Andhra Pradesh Tanneries Ltd. कंपली की लेखा नीति

Mar 31, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(i) Basis of preparation:

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards
(Ind AS) notified under Section 133 of the Companies Act, 2013 (“the Act”) [Companies (Indian Accounting
Standards) Rules, 2015] and other relevant provisions of the Act. The financial statements have been prepared
on the historical cost basis except for certain financial liabilities, which are measured at fair value.

Current Assets do not include elements which are not expected to be realised within 1 year and Current Liabilities
do not include items which are due after 1 year, the period of 1 year being reckoned from the reporting date.

(ii) Compliance with Ind AS :

The financial Statements of the company have been prepared in accordance with Indian Accounting Standards(Ind
AS) as notified by Ministry of corporate affairs pursuant to Section 133 of the Companies Act 2013 read with rule
3 of the Companies (Indian Accounting Standards) Rules ,2015 and subsequent amendments through Companies
(Indian Accounting Standards) Amendment Rules there under EXCEPT FOR AS 15 “EMPLOYEE BENEFITS”

The co. has not recognized the accruing liabilities with respect to Retirement benefits as mentioned in revised
AS15(Employee Benefits) issued by ICAI. There being only one employee employed by the company, hence the
effect of the same on financial statement will not be material, however, the same cannot be ascertained due to
non-availability of actuarial valuation report.

The Financial statements have been prepared on accrual and going concern basis. the accounting policies are
applied consistently to all the periods presented in the financial statements.

However, we draw attention to the financial statements, which indicates that the Company incurred a net loss of
Rs.27.13 lakhs during the year ended March 31^st, 2024 and, as of that date, the Company’s net worth is negative
Rs 1,257.54 Lakhs. As company has ceased its business operation and with no certainty of commencing the
same in near future indicate that a material uncertainty exists that may cast significant doubt on the Company’s
ability to continue as a going concern. However, Management is of the opinion that there are no immediate plans
to liquidate the assets of the company and as per their assessment, company will continue to run as a going
concern.

(iii) Fair value measurement:

The Company’s accounting policies and disclosures require the measurement of fair values for financial assets
and liabilities.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

• Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

• Level 2- Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable.

• Level 3- Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

(iv) Revenue Recognition:

Revenue is measured at the fair value of the consideration received or receivable. There were no business
operation during the year.

(v) Property, Plant and Equipment:

Recognition and measurement:

Items of property, plant and equipment other than Land and Building are measured at cost less accumulated
depreciation and impairment, if any. Land and Building are carried at book value. The cost of property, plant and
equipment includes purchase price, including freight, duties, taxes and expenses incidental to acquisition and
installation. If significant parts of an item of property, plant and equipment have different useful lives, then they
are accounted for as separate items (major components) of property, plant and equipment. Property, plant and
equipment are derecognized from financial statements, either on disposal or when no economic benefits are
expected from its use or disposal. The gain or losses arising from disposal of property, plant and equipment are
recognized in the Statement of Profit and Loss in the year of occurrence.

Subsequent Expenditures:

Subsequent expenditures related to an item of property, plant and equipment are added to its carrying value only
when it is probable that the future economic benefits from the asset will flow to the Company and cost can be
reliably measured. All other repair and maintenance costs are recognized in the Statement of Profit and Loss
during the year in which they are incurred.

Depreciation:

Depreciation is provided on all property, plant and equipment on straight-line method in the manner and useful
life prescribed in Schedule II of the Companies Act, 2013.

Company has adopted cost model for all class of items of fixed assets.

(vi) Impairment of Non-Financial Assets:

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be
impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the higher of an asset’s or cash generating units (CGU) fair value less costs of disposal
and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its useful life. If such recoverable amount of the
asset or cash generating unit is less than its carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If
at the Balance Sheet date there is any indication that any impairment loss recognized for an asset in prior years

may no longer exist or may have decreased, the recoverable amount is reassessed and such reversal of
impairment loss is recognized in the Statement of Profit and Loss, to the extent the amount was previously
charged to the Statement of Profit and Loss..

