Aimtron Electronics Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

2. Material Accounting Policies

a. Basis of Preparation

These financial statements have been prepared in
accordance with the Generally Accepted Accounting
Principles in India (''Indian GAAP'') to comply with the
Accounting Standards specified under Section 133 of
the Companies Act, 2013, as applicable. The financial
statements have been prepared under the historical
cost convention on accrual basis, except for certain
financial instruments which are measured at fair value.

The accounting policies adopted in the preparation
of the financial statements are consistent with those
followed in the previous year.

Based on the nature of products and the time between
acquisition of assets for processing and their
realisation in cash and cash equivalents, the company
has identified twelve months as its operating cycle for
the purpose of current/non-current classification of
assets and liabilities.

b. Use of Estimates

The preparation of financial statements requires the
management of the Company to make estimates and
assumptions that affect the reported balances of assets
and liabilities and disclosures relating to the contingent
liabilities as at the date of the financial statements and
reported amounts of Income and expenses during the
year. Examples of such estimates include provisions
for doubtful receivables, provision for income taxes,
the useful lives of depreciable property, plant and
equipment and provision for impairment. Future results

could differ due to changes in these estimates and the
difference between the actual result and the estimates
are recognised in the period in which the results are
known/materialise.

c. Functional and Presentation currency

These financial statements are presented in Indian
Rupees which is the company''s functional currency
and all values are presented as H in lakh except where
specified and for number of shares.

d. Principles of Consolidation

The consolidated financial statements have been
prepared on the following basis:

The financial statements of the company and its
subsidiary have been combined on line-by-line basis by
adding together the book values of like items of assets,
liabilities, income and expenses, after fully eliminating
intra group balances and intra group transactions
resulting in unrealised profits or losses.

e. Property, Plant and Equipment

Freehold land is carried at historical cost.

All other items of property, plant and equipment are
stated at cost which includes capitalised borrowing
cost less accumulated depreciation and impairment
loss, if any. Cost includes purchase price including
non-refundable duties and taxes, expenditure directly
attributable to bring the assets to the location and
condition necessary for its intended use.

Subsequent expenditure is capitalised only if it is
possible that the future economic benefits associated
with the expenditure will flow to the company.

Intangible assets are recognised only if it is probable
that the future economic benefits that are attributable
to the assets will flow to the company and the cost
of assets can be measured reliably. Intangible assets
are stated at cost of acquisition less accumulated
amortisation and accumulated amortisation, if any.

f. Depreciation and Amortization

Depreciation has been provided on the Fixed Asset on
the WDV method and in accordance with the useful
life of the Asset as prescribed under Schedule II of the
Companies Act, 2013.

Intangible Assets

Intangible assets acquired separately are measured on
initial recognition at cost. Intangible assets acquired in a
business combination are recognized at fair value as at
the date of acquisition. Subsequently, intangible assets
are carried at cost less accumulated amortisation and
accumulated impairment losses, if any.

Intangible assets with finite useful lives are amortised
on a straight-line basis over their estimated useful lives
and assessed for impairment whenever there is an
indication of impairment.

g. Impairment of Assets

At each balance sheet date, the management reviews
the carrying amounts of its assets included in each
cash generating unit to determine whether there is
any indication that those assets were impaired. If any
such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of
impairment. Recoverable amount is the higher of an
asset''s net selling price and value in use. In assessing
value in use, the estimated future cash flows expected
from the continuing use of the asset and from its
disposal are discounted to their present value using a
pre-tax discount rate that reflects the current market
assessments of time value of money and the risks
specific to the asset. Reversal of impairment loss is
recognised as income in the statement of profit and loss.

h. Investment

The company has accounted for its investments in
subsidiary/ies, associates and joint ventures at cost
less impairment loss, if any.

Other investments that are readily realisable and
intended to be held for not more than a year are
classified as current investments. All other investments
are classified as non-current investments.

Current investments are carried at lower of cost and fair
value determined on an individual investment basis.

Non-current investments are carried at cost. However,
provision for diminution in value is made to recognise
a decline, other than temporary, in the value of
these investments.

Inventories

Inventories are measured at lower of cost and net
realisable value. Cost of inventories is determined on a
First In First Out (FIFO) after providing for obsolescence
and other losses as considered necessary.

Cost includes expenditure incurred in acquiring the
inventories, conversion cost and the cost incurred in
bringing them to their present location and condition.

