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Cubex Tubings Ltd. कंपली की लेखा नीति
Mar 31, 2025
2) SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation, measurement and significant accounting policies
Compliance with Ind AS
The financial statements of the company have been prepared in accordance with Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time) and presentation requirement of
Division II of schedule III to the Companies Act, 2013 (Ind AS compliant Schedule III), as
applicable. The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of
the Companies (Indian Accounting Standards) Rules, 2015, as amended
The financial statements comply in all material aspects with 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.
Historical Cost Convention
The financial statements have been prepared on a historical cost basis, except for the
following:
- certain financial assets and liabilities that are measured at fair value
(a) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants on the measurement date. The
Company uses valuation techniques that are appropriate in the circumstances 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 â Quoted (unadjusted) market prices in active markets for identical assets or
liabilities
⢠Level 2 â Valuation techniques for which the lowest level input that is significant to
the fair value measurement is directly or indirectly observable.
⢠Level 3 â Valuation techniques for which the lowest level input that is significant to
the fair value measurement is unobservable.
(b) Current vis-a-vis non-current classification
The company presents assets and liabilities based on current and non- current
classification.
An asset is treated as current when it is:
⢠Expected to be realized or intended to be sold or consumed in normal operating
cycle
⢠Held primarily for the purpose of trading
⢠Expected to be realized within twelve months after the reporting period,
⢠Cash or cash equivalent unless restricted from being exchanged or used to settle
a liability for atleast twelve months after the reporting period
All other assets are classified as non-current.
A liability is current when:
⢠It is expected to be settled in normal operating cycle
⢠It is held primarily for the purpose of trading
⢠It is due to be settled within twelve months after the reporting period, or
⢠There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period
Deferred tax assets and liabilities are classified as noncurrent
assets and liabilities.
The assets and liabilities reported in the Balance Sheet are classified on a "current/non-
current basis", with separate reporting of assets held for sale and liabilities. Current
assets, which include cash and cash equivalents, are assets that are intended to be
realized, sold or consumed during the normal operating cycle of the Company or in the
12 months following the balance sheet date; current liabilities are liabilities that are
expected to be settled during the normal operating cycle of the Company or within the
12 months following the close of the financial year. The deferred tax assets and liabilities
are classified as non-current assets and liabilities.
(c) Functional and presentation currency
The financial statements are prepared in Indian Rupees (INR), which is the Company''s
functional currency. All financial information presented in INR has been rounded to the
nearest lakhs.
(d) Revenue Recognition
i. Recognition of Revenue from Sale of Products (Copper and Copper Alloys
Products):
Revenue from sale of products is recognized when the significant risks and
rewards of ownership have been transferred to the buyer, recovery of the
consideration is probable, the associated cost can be estimated reliably, there is no
continuing effective control or managerial involvement with the goods, and the
amount of revenue can be measured reliably. 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 from sale of products is not
recognized on the grounds of prudence, until realized in respect of delayed
payments as recovery of amounts are not certain.
Revenue from sale of products is measured at the fair value of the consideration
received or receivable, taking into account contractually defined terms of payment
and excluding taxes or duties collected on behalf of the government. Revenue from
operations includes sale of products, services, service tax, excise duty, GST and
adjusted for discounts (net).
ii. Interest Income.
Interest income from a financial asset is recognized when it is probable that the
economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, with reference to the
principal outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of
the financial asset to that asset''s net carrying amount on initial recognition.
e) Property, plant and equipment
Recognition & Measurement
Items of property, plant and equipment are measured at cost less accumulated
depreciation and accumulated impairment losses, if any. Cost includes
expenditures that are directly attributable to the acquisition of the asset. The cost
of self-constructed assets includes the cost of materials and other costs directly
attributable to bringing the asset to a working condition for its intended use.
Borrowing costs directly attributable to the acquisition, construction or production
of an asset that necessarily takes a substantial period of time to get ready for its
intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs
consist of interest and other costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes exchange differences to the
extent regarded as an adjustment to the borrowing costs.
When parts of an item of property, plant and equipment have different useful
lives, they are accounted for as separate items (major components) of property,
plant and equipment. Capital work in progress is stated at cost, net of
accumulated impairment loss, if any. An item of property, plant and equipment
and any significant part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its use or disposal. Gains and
losses upon disposal of an item of property, plant and equipment are determined
by comparing the proceeds from disposal with the carrying amount of property,
plant and equipment and are recognised net within "Other income/ Selling and
other expense" in the statement of profit and loss.
The cost of replacing part of an item of property, plant and equipment is
recognised in the carrying amount of the item if it is probable that the future
economic benefits embodied within the part will flow to the Company and its cost
can be measured reliably. The costs of repairs and maintenance are recognised in
the statement of profit and loss as incurred.
Items of property, plant and equipment acquired through exchange of non¬
monetary assets are measured at fair value, unless the exchange transaction lacks
commercial substance or the fair value of either the asset received or asset given
up is not reliably measurable, in which case the asset exchanged is recorded at the
carrying amount of the asset given up.
Depreciation methods, estimated useful lives and residual value:
Depreciation is recognised in the statement of profit and loss on a straight-line basis
over the estimated useful lives of property, plant and equipment. Land is not
depreciated but subject to impairment. Depreciation methods, useful lives and
residual values are reviewed at each reporting date and any changes are considered
prospectively
* The estimated useful life of plant and equipment has been taken as 30 years since
the asset is purchased during the year.
- Estimated useful lives, residual values and depreciation methods are reviewed
annually, taking into account commercial and technological obsolescence as well
as normal wear and tear and adjusted prospectively.
- Schedule II to the Companies Act, 2013 ("Schedule") prescribes the useful lives
for various classes of tangible assets. For certain class of assets, based on the
technical evaluation and assessment, the Company believes that the useful lives
adopted by it best represent the period over which an asset is expected to be
available for use. Accordingly, for these assets, the useful lives estimated by the
Company are different from those prescribed in the Schedule.
f) 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.
Financial assets - recognition
All financial assets are recognized initially at fair value plus, in the case of
financial assets not recorded at fair value through profit and loss, transaction costs
that are attributable to the acquisition of the financial asset. For purposes of
subsequent measurement, financial assets are classified in three categories:
⢠Debt instruments at amortized cost
A ''Debt instrument'' is measured at the amortized cost if both the following
conditions are met:
a) The asset is held within a business model whose objective is to hold assets for
collecting contractual cash flows, and
b) 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
amortized cost using the effective interest rate (EIR) method.
Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included in finance income in the Statement of Profit and Loss. The
losses arising from impairment are recognized in the Statement of Profit and Loss.
This category generally applies to trade and other receivables.
Debt instruments at fair value through other comprehensive income (FVTOCI). A
''debt instrument'' is classified as at the FVTOCI if both of the following criteria are
met:
a) The objective of the business model is achieved both by collecting contractual
cashflows and selling the financial assets, and
b) The asset''s contractual cash flows represent PPI.
Debt instruments included within the FVTOCI category are measured initially as
well as at each reporting date at fair value. Fair value movements are recognized in
the other comprehensive income (OCI). However, the Company recognizes interest
income, impairment losses and reversals and foreign exchange gain or loss in the
profit and loss. On derecognition of the asset, cumulative gain or loss previously
recognized in OCI is reclassified from the equity to profit and loss. Interest earned
whilst holding FVTOCI debt instrument is reported as interest income using the
EIR method.
⢠Debt instruments, derivatives and equity instruments at fair value through
Statement of Profit and Loss (FVTPL)
FVTPL is a residual category for debt instruments. Any debt instrument, which
does not meet the criteria for categorization as at amortized cost or as FVTOCI, is
classified as at FVTPL.
In addition, the Company may elect to designate a debt instrument, which
otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such
election is allowed only if doing so reduces or eliminates a measurement or
recognition inconsistency (Referred to as ''accounting mismatch''). The Company has
not invested in any equity instruments.
Debt instrument included within the FVTPL category are measured at fair value
with all changes recognized in the Statement of Profit and Loss.
