2.6 PROVISIONS
A provision is recognized if, as a result of
a past event, the Company has a present
legal or constructive obligation that is
reasonably estimable, and it is probable
that an outflow of economic benefits
will be required to settle the obligation.
Provisions are determined by discounting
the expected future cash flows at a pre¬
tax rate that reflects current market
assessments of the time value of money
and the risks specific to the liability.
Contingent liabilities are not recognised
but are disclosed by way of notes to
the financial statements, after careful
evaluation by the management of the
facts and legal aspects of each matter
involved. Contingent assets are neither
recognised nor disclosed in the financial
statements.
Contingent liabilities are assessed
continually to determine whether an
outflow of resources embodying the
economic benefit has become probable.
If it becomes probable that an outflow
of future economic benefits will be
required for an item previously dealt
with as contingent liability, a provision
is recognised in the financial statements
of the period in which the change in
probability occurs.
2.7 BORROWING COST
Borrowing costs that are attributable
to the acquisition or construction of
qualifying assets are capitalized as part
of the cost of such assets to the extent
they relate to the period till such assets
are ready to be put to use, while other
borrowing costs are recognized as
expenses in the year in which they are
incurred. A qualifying asset is one that
necessarily takes substantial period of
time to get ready for its intended use.
2.8 INVENTORIES
i) Raw materials, consumables stores
and spares are valued at lower of
cost and net realizable value. Work
in progress and finished goods are
valued at lower of cost and net
realizable value.
The costs of work in progress and
finished goods include costs of
raw material, conversion cost and
other costs incurred in bringing
the inventories to their present
location and condition. Cost
of inventories is computed on
weighted average/FIFO/specific
identification, as applicable.
ii) Scrap is valued at the net realisable
value.
Net Realisable Value represents
the estimated selling price for
inventories less all estimated costs
of completion and costs necessary
to make the sale.
2.9 FOREIGN CURRENCY TRANSACTIONS
In preparing the financial statements of
the Company, transactions in currencies
other than the company's functional
currency i.e. foreign currencies are
recognised at the rates of exchange
prevailing at the dates of the transactions.
At the end of each reporting period,
monetary items denominated in foreign
currencies are retranslated at the rates
prevailing at that date. Non-monetary
items that are measured in terms of
historical cost in a foreign currency are
not retranslated.
Exchange differences on monetary items
are recognised in the Statement of Profit
and Loss in the period in which they arise.
2.10 TAXATION
Income tax expense represents the sum
of the tax currently payable and deferred
tax.
Current Tax
The tax currently payable is based on
taxable profit for the year. Taxable profit
differs from profit before tax as reported
in the statement of profit and loss
because of items of income or expense
that are taxable or deductible in other
years and items that are never taxable or
deductible. The Company's current tax is
calculated using tax rates that have been
enacted or substantively enacted by the
end of the reporting period.
Deferred Tax
Deferred tax is recognised on temporary
differences between the carrying
amounts of assets and liabilities in
the financial statements and the
corresponding tax bases used in
the computation of taxable profit.
Deferred tax liabilities are generally
recognised for all taxable temporary
differences. Deferred tax assets are
generally recognised for all deductible
temporary differences to the extent that
it is probable that taxable profits will be
available a gainst which those deductible
temporary differences can be utilised.
The carrying amount of deferred tax
assets is reviewed at the end of each
reporting period and reduced to the
extent that it is no longer probable that
sufficient taxable profits will be available
to allow all or part of the asset to be
recovered.
Deferred tax liabilities and assets are
measured at the tax rates that are
expected to apply in the period in
which the liability is settled or the asset
realised, based on tax rates (and tax laws)
that have been enacted or substantively
enacted by the end of the reporting
period.
The measurement of deferred tax
liabilities and assets reflects the tax
consequences that would follow from the
manner in which the Company expects,
at the end of the reporting period, to
recover or settle the carrying amount of
its assets and liabilities.
