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Accounting Policies of Beryl Drugs Ltd. Company

Mar 31, 2015

(A) USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent 1 liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/materialize.

(B) CASH FLOW STATEMENT

The cash flow statement is prepared using the " Indirect method set out in Accounting Standard 3" Cash Flow statement which presents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance.

(C) FIXED ASSETS

(a) TANGIBLE FIXED ASSETS

Fixed assets are initially recorded at cost. Cost comprises the Purchase Price and any Direct attributable cost of bringing the assets to working condition for its intended use. The cost of the Tangible assets acquired in Amalgamation in the nature of Purchase is their Fair Value as at the date of Amalgamation. Following Initial Recognition. Tangible assets are carried at cost less accumulated depreciation and Impairment Loss (If any) Gain or loss arising from De recognition of Tangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the assets is derecognized.

(b) Intangible Assests

Intangible Assets acquired separately are measured on Initial recognition at Cost. The Company Uses presumption that the useful life of an Intangible Assets will not exceed ten years from the date when the assets is available for use.

(D) DEPRECIATION

Depreciation on Fixed assets is provided to the extent of depreciable amount as per written down value (WDV) method. Depreciation is provided based on useful life of the assets as prescribed in schedule II of the Companies Act 2013. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted From the opening balance of Profit & Loss Account Intangible assets are amortised on written down basis on the estimated useful economic life .

(E) REVENUE RECOGNITION

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

(a) Sale of Goods - Revenue is recognized when all the significant risk and reward of ownership of the goods has passed to the buyer usually on delivery of goods. Excise duty and vat deducted from the turnover is the amount that is included in the amount of turnover and not the entire amount of liability arises during the year.

(b) Interest - Revenue is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

(F) INVENTORIES

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realisable value. Costs for Finished Goods includes direct material, labour, excise duty and appropriate production overheads.

(G) INVESTMENT

Investment in Equity Shares is stated at cost.

(H) BORROWING COST

Borrowing cost is treated as revenue expenditure and is charged to the Profit and Loss Account for the year. There is no Specific borrowing cost regarding acquisition of capital assets.

(I) TAXATION

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized to the profit and loss account.

(J) EARNING PER SHARE

The company reports basic and diluted earning per shares are computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(K) EMPLOYEE BENEFIT

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short term employee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

i) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services.

ii) Defined Benefit Gratuity Plan

Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

(L) PROVISION, CONTINGENT LIABILITIES & CONTINGENT ASSETS

The Provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made. A contingent liability is a possible obligation That arise from past events whose existence will be confirmed by the occurrence of one or non occurrence of one or more uncertain future event beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation . A contingent liability arises in extremely rear cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognized a contingent liability but discloses its event in financial statement.

(M) CENVAT BENEFIT

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

(N) PRIOR PERIOD ADJUSTMENT & EXTRA ORDINARY ITEM

Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year.

(O) EXCISE DUTY

1. Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared and provision has been made for goods lying in godown as per Guidance notes on Excise Duty.

2. Excise duty on sales has been reduced from sales in statement of profit & loss and provision of excise duty is made on closing stock.

(P) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(Q) IMPAIRMENT OF ASSETS

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair vale of assets. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise.

(R) SEGMENT REPORTING

Primary Segment identified based on the nature of product and secondary segment is identified based on geographical location.

(S) OPERATING LEASE:

Assets taken on lease, under which the lessor effectively retains all the risks and rewards of ownership, are classified as operating lease .Operating lease payment are recognized as expenses in the profit and loss accounts on a straight line basis over the lease term.

State capital subsidy is not specifically related to any fixed assest hence credited to capital subsidy account under the head capital reserve.


Mar 31, 2014

(a) BASIS OF ACCOUNTING

The financial statements have been prepared and presented under the historical cost convention on the accrual Basis of Accounting and in accordance with the Provision of the Companies Act 1956 and also compliance of 133 section of companies act 2013 that are applicable from 13/09/2013 and Accounting Principles generally accepted in India and comply with applicable Accounting principles in India, the mandatory Accounting Standards issued by the Institute of Chartered Accountant of India and provisions of the Companies Act, 1956 also compliance of 133 section of companies act 2013 that are applicable from13/09/2013.

(b) USE OF ESTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/ materialize.