Financial assets - derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group
of similar financial assets) is primarily derecognized (i.e. removed from the
Company''s balance sheet) when:
⢠The rights to receive cash flows from the asset have expired, or
⢠The Company has transferred its rights to receive cash flows from the asset or
has assumed an obligation to pay the received cash flows in full without
material delay to a third party under a ''pass-forough'' arrangement; and either
(a) The Company has transferred substantially all the risks and rewards of the
asset, or
(b) the Company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or
has entered into a pass-through arrangement, it evaluates if and to what extent it
has retained the risks and rewards of ownership. When it has neither transferred
nor retained substantially all of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognize the transferred asset to
the extent of the Company''s continuing involvement. In that case, the Company
also recognizes an associated liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights and obligations that the
Company has retained.
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 following
financial assets:
⢠Financial assets that are debt instruments, and are measured at amortized
cost
o e.g., loans, debt securities, deposits and trade receivables
⢠Financial assets that are debt instruments and are measured as at FVTOCI
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 recognizes
impairment loss allowance based on lifetime ECLs at each reporting date, right from
its initial recognition. For recognition of impairment loss on other financial assets
and risk exposure, the Company determines whether there has been a significant
increase in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss. However, if
credit risk has increased significantly, lifetime ECL is used. If, in a subsequent
period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the Company reverts
to recognizing impairment loss allowance based on12-month ECL.
Lifetime ECL are the expected credit losses resulting from all possible default events
over the expected life of a financial instrument. The 12-month ECL is a portion of the
lifetime ECL which results from default events that are possible within 12 months
after the reporting date.
ECL is the difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the entity
expects to receive (i.e. all cash shortfalls), discounted at the original EIR.
ECL impairment loss allowance (or reversal) recognized during the period is
recognized as income/expense in the Statement of Profit and Loss (P&L). This
amount is reflected under the head ''other expenses'' in the Statement of Profit and
Loss (P&L). The balance sheet presentation for various financial instruments is
described below:
⢠Financial assets measured as at amortized cost. ECL is presented as an allowance,
i.e., as an integral part of the measurement of those assets in the balance sheet.
The allowance reduces the net carrying amount. Until the asset meets write-off
criteria, the Company does not reduce impairment allowance from the gross
carrying amount.
⢠Debt instruments measured at FVTOCI: Since financial assets are already
reflected at fair value, impairment allowance is not further reduced from its
value. Rather, ECL amount is presented as ''accumulated impairment amount'' in
the OCI. For assessing increase in credit risk and impairment loss, the Company
combines financial instruments on the basis of shared credit risk characteristics
with the objective of facilitating an analysis that is designed to enable significant
increases in credit risk to be identified on a timely basis.
Financial liabilities - recognition and measurement:
Financial liabilities are classified, at initial recognition, as financial liabilities at fair
value through profit or loss, loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective hedge, as appropriate. All financial
liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs. The
Company''s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described
below:
⢠Financial liabilities at fair value through profit or loss financial liabilities at fair
value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through
profit or loss. Financial liabilities are classified as held for trading if they are
incurred for the purpose of repurchasing in the near term.
Gains or losses on liabilities held for trading are recognized in the Statement of Profit
and Loss.
Financial liabilities designated upon initial recognition at fair value through profit or
loss are designated as such at the initial date of recognition, and only if the criteria in
Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses
attributable to changes in own credit risk are recognized in OCI. These gains/losses
are not subsequently transferred to Statement of Profit and Loss. However, the
Company may transfer the cumulative gain or loss within equity. All other changes in
fair value of such liability are recognized in the Statement of Profit and Loss.
⢠Financial Liabilities at amortized cost (Loans and borrowings)
After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortized cost using the EIR method. Gains and losses are recognized
in profit or loss when the liabilities are derecognized as well as through the EIR
amortization process.
Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included as finance costs in the Statement of Profit and Loss.
Financial liabilities - derecognition
A financial liability is derecognized when the obligation under the liability is
discharged or cancelled or expires. 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.
g) Inventories:
Inventories are valued at the lower of cost and net realizable value, less any
provision for obsolescence. Costs incurred in bringing each product to its present
location and condition are accounted.
Net realizable value is determined based on estimated selling price, less further
costs expected to be incurred to completion and disposal.
h) Taxation
Current tax
The income tax expense or credit for the period is the tax payable on the current
period''s taxable income based on the applicable income tax rate for each jurisdiction
adjusted by changes in deferred tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period in the countries where the
company and its subsidiary operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation. It establishes provisions,
where appropriate, on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their carrying
amounts in the financial statements. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the end of the
reporting period and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognized for all deductible temporary differences and
unused tax losses only if it is probable that future taxable amounts will be available to
utilize those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets and liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities are offset where the
entity has a legally enforceable right to offset and intends either to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it
relates to items recognised in other comprehensive income or directly in equity. In
this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.
Minimum Alternative Tax:
Minimum alternative tax paid in accordance with the tax laws, which gives future
economic benefits in the form of adjustment to future income tax liability, is
considered as an asset if there is convincing evidence that the company will pay a
normal income tax. Accordingly, MAT is recognised as an asset in the Statement of
Assets and Liabilities are measured using the tax rates and tax laws that have been
enacted by the future economic benefit associated with it will flow to the company.
i) Retirement and Other Employee benefit schemes:
Short-term employee benefits:
Employee benefits payable wholly within twelve months of receiving employee
services are classified as short-term employee benefits. These benefits include
salaries and wages, performance incentives and compensated absences which are
expected to occur in next twelve months. The undiscounted amount of short-term
employee benefits to be paid in exchange for employee services is recognized as an
expense as the related service is rendered by employees.
Provident Fund and ESI:
The Company offers retirement benefits to its employees, under provident fund
scheme and Employee State Insurance which is a defined benefit plan. The
Company and employees contribute at predetermined rates to ''Cubex Tubings
Limited Employee''s Contributory Provident Fund1 (''Trust'') and ESI accounted on
accrual basis and the conditions for grant of exemption stipulate that the employer
shall make good the deficiency, if any, between the return guaranteed by the statute
and actual earning of the Trust. The contribution towards provident fund is
recognized as an expense in the Statement of Profit and Loss.
j) Foreign currency translation
i) Functional and presentation currency
Items included in the financial statements of the company are measured using the
currency of its primary economic environment in which the company operates
(''the functional currency''). The financial statements are presented in Indian rupees
(INR), which is the company''s functional and presentation currency.
ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the
exchange rates at the dates of the transactions.
k) Earnings per share
i) Basic earnings per share:
Basic earnings per share are calculated by dividing:
a. The profit attributable to owners of the Company;
b. By the weighted average number of equity shares outstanding during the
financial year.
ii) Diluted earnings per share
Diluted earnings per share adjust the figures used in the determination of basic
earnings per share to take into account:
c. The after-income tax effect of interest and other financing costs associated
with dilutive potential equity shares, and
d. The weighted average number of additional equity shares that would have
been outstanding assuming the conversion of all dilutive potential equity
shares.
l) Trade Receivables:
Trade receivables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest method, less provision for impairment. The
company has not created any provision for impairment during the year.
m) Cash and cash equivalents
For the purpose of presentation in the statement of cash flows, cash and cash
equivalents includes cash on hand, deposits held at call with financial institutions,
other short-term, highly liquid investments with original maturities of three months
or less that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are
shown within borrowings in current liabilities in the balance sheet.
n) Contributed Equity
Equity shares are classified as equity.
Mar 31, 2024
1) CORPORATEINFORMATION
CubexTubings Limited (Company) was incorporated on 10th August 1979 under the lawsof the republic of India and has registered office at Secunderabad (Telangana). Company isa manufacturer of seamless solid drawn Tubes, Rods, Bus bars and Wires of copper andcopper-based alloys such as Cupronickel, admiralty Brass, Aluminum Brass etc. Copperbecauseofitshighelectricalconductivityand heattransfer
characteristicsfindswideapplication in the form of Tubes, Rods, Strips and Wires. The user industries are
PowerPlants,Powerplantsmanufacturers,Switchgears,Refineries,Furnacemanufacturers,Su garplants, Automobileand ElectricalEquipment industries&ShipBuilders.
