Expo Engineering and Projects Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1) BACKGROUND

The Company is a public limited company, incorporated in 1982 under the Companies Act, 1956, having its registered office in Mumbai and is listed on Bombay Stock Exchange. The Company is engaged in manufacturing of Pressure Vessels, Columns & Towers, etc and is also involved in site engineering projects.

2) SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements: -

The financial statements are prepared under the historical cost convention on accrual basis of accounting and comply with the Indian Accounting Standards ("Ind AS") including the rules notified under the relevant provisions of the Companies Act, 2013 amended from time to time.

The financial statements are presented in Indian Rupees and all values are considered in full except otherwise indicated.

1.2 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, liabilities, income and expenses 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. 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. Estimates and underlying assumptions are reviewed on an ongoing basis.

1.3 Revenue Recognitions:

A) Revenue from sale of goods in the ordinary course of business is recognised when the property in the goods or all significant risk and reward of their ownership are transferred to the customer and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of the goods and regarding its collection. Revenue from Services are considered on the basis of completion of work. The amount recognised as revenue are net of taxes and duties.

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

1.4 Employee Benefit Expenses:-

The Company pays gratuity to the employees who have completed five years of service at the time of retirement / resignation. The gratuity is paid @15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972. The liability in respect of gratuity and other post employment benefits is calculated using the Projected Unit Credit (PUC) Method and spread over the period during which the benefit is expected to be derived from employees services.

1.5 Depreciation:-

A) Depreciation on Fixed assets has been provided on Straight Line Method (SLM) based on the useful life and in the manner specified in the Schedule II of the Companies Act, 2013. Depreciation on addition/ deletion during the year is provided for on pro rata basis. The estimated useful life of fixed assets is as follows:

The financial statements are presented in Indian Rupees and all values are considered in full except otherwise indicated.

Asset Class	Years
Factory Shed	25
Furniture & Fixtures	10
Vehicles	10
Spares, Tools & Dies	25
Plant & Machinery	25
Electrical Installation	25
Office Equipment	25
Computers	3

1.6 Fixed Assets:-

All Fixed assets are stated at cost of acquisition less accumulated depreciation. Costs include all expenses incurred to bring the asset to its present location and condition. On transition to Ind AS, the Company has elected to continue with value of all of its fixed asset as at 1st April, 2017.

1.7 Inventories:-

Stores and components	- At cost
Raw material	- At cost
Work in Progress	- At Estimated cost.
Scrap	- At realizable value.

1.8 Income Tax:-

The Current year has been determined on the basis of Minimum Alternate Tax (MAT) liability under section 115 JB of the Income Tax Act, 1961 & as per normal provisions of Income Tax Act whichever is higher.

Deferred Tax reflect the current period timing differences between taxable income and accounting for the period and reversal of timing differences of earlier period. Deferred Tax Assets are recognized only to the extent that there is certainty that sufficient future income will be available to realize the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

1.9 Impairment of Assets

In accordance with IND AS 36 on ''Impairment of Assets’, where there is an indication of impairment of the Company’s assets related to cash generating units, the carrying amounts of such assets related to cash generating units, the carrying amounts of such assets are reviewed at each Balance Sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated as the higher of its net selling price and its value in use. An impairment loss is realizable whenever the carrying amount of such assets exceeds its recoverable amount. Impairment loss is recognized in Profit & Loss account, if at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to the extent of the carrying value of the asset that would have been determined (net of amortization/depreciation) had no impairment loss been recognized.

1.9 Earnings per share

In determining the earning per share, the company considers the net profit after tax and post tax effect of any extra ordinary/exceptional item is shown separately. The number of shares considered in computing basic earning per share is the weighted average number of shares outstanding during the year.

1.10 Provisions and Contingent Liabilities

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. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. A disclosure for a Contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote no provision or disclosure is made. A contingent asset is neither recognised nor disclosed in the financial statements.

1.11 Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value.

1.12 Lease

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.

1.13 Intangible Assets

The company does not have any intangible asset.

1.14 Foreign Exchange Transactions

Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction.

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Mar 31, 2024

2) SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements: -

The financial statements are prepared under the historical cost convention on accrual basis of accounting and comply with the Indian Accounting Standards ("Ind AS") including the rules notified under the relevant provisions of the Companies Act, 2013 amended from time to time.

The financial statements are presented in Indian Rupees and all values are considered in full except otherwise indicated.

1.2 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, liabilities, income and expenses 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. 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. Estimates and underlying assumptions are reviewed on an ongoing basis.