(c) CASH FLOW STATEMENT

The cash flow statement is prepared using the " Indirect method set out in Accounting Standard 3" Cash Flow statement which presents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent presented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance.

(d) CURRENT AND NON CURRENT CLASSIFICATION

All Assets and Liabilities are classified into Current and Noncurrent.

ASSETS: - As assets is classified as current when it satisfies any of the following criteria:

(i) It is expected to be realized in or intended for sale or consumption in the company normal operating cycle.

(ii) It is held primarily for the purpose of being traded.

(iii) It is expected to be realized within 12 months of the reporting date or

(iv) It is Cash or Cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current position of the non current financial assets. All other Assets are classified as Non current.

LIABILITY:- A Liability is classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the companies normal operating cycle, or

(ii) It is held primarily for the purpose of being traded, or

(iii) It is due to be settled within 12 months after the reporting date, or

(iv) The company does not have an unconditional right to date settlement of the liability for at least 12 months after the reporting date. Term of a liability that could at the option of the counter party result in its settlement by the issue of equity instrument do not affected its classification. Current liability includes current position of the non current financial liabilities all other liabilities are classified as Noncurrent.

(e) Sales

Sales are inclusive of freight and octroi claimed in the sales invoices, but net of excise duty and sales return.

(f) State Subsidy

State capital investment subsidy is not specifically related to any Fixed Assets and has been credited to Capital Subsidy Account under the head of Capital Reserve.

(g) Fixed Assets

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(h) Depreciation

Depreciation is charged over the estimated useful life of fixed assets on a Written down Value basis except on trademark which is depreciated on the basis of SLM having life of 5 years. The rates of depreciation for fixed assets, which are not lower than the rates prescribed in Schedule XIV to the Companies Act, 1956.

(i) Stores and Spares including Coal, Chemical Stores, Spares & Coal

Stores, Spares & Coal, Chemical are charged to the Profit and Loss Account as and when these are incurred.

(j) Revenue Recognition

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

(a) Sale of Goods- Revenue is recognized when all the significant risk and reward of ownership of the goods has passed to the buyer usually on delivery of goods. Excise duty and vat deducted from the turnover is the amount that is included in the amount of turnover and not the entire amount of liability arises during the year.

(b) Interest- Revenue is recognized on a time proportion basis taking into account the amount outstanding and rate applicable.

(k) Inventories

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realisable value. Costs for Finished Goods includes direct material, labour, excise duty and appropriate production overheads.

(l) Investment

Investment in Equity Shares is stated at cost.

(m) Borrowing Cost

Borrowing cost is treated as revenue expenditure and is charged to the Profit and Loss Account for the year. There is no borrowing cost regarding acquisition of capital assets.

(n) Taxation

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized to the profit and loss account.

(o) Earning per share

The company reports basic and diluted earning per shares are computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(p) Employee Benefit

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short term employee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

i) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services.

ii) Defined Benefit Gratuity Plan

Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

(q) Provision, Contingent Liabilities & Contingent Assets

The Provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources would be required to settle the obligation, in respect of which

a reliable estimate can be made. A disclosure for a Contingent Liability is made when there is a Possible Obligation or a Present obligation that may not require an outflow of resources.

(r) Cenvat Benefit

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

(s) Prior Period Adjustment & Extra Ordinary Item

Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year.

(t) Excise Duty

1. Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared and provision has been made for goods lying in godown as per Guidance notes on Excise Duty.

2. Excise duty on sales has been reduced from sales in statement of profit & loss and provision of excise duty is made on closing stock.

(u) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(v) Impairment of Assets

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair vale of assets. The impairment loss recognized in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise.

(w) SEGMENT REPORTING

Primary Segment identified based on the nature of product and secondary segment is identified based on geographical location.

(x) OPERATING LEASE:

Assets taken on lease, under which the lesser effectively retains all the risks and rewards of ownership, are classified as operating lease .Operating lease payment are recognized as expenses in the profit and loss accounts on a straight line basis over the lease term.


Mar 31, 2013

(a) BASIS OF ACCOUNTING

The financial statements have been prepared and presented under the historical cost convention on the accrual Basis of Accounting and in accordance with the Provision of the Companies Act 1956 and Accounting Principle generally accepted in India and comply with applicable Accounting principles in India, the mandatory Accounting Standards issued by the Institute of Chartered Accountant of India and provisions of the Companies Act, 1956.