Financial Assets

Initial recognition and measurement

The Company recognizes financial assets when it becomes a party to the contractual provisions of the instrument.
All financial assets are recognized initially at fair value plus transaction costs that are directly attributable to the
acquisition of the financial asset.

Subsequent measurement

For the purpose of subsequent measurement, the financial assets are classified as under:

i) Financial assets at amortised cost

A financial asset is measured at the amortised cost, 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.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees
or costs that are an integral part of the EIR. Interest income from these financial assets is included in other
income using the EIR in the Statement of Profit and Loss. The losses arising from impairment are recognized in
the Statement of Profit and Loss.

ii) Financial assets at fair value through other comprehensive income (FVTOCI)

Financial assets are classified as FVTOCI, if both of the following criteria are met:

• These assets are held within a business model whose objective is achieved both by collecting contractual
cash flows and selling the financial assets; 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.

Fair value movements are recognised in the other comprehensive income (OCI), except for the recognition of
impairment gains or losses, interest income and foreign exchange gains or losses which are recognised in profit
and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is
reclassified from equity to Profit or Loss and recognised in other income/(loss).

iii) Financial assets at fair value through profit or loss (FVTPL)

Financial assets that do not meet the criteria for amortized cost or FVTOCI are measured at fair value through
profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or
loss and is recognized in profit or loss and presented net in the Statement of Profit and Loss within other income
in the period in which it arises.

iv) Equity instruments

All equity instruments are measured at fair value. Equity instruments which are for trading are classified as

FVTPL. All other equity instruments are measured at fair value through other comprehensive income (FVTOCI).
The classification is made on initial recognition and is irrevocable.

Where the Company’s management has elected to present fair value gains and losses on equity instruments in
other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or
loss. Dividends from such investments are recognized in profit and loss when the Company’s right to receive
payments is established.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in
the Statement of Profit and Loss.

Impairment of financial assets

The Company applies ‘simplified approach for recognition of impairment loss on financial assets for loans,
deposits and trade receivables.

The application of simplified approach does not require the company to track changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime Expected Credit Loss at each reporting date, right from
its initial recognition.

De-recognition

A financial asset is derecognized when:

• The rights to receive cash flows from the assets have expired or

• The Company has transferred substantially all the risk and rewards of the asset, or

• The Company has neither transferred nor retained substantially all the risk and rewards of the asset, but
has transferred control of the asset.

Financial Liabilities

• Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and
payables, net of directly attributable transaction cost.

• Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the effective interest rate method.
For trade and other payables maturing within operating cycle, the carrying amounts approximate the fair
value due to short maturity of these instruments.

• Loans and borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised
cost using Effective Interest Rate (EIR) method. Gain and losses are recognized in the Statement of Profit
and Loss when the liabilities are derecognized.

Amortised cost is calculated by taking into account any discount or premium on acquisition and transaction
costs. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

• Derecognition

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are
discharged, cancelled or have 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 recognized in the Statement of Profit
and Loss.

• Offsetting financial instruments

Financial assets and financial liabilities are offset and the net amount is reflected in the balance sheet
when there is a legally enforceable 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.

(vii) Taxes:

The tax expense comprises current and deferred tax. Tax is recognized in the Statement of Profit and Loss
except to the extent that it relates to items recognized directly in equity or in OCI.

i. Current Tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax
rates enacted or substantially enacted at the reporting date.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the
recognized amounts and there is an intention to settle the asset and the liability on a net basis.

ii. Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities
for financial reporting purpose and the amount used for taxation purposes.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets
are recognized for unused tax losses, unused tax credits and deductible temporary differences to the
extent that it is probable that future taxable profits will be available against which those deductible temporary
differences can be utilised. The carrying amount of deferred tax asset is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow
all or part of the asset to be recovered.

