Home  »  Company  »  Aarti Drugs Ltd  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Aarti Drugs Ltd. Company

Mar 31, 2014

A. recognition of Income and expenditure

These accounts are prepared under the historical cost convention on accrual basis and under the going concern assumption in accordance with the accounting principles generally accepted in India and the relevant provisions of the Companies Act, 1956.

b. Fixed assets and depreciation

i) Fixed assets include all expenditure of capital nature and are stated at cost of acquisition, installation and commissioning and related borrowing cost less depreciation. Fixed asset values are stated at historical cost. Depreciation on fixed assets other than land is charged under the straight-line method in accordance with Schedule XIv of the Companies Act, 1956. Product/Process development costs arising out of R&D are carried forward when their future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortized over the period of expected future economic benefit, from the related project, not exceeding ten years.

ii) Impairment loss indicates the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of the net selling price of an asset or its value in use. value in use is present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. The Company will recognize such losses whenever they arise.

c. Investments

Long Term Investments are stated at cost. Provisions are made for diminution in value of investments, if any, other than those of a temporary nature.

d. Valuation of Inventories

Inventories are stated at lower of cost or net realisable value, on the following basis:

i) Raw materials, packing materials, stores and spares – At cost on FIFO Method

ii) Work in process – At cost plus appropriate allocation of overheads

iii) Finished Goods – At cost plus appropriate allocation of overheads or net realizable value whichever is lower

e. Retirement Benefits

I. In respect of Gratuity and Superannuation fund, the Company''s contribution to group insurance scheme of Life Insurance Corporation of India are charged against revenue.

II. Provision for incremental liability in respect of encashable privilege leave on separation benefit is made as per independent actuarial valuation at the year end.

f. revenue recognition

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will flow to the Company

- Sale of Goods :

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer and is stated net of excise duty, sale returns and VAT.

- Export Benefits :

Export benefits available under prevalent schemes are accrued in the year in which the goods are exported and are accounted to the extent considered receivable.

g. Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of a Qualifying asset are capitalized as part of the cost of that asset. The amounts of borrowing cost eligible for capitalization are determined in accordance with Accounting Standard-16. Other borrowing cost are recognized as an expense in the period in which they are incurred.

h. Foreign Currency Transactions

All exchange differences arising from foreign currency transactions are dealt with in the Company''s profit and loss account.

i. research & Development Expenditure

Revenue Expenses are accounted under the head "Research & Development" and Capital Expenses are Accounted under the head Fixed Assets.

j. Deferred Taxation

Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantially enacted on the Balance Sheet date.


Mar 31, 2013

A. Recognition of Income and expenditure

These accounts are prepared under the historical cost convention on accrual basis and under the going concern assumption in accordance with the accounting principles generally accepted in India and the relevant provisions of the Companies Act, 1956.

b. Fixed assets and depreciation

i) Fixed assets include all expenditure of capital nature and are stated at cost of acquisition, installation and commissioning and related borrowing cost less depreciation. Fixed asset values are stated at historical cost. Depreciation on fixed assets other than land is charged under the straight-line method in accordance with Schedule XIV of the Companies Act, 1956. Product/Process development costs arising out of R&D are carried forward when their future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortized over the period of expected future economic benefit, from the related project, not exceeding ten years.

ii) Impairment loss indicates the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of the net selling price of an asset or its value in use. Value in use is present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. The Company will recognize such losses whenever they arise.

c. Investments

Long Term Investments are stated at cost. Provisions are made for diminution in value of investments, if any, other than those of a temporary nature.

d. Valuation of Inventories

Inventories are stated at lower of cost or net realisable value, on the following basis: i) Raw materials, packing materials, stores and spares - At cost on FIFO Method

ii) Work in process - At cost plus appropriate allocation of overheads

iii) Finished Goods -At cost plus appropriate allocation of Overheads or net realizable value Whichever is lower

e. Retirement Benefits

I In respect of Gratuity and Superannuation fund, the Company''s contribution to group insurance scheme of Life Insurance Corporation of India are charged against revenue.

II. Provision for incremental liability in respect of encashable privilege leave on separation benefit is made as per independent actuarial valuation at the year end.

f. Revenue Recognition

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will flow to the Company

- Sale of Goods :

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer and is stated net of excise duty, sale returns and VAT.

- Export Benefits :

Export benefits available under prevalent schemes are accrued in the year in which the goods are exported and are accounted to the extent considered receivable.

g. Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of a Qualifying asset are capitalized as part of the cost of that asset. The amounts of borrowing cost eligible for capitalization are determined in accordance with Accounting Standard-16. Other borrowing cost are recognized as an expense in the period in which they are incurred

h. Foreign Currency Transactions

All exchange differences arising from foreign currency transactions are dealt with in the Company''s profit and loss account.

i. Research & Development Expenditure:

Revenue Expenses are accounted under the head "Research & Development" and Capital Expenses are Accounted under the head Fixed Assets.

j. Deferred Taxation

Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantially enacted on the Balance Sheet date.


