1. PURPOSE
Apex Instruments Company Private Limited (Apex) hereunder establishes a policy outlining guidelines for financial operations and management, with the aim of ensuring proper accountability to all stakeholders of Apex.
2. SCOPE
The purpose of this policy is to outline the various procedures governing the financial operations and revenue management practices of Apex Instruments Company Private Limited (Apex). It serves as a framework for the relevant departments dealing with finances, and is governed by The Companies Act, 2013 and the SEBI Act, 1992, and their respective regulations. This policy aims to ensure smooth functioning and proper financial management of Apex.
3. APPLICABILITY
This policy is applicable to all employees, directors, officers or other people working with and associated with Apex, either temporarily or permanently, working in all branches throughout the Indian territory (collectively referred to as ‘members’).
4. PRINCIPLES OF THE POLICY
4.1 The policy and procedures are crucial for the efficient and orderly functioning of the financial operations of the company.
4.2 Apex prioritizes transparency in maintaining records of all financial transactions, ensuring accountability by the department handling finances.
4.3 Accuracy is essential in financial procedures and complying with regulatory requirements, both statutory and non-statutory. The financial department of Apex ensures accuracy at every stage of financial transactions involving clients, vendors, members, stakeholders, regulatory bodies, and other competent authorities.
5. CONSISTENT RECORD KEEPING
5.1. Apex must preserve all financial documents, including but not limited to audited and provisional financial statements, statements on cash flow and loans and advances, independent auditor's reports, and others, in good condition for the period specified by the relevant authority.
5.2. The books of account and financial information shall be stored physically or electronically based on the Finance Manager's decision in consultation with the Chief Financial Officer, with the retrieval process in mind.
5.3. The Finance Manager, with the CFO's opinion, is responsible for assigning members of the finance department as document custodians.
5.4. Custodians must maintain physical and/or electronic copies of financial documents, ensuring they can be retrieved with ease when required.
5.5. Documents must be preserved for the time period prescribed by statutory bodies and destroyed as per relevant acts. Confidential documents might be shredded after archiving, while non-confidential documents may be recycled in an eco-friendly manner.
6. FINANCIAL REPORTING
6.1. Financial reporting is crucial for any organization as it enables the monitoring and analysis of financial variables, which in turn allows for forecasting of revenue generation for Apex. This is instrumental in the preparation of budgets that conform to such forecasts, thereby helping to achieve financial stability and growth.
6.2. Apex's financial reporting enables a comparison of the ratio between the budget prepared quarterly, half-yearly, or yearly with the actual performance value. This helps in assessing the organization's financial health and identifying areas of improvement.
6.3. Financial reporting is necessary to monitor and comply with various statutory, non-statutory, taxation, legal, and regulatory requirements that need to be filed at regular intervals. Apex ensures compliance with all such requirements through its financial reporting process.
6.4. Financial Reporting of Apex would consist of, but shall not be limited to:
6.4.1. Annual Report: This report summarizes the financial performance of the organization for the previous year and outlines its plans for the upcoming year
6.4.2. Audited Balance Sheet: The financial position of Apex at a particular point in time and includes details of the organization's assets, liabilities, and equity.
6.4.3. Profit and Loss Statement: An overview of the revenues and expenses of Apex during a particular period.
6.4.4. Quarterly Financial Reports: Updates on the organization's financial performance every quarter, including a comparison of the budgeted versus actual values.
6.4.5. Share-holding pattern: Information about the organization's share capital and the distribution of shares among its shareholders.
6.4.6. Income/ Revenue Statement: Details of the organization's revenue streams, including sales, services, and other sources of income.
6.4.7. Trial balance: Summary of all the balances in the organization's ledger accounts to ensure that the debits and credits are equal.
6.4.8. General ledger: A complete record of all financial transactions of the organization, including details of accounts payable and receivable, expenses, and revenues
6.4.9. Status of statutory and/or non-statutory and/or regulatory compliances: An overview of the organization's compliance status with various statutory and regulatory requirements
7. STANDARDS OF FINANCIAL MANAGEMENT AND GOOD PRACTICE
7.1. At Apex, we believe in maintaining transparency and accountability in all our business operations, including financial activities. This helps us to establish long-term relationships with our stakeholders and partners and set a benchmark in comparison to our competitors. Our Financial Department, headed by the Chief Financial Officer, ensures that financial decisions are made in a responsible and ethical manner.