Current and deferred tax for the year
Current and deferred tax are recognised
in profit or loss, except when they relate
to items that are recognised in other
comprehensive income or directly in
equity, in which case, the current and
deferred tax are also recognised in other
comprehensive income or directly in
equity respectively.
2.11 REVENUE RECOGNITION
(i) Revenue from contracts with
customers
Pursuant to the application of Ind
AS-115, the Company has applied
following accounting policy for
revenue recognition:
The Company satisfies a
performance obligation and
recognises revenue over time, if
one of the following criteria is met:
a) The customer simultaneously
receives and consumes the
benefits provided by the
Company's performance as
the entity performs; or
b) The Company's performance
creates or enhances an asset
that the customer controls
as the asset is created or
enhanced; or
c) The Company's performance
does not create an asset
with an alternative use to
the Company and the entity
has an enforceable right to
payment for performance
completed to date.
For performance obligations,
where one of the above conditions
are not met, revenue is recognised
at the point in time at which the
performance obligation is satisfied.
Revenue is recognised either at
point of time and over a period to
time based on various conditions
as included in the contracts with
customers.
(ii) Other
a) Sales are recognised on
dispatch of goods except in
the case of exports which
are accounted for on the
date of custom clearance.
However in some cases
export is accounted on the
terms of contract executed
with respective customers.
b) Interest income is recognized
using effective interest
method.
c) Export benefits are
recognised on accrual basis
at the anticipated realisable
value.
d) Forfeiture due to non
fulfilment of obligations by
counter parties is accounted
as Revenue on unconditional
appropriation.
e) Service receipts and interest
from customers is accounted
for on accrual basis.
f) Divided income is recognised
when the shareholder or
unit holder's right to receive
payment is established,
which is generally when
shareholder approve the
dividend.
g) Share of profit/loss from
firm in which the Company
is a partner is accounted for
in the financial year ending
on the date of the Balance
Sheet.
h) Interest on arrears of
allotment money is accounted
in the year of receipt.
2.12 OPERATING SEGMENT
Operating segments are reported in the
manner consistent with the internal
reporting provided to the chief operating
decision (CODM). The Cheif financial
officer of APIS India Limited has been
identified as CODM and he is responsible
for allocating the resources, assess the
financial performance and position
of the Company and makes strategic
decisions. The Company has identified
one reportable segment based on the
information reviewed by the CODM.
2.13 CASH FLOW STATEMENT
The Cash Flow Statement is prepared
by the indirect method set out in Indian
Accounting Standard-7 on Cash Flow
Statements and presents cash flows
by operating, investing and financing
activities of the Company. The Company
considers all highly liquid financial
instruments,which are readily convertible
into cash, to be cash equivalents.
2.14 EARNING PER SHARE
Basic earnings per share are calculated
by dividing the net profit for the period
attributable to equity shareholders by
the weighted average number of equity
shares outstanding during the period
.The weighted average number of equity
shares outstanding during the period
and for all periods presented is adjusted
for events, such as bonus shares, other
than the conversion of potential equity
shares that have changed the number
of equity shares outstanding without
a corresponding change in resources.
For the purpose of calculating diluted
earnings per share, the net profit
for the period attributable to equity
shareholders and the weighted average
number of shares outstanding during the
period is adjusted for the effects of all
dilutive potential equity shares.
2.15 FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are
recognised when the Company becomes
a party to the contractual provisions of
the instruments.
Financial assets and financial liabilities are
initially measuredat fair value. Transaction
costs that are directly attributableto the
acquisition or issue of financial assets and
financial liabilities (other than financial
assets and financial liabilities at fair
value through profit or loss) are added
to or deducted from the fair value of the
financial assets or financial liabilities, as
appropriate, on initial recognition.
Transaction costs directly attributable
to the acquisition of financial assets or
financial liabilities at fair value through
profit or loss are recognised immediately
in profit or loss.
