principle (GAAP), and in compliance with the Accounting
Standards referred to in section 211 (3C) and other requirements of the
Companies Act, 1956.
2.Use of Estimates:
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that the reported amounts of income and expenses of the
period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of
financial statements are correct. Examples of such estimates include
the useful lives of fixed assets, provision for doubtful
debts/advances, future obligations in respect of retirement benefit
plans, etc. Actual results could differ from these estimates.
3.Fixed Assets: Tangible & Intangible
a)Tangible Fixed Assets are stated at cost less accumulated
Depreciation and impairment loss if any. Cost comprises of purchase
price and any attributable cost of bringing the assets to its working
conditions for its intended use. Revenue expenses incurred in
connection with project implementation in so far as such expenses
relate to the period prior to the commencement of commercial production
are treated as preoperative expenses and will be written off over five
years.
b)Intangible assets are stated at cost less accumulated amortization.
Cost includes any directly attributable expenditure on making the asset
ready for its intended use.
4.Depreciation & Amortizations:
a)Depreciation on fixed assets has been provided for on straight line
method at the rates and manner prescribed under schedule XIV to the
Companies Act, 1956, of India.
b)Depreciation on additions/ deductions is calculated prorata from/to
the month of additions/ deductions.
c)Intangible assets are amortized over their estimated useful life on
straight line basis over a period of 20 years.
d)Prelimnary and Demerger expenses are amortized over a period of five
years.
5.Impairment:
The carrying amounts of the assets are reviewed at each balance sheet
date if there is an indication of impairment based on the internal and
external factors.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An impairment loss, if any, is charged
to Profit & Loss account in the year in which the asset is identified
as impaired. Reversal of impairment loss recognized in prior years is
recorded when there is an indication that impairment losses recognized
for the assets no longer exists or has decreased.
6.Leases:
Lease payments under an operating lease recognized as an expense in the
statement of profit and loss as per terms of lease agreement.
7.Investments:
a)Long term Investments are carried at cost after deducting provision,
if any, for diminution in value considered to be other than temporary
in nature.
b)Current investments are stated at lower of cost and fair value.
8.Inventories:
a)Inventories related to raw materials, packing materials, stores &
spares are valued at cost on weighted average basis or net realisable
value which ever is lower.
b)Waste & scraps are valued at net realizable value.
c)Materials in transit and Semi Finished goods are valued at cost or
market value which ever is lower.
d)Finished goods and process stock include cost of conversion and other
costs incurred in bringing the inventories to their present location
and condition.
e)Finished goods are valued at cost or net realizable value whichever
is lower. Net realizable value is the estimated selling price in the
ordinary course of business less the estimated cost of completion and
the estimated costs necessary to make the sale.
f)Obsolete, defective and unserviceable stocks are duly provided for.
6. Foreign Currency Transactions:
Foreign currency transactions are accounted for at the rates prevailing
on the dates of the transactions / converted at contracted rate.
Foreign currency assets and liabilities covered by forward contracts
are stated at the forward contract rates while those not covered are
restated at year end rate. Premium in respect of forward contract is
recognized over the life of contracts. Exchange differences relating to
fixed assets acquired from a country outside India are adjusted to the
cost of the asset. Exchange differences in case of borrowed funds and
liabilities in foreign currency for the acquisition of fixed assets
from a country outside India are adjusted to the cost of fixed assets.
Any other exchange difference is dealt with in the Profit and Loss
Account.
7. Retirement Benefits:
Provisions for / contributions to retirement benefits schemes are made
as follows:
a)Fixed Contribution to Provident fund and other benefits are
recognized in the accounts on actual cost to the Company.
b)Liability for leave encashment & gratuity are provided based on the
valuation done by the Company at the end of the year.
8. Revenue Recognition:
a)Sales revenue is recognized on the transfer of significant risk and
rewards of the ownership of goods to the buyer. b)Interest income and
expenses and income incidental to it, are accounted for on an accrual
basis.
9. Borrowing Cost:
Borrowing cost directly attributable to the acquisition or construction
of qualifying assets are being capitalized. Other borrowing costs are
recognized as expenses in the period in which they are incurred. In
determining the amount of borrowing costs eligible for capitalization
during a period, any income earned on the temporary investment of those
borrowings is deducted from the borrowing costs incurred.
10. Taxation:
Provision for Current Tax is made on the basis of estimated taxable
income for the current accounting period and in accordance with the
provisions as per the Income Tax Act, 1961. Deferred Tax resulting from
Ãtiming differenceà between book and taxable profit for the year is
accounted for using the tax rates and laws that have been enacted or
substantively enacted as on the balance sheet date. The deferred tax a
sset is recognized a nd carried forward only to the extent that there
is a reasonable certainty except for carried forward losses and
unabsorbed depreciation which is recognized on virtual certainty that
the assets will be realized in future.
11. Provision, Contingent Liabilities and Contingent Assets:
Provision is recognized when there I s a 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 the obligation.
Disclosure for contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. No provision is recognized or
disclosure for contingent liability is made when there is a possible
obligation or a present obligation and the likelihood of outflow of
resources is remote. Contingent Asset is neither recognized nor
disclosed in the financial statements.
12. Research and Development:
Expenditure incurred during research phase is charged to revenue when
no intangible asset arises from such research. Assets procured on
research and development activities are generally capitalized.
13. Government Grants:
Government Grants are recognized when there is a reasonable assurance
that the same will be received. Revenue grants are recognized in the
Profit and Loss Account. Capital grants relating to specific assets are
reduced from gross value of the respective fixed assets. Other capital
grants are credited to capital Reserve.
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Archidply Industries Ltd. Tools
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Archidply Industries Ltd. Company Details
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Company History
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Archidply Industries Ltd. Key Financial Ratios
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Archidply Industries Ltd. Results
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Archidply Industries Ltd. Financial Data
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Archidply Industries Ltd. Reports
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Archidply Industries Ltd. Corporate Announcements
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