Inventories are valued on the principle laid down by the
Accounting Standard - 2 on Inventories :

j. Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash
flow statement comprises of cash at bank and hand
and short-term investments with an original maturity of
three months or less.

k. Revenue Recognition

Revenue from sale of goods is recognised when the
significant control, risk and rewards of the ownership
have been transferred to the buyer, generally on the
delivery of goods.

Revenue from rendering of services is recognised
when the performance of agreed contractual task has
been completed.

Revenue from sale of scrap is recognised as and
when scrap is sold.

Interest income is recognised on a time proportion
basis taking into account the amount outstanding and
the applicable rate.

Dividend income from investments is recognised
when the company''s right to receive the payment is
established, which is generally when shareholders
approve the dividend.

The benefits accrued under Roadtep as per the Import
Export Policy in respect of exports under the said
scheme are recognised when there is a reasonable
assurance that the benefits will be received.

Rent income is recognised on accrual basis as per the
terms of the rent agreement.

l. Borrowing Costs

Borrowing costs that are directly attributable to the
acquisitions or production of a qualifying asset are
capitalized during the period of time that is required
to complete and prepare the asset for intended use
or sale. Qualifying assets are assets that necessarily
take a substantial period of time to get ready for their
intended use or sale. All other borrowing costs are
expenses in the period in which they are incurred.

Investment income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing cost
eligible for capitalization.

m. Employee Benefits

Post Employment Benefit Plans :

1. Short Term Employee Benefits :

All employee benefits payable wholly within twelve
months of rendering the service are classified as
short-term employee benefits. Benefits such as
salaries, wages, bonus, leave salary, allowances
etc. are recognised as actual amounts due in period
in which the employee renders the related services.

2. Defined Contribution Plans :

Retirement benefits in the form of provident
fund are a defined contribution scheme and the
contributions are charged to the statement of
profit and loss of the year when the contribution
to the respective funds are due. There are no other
obligations other than the contribution payable to
the respective funds.

3. Defined Benefit Plans :

The company has a defined benefit gratuity plan.
Every employee who has completed 5 years of
more of service is eligible for payment of gratuity
on past employment at 15 days salary for such
completed years of services as per the rules of
the company. The aforesaid liability is provided for
on the basis of an actuarial valuation at the end
of the financial year. The said qualifying amount
is provided for in the profit and loss statement.
However, the scheme is not funded with any of the
recognised insurance company, other company/
trust managing the funds.

Compensated absences which are not expected
to occur within twelve months after the end of
the period in which the employee renders the
related services are recognised as an actuarially
determined liability at the present value of the
defined benefit obligation at the balance sheet date.

n. Foreign Currency Transactions

Income and expense in foreign currencies are
converted at exchange rates prevailing on the date of
the transaction. Foreign currency monetary assets and
liabilities other than net investments in non-integral
foreign operations are translated at the exchange rate
prevailing on the balance sheet date and exchange gains
and losses are recognised in the statement of profit
and loss. Exchange difference arising on a monetary
item that, in substance, forms part of an enterprise''s
net investments in a non-integral foreign operation are
accumulated in a foreign currency translation reserve.

o. Taxation

Current income tax expense comprises taxes on income
from operations in India and in foreign jurisdictions.
Income tax payable in India is determined in accordance
with the provisions of the Income Tax Act, 1961. Tax
expense relating to foreign operations is determined in
accordance with tax laws applicable in countries where
such operations are domiciled.

Minimum Alternative Tax (MAT) paid in accordance
with the tax laws in India, which gives rise to future
economic benefits in the form of adjustment of future
income tax liability, is considered as an asset if there is
convincing evidence that the Company will pay normal
income tax after the tax holiday period. Accordingly,
MAT is recognised as an asset in the balance sheet
when the asset can be measured reliably and it is
probable that the future economic benefit associated
with it will fructify.

Deferred tax expense or benefit is recognised on timing
differences being the difference between taxable
income and accounting income that originate in one
period and is likely to reverse in one or more subsequent
periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted
or substantively enacted by the balance sheet date.

Advance taxes and provisions for current income taxes
are presented in the balance sheet after off-setting
advance tax paid and income tax provision arising in
the same tax jurisdiction for relevant tax paying units
and where the Company is able to and intends to settle
the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred
tax liabilities if it has a legally enforceable right and

these relate to taxes on income levied by the same
governing taxation laws.

p. Earnings Per Shares

Basic earnings per share is computed by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. Diluted earnings
per share is computed by taking into account the
weighted average number of equity shares outstanding
during the period and the weighted average number of
equity shares which would be issued on conversion of
all dilutive potential equity shares into equity shares.