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

Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off
assets against liabilities representing current tax and where the deferred tax assets and the deferred tax
liabilities relate to taxes on income levied by the same governing taxation laws.

(viii) Cash and Cash Equivalents:

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand.

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Mar 31, 2014

A. Sales:

There are no Sale during the year

B. Fixed Assets ;

To state Fixed Assets at cost or acquisition inclusive of duties, taxes and erection expenses.

C. Depreciation :

For the assets acquired installed during the current year under report pro-rata / depreciation at the rates specified in the Schedule XIV of the Companies Act, 1956 has been charged to straight line method on each asset according to the period of their use. For the asset acquired/installed in the earlier years, the depreciation has been charged on straight line method at the rates applicable at the time of acquisition / installation of the said asset

D. Valuation of Stocks :

There is no stock in trade.

E. Incentives / subsidies :

To account for Central / State Incentives, Subsidies on accrual basis.

F. Foreign Currency Transaction :

To account for Export Sales in foreign currency at the exchange rate prevailing at the time of negotiation or export documents or at the rate prevailing on the day amount received against documents sent for collection.

G. Other Accounting Policies :

Any Accounting Policy other than what is referred above are in consistency with the Accepted Accounting Principles.

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Mar 31, 2010

1. Fixed Assets are stated at cost of acquisition inclusive of duties taxes and erection expenses.

2. For the assets acquired and installed during the current year under report prorata / depreciation at the rates specified in the Schedule XIV of the Companies Act, 1956 has been charged on straight fine, method on each asset according to the period of their use. For the assets acquired / installed in the earlier years, the depreciation has been charged

- on straight-line method at the rates applicable at the time of acquisition / installation of the said asset.

3. Miscellaneous Sales:

Sales proceeds of condemned corbound and unserviceable spares, stores, empties, waste oil etc. are accounted for "cash basis".

4. Incentives / subsidies:

Central State Incentives, Subsidies are accounted for on accrual basis.

5. Foreign Currency Transaction:

To account for Expert Sales in foreign currency at the exchange rate prevailing at the time of negotiation or export documents or at the rate prevailing on the day amount received against documents sent for collection.

6. Valuation of Stocks: Stocks have been valued at cost or realizable value whichever is less.

7. Any Accounting Policy other than what is referred above are in consistency with the Accepted Accounting Principles.

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Mar 31, 2009

1 Fixed Assets are stated at cost of acquisition inclusive of duties taxes and erection expenses.

2. For the assets acquired and installed during the current year under report prorate / depreciation at the rates specified in the Schedule XIV of the Companies Act, 1956 has been charged on straight line method on each asset according to the period of their use. For the assets acquired /installed in the earlier years, the depreciation has been charged on straight-line method at the rates applicable at the time of acquisition / installation of the said asset.

3. Miscellaneous Sales:

Sales proceeds of condemned carbon and unserviceable spares, stores, empties, waste oil etc. are accounted for "cash basis".

4. Incentives / subsidies:

Central / State Incentives, Subsidies are accounted for on accrual basis.

5. Foreign Currency Transaction:

To account for Export Sales in foreign currency at the exchange rate prevailing at the time of negotiation or export documents or at the rate prevailing on the day amount received against documents sent for collection.

6 Valuation of Stocks: Stocks have been valued at cost price.

7- Any Accounting Policy other than what is referred above are in consistency with the Accepted Accounting Principles.

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Mar 31, 2008

1. The accounts the company is prepared on 'going concern' basis even though loss up to the year is more than the paid up capital and free reserves and the operations of the company is temporarily suspended.