The addresses of its registered office and principal place of business are disclosed in theintroductiontotheannualreport.
2) SIGNIFICANTACCOUNTINGPOLICIES
a) Basis of preparation, measurement and significant accounting policiesCompliancewithIndAS
The financial statements of the company have been prepared in accordance with IndianAccountingStandards(IndAS)notifiedundertheCompanies(IndianAccountingStandard s) Rules, 2015 (as amended from time to time) and presentation requirement ofDivision II of schedule III to the Companies Act, 2013 (Ind AS compliant Schedule III), asapplicable.TheIndASareprescribedunderSection133oftheActreadwithRule3oftheCompani es(IndianAccountingStandards)Rules,2015,asamended
ThefinancialstatementscomplyinallmaterialaspectswithIndianAccountingStandards (Ind AS) notified under Section 133 of the Companies Act,2013 (the Act)[Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisionsoftheAct.
The financial statements have been prepared on a historical cost basis, except for thefollowing:
- certainfinancialassetsandliabilitiesthataremeasuredatfairvalue
Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityin an orderly transaction between market participants on the measurement date. TheCompanyusesvaluationtechniquesthatareappropriateinthecircumstancesforwhichs ufficientdataareavailabletomeasurefairvalue,maximizingtheuseofrelevantobservablein putsandminimizingtheuseofunobservableinputs.Allassetsandliabilities for which fair value is measured or disclosed in the financial statements arecategorized within the fair value hierarchy, described as follows, based on the lowestlevelinputthatissignificanttothefair value measurementasawhole:
⢠Level 1 â Quoted (unadjusted) market prices in active markets for identical assets orliabilities
⢠Level2 âValuationtechniques for which the lowestlevel inputthat is significant tothefairvaluemeasurementisdirectlyorindirectlyobservable.
⢠Level 3 â Valuation techniques for which the lowest level input that is significant tothefairvaluemeasurementisunobservable.
(b) Currentvis-a-visnon-currentclassification
Thecompanypresentsassetsandliabilitiesbasedoncurrentandnon-currentclassification.
Anassetistreatedascurrentwhenitis:
⢠Expectedtoberealizedorintendedtobesoldorconsumedinnormaloperatingcycle
⢠Heldprimarilyforthepurposeoftrading
⢠Expectedtoberealizedwithintwelvemonthsafterthereportingperiod,
⢠Cashorcashequivalentunlessrestrictedfrombeingexchangedorusedtosettlea liabilityforatleasttwelve months afterthe reportingperiod Allotherassetsareclassifiedasnon-current.
Aliabilityiscurrentwhen:
⢠Itisexpectedtobesettledinnormaloperatingcycle
⢠Itisheldprimarilyforthepurposeoftrading
⢠Itisduetobesettledwithintwelvemonthsafterthereportingperiod,or
⢠Thereisnounconditionalrighttodeferthesettlementoftheliabilityforatleasttwelv e monthsafterthereportingperiod
Deferred tax assets and liabilities are classified as noncurrentassetsandliabilities.
The assets and liabilities reported in the Balance Sheet are classified on a "current/non-current basisâ, with separate reporting of assets held for sale and liabilities. Currentassets, which include cash and cash equivalents, are assets that are intended to berealized, sold or consumed during the normal operating cycle of the Company or in the12 months following the balance sheet date; current liabilities are liabilities that areexpected to be settled during the normal operating cycle of the Company or within the12monthsfollowingthecloseofthefinancialyear.Thedeferredtaxassetsandliabilitiesar eclassifiedas non-currentassetsand liabilities.
(c) Functionalandpresentationcurrency
The financial statements are prepared in Indian Rupees (INR), which is the Company''sfunctional currency. All financial information presented in INR has been rounded to thenearestlakhs.
(d) RevenueRecognitioni. RecognitionofRevenuefromSaleofProducts(CopperandCopperAlloysProducts):
Revenuefromsaleofproductsisrecognizedwhenthe significant risks
andrewardsofownershiphavebeentransferredtothebuyer,recoveryoftheconsiderati on is probable, the associated cost can be estimated reliably, there is nocontinuing effective control or managerial involvement withthe goods, andtheamount of revenue can be measured reliably. Revenue is recognized to the extentthat it is probable that the economic benefits will flow to the Company and therevenuecanbereliablymeasured.Revenuefromsale ofproducts is
notrecognizedonthegroundsofprudence,untilrealizedinrespectofdelayedpaymentsa srecoveryofamountsarenotcertain.
Revenuefromsaleofproductsismeasuredatthefairvalueoftheconsiderationreceived orreceivable,takingintoaccountcontractually defined terms of paymentand excluding taxes or duties collected on behalf of the government. Revenue fromoperationsincludessaleofproducts,services,servicetax,exciseduty, GST
andadjustedfordiscounts(net).
Interest income from a financial asset is recognized when it is probable that theeconomicbenefitswillflowtotheCompanyandtheamountofincomecanbemeasured reliably. Interest income is accrued on a time basis, with reference to theprincipal outstanding and at the effective interest rate applicable, which is the ratethat exactly discountsestimated future cashreceiptsthrough the expected life ofthefinancialassettothatasset''snetcarryingamountoninitialrecognition.
e) Propertv.plantandequipmentRecognition&Measurement
Itemsofproperty,plantandequipmentaremeasuredatcostlessaccumulateddepreciationan daccumulatedimpairmentlosses,ifany. Cost
includesexpendituresthataredirectlyattributabletotheacquisitionoftheassetThecostofse lf-
constructedassetsincludesthecostofmaterialsandothercostsdirectlyattributabletobringi
ngtheassettoaworkingconditionforitsintendeduse.
Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofanasset
thatnecessarilytakesasubstantialperiodoftimetogetreadyforitsintendeduseorsalearecapi
talisedaspartofthecostoftheasset.Allotherborrowingcostsareexpensedintheperiodinwhi
chtheyoccur.Borrowingcostsconsistofinterestandothercoststhatanentityincursinconnec
tionwiththeborrowingoffunds.Borrowingcostalsoincludesexchangedifferencestotheexte
ntregardedasanadjustmenttotheborrowingcosts.
Whenpartsofanitemofproperty,plantand equipment have different usefullives, they are accounted for as separate items (major components) of
property,plantandequipment.Capitalworkinprogressis statedat cost, net ofaccumulated impairmentloss,ifany.Anitem of property, plant and
equipmentandanysignificantpartinitiallyrecognisedis derecognised upon disposal orwhen no future economic benefits are expected from its use or disposal. Gains andlossesupondisposalofanitemofproperty,plantandequipmentaredetermined
by comparing the proceeds from disposal with the carrying amount of property,plant and equipment and are recognised net within "Other income/ Selling andotherexpenseâinthestatementofprofitandloss.
Thecostofreplacingpartofanitemofproperty,plant and equipment
isrecognisedinthecarryingamountoftheitemifitisprobablethatthefutureeconomic benefits embodied within the part will flow to the Company and its costcan be measured reliably. The costs of repairs and maintenance are recognised inthestatementofprofitandlossasincurred.
Itemsofproperty,plantandequipmentacquiredthroughexchangeofnon-monetary assets are measured at fair value, unless the exchange transaction lackscommercialsubstance or the fair value of either the asset received or asset givenup is not reliably measurable, in which case the asset exchanged is recorded at thecarryingamountoftheassetgivenup.
Depreciationmethods,estimatedusefullivesandresidualvalue:
Depreciation is recognised in the statement of profit and loss on a straight-line basisovertheestimatedusefullivesofproperty,plantandequipment.Landisnotdepreciate dbutsubjecttoimpairment.Depreciationmethods,usefullives andresidual values are reviewed at each reporting date and any changes are consideredprospectively
TheEstimatedusefullivesareasfollows:
|
Particulars |
Estimatedusefullives(Years) |
|
- Plantandequipment-I |
15 |
|
- Plantandequipment-II |
30* |
|
- Furnitureandfixtures |
10 |
|
- Officeequipments |
5 |
|
- Computer |
3 |
|
- Vehicles |
8 |
*Theestimatedusefullifeofplantandequipmenthasbeentakenas30yearssincetheassetispurch
asedduringtheyear.