1.3 Revenue Recognitions:

A) Revenue from sale of goods in the ordinary course of business is recognised when the property in the goods or all significant risk and reward of their ownership are transferred to the customer and no significant uncertainity exists regarding the amount of the consideration that will be derived from the sale of tire goods and regarding its collection. Revenue from Services are considered on the basis of completion of work. Tire amount recognised as revenue are net of taxes and duties.

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

1.4 Employee Benefit Expenses

The Company pays gratuity to the employees who have completed five years of service at the time of retirement / resignation. The gratuity is paid @15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972. Tire liability in respect of gratuity and other post employment benefits is calculated using the Projected Unit Credit (PUC) Method and spread over the period during which the benefit is expected to be derived from employees services.

Tire Company has tire policy of accounting gratuity and leave encashment liability on cash basis till earlier years. From the year 2021-22 the Company has started provision of gratuity and leave encashment to meet all the disclosures and reporting obligations as per Ind AS-19.

Renreasurement of gains and losses arising from adjustments and changes in actuarial assumptions are recognised in the period in which they occur in Other Comprehensive Income.

1.5 Depreciation:-

A) Depreciation on Fixed assets has been provided on Straight Line Method (SLM) based on the useful life and in the manner specified in the Schedule II of the Companies Act, 2013. Depreciation on addition/ deletion during tire year is provided for on pro rata basis. Tire estimated useful life of fixed assets is as follows:

1.6 Fixed Assets:-

All Fixed assets are stated at cost of acquisition less accumulated depreciation. Costs include all expenses incurred to bring the asset to its present location and condition. On transition to Ind AS, the Company has elected to continue with value of all of its fixed asset as at 1^st April, 2017.

1.8 Income Tax:-

The Current year has been determined on the basis of Minimum Alternate Tax (MAT) liability under section 115 JB of the Income Tax Act, 1961 &: as per normal provisions of Income Tax Act whichever is higher.

Deferred Tax reflect the current period timing differences between taxable income and accounting for the period and reversal of timing differences of earlier period. Deferred Tax Assets are recognized only to the extent that there is certainty that sufficient future income will be available to realize tire same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or subs hi ntively enacted by the Balance Sheet date.

1.9 Impairment of Assets

In accordance with IND AS 36 on ''Impairment of Assets'', where there is an indication of impairment of the Company''s assets related to cash generating units, the carrying amounts of such assets related to cash generating units, the carrying amounts of such assets are reviewed at each Balance Sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated as the higher of its net selling price and its value in use. An impairment loss is realizable whenever the carrying amount of such assets exceeds its recoverable amount. Impairment loss is recognized in Profit & Loss account, if at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to the extent of the carrying value of the asset that would have been determined (net of amortization/depreciation) had no impairment loss been recognized.

1.9 Earnings per share

In determining the earning per share, the company considers the net profit after tax and post tax effect of any extra ordinary/exceptional item is shown separately. The number of shares considered in computing basic earning per share is the weighted average number of shares outstanding during the year.

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Mar 31, 2015

1.1 Basis of Accounting: -

The accounts are prepared in accordance with the Historical Cost Convention and on the basis of a going concern with revenue recognized and expenses accounted on accrual basis.

1.2 Sales: -

A) Sales of manufacturing items are accounted inclusive of excise duties and sales tax.

B) Sales include billing of Project work on the basis of stipulations specified in each contract. Thus the company does not follow AS-7 as laid down by Institute of Chartered Accountant of India.

1.3 Retirement Benefits:-

A) Retirement benefit in the form of provident fund are accounted on accrual basis.

B) The Company has accounted gratuity & leave encashment liability on cash basis.

1.4 Denreciation:-

A) Depreciation on Fixed assets has been provided on Straight Line Method (SLM) at the rates specified in the Schedule II of the Companies Act, 2013.

B) The Company reassessed the remaining useful life of tangible fixed assets w.e.f 1st April, 2014. Accordingly, the carrying values as on that date are depreciated over their assessed remaining useful lives. Further the carrying amount of assets where remaining useful lives have been reassessed to be nil as at 1st April, 2014 has been recognised in the opening balance of retained earnings as on 1st April, 2014.

1.5 Fixed Assets:-

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

1.6 Inventories:-

Stores and components - At cost

Raw material - At cost

Work in Progress - At Estimated cost.

Scrap - At realizable value.

1.7 Deferred Sales Tax:-

The Company values it obligation for deferred sales tax on net present value basis.