7.2. Our Financial Manager supervises the day-to-day financial operations of the company in accordance with the Financial Plan, which is prepared by the Chief Financial Officer on an annual basis. The Financial Plan includes a budget that outlines how Apex's financial resources will be allocated throughout the year. This budget serves as a guide for all financial activities undertaken by the company.
7.3. As a responsible corporate citizen, Apex complies with all applicable tax laws and regulations. Our in-house team of qualified professionals ensures that all tax-related matters are handled in a timely and efficient manner. Additionally, we may engage independent professionals when necessary to perform certain financial exercises.
7.4. To ensure accurate financial reporting, the department of Finance at Apex documents and records every transaction related to the handling of cash for official purposes. A physical and/or electronic record of all payments made to and from Apex's official bank account(s) is maintained, including cancelled and halted cheques.
7.5. The department of Finance also maintains a methodical record of petty cash outflow to ensure effective management of company resources. Each department is allotted a specific amount of petty cash based on their individual needs, and every transaction made using petty cash is recorded in the company's books. These practices enable Apex to maintain financial discipline and good governance.
8. ACCOUNTING
8.1. Accounting is a vital component of Apex's financial policy, and we are committed to maintaining transparency in our accounting procedures.
8.2. The accounting policies followed by Apex are governed by the India Accounting Standards (Ind AS) under Section 133 of the Companies Act, 2013. We also comply with the procedures for Disclosure of Accounting Standards notified by the Ministry of Corporate Affairs.
8.3. Our accounting of assets is categorized into fixed assets and current assets. Fixed assets such as property (including land, plant, and machinery), equipment, and intangibles (including proprietary technology and goodwill) are recorded separately. On the other hand, current assets such as cash, investments, and inventories are dealt with separately.
8.4. All documents, including invoices and records, relating to fixed assets are maintained by the Accounts team within the Finance department in both physical and electronic formats for the required duration. Additionally, Apex conducts the valuation of its assets at regular intervals to comply with statutory and regulatory requirements.
8.5. The accounting of liabilities includes maintaining documents related to warranty-related costs, restructuring provisions, decommissioning costs, inventory (non-moving stocks due to deteriorated quality or liquidation), bad and/or doubtful debts, and post-employment benefits in physical and/or electronic formats as deemed fit by the Accounts team within the Finance department.
9. IMPROPER PAYMENTS
Improper payments, as defined by this policy, would refer to any form of bribe or gift, whether it be in the form of money, discounts, entertainment, favors, advantages, or benefits of any kind, that is offered or provided to someone for personal gain, with the intention or potential of influencing their decision-making or actions. Apex has a comprehensive Anti-Bribery and Anti-Corruption Policy in place to address any violations related to improper payments, and any such offenses will be handled in accordance with this policy.
10. REPORTING VIOLATIONS
10.1. Any member who becomes aware of any instance or who becomes aware of any information suggesting that a violation under this Policy has occurred or is about to occur is required to report it to the Compliance Officer.
10.2. No employees, directors, officers and other people working with Apex will suffer demotion, penalty, or other adverse consequences for raising concerns or for reporting possible wrongdoing, even if such a report and/or concern is found to be mistaken.
10.3. Apex prohibits retaliatory action against any person who raises a concern in good faith.
10.4. All reports of violation under this policy made before the Compliance officer shall be looked into deeply by the compliance officer and the management.
11. INQUIRY PROCESS
11.1. If a concern or report is filed against a member of Apex, the Compliance Officer shall send a copy of the concern or report to the accused member(s) within 7 days of receipt. The accused member(s) shall have 10 days thereafter to file a reply to the concern or report along with supporting documents and details of witnesses, if any.
11.2. Apex undertakes to take necessary steps within 60 days of receiving the concern or report, including conducting an inquiry as necessary and taking appropriate action based on the outcome of the inquiry.
12. PUNISHMENT FOR VIOLATION
The disciplinary action taken against an offender shall be commensurate with the nature and gravity of the offence and may include, but not be limited to, the following: warning, written apology from the offender, debarring from supervisory duties, denial of employee benefits such as increments, promotions, or salary correction, cancellation of specific work assignments, suspension, and/or dismissal.
13. DISPLAY OF THIS POLICY
13.1. Apex shall display this Policy on the Apex website as well as display the same conspicuously on the notice boards of each of its offices in English.
13.2. Each employee shall view and confirm to these policies upon joining and/or upon the same being enforced by Apex.