- Estimatedusefullives,residualvaluesanddepreciationmethodsarereviewedannually, takingintoaccountcommercialandtechnologicalobsolescenceaswellasnormalweara ndtearandadjustedprospectively.
- Schedule II to the Companies Act, 2013 ("Scheduleâ) prescribes the useful livesforvariousclassesoftangibleassets.Forcertainclassofassets,basedonthetechnical evaluation and assessment, the Company believes that the useful livesadopted byitbestrepresent theperiod overwhich an asset isexpected to beavailable for use. Accordingly, for these assets, the useful lives estimated by theCompanyaredifferentfromthoseprescribedintheSchedule.
Afinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinanci
alliabilityorequityinstrumentofanotherentity.
Allfinancialassetsarerecognizedinitiallyatfairvalue plus, in the case offinancial assets not recorded at fair value through profit and loss, transaction coststhatareattributabletotheacquisitionofthefinancialasset.Forpurposesofsubsequ entmeasurement,financialassetsareclassifiedinthreecategories:
⢠Debtinstrumentsatamortizedcost
A''Debtinstrument''ismeasuredattheamortizedcostifboththefollowingconditionsarem
et:
a) The asset is held within a business model whose objective is to hold assets forcollectingcontractualcashflows,and
b) Contractualtermsoftheassetgiveriseonspecifieddatestocashflowsthataresolelyp aymentsofprincipalandinterest(SPPI)ontheprincipalamountoutstanding.
Afterinitialmeasurement,suchfinancialassetsaresubsequentlymeasuredatamortizedcostus
ingtheeffectiveinterestrate(EIR)method.
Amortized cost is calculated bytaking into account any discount or premium onacquisitionandfeesorcoststhatareanintegralpartoftheEIR. The EIRamortization is included in finance income in the Statement of Profit and Loss. Thelosses arising from impairment are recognized in the Statement of Profit and Loss.Thiscategorygenerallyappliestotradeandotherreceivables.
Debt instruments atfair value through other comprehensive income (FVTOCI). A''debt instrument'' is classified as at the FVTOCI if both of the following criteria aremet:
a) The objective of the business model is achieved both by collecting contractualcashflowsandsellingthefinancialassets,and
b) Theasset''scontractualcashflowsrepresentPPI.
DebtinstrumentsincludedwithintheFVTOCIcategoryare measured initially aswell as at each reporting date at fair value. Fair value movements are recognized inthe other comprehensive income (OCI). However, the Company recognizes interestincome, impairment losses and reversals and foreign exchange gain or loss in theprofit and loss. Onderecognition of the asset, cumulative gain or loss previouslyrecognized in OCI is reclassified from the equity to profit and loss. Interest earnedwhilstholdingFVTOCIdebtinstrumentis reported as interest income using theEIRmethod.
⢠Debtinstruments,derivativesandequityinstrumentsatfairvaluethroughStatemento fProfitandLoss(FVTPL)
FVTPLisaresidualcategoryfordebt instruments. Any debt instrument, whichdoes not meet the criteria for categorization as at amortized cost or as FVTOCI, isclassifiedasatFVTPL.
Inaddition,theCompanymayelecttodesignate adebt instrument,
whichotherwisemeetsamortizedcostorFVTOCIcriteria,asatFVTPL.However,suchelecti onisallowedonlyifdoingsoreducesoreliminatesameasurementorrecognition inconsistency (Referred to as ''accounting mismatch''). The Company hasnotinvestedinanyequityinstruments.
DebtinstrumentincludedwithintheFVTPLcategoryaremeasured at fair
valuewithallchangesrecognizedintheStatementofProfitandLoss.
Afinancialasset(or,whereapplicable,apartofafinancialassetorpartofagroupofsimilarfin
ancialassets)isprimarilyderecognized(i.e.removedfromtheCompany''sbalancesheet)w
hen:
⢠Therightstoreceivecashflowsfromtheassethaveexpired,or
⢠The Company has transferred itsrights to receive cash flows from the asset
orhasassumedanobligationtopaythereceivedcash flows in full
withoutmaterialdelaytoathirdpartyundera''pass-through''arrangement;andeither
(a) TheCompanyhastransferredsubstantiallyalltherisks and rewards of theasset,or
(b) the Company has neither transferred nor retained substantially all the risks andrewardsoftheasset,buthastransferredcontroloftheasset.
When the Company has transferred its rights to receive cash flows from an asset orhasenteredintoapass-
througharrangement,itevaluatesifandtowhatextentithasretained therisksand
rewardsof ownership. Whenit has neither transferrednor retained substantially all of the risks and rewards of the asset, nor transferredcontroloftheasset,theCompanycontinuestorecognizethetransferredassett otheextentoftheCompany''scontinuinginvolvement. In that case, the Companyalsorecognizesanassociatedliability.Thetransferredassetandtheassociatedli ability are measured on a basis that reflects the rights and obligations that theCompanyhasretained.
InaccordancewithIndAS109,theCompanyappliesexpectedcreditloss(ECL)modelformeasu
rementandrecognitionofimpairmentlossonthefollowingfinancialassets:
⢠Financialassetsthataredebtinstruments,andaremeasuredatamortizedcost
oe.g.,loans,debtsecurities,depositsandtradereceivables
⢠FinancialassetsthataredebtinstrumentsandaremeasuredasatFVTOCI
TheCompanyfollows''simplifiedapproach''forrecognitionofimpairmentlossallowanceon tradereceivables.TheapplicationofsimplifiedapproachdoesnotrequiretheCompanytotr ackchangesincredit risk. Rather, itrecognizesimpairment loss allowance based onlifetime ECLs ateach reporting date, right fromitsinitial recognition. Forrecognitionofimpairmentlosson other financial assetsand riskexposure, theCompany determines whether there has been a significantincrease in the credit risk since initial recognition. If credit risk has not increasedsignificantly,12-monthECLisusedtoprovidefor impairment loss. However,
ifcreditriskhasincreasedsignificantly,lifetimeECLis used. If, in a subsequentperiod,creditqualityoftheinstrumentimprovessuchthatthereisnolongerasig nificantincreaseincreditrisksinceinitialrecognition,thentheCompanyrevertstorecogniz ingimpairmentlossallowancebasedon12-monthECL.
Lifetime ECL are the expected credit losses resulting from all possible default eventsover the expected life of a financial instrument. The 12-month ECL is a portion of thelifetimeECLwhich results from default events that are possible within 12 monthsafterthereportingdate.
ECListhedifferencebetweenallcontractualcashflows that are due to theCompanyinaccordancewiththecontractandallthecashflowsthat the
entityexpectstoreceive(i.e.allcashshortfalls),discountedattheoriginalEIR.
ECLimpairmentlossallowance(orreversal)recognizedduringtheperiodisrecognizedasi ncome/expenseintheStatementofProfitandLoss (P&L). Thisamount isreflected under thehead ''other expenses'' inthe Statementof Profit
andLoss(P&L).Thebalancesheetpresentationforvariousfinancialinstrumentsisdescribe dbelow:
⢠Financial assetsmeasured as atamortizedcost.ECLispresentedas
anallowance,i.e.,asanintegralpartofthemeasurementofthoseassetsinthebalancesheet.Th eallowancereducesthenetcarryingamountUntiltheassetmeetswrite-offcriteria,theCompanydoesnotreduceimpairmentallowancefromthegrosscarryingamo unt.
⢠DebtinstrumentsmeasuredatFVTOCI:Since financialassets are
alreadyreflectedatfairvalue,impairmentallowanceisnot further reduced from itsvalue.Rather,ECLamountispresentedas''accumulatedimpairmentamount''in
theOCI.Forassessingincreaseincreditriskandimpairmentloss,theCompanycombinesfina
ncialinstrumentsonthebasisofsharedcreditriskcharacteristicswiththeobjectiveoffacilitat
ingananalysisthatisdesignedtoenablesignificantincreasesincreditrisktobeidentifiedonat
imelybasis.