Mar 31, 2012

A) Recognition of Income and expenditure

These accounts are prepared under the historical cost convention on accrual basis and under the going concern assumption in accordance with the accounting principles generally accepted in India and the relevant provisions of the Companies Act, 1956.

b) Fixed assets and depreciation

i) Fixed assets include all expenditure of capital nature and are stated at cost of acquisition, installation and commissioning and related borrowing cost less depreciation. Fixed asset values are stated at historical cost. Depreciation on fixed assets other than land is charged under the straight-line method in accordance with Schedule XIV of the Companies Act, 1956. Product/Process development costs arising out of R&D are carried forward when their future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortized over the period of expected future economic benefit, from the related project, not exceeding ten years.

ii) Impairment loss indicates the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of the net selling price of an asset or its value in use. Value in use is present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. The Company will recognize such losses whenever they arise.

c) Investments

Long Term Investments are stated at cost. Provisions are made for diminution in value of investments, if any, other than those of a temporary nature.

d) Valuation of Inventories

Inventories are stated at lower of cost or net realisable value, on the following basis:

i) Raw materials, packing materials, stores and spares - At cost on FIFO Method

ii) Work in process - At cost plus appropriate allocation of Overheads

iii) Finished Goods - At cost plus appropriate allocation of Overheads or net realizable value, Whichever is lower

e) Retirement Benefits

1 In respect of Gratuity and Superannuation fund, the Company's contribution to group insurance scheme of Life Insurance Corporation of India are charged against revenue.

II. Provision for incremental liability in respect of encashable privilege leave on separation benefit is made as per independent actuarial valuation at the year end.

f) Revenue Recognition

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will flow to the Company

1. Sale of Goods :

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer and is stated net of excise duty, sale returns and VAT.

2 Export Benefits :

Export benefits available under prevalent schemes are accrued in the year in which the goods are exported and are accounted to the extent considered receivable.

g) Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of a Qualifying asset are capitalized as part of the cost of that asset. The amount of borrowing cost eligible for capitalization are determined in accordance with Accounting Standard -16. Other borrowing cost are recognized as an expense in the period in which they are incurred

h) Foreign Currency Transactions

All exchange differences arising from foreign currency transactions are dealt with in the Company's statement of profit and loss.

i) Research & Development Expenditure:

Revenue Expenditure are accounted under the head "Research & Development" and Capital Expenditure are Accounted under the head Fixed Assets.

j) Deferred Taxation

Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantially enacted on the Balance Sheet date.


Mar 31, 2010

A) Recognition of Income and expenditure

These accounts are prepared under the historical cost convention on accrual basis and under the going concern assumption in accordance with the accounting principles generally accepted in India and the relevant provisions of the Companies Act, 19S6.

b) Fixed assets and depreciation

i) Fixed assets include all expenditure of capital nature and are stated at cost of acquisition, installation and commissioning and related borrowing cost less depreciation. Fixed asset values are stated at historical cost. Depreciation on fixed assets other than land is charged under the straight-line method in accordance with Schedule XIV of the Companies Act, 1 956. Product/Process development costs arising out of R&D are carried forward when their future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised over the period of expected future economic benefit, from the related project, not exceeding ten years.

ii) Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of the net selling price of an asset or its value in use. Value in use is present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

c) Investments

Long Term Investments are stated at cost. Provisions are made for diminution in value of investments, if any, other than those of a temporary nature.

d) Valuation of Inventories

Inventories are stated at lower of cost or net realisable value, on the following basis:

i) Raw materials, packing materials, stores and spares

- At cost on FIFO Method

ii) Work in process - At cost plus appropriate allocation of overheads

iii) Finished Goods . - At cost plus appropriate allocation of overheads

or net realizable value, whichever is lower

e) Retirement Benefits

I. In respect of Gratuity and Superannuation fund, the Companys contribution to group insurance scheme of Life Insurance Corporation of India are charged against revenue.

II. Provision for incremental liability in respect of encashable privilege leave on separation benefit is made as per independent actuarial valuation at the year end.

f) Revenue Recognition

Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefit will flow to the Company.

1. Sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the customer and is stated net of excise duty, sale returns and VAT.

2. Export Benefits

Export benefits available under prevalent schemes, are accrued in the year in which the goods are exported and are accounted to the extent considered receivable.

g) Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of that asset. The amount of borrowing cost eligible for capitalization are determined in accordance with Accounting Standard -16. Other borrowing cost are recognized as an expense in the period in which they are incurred.

h) Foreign Currency Transactions

All exchange differences arising from foreign currency transactions are dealt with in the Companys profit and loss account.

i) Research & Development Expenditure

Revenue Expenses are accounted under the head "Research & Development" and Capital Expenses are Accounted under the head Fixed Assets.

j) Deferred Taxation

Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantially enacted on the Balance Sheet date.

 
Subscribe now to get personal finance updates in your inbox!