1.8 Income Tax:-

a) The Current year tax has been determined on the basis of Minimum Alternate Tax (MAT) liability under section 115 JB of the Income Tax Act, 1961.

b) Deferred Tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier period. Deferred Tax Assets are recognised only to the extent that there is certainty that sufficient future income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

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Mar 31, 2014

1.1 Basis of Accounting: -

The accounts are prepared in accordance with the Historical Cost Convention and on the basis of a going concern with revenue recognized and expenses accounted on accrual basis.

1.2 Sales: -

A) Sales of manufacturing items are accounted inclusive of excise duties and sales tax.

B) Sales include billing of Project work on the basis of stipulations specified in each contract. Thus the company does not follow AS-7 as laid down by Institute of Chartered Accountant of India.

1.3 Retirement Benefits:-

A) Retirement benefit in the form of provident fund are accounted on accrual basis.

B) The Company has accounted gratuity & leave encashment liability on cash basis.

1.4 Depreciation:-

A) Depreciation on Fixed assets has been provided on Straight Line Method (SLM) at the rates specified — in the Schedule XIV of the Companies Act, 1956.

B) In respect of assets acquired/sold/discarded during the year, Depreciation has been provided on a pro- rata basis with reference to the year, each asset was put to use during the year.

1.5 Fixed Assets:-

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

1.6 Inventories:-

Stores and components - At cost

Raw material - At cost

Work in Progress - At Estimated cost.

Scrap - At realizable value.

1.7 Deferred Sales Tax:-

The Company values it obligation for deferred sales tax on net present value basis.

1.8 Income Tax:-

a) The Current year tax has been determined on the basis of Minimum Alternate Tax (MAT) liability under section 115 JB of the Income Tax Act, 1961.

b) Deferred Tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier period. Deferred Tax Assets are recognised only to the extent that there is certainty that sufficient future income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

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Mar 31, 2013

1.1 Basis of Accounting: -

The accounts are prepared in accordance with the Historical Cost Convention and on the basis of a going concern with revenue recognized and expenses accounted on accrual basis.

1.2 Sales: -

A) Sales of manufacturing items are accounted inclusive of excise duties and sales tax.

B) Sales include billing of Project work on the basis of stipulations specified in each contract. Thus the company does not follow AS-7 as laid down by Institute of Chartered Accountant of India.

1.3 Retirement Benefits:-

A) Retirement benefit in the form of provident fund are accounted on accrual basis.

B) The Company has accounted gratuity & leave encashment liability on cash basis.

1.4 Depreciation:-

A) Depreciation on Fixed assets has been provided on Straight Line Method (SLM) at the rates specified in the Schedule XIV of the Companies Act, 1956.

B) In respect of assets acquired/sold/discarded during the year, Depreciation has been provided on a pro-rata basis with reference to the year, each asset was put to use during the year.

1.5 Fixed Assets:-

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

1.6 Inventories:-

Stores and components - At cost

Raw material - At cost

Work in Progress - At Estimated cost.

Scrap - At realizable value.

1.7 Deferred Sales Tax:-

The Company values it obligation for deferred sales tax on net present value basis.

1.8 Income Tax:-

The Current year tax has been determined on the basis of Minimum Alternate Tax (MAT) liability under section 115 JB of the Income Tax Act, 1961.

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Mar 31, 2010

I. Basis of Accounting: -

The accounts are prepared in accordance with the Historical Cost Convention and on the basis of a going concern with revenue recognized and expenses accounted on accrual basis.

II. Sales: -

a). Sales of manufacturing items are accounted inclusive of excise duties and sales tax.

b). Sales include billing of Project work on the basis of stipulations specified in each contract. Thus the company does not follow AS-7 as laid down by Institute of Chartered Accountant of India.

III. Retirement Benefits:- a) Retirement benefit in the form of provident fund are accounted on accrual basis. b) The Company has accounted gratuity & leave encashment liability on cash basis.

IV. Depreciation:-

a) Depreciation on Fixed assets has been provided on Straight Line Method (SLM) at the rates specified in the Schedule XIV of the Companies Act, 1956.

b) In respect of assets acquired/sold/discarded during the year, Depreciation has been provided on a pro-rata basis with reference to the year, each asset was put to use during the year.

V. Fixed Assets:-

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

VI. Inventories:-

a) Stores and components - At cost

b) Raw material - At cost

c) Work in Progress - At Estimated cost.

d) Scrap - At realizable value.

VII. Deferred Sales Tax:-

The Company values it obligation for deferred sales tax on net present value basis