Financialliabilities-recognitionandmeasurement:
Financial liabilities are classified, at initial recognition, as financial liabilities at fairvaluethroughprofitorloss,loansandborrowings,payables,orasderivativesdesignated as hedging instruments in an effective hedge, as appropriate. All financialliabilitiesarerecognizedinitiallyatfairvalueand, inthe case of loans andborrowingsandpayables,netofdirectly attributable transaction costs. TheCompany''sfinancialliabilitiesincludetrade andother payables, loans andborrowingsincludingbankoverdraftsandderivativefinancialinstruments.
The measurement of financial liabilities depends on their classification, as describedbelow:
⢠Financial liabilities at fair value through profit or loss financial liabilities at fairvaluethroughprofitorlossincludefinancialliabilitiesheldfortrading andfinancialliabilitiesdesignateduponinitialrecognitionasatfairvalue throughprofitorloss.Financialliabilitiesareclassifiedasheldfortradingiftheyareincurr edforthepurposeofrepurchasinginthenearterm.
Gains or losses on liabilities held for trading are recognized in the Statement of ProfitandLoss.
Financial liabilities designated upon initial recognition at fair value through profit orloss are designated as such at the initial date of recognition, and only if the criteria inInd AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ lossesattributabletochangesinowncreditriskarerecognizedinOCI.Thesegains/lossesaren otsubsequentlytransferredtoStatementofProfitandLoss.However,theCompany may transfer the cumulative gain or loss within equity. All other changes infairvalueofsuchliabilityarerecognizedintheStatementofProfitandLoss.
⢠FinancialLiabilitiesatamortizedcost(Loansandborrowings)
Aft:erinitialrecognition,interest-
bearingloansandborrowingsaresubsequentlymeasuredatamortizedcostusingtheEIRmeth
od.Gainsandlossesarerecognizedinprofitorlosswhentheliabilitiesarederecognizedaswella
sthroughtheEIRamortizationprocess.
Amortized cost is calculated by taking into account any discount or premium
onacquisitionandfeesorcoststhatareanintegralpartoftheEIR.The
EIRamortizationisincludedasfinancecostsintheStatementofProfitandLoss.
Financialliabilities-derecognition
Afinancialliabilityisderecognizedwhentheobligationundertheliabilityisdischargedorc ancelledorexpires.Whenanexistingfinancialliabilityisreplacedby another from the same lender on substantially different terms, or the terms of anexistingliabilityaresubstantiallymodified,suchanexchangeormodificationistreated as the derecognition of the original liability and the recognition of a
newliability.ThedifferenceintherespectivecarryingamountsisrecognizedintheStatem entofProfitandLoss.
Inventoriesarevaluedatthelowerofcostandnetrealizable value, less anyprovision for obsolescence. Costs incurred in bringing each product to its
presentlocationandconditionareaccounted.
Netrealizablevalueisdeterminedbasedonestimated selling price, less
furthercostsexpectedtobeincurredtocompletionanddisposal.
Theincometaxexpenseorcreditfortheperiodisthetaxpayableonthecurrentperiod''staxableinc
omebasedontheapplicableincometaxrateforeachjurisdictionadjustedbychangesindeferredta
xassetsandliabilitiesattributabletotemporarydifferencesandtounusedtaxlosses.
The current income tax charge is calculated on the basis of the tax laws enacted orsubstantively enacted at the end of the reporting period in the countries where thecompanyanditssubsidiaryoperateandgeneratetaxableincome.Managementperiodical lyevaluatespositionstakenintaxreturnswithrespecttosituationsin
whichapplicabletaxregulationissubjecttointerpretation.Itestablishesprovisions,whereappro
priate,onthebasisofamountsexpectedtobepaidtothetaxauthorities.
Deferredincometaxisprovided infull,usingtheliability method,
ontemporarydifferences arising between the tax bases of assets and liabilities and their carryingamountsinthefinancialstatements.Deferredincometax is determined using taxrates (and laws) that have been enacted or substantially enacted by the end of thereportingperiodandareexpectedtoapplywhenthe related deferred income taxassetisrealisedorthedeferredincometaxliabilityissettled.
Deferredtaxassetsarerecognizedforalldeductible temporary differences andunused tax losses only if it is probable that future taxable amounts will be available toutilizethosetemporarydifferencesandlosses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right tooffset current tax assets and liabilities and when the deferred tax balances relate to thesametaxationauthority.Currenttaxassetsandtaxliabilitiesareoffset where theentity has alegally enforceable right to offset and intends either to settle on a netbasis,ortorealisetheassetandsettletheliabilitysimultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that itrelatesto itemsrecognised inother comprehensiveincome or directly in equity. Inthiscase,thetaxisalsorecognisedinothercomprehensiveincomeor directly
inequity,respectively.
Minimumalternativetaxpaidinaccordancewiththetaxlaws,whichgivesfutureeconomicbe nefitsintheformofadjustmenttofutureincometax liability, isconsidered as an asset if there is convincing evidence that the company will pay anormal income tax. Accordingly, MAT is recognised as an asset in the Statement ofAssets and Liabilities are measured using the tax rates and tax laws that have beenenactedbythefutureeconomicbenefitassociatedwithitwillflowtothecompany.
i) Retirement and Other Employee benefit schemes:Short-termemploveebenefits:
Employeebenefitspayablewhollywithintwelvemonthsofreceivingemployeeservicesar
eclassifiedasshort-
termemployeebenefits.Thesebenefitsincludesalariesandwages,performanceincentive
sandcompensatedabsenceswhichare expectedtooccurinnexttwelvemonths.Theundiscountedamountofshort-
termemployeebenefitstobepaidinexchangeforemployeeservicesisrecognizedasanexp
enseastherelatedserviceisrenderedbyemployees.
ProvidentFundandESI:
TheCompanyoffersretirementbenefitstoitsemployees,underprovidentfundscheme and EmployeeState Insurance which is a defined benefit plan.
TheCompanyandemployeescontributeatpredeterminedratesto''CubexTubingsLimited
Employee''sContributoryProvidentFund''(Trust'')andESIaccountedonaccrualbasisandt
heconditionsforgrantofexemptionstipulatethattheemployershallmakegoodthedeficie
ncy,ifany,betweenthereturnguaranteedbythestatuteandactualearningoftheTrust.Thec
ontributiontowardsprovidentfundisrecognizedasanexpenseintheStatementofProfitan
dLoss.
i) F unctionalandpresentationcurrency
Items included in the financial statements of the company are measured using thecurrencyofitsprimaryeconomicenvironmentinwhichthe company operates(''the functional currency''). The financial statements are presented in Indian rupees(INR),whichisthecompany''sfunctionalandpresentationcurrency.
ii) Transactionsandbalances
Fore igncurrencytransactio ns
aretranslatedintothefunctionalcurrencyusingtheexchangeratesatthedatesofthetransacti
ons.
i) Basicearningspershare:
Basicearningspersharearecalculatedbydividing:
a. TheprofitattributabletoownersoftheCompany;
b. Bytheweightedaveragenumberofequitysharesoutstandingduringthefinancial year.
ii) Dilutedearningspershare
Dilutedearningspershareadjustthefiguresusedinthedeterminationofbasicearningspersh
aretotakeintoaccount:
c. The after-income tax effect of interest and other financing costs associatedwithdilutivepotentialequityshares,and
d. The weighted average number of additional equity shares that would havebeen outstanding assuming the conversion of all dilutive potential equityshares.
Trade receivables are recognised initially at fair value and subsequently measured atamortised cost using the effective interest method, less provision for impairment. Thecompanyhasnotcreatedanyprovisionforimpairmentduringtheyear.
Forthepurposeofpresentationinthestatementofcashflows,cashandcashequivalentsinclu descashonhand,depositsheldatcallwith financial institutions,other short-term,highly liquid investmentswithoriginal maturities of three monthsor less that are readily convertible to known amounts of cash and which are subject toaninsignificantrisk ofchangesinvalue,andbankoverdrafts.Bankoverdraftsareshownwithinborrowingsincurr entliabilitiesinthebalancesheet.
Equitysharesareclassifiedasequity.
o) Provisions.contingentliabilitiesandcontingentassets:
Provisionsforlegalclaims,volumediscountsandreturnsarerecognisedwhentheCompany has apresent legal or constructive obligation asa result of past events,itisprobable that anoutflow of resources will be required to settle the obligation and
theamountcanbereliablyestimated.Provisionsarenotrecognisedforfutureoperatinglosses.