2. The Current assets, Loans and Advances stand at the values stated in Balance sheet are realizable In the ordinary course of Business and also provision for known liabilities made are adequate

3. Depreciation for the current period has been provided on straight line method at the applicable rates specified in schedule XIV of the Companies Act, 1956. For the Assets acquired / installed in the earlier years, the depreciation has been charged on straight line method at the rates applicable at the time of installation of the said assets

4. Balances under sundry debtors, sundry creditors, unsecured loans, other payable, Loans & Advances and other receivables represent aggregate receivable and subject to confirmation by respective parties. Similarly few non-operative bank accounts are subject to confirmation and reconciliation.

5. A store, Chemicals, Work In process. Stock in trade etc is as per inventory records and valued at cost and is certified by the Director. There are some spoiled stocks, which were written off as certified by the Director.

6. Contingent Liabilities: Nil.

7 No provision for Income Tax has been made since the Company has no assessable Income.

8. Bonus / Excretal has been provided at the rate of 8.33% of salaries, which comes up to Rs.,50,753/- (Previous year Rs. 3,00,035/-)

9. A Sum of Rs.7,76,138/- towards principal and Rs.21,29,448/- towards interest up to 31.03.2008 is overdue to A.P.Govt for Interest Free Sales Tax Loan.

10. The Commercial Tax Department raised demands on the company towards CST Rs.11,88,000/- for the year 1996-97. The company did not acknowledge the demand as liability since the Company has preferred appeal against the above demand and the final decision in appeal is awaited. However the company has paid Rs.8,00,000/- pending disposal of Appeal for in the financial year 2003-04.

11. The By products I.e.. Hides Split, N.C. Split Finish are valued at manufacturing cost.

12. As part of a comprehensive review in respect of the outstanding Sundry Debtors, Loan & Advances and other receivable are on going, further provision if any required towards outstanding amount will be made as and when in the opinion of the management the same is warrantee, Necessary efforts are being made for the recovery of the same.

13. Ail the statutory payments like EPF, ESI etc are deposited with the appropriate authority generally in time.

14. Since the company has substantially carry forward loss and unabsorbed depreciation and there is uncertainty of sufficient future taxable income that may be avoidable for its realization, the deferred tax asset, in accordance with accounting standard 22 issued by the Institute of Chartered Accountants of India has not been considered as matter of prudence.

15. The company accounts for payment of Gratuity on "payment basis" The actuarial liability in respect of the same is not available with company. It has provided for Rs.3,04,825/- and it has been paid in next year.

16. The company has not provided Dividend on preference shares capital in the absence of Dividend on Equity share Capita!.

17. Selling and distribution expenses include claims by the company relating to earlier years towards supply of chemicals.

18. Approval from SEBI in respect of Listing of Shares is yet to be received. A Certificate from the Chartered Accountant to effect the applicable provision of the Regulation of SEBI under regulation 3(4) read with 3(5) is also pending.

19. During the year the company has provided leave encashment of. Rs.75,9807- (previous year Rs,61,698/-) on actual basis i.e. on payment basis. The actuarial liability of the same is not available with the company.

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Mar 31, 2007

1. Fixed Assets are stated at cost: of acquisition inclusive of duties taxes and erection expenses.

2. For the assets acquired and installed during the current year under report prorata / depreciation at the rates specified in the Schedule Xiv to the Companies Act, 1956 has been charged on straight line method or each asset according to the period of their use. For the assets acquired installed in the earlier years, the depreciation has been charged, on straight line method at the rates applicable at the time of acquisition / installation of the said asset.

3. Miscellaneous Sales

Sales proceeds of condemned co bound and unserviceable spares stores, empties, vaster oil etc. are accounted for ,each basis".

4.Incentives Subsidies:

Central State Incentives Subsidies are accounted for on accrual basis

5. foreign Currency Transaction:

To account for Expert Sales :n foreign currency at the exchange care prevailing at the time of negotiation or expert documents or at the ray prevailing on the cay amount received against documents sent for collection.

6. Valuation to Stocks: Stocks Have been valued at cost price.

7. Any Accounting Policy Other Than Waht is referred above are in consistency with the Accepted Accounting Principles