(b) USE OF EXTIMATES

The preparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that effect the reported amounts of meets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/ materialize.

(c) CASH FLOW STATEMENT

The cash flow statement is prepared using the " Indirect method setout in accounting standard 3" Cash Flow statement and presents cash flow operating, investing and financing activities of the Company cash and cash equivalent presented in the cash flow statement consists of cash on hand and unencumbered lightly liquid Bank Balance.

(d ) CURRENT AND NON CURRENT CLASSIFICATION

All Assets and Liabilities are classified into Current and Noncurrent.

ASSETS: - As assets is classified as current when it satisfies any of the following criteria:

(i) It is expected to be realized in or intended for sale or consumption in the company normal operating cycle. (ii) It is held primarily for the purpose of being traded. (iii) It is expected to be realized within 12 months of the reporting date or (iv) It is Cash or Cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include the current position of the non current financial assets. All other Assets are classified as Non current.

LIABILITY:- A Liability is classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the companies normal operating cycle, or

(ii) It is held primarily for the purpose of being traded, or

(iii) It is due to be settled within 12 months after the reporting date, or

(iv) The company does not have an unconditional right to date settlement of the liability for at least 12 months after the reporting date. Term of a liability that could at the option of the counter party result in its settlement by the issue of equity instrument do not affected its classification. Current liability includes current position of the non current financial liabilities all other liabilities are classified as Noncurrent.

(e) Sales

Sales are inclusive of freight and octroi claimed in the sales invoices, but net of excise duty and sales return.

(f) State Subsidy

State capital investment subsidy is not specifically related to any Fixed Assets and has been credited to Capital Subsidy Account under the head of Capital Reserve.

(g) Fixed Assets

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(h) Depreciation

Depreciation is charged over the estimated useful life of fixed assets on a Written down Value basis except on trademark which is depreciated on the basis of SLM having life of 5 years. The rates of depreciation for fixed assets, which are not lower than the rates prescribed in Schedule XIV to the Companies Act, 1956.

(i) Stores and Spares including Coal, Chemical Stores, Spares & Coal

Chemical are charged to the Profit and Loss Account as and when these are incurred.

(j) Revenue Recognition

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

(k) Inventories

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realisable value. Costs for Finished Goods includes direct material, labour, excise duty and appropriate production overheads.

(l) Investment

Investment in Equity Shares is stated at cost. Company has made the investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl Securities Ltd., a Company under the same management. But no provision of Rs.712320.00 (P.Y. Rs. 1838464.00) has been made for diminution in value of Securities [(Market Value Rs. 60,71,680.00) (P.Y. Rs. 49, 45, 536.00)] due to temporary in nature in the opinion of the management.

(m) Foreign Currency Transactions

There is no foreign currency transaction entered into by the company in during the year.

(n) Borrowing Cost

Borrowing cost is treated as revenue expenditure and is charged to the Profit and Loss Account for the year. There is no borrowing cost regarding acquisition of capital assets.

(o) Taxation

1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961.

2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized to the profit and loss account.

(p) Earning per share

The company reports basic and diluted earning per shares are computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(q) Employee Benefit

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short term employee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

i) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services. ii) Defined Benefit Gratuity Plan

Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

(r) Provision, Contingent Liabilities & Contingent Assets

The Provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made. A disclosure for a Contingent Liability is made when there is a Possible Obligation or a Present obligation that may not require an outflow of resources.

(s) Cenvat Benefit

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

(t) Prior Period Adjustment & Extra Ordinary Item

Income and expenditure pertaining to prior period duly reflected under head of prior period items in the statement of Profit & loss during the financial year. In the current year Rs. 259083/- on account of keyman insurance premium, Rs. 28090/- on account of cost auditor remuneration & Rs. 72963/- on account of income tax of earlier year debited to statement of profit & loss.

(u) Excise Duty

1. Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared but no provision for Rs. 99235/- has been made for goods lying in godown because it will be provided after clearance of goods sold.

2. Excise duty on sales amounting to Rs. 4112933/- has been reduced from sales in profit & loss account and excise duty on stock Rs. 99235/- has not been considered in the financial statement due to recorded on clearance of goods for sale.