2.16 FINANCIAL ASSETS
All recognised financial assets are
subsequently measured in their entirety
at either amortised cost or fair value,
depending on the classification of the
financial assets.
2.17 CURRENT VERSUS NON-CURRENT
CLASSIFICATION
The Company presents assets and liabilities
in the balance sheet based on current/non-
current classification. An asset is treated as
current when it is:
i) Expected to be realised or intended
to be sold or consumed in normal
operating cycle.
ii) Held primarily for the purpose of
trading.
iii) Expected to be realised within
twelve months after the reporting
period, or
iv) Cash or cash equivalent unless
restricted from being exchanged or
used to settle a liability for at least
twelve months after the reporting
period.
All other assets are classified as non¬
current.
A liability is current when:
i) It is expected to be settled in
normal operating cycle.
ii) It is held primarily for the purpose
of trading.
iii) It is due to be settled within twelve
months after the reporting period,
or
iv) There is no unconditional right to
defer the settlement of the liability
for at least twelve months after
the reporting period.
The Company classifies all other liabilities
as non-current.
2.18 LEASES
The Company evaluates if an arrangement
qualifies to be a lease as per the
requirements of Ind AS 116. Identification
of a lease requires significant judgment.
The Company uses significant judgement
in assessing the lease term (including
anticipated renewals) and the applicable
discount rate. The Company determines
the lease term as the non-cancellable
period of a lease, together with both
periods covered by an option to extend
the lease if the Company is reasonably
certain to exercise that option; and
periods covered by an option to terminate
the lease if the Company is reasonably
certain not to exercise that option.
In assessing whether the Company is
reasonably certain to exercise an option
to extend a lease, or not to exercise an
option to terminate a lease, it considers
all relevant facts and circumstances
that create an economic incentive for
the Company to exercise the option
to extend the lease, or not to exercise
the option to terminate the lease. The
Company revises the lease term if there
is a change in the non-cancellable period
of a lease. The discount rate is generally
based on the incremental borrowing
rate specific to the lease being evaluated
or for a portfolio of leases with similar
characteristics.
41 FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation
techniques:
(i) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
(ii) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.
(iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognized in the standalone financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
42 Financial Instruments
Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise
the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by
total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables,
less cash and cash equivalents.
43 Fair value measurements
The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation
techniques:
The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3: Level 1: This level
includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). Level 3: This level
includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair
values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from
observable current market transactions in the same instrument nor are they based on available market data.
Trade receivables, cash & cash equivalents, other bank balances, loans, other current financial assets, trade payables and other current
financial liabilities: Approximate their carrying amounts largely due to short-term maturities of these instruments.
Management uses its best judgment in estimating the fair value of its financial instruments. However, there are inherent limitations
in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented above are not
necessarily indicative of all the amounts that the Company could have realized or paid in sale transactions as of respective dates. As
such, the fair value of the financial instruments subsequent to the respective reporting dates may be different from the amounts
reported at each year end.
44 Financial risk management objectives
The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these
financial liabilities is to finance and support Company's operations. The Company's principal financial assets include inventory, trade
and other receivables, cash and cash equivalents and loan & advances that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management
of these risks. The Company's senior management provides assurance that the Company's financial risk activities are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's
policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised
below:
a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and
commodity/ realestate risk. Financial instruments affected by market risk include loans and borrowings.
b) Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities, including refundable joint development deposits, security deposits, loans to employees
and other financial instruments.
c) Trade receivables
i) Receivables resulting from sale of goods: Customer credit risk is managed by requiring customers to pay advances
before sales of goods, therefore, substantially eliminating the Company's credit risk in this respect.
ii) Receivables resulting from other than sale of properties: Credit risk is managed by each business unit subject to the
Company's established policy, procedures and control relating to customer credit risk management. Outstanding
customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an
individual basis for major clients. In addition, a large number of minor receivables are grouped into homogeneous
groups and assessed for impairment collectively.
d) Financial Instrument and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in
accordance with the Company's policy. Investments of surplus funds are made only with approved counterparties and
within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company's Board of
Directors on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of
risks and therefore mitigate financial loss through a counterparty's potential failure to make payments.
e) Liquidity risk
The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank
deposits and loans.