Wherethere are a number of similar obligations, the likelihood that an outflow willbe required in settlement is determined by considering the class of obligations as awhole. A provisionis recognized even if the likelihood ofan outflow with respect toanyoneitemincludedinthesameclassofobligationsmaybesmall.
Provisions are measured at the present value of management''s best estimate of theexpenditurerequiredtosettlethepresentobligationattheend of the reportingperiod. The discount rate used to determine the present value is a pre-tax rate thatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecificto the liability. The increase in the provisions due to the passage of time is recognizedasinterestexpense.
Cashflowsarereportedusingtheindirectmethod,wherebyprofitbeforetax isadjustedfortheeffectsoftransactionsofnon-cashnatureand any deferrals oraccruals of past or future cash receipts or payments. The cash flows from operating,investingandfinancingactivitiesoftheCompanyaresegregated based on theavailableinformation.
q) Criticalaccountingestimatesandjudgements:
The presentation of financial statements under Ind AS requires management to takedecisionsandmakeestimatesandassumptionsthatmay impactthe value ofrevenues, costs, assets and liabilities and the related disclosures concerning the itemsinvolvedaswellascontingentassetsandliabilitiesatthe balance sheet
date.Estimatesandjudgementsarecontinuallyevaluatedandarebasedonhistoricalexperie nce and other factors, including expectations of future events that are believedtobereasonableunderthecircumstances.
The Company makes estimates and assumptions concerning the future. The resultingaccounting estimates will, by definition, seldom equal the related actual results. Theareasinvolvingcriticalestimatesorjudgementsare:
a. Estimationofdefinedbenefitobligation
b. UsefullifeofPropertyPlantandEquipment
c. Expectedcreditlossoffinancialassets
d. IncomeTaxes
TheCompanyfurnishestheDisclosureoftransactionswithrelated parties,
asrequiredbyIndAS24âRelatedPartyDisdosuresâasprescribed by
Companies(IndianAccountingStandard)Rules2015.RelatedpartiesasdefinedunderIndAS24h avebeenidentifiedonthebasisofrepresentationmadebythemanagementandinformationavaila blewiththecompany.
Mar 31, 2015
BASIS OF PREPARATION:
The financial statements of the company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with theAccounting standards specified under
section 133ofthe Companies Act.2013, read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the relevant provisions of the Companies
Act, 2013 ("the 2013 Act"), as applicable. The financial statements
have been prepared as a going concern on accrual basis underthe
historical cost convention. TheAccounting policies adopted in the
preparation o the financial statements are consistent with those
followed in the previous year except for change in the accounting
policy for depreciation
USE OF ESTIMATES:
The preparation of financial statements is in conformity with generally
accepted accounting principles require the 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 result of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates. Significant estimates used by the management in
the preparation of these financial statements include estimates of the
economic useful lives of fixed assets and provisions for bad and
doubtful debts. Any revision to accounting estimates is recognized
prospectively.
a) Accounting Convention and Revenue Recognition:
The Financial Statements have been prepared on a going concern basis in
accordance with historical cost convention except for such fixed assets
which are revalued.
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 from operations includes revenue from sale
of products, services and other operating revenue. Revenue from sale of
products is recognized when all the significant risks and rewards of
ownership of products have been passed to the buyer, usually on
delivery of the products. The revenue from sale of products is net of
discounts, excise duty, value added taxes and sales tax.
Revenue is not recognized on the grounds of prudence, until realized in
respect of liquidated damages, delayed payments as recovery of the
amounts are not certain.
b) CASH FLOW STATEMENT
i) Cash and Cash Equivalents (for the purpose of cash flow statement)
Cash comprises Margin Money, Current Accounts with Banks and cash on
hand. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly
liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.
ii) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before extraordinary items and tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based
on the available information.
c) RETIREMENTS BENEFITS:
Gratuity - No provision for gratuity has been made as no employees have
put in qualifying period of service for entitlement of this benefit.
Provident Fund - the company makes monthly contribution to the
Employees Provident Fund and Pension Fund under the provisions of
Employees Provident Fund and Miscellaneous Provisions Act, 1952.
d) FIXED ASSETS:
Fixed Assets are stated at cost of acquisition and subsequent
improvements thereto, inclusive of taxes, freight, and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of Fixed Assets where it is stated at revalued
amount, as contained in AS-10.
e) DEPRECIATION:
Depreciation on Fixed Assets is provided on straight-line method as per
the useful life specified in Schedule II of the Companies Act, 2013.
This is in accordance with the AS-6 and there is no change in the
method of Depreciation during the year.
f) TRANSACTIONS IN FOREIGN EXCHANGE:
Sales / Purchases and revenue incomes / expenses in foreign currency
are booked at the exchange rate prevailing on the date of transaction.
Gain / Loss arising out of fluctuations in exchange based on the rate
on date of realization is accounted for in the Profit and Loss Account
as per AS-11.
g) BORROWING COST:
Borrowing cost relating to acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use/sale. Borrowing costs
that are attributable to the projects are charged to the respective
projects. All other borrowing costs, not eligible for
inventorisation/capitalisation, are charged to revenue.
h) INVENTORIES:
Materials, stores & spares, tools and consumable are valued at cost or
market value, whichever is lower on the basis of first in first out
method reflecting the fairest possible approximation to the cost
incurred in bringing the items of inventory to their present location
and condition.
i) TAXES ON INCOME:
a) Provision for tax for the year comprises current Income Tax and
Deferred Tax and is provided as per the Income Tax Act, 1961.
b) Deferred tax resulting from timing differences between the book and
the tax profits is accounted for, at the current rate of tax, to the
extent that the timing differences are expected to crystallize.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in the future;
however where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognized only if there
is a virtual certainty of realization of such assets. Deferred tax
assets/ liabilities are reviewed as at each balance sheet date.
j) EARNINGS PER SHARE:
The earnings considered in ascertaining the Earning per Share comprise
of Net Profit after Tax. The number of shares used in computing Basic
Earnings per Share is the Weighted Average number of shares outstanding
during the year, as per AS-20.
k) IMPAIRMENT OF FIXED ASSETS:
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset's net sale price or present value as determined above.
I) RELATED PARTY DISCLOSURES :
The Company furnishes the Disclosure of transactions with related
parties, as required by Accounting Standard 18 "Related Party
Disclosure" as specified in the Companies (Accounting Standard) Rules,
2006. Related parties as defined under clause 3 of the Accounting
Standard 18 have been identified on the basis of representation made by
the management and information available with the company.
Mar 31, 2014
I.CORPORATE INFORMATION
CUBEX TUBINGS LIMITED is a manufacturer of seamless solid drawn Tubes,
Rods, Bus bars and Wires of copper and copper based alloys such as
Cupronickel, admiralty Brass, Aluminum Brass etc. Copper because of its
high electrical conductivity and heat transfer characteristics finds
wide application in the form of Tubes, Rods, Strips and Wires. The user
industries are Power plants, Power plants manufacturers, Switchgears,
Refineries, Furnace manufacturers, Sugar plants, Automobile, Electrical
Equipment industries and ship building company.
II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PREPARATION:
The financial statements have been prepared to comply in all material
respects with the accounting standards notified by Companies Accounting
Standards Rules, 2006 and the relevant provisions of the Companies Act,
19S6 (''the Act''). The financial statements have been prepared under
historical cost convention on an accrual basis in accordance with
accounting principles generally accepted in India. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year:
USE OF ESTIMATES:
The preparation of financial statements is in conformity with generally
accepted accounting principles require the 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 result of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Significant estimates used by the management in
the preparation of these financial statements include estimates of the
economic useful lives of fixed assets and provisions for bad and
doubtful debts. Any revision to accounting estimates is recognized
prospectively.
(a) Accounting Convention and Revenue Recognition:
The Financial Statements have been prepared on a going concern basis in
accordance with historical cost convention except for such fixed assets
which are revalued.