(1) COMPANY INFORMATION

The company is into manufacturing of Printed Circuit Boards (PCB). The compnay also provides services related to the designing of PCBs.

(2) SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (‘Indian GAAP’) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, as applicable. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

(b) Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables, provision for income taxes, the useful lives of depreciable Property, Plant and Equipment and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the period in which the results are known / materialise.

(c) Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

Property, Plant and Equipment exclude computers and other assets individually costing Rs. XXXX or less which are not capitalised except when they are part of a larger capital investment programme.

(d) Depreciation / amortisation

In respect of Property, Plant and Equipment (other than freehold land and capital work-in-progress) acquired during the year, depreciation/amortisation is charged on a straight line basis so as to write-off the cost of the assets over the useful lives.

(e) Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight-line basis.

(f) Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment. Recoverable amount is the higher of an asset’s net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Reversal of impairment loss is recognised as income in the statement of profit and loss.

(g) Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising investments in mutual funds, government securities and bonds are stated at the lower of cost and fair value.

(h) Revenue recognition

Revenue from the sale of equipment are recognised upon delivery, which is when title passes to the customer.

Revenue is reported net of discounts.

Dividend is recorded when the right to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

(i) Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income taxpayable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax after the tax holiday period. Accordingly, MAT is recognised as an asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with it will fructify.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Advance taxes and provisions for current income taxes are presented in the balance sheet after offsetting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

(j) Foreign currency transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise’s net investments in a nonintegral foreign operation are accumulated in a foreign currency translation reserve.

(k) Inventories

Raw materials are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Stores and spare parts are carried at lower of cost and net realisable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.

(l) Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

(m) Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

(3) NOTES FORMING PART OF ACCOUNTS:

(1) Title deeds of Immovable Property included in Property, Plant and Equipment are in the name of the Company Title deeds of Immovable Property not held in name of the Company.

(2) There is no revaluation of Property, Plant and Equipment are made during the reporting period or its previous year.

(3) There is no Loans or Advances in the nature of loans are granted to promoters, directors, Key Managerial Personnel (KMPs) and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person as at the Balance Sheet Date.

(4) CWIP AGEING SCHEDULE:

The company has not prepared the CWIP Ageing schedule as on the balance sheet date.

(5) THERE IS NO INTANGIBLE ASSETS UNDER DEVELOPMENT AS ON BALANCE SHEET DATE.

(6) DETAILS OF BENAMI PROPERTY HELD :

There is no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. :

(7) THE COMPANY HAS FILED THE NECESSARY RETURNS WITH THE BANKS FOR LOANS TAKEN.

(8) WILFUL DEFAULTER :

The company is not declared as wilful defaulter by any bank or financial Institution or other lender. So, no disclosure is required to be given.

(9) RELATIONSHIP WITH STRUCK OFF COMPANIES :

The company has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(10) REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES:

The charges are duly registered with the Registrar of Companies.

(11) COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:

The company does not have layers beyond the specified layers as prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017. So, no disclosures are required to be given.

(12) COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS:

The Company has not applied for any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013. So, no disclosure is required to be given by the Company.

(13) UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:

(A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall;

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(B) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(14) UNDISCLOSED INCOME

There is no detail of any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). So, no detail is required to be disclosed.

(15) CORPORATE SOCIAL RESPONSIBILITY:

The company has complied with the provisions of the Companies Act for CSR Activity and has transferred the funds to the CSR eligible entity.

(16) THE PREVIOUS YEAR FIGURE HAVE BEEN REGROUPED / RECLASSIFIED, WHEREVER NECESSARY TO CONFORM TO THE CURRENT YEAR PRESENTATION.

(18) MISCELLANEOUS EXPENDITURE:

There is no miscellaneous expenses as on balance sheet date.

(19) IN THE ABSENCE OF CONFIRMATIONS FOR LOANS AND ADVANCES AND PENDING RECONCILIATION THE DEBIT BALANCES IN REGARD TO RECOVERABLE, HAVE BEEN TAKEN AS REFLECTED IN THE BOOKS. IN THE OPINION OF THE MANAGEMENT, LOANS AND ADVANCES AND CURRENT ASSETS, IF REALIZED IN THE ORDINARY COURSE OF BUSINESS, HAVE THE VALUE AT WHICH THEY ARE STATED IN THE BALANCE SHEET.