45 During the year, the Company assessed the investment in equity instrument of subsidiary and associate companies carried at cost
for impairment testing. These companies are expected to generate positive cash flows in the future years. Detailed analysis has been
carried out on the future projections and the Company is confident that the investments do not require any impairment.
46 The Code on Social Security, 2020, (Code) relating to employees benefits during employment and post-employment benefits received
President assent in September, 2020. The Code has been published in the Gazette of India. However, the data on which the Code will
come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact
of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.
47 "Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies Act 2013"
(i) The company does not have any transaction with the companies struck off under SEC 248 of the Companies Act 2013 or section
560 of the Companies Act 1956 during the year ended March 31, 2025 and March 31, 2024.
(ii) There are no charges or satisfaction which are to be registered with the registrar of companies during the year ended March 31,
2025 and March 31, 2024.
(iii) The Company complies with the number of layers of companies in accordance with clause 87 of Section 2 of the Act read with
the Companies (Restriction on number of layers) rules 2017 during the year ended March 31, 2025 and March 31, 2024.
(iv) The Company has not invested or traded in cryptocurrency or virtual currency during the year ended March 31, 2025 and March
31, 2024.
(v) No proceedings have been initiated on or are pending against the company for holding Benami property under the Prohibition
of Benami Property Transaction Act 1988 (as amended in 2016) (formally the Benami Transactions (Prohibition) Act, 1988 (45 of
1988) and Rules made thereunder during the year ended March 31, 2025 and March 31, 2024.
(vi) The Company has not been declared a wilful defaulter by any bank or financial institution or government or any government
authorities during the year ended March 31, 2025 and March 31, 2024.
(vii) The Company has not entered into any scheme of arrangement approved by the competent authority in terms of sections 232 to
237 of the Companies Act 2013 during the year ended March 31, 2025.
(viii) During the year ended March 31, 2025 and March 31, 2024, the Company has not surrendered or disclosed as income any
transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as
search or survey or any other relevant provisions of the Income Tax Act 1961).
(ix) During the year ended March 31, 2025 and March 31, 2024, the Company has not advanced or loaned or invested funds (either
borrowed funds or the share premium or kind of funds) to any other person or entities, including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the intermediary shall:
a. directly or indirectly land or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (ultimate beneficiaries) or
b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(x) During the year ended March 31, 2025 and March 31, 2024, the Company has not received any funds from any persons or entities
including foreign entities (Funding party) with the understanding (whether recorded in writing or otherwise) that the company
shall :
a. 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
b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
(xi) Quartelry returns or statements of the current assets filed by the Company with banks or financial institutions are generally in
agreement with books of accounts.
(xii) The company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both
during the current or previous year.
49. Figures have been rounded off to the nearest lakhs.
50. Previous year figures has been regrouped & rearranged to present true and fair view of the financial statement.
51. Figures in brackets pertain to previous year, unless otherwise indicated.
As per our report of even date attached.
AS PER OUR REPORT OF EVEN DATE
For G A M S & Associates, LLP
CHARTERED ACCOUNTANTS
Firm Reg. No. 0N500094 For and on Behalf of the Board of Directors
Anil Gupta Prem Anand Vimal Anand Amit Anand
(Partner) (Director & Chairperson) (Director) (Managing Director)
Membership No: 088218 DIN:00951873 DIN: 00951380 DIN: 00951321
UDIN : 25088218BMKVSP3937
Manisha Anand Vikas Aggarwal
Date : May 30, 2025 (CFO) (Company Secretary)
Place : New Delhi
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