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 from operations includes revenue from sale
of products, services and other operating revenue. Revenue from sale of
products is recognized when all the significant risks and rewards of
ownership of products have been passed to the buyer, usually on
delivery of the products. The revenue from sale of products is net of
discounts, excise duty, value added taxes and sales tax.
Revenue is not recognized on the grounds of prudence, until realized in
respect of liquidated damages, delayed payments as recovery of the
amounts are not certain.
(b) Cash Flow Statement: AS-3
i) Cash and Cash Equivalents (for the purpose of cash flow statement)
Cash comprises Margin Money, Current Accounts with Banks and cash on
hand. Cash equivalents are short-term balances (with an original
maturity of three months or less from the date of acquisition), highly
liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.
ii) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before extraordinary items and tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based
on the available information.
(c) Retirements Benefits:
Gratuity - No provision for gratuity has been made as no employees have
put in qualifying period of service for entitlement of this benefit.
Provident Fund - the company makes monthly contribution to the
Employees Provident Fund and Pension Fund under the provisions of
Employees Provident Fund and Miscellaneous Provisions Act, 19S2.
(d) Fixed Assets:
Fixed Assets are stated at cost of acquisition and subsequent
improvements thereto, inclusive of taxes, freight, and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of Fixed Assets where it is stated at revalued
amount, as contained in AS-IO.
(e) Depreciation:
Depreciation on Fixed Assets is provided on straight-line method as per
the rates specified in Schedule XIV of the Companies Act, 19S6. This is
in accordance with the AS-6 and there is no change in the method of
Depreciation during the year.
(f) Transactions in Foreign Exchange:
Sales / Purchases and revenue incomes / expenses in foreign currency
are booked at the exchange rate prevailing on the date of transaction.
Gain / Loss arising out of fluctuations in exchange based on the rate
on date of realization is accounted for in the Profit and Loss Account
as per AS-II.
(g) Borrowing Cost:
Borrowing cost relating to acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use/sale. Borrowing costs
that are attributable to the projects are charged to the respective
projects. All other borrowing costs, not eligible for
inventorisation/capitalisation, are charged to revenue.
(h) Inventories:
Materials, stores & spares, tools and consumable are valued at cost or
market value, whichever is lower on the basis of first in first out
method reflecting the fairest possible approximation to the cost
incurred in bringing the items of inventory to their present location
and condition.
(i) Taxes on Income:
a) Provision for tax for the year comprises current Income Tax and
Deferred Tax and is provided as per the Income Tax Act, 1961.
b) Deferred tax resulting from timing differences between the book and
the tax profits is accounted for, at the current rate of tax, to the
extent that the timing differences are expected to crystallize.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in the future;
however where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognized only if there
is a virtual certainty of realization of such assets. Deferred tax
assets/ liabilities are reviewed as at each balance sheet date.
(j) Earnings per Share:
The earnings considered in ascertaining the Earning per Share comprise
of Net Profit after Tax. The number of shares used in computing Basic
Earnings Per Share is the Weighted Average number of shares outstanding
during the year, as per AS-20.
(k) Impairment of Assets:
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset''s net sale price or present value as determined above.
(l) Related Party Disclosures :
The Company furnishes the Disclosure of transactions with related
parties, as required by Accounting Standard 18 "Related Party
Disclosure" as specified in the Companies (Accounting Standard)
Rules, 2006. Related parties as defined under clause 3 of the
Accounting Standard 18 have been identified on the basis of
representation made by the management and information available with
the company.
Mar 31, 2012
(a) Accounting Convention and Revenue Recognition:
The Financial Statements have been prepared on a going concern basis in
accordance with historical cost convention except for such fixed assets
which are revalued. Both Income and Expenditure are recognized on
accrual basis.
Revenue is not recognized on the grounds of prudence, until realized in
respect of liquidated damages, delayed payments as recovery of the
amounts are not certain.
(b) Cash Flow Statement: AS-3
The Company has prepared Cash Flow Statement as per the AS-3.
(c) Retirements Benefits:
Gratuity - No provision for gratuity has been made as no employees have
put in qualifying period of service for entitlement of this benefit.
Provident Fund -The company makes monthly contribution to the Employees
Provident Fund and Pension Fund under the provisions of Employees
Provident Fund and Miscellaneous Provisions Act, 1952.
(d) Fixed Assets:
Fixed Assets are stated at cost of acquisition and subsequent
improvements thereto, inclusive of taxes, freight, and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of Fixed Assets where it is stated at revalued
amount, as contained in AS-10.
(e) Depreciation:
Depreciation on Fixed Assets is provided on straight-line method as per
the rates specified in Schedule XIV of the Companies Act, 1956. This is
in accordance with the AS-6 and there is no change in the method of
Depreciation during the year.
(f) Transactions in Foreign Exchange:
Sales / Purchases and revenue incomes / expenses in foreign currency
are booked at the exchange rate prevailing on the date of transaction.
Gain / Loss arising out of fluctuations in exchange based on the rate
on date of realization is accounted for in the Profit and Loss Account
as per AS-11.
(g) Borrowing Cost:
Borrowing cost relating to acquisition/construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use/sale. Borrowing cost
that are attributable to the projects are charged to the respective
projects. All other borrowing costs, not eligible for
inventorisation/capitalisation, are charged to revenue.
(h) Inventories:
Materials, stores & spares, tools and consumable are valued at cost or
market value, which ever is lower on the basis of first in first out
method reflecting the fairest possible approximation to the cost
incurred in bringing the items of inventory to their present location
and condition.
(i) Taxes on Income:
a) Provision for tax for the year comprises current Income Tax and
Deferred Tax and is provided as per the Income Tax Act, 1961.
b) Deferred tax resulting from timing differences between the book and
the tax profits is accounted for, at the current rate of tax, to the
extent that the timing differences are expected to crystallize. Deferred
tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in the future; however where
there is unabsorbed depreciation or carried forward loss under taxation
laws, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets. Deferred tax assets/
liabilities are reviewed as at each balance sheet date.
(j) Earnings per Share:
The earnings considered in ascertaining the Earning Pa Share comprise
of Net Profit after Tax. The number of shares used in computing Basic
Earnings Per Share is the Weighted Average number of shares outstanding
during the year, as per AS-20.
(k) Impairment of Assets:
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the asset
and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset's net sale price or present value as determined above.
(I) Related Party Disclosures:
The Company as requited by AS-18, furnishes the details of Related
Party Disclosures
Mar 31, 2011
BASIS OF PREPARATION:
The financial statements have been prepared to comply in all material
respects with the accounting standards notified by Companies Accounting
Standards Rules, 2006 and the relevant provisions of the Companies Act,
1956 ('the Act'). The financial statements have been prepared under
historical cost convention on an accrual basis in accordance with
accounting principles generally accepted in India. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year:
USE OF ESTIMATES:
The preparation of financial statements is in conformity with generally
accepted accounting principles require the 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 result of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates. Significant estimates used by the management in
the preparation of these financial statements include estimates of the
economic useful lives of fixed assets and provisions for bad and
doubtful debts. Any revision to accounting estimates is recognized
prospectively.
(a) Accounting Convention and Revenue Recognition:
The Financial Statements have been prepared on a going concern basis in
accordance with historical cost convention except for such fixed assets
which are revalued. Both Income and Expenditure are recognized on
accrual basis.
Revenue is not recognized on the grounds of prudence, until realized in
respect of liquidated damages, delayed payments as recovery of the
amounts are not certain.
(b) Cash Flow Statement: AS-3
The Company has prepared Cash Flow Statement as per the AS-3.
(c) Retirements Benefits:
No provision for gratuity has been made as no employees have put in
qualifying period of service for entitlement of this benefit.
(d) Fixed Assets:
Fixed Assets are stated at cost of acquisition and subsequent
improvements thereto, inclusive of taxes, freight, and other incidental
expenses related to acquisition, improvements and installation, except
in case of revaluation of Fixed Assets where it is stated at revalued
amount, as contained in AS-10.
(e) Depreciation:
Depreciation on Fixed Assets is provided on straight-line method as per
the rates specified in Schedule XIV of the Companies Act, 1956. This is
in accordance with the AS-6 and there is no change in the method of
Depreciation during the year.
(f) Transactions in Foreign Exchange:
Sales / Purchases and revenue incomes / expenses in foreign currency
are booked at the exchange rate prevailing on the date of transaction.
Gain / Loss arising out of fluctuations in exchange based on the rate
on date of realization is accounted for in the Profit and Loss Account
as per AS-11.
(g) Borrowing Cost:
Borrowing cost relating to acquisition/ construction of qualifying
assets are capitalized until the time all substantial activities
necessary to prepare the qualifying assets for their intended use are
complete. A qualifying asset is one that necessarily takes substantial
period of time to get ready for its intended use/sale. Borrowing cost
that are attributable to the projects are charged to the respective
projects. All other borrowing costs, not eligible for
inventorisation/capitalisation, are charged to revenue.
(h) Inventories:
Materials, stores & spares, tools and consumable are valued at cost or
market value, which ever is lower on the basis of first in first out
method reflecting the fairest possible approximation to the cost
incurred in bringing the items of inventory to their present location
and condition.
(i) Taxes on Income:
a) Provision for tax for the year comprises current Income Tax and
Deferred Tax and is provided as per the Income Tax Act, 1961.
b) Deferred tax resulting from timing differences between the book and
the tax profits is accounted for, at the current rate of tax, to the
extent that the timing differences are expected to crystallize.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in the future;
however where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognized only if there
is a virtual certainty of realization of such assets. Deferred tax
assets/ liabilities are reviewed as at each balance sheet date.
(j) Earnings per Share:
The earnings considered in ascertaining the Earning Per Share comprise
of Net Profit after Tax. The number of shares used in computing Basic
Earnings Per Share is the Weighted Average number of shares outstanding
during the year, as per AS-20.
(k) Impairment of Assets:
Management periodically assesses using external and internal sources
whether there is an indication that an asset may be impaired.
Impairment occurs where the carrying value exceeds the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. The impairment loss to be expensed is
determined as the excess of the carrying amount over the higher of the
asset's net sale price or present value as determined above.
(I) Related Party Disclosures:
The Company as required by AS-18, furnishes the details of Related
Party Disclosures in Schedule 9 of notes forming part of accounts
Mar 31, 2010
General:
(i) These accounts are prepared on the historical cost basis and on the
accounting principles of a going concern.
(ii) Accounting policies not specifically referred to othewise are
consistent and in consonance with generally accepted accounting
principles.
Revenue Recognition:
(i) The Company follows the mercantile system of Accounting and
recognizes income and expenditure on accrual basis.
(ii) Revenue is not recognized on the grounds of prudence, until
realized in respect of liquidated damages, delayed payments as recovery
of the amounts are not certain.
Foreign ExchangeTransaction:
(i) Realised gains & loss in foreign exchange transaction are
recognized in Profit & Loss Account.
Transaction in Foreign Currency will be recorded at the rates of
exchange prevailing on the date of the transaction, Current Assets and
liabilities denominated in foreign currency will be translated at the
rate of exchange as at Balance Sheet date.
Fixed Assets:
(i) Fixed assets are stated at cost less accumulated depreciation. Cost
of acquisitioni of fixed assets is inclusive of freight, duties, taxes
and incidental expenses thereto.
Depreciation & Amortisation:
(i) Depreciation is provided on straight-line method on pro-rata basis
and at the rates and manner specified in the Schedule XIV of the
Companies Act, 1956.
Inventories:
Inventories are valued at cost or market price whichever is Lower.
Taxation:
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax asset
and liability is recognized for future tax consequences attributable to
the timing differences that result between the profit offered for
income tax and the Loss profit as per the financial statements.
Deferred tax asset & Liability are measured as per the tax rates/laws
that have been enacted or substantively enacted by the Balance Sheet
date.
Earning per Share:
The earning considered in ascertaining the compoanys earning per share
comprise net profit after tax.The number of shares used in computing
basic earning per share is the weihted average number of shares out
standing during the year.
Gratuity:
No provision for gratuity has been made as no employees have put in
qualifying period of service for entitlement of this benefit.
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Cubex Tubings Ltd. पर और जानकारी
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Cubex Tubings Ltd. टूल
- बल्क डील
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Cubex Tubings Ltd. कंपनी का विवरण
- कंपनी का प्रोफाइल
- कंपनी का इतिहास
- मैनेजमेंट टीम
- पूंजी ढांचा
- प्रॉडक्ट मिक्स
- बैंकर/ऑडीटर/रजिस्ट्रार
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कंपनी का इतिहास
- अधिकार
- बीएसई मूल्य इतिहास
- एनएसई मूल्य इतिहास
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Cubex Tubings Ltd. मुख्य वित्तीय अनुपात
- अनुपात
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Cubex Tubings Ltd. परिणाम
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- छहमाही परिणाम
- नौ महीने के परिणम
- वार्षिक परिणाम
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Cubex Tubings Ltd. Financial Data
- ऑडिट के परिणाम
- नकदी प्रवाह
- बैलेंस शीट
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Cubex Tubings Ltd. की रिपोर्ट
- लेखा नीति
- ऑडीटर की रिपोर्ट
- निदेशक की रिपोर्ट
- खाते के लिये नोट
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Cubex Tubings Ltd. कॉर्पोरेट घोषणाएं
- बुक क्लोज़र
- बोर्ड की मीटिंग
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Stock Market Crash: जंग का असर बाजार में हाहाकार, सेंसेक्स 2500 अंक से ज्यादा लुढ़का, निफ्टी 700 अंक क्रैश -
Stock Market Outlook: होर्मुज स्ट्रेट में संकट! क्या आने वाला है भारतीय शेयर बाजार में बड़ा गिरावट का दौर? -
मिडिल ईस्ट के बढ़ते तनाव ने बिगाड़ा बाजार का मूड, सेंसेक्स 1500 अंक लुढ़का, निफ्टी भी बुरी तरह फिसला -
Stock Market Today: मिडिल ईस्ट तनाव! शेयर बाजार में कोहराम, सेंसेक्स 900+ अंक टूटा, निफ्टी 24,900 के नीचे -
Stock Market: Anthropic के दावे से बढ़ी टेंशन! Nifty-Sensex में बड़ी गिरावट, शेयर बाजार किन 5 कारणों से धड़ाम? -
Stock Markets Today: कारोबारी हफ्ते की शानदार शुरुआत, Sensex और Nifty 50 जबरदस्त बढ़त के साथ बंद -
Stock Alert: सस्ते में मिल रहे Nifty 50 के कई शेयर, यहां से होगी पैसों की बारिश? -
Stock Market Crash: बाजार में हाहाकार, सेंसेक्स 1,200 प्वाइंट से ज्यादा गिरा, निफ्टी भी 400 अंक क्रैश -
Stock Markets Today: बढ़त के साथ बंद हुआ बाजार, Sensex और Nifty की शानदार क्लोजिंग -
Stock Markets Today: Nifty वीकली एक्सपायरी के दिन बाजार में तेजी, IT और PSU इंडेक्स बढ़त के साथ बंद -
Defence Stock: Cochin Shipyard के शेयर में जबरदस्त उछाल, रक्षा मंत्रालय से बड़ा ऑर्डर -
Stock Markets Today: कारोबारी हफ्ते के पहले दिन बाजार की शानदार क्लोजिंग, Sensex और Nifty बढ़त के साथ बंद -
अमेरिका संग ट्रेड डील से SENSEX-NIFTY में दिखा जोश, इन 9 स्टॉक्स में लगा 20% का अपर सर्किट, आपके पास है कोई? -
Stock Market News: India-US ट्रेड डील का असर...शेयर बाजार में जबरदस्त रैली, निवेशकों को 20 लाख करोड़ का फायदा! -
Stock Market News: भारी गिरावट के बाद वापसी, सेंसेक्स-निफ्टी दिन के निचले स्तर से रिकवर, तेजी के पीछे का कारण? -
Stock Market: मोदी सरकार के 15 बजट में कब शेयर बाजार का प्रदर्शन रहा सबसे बेहतर; कब रहा सबसे खराब? फुल रिपोर्ट
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