(v) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(w) Impairment of Assets

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair vale of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a charge in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise. There is no impairment of assets accordingly no adjustment in respect of loss or impairment of assets is required to be made in the accounts.


Mar 31, 2012

(A) BASIS OF ACCOUNTING

The financial statements have been prepared and presented under the historical cost convention on the accrual Basis of Accounting and in accordance with the Provision of the Companies Act 1956 and Accounting Principle generally accepted in India and comply with applicable Accounting principles in India, the mandatory Accounting Standards issued by the Institute of Chartered Accountant of India and the Companies Act, 1956.

(B) This is the first year of application of the Revised Schedule VI to the Companies Act, 1956 for the Preparation of the Financial Statements of the Company. The Revised Schedule VI introduced some significant conceptual changes as well as new Disclosure. These include classification of Assets and Liabilities in Current and Noncurrent. The Previous Period figures have also undergone a major reclassification to Company with the requirement of the Revised Schedule VI.

(C) CURRENT AND NON CURRENT CLASSIFICATION

All Assets and Liabilities are classified into Current and Noncurrent.

ASSETS:- As assets is classified as current when it satisfies any of the following criteria:

(i) It is expected to be realized in or intended for sale or consumption in the company normal operating cycle.

(ii) It is held primarily for the purpose of being traded.

(iii) It is expected to be realized within 12 months of the reporting date or

(iv) It is Cash or Cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current position of the non current financial assets. All other Assets are classified as Noncurrent.

LIABILITY:- A Liability is classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the companies normal operating cycle, or

(ii) It is held primarily for the purpose of being traded, or

(iii) It is due to be settled within 12 months after the reporting date, or

(iv) The company does not have an unconditional right to date settlement of the liability for at least 12 months after the reporting date. Term of a liability that could at the option of the counter party result in its settlement by the issue of equity instrument do not affected its classification. Current liability includes current position of the non current financial liabilities all other liabilities are classified as Noncurrent.

(D) Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

E) Use of Estimates

The preparation of financial Statements requires estimates and assumptions to be made that affect the reported amount of Assets & liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

(F) Sales

Sales are inclusive of freight and octopi claimed in the sales invoices, but net of excise duty and sales return.

(G) State Subsidy

State capital investment subsidy is not specifically related to any Fixed Assets and has been credited to Capital Subsidy Account under the head of Capital Reserve.

(H) Fixed Assets

Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated depreciation.

(I) Depreciation

Depreciation is charged over the estimated useful life of fixed assets on a Written down Value basis. The rates of depreciation for fixed assets, which are not lower than the rates prescribed in Schedule XIV to the Companies Act, 1956.

(J) Stores and Spares including Chemical

Stores, Spares & Chemical are charged to the Profit and Loss Account as and when these are incurred.

(K) Revenue Recognition

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

(L) Inventories

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realizable value. Costs for Finished Goods includes direct material, lab our, excise duty and appropriate production overheads.

(M) Investment

Investment in Equity Shares is stated at cost. Company has made the investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl Securities Ltd., a Company under the same management. But no provision of Rs.18, 38, 464.00 (P.Y. Rs. 46, 94,528.00) has been made for diminution in value of Securities [(Market Value Rs. 49, 45, 536.00) (P.Y. Rs. 20, 89, 472.00)] due to temporary in nature in the opinion of the management.

(N) Foreign Currency Transactions

There is no foreign currency transaction entered into by the company in during the year.

(O) Borrowing Cost

Borrowing cost is treated as revenue expenditure and is charged to the Profit and Loss Account for the year. There is no borrowing cost regarding acquisition of capital assets.

(P) Taxation

a) The Provision for current tax has been provided in accordance with the Income Tax Act, 1961.

b) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized to the profit and loss account.

(Q) Earnings per share

The company reports basic and diluted earnings per shares are computed in accordance with Accounting Standard-20 -Earning per share.

Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year.

(R) Employee Benefit

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short term employee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

a) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services.

b) Defined Benefit Gratuity Plan Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

(S) Provision, Contingent Liabilities& Contingent Assets

The Provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources would be required to settle the obligation, in respect of which a reliable estimate can be made.

A disclosure for a Contingent Liability is made when there is a Possible Obligation or a Present obligation that may not require an outflow of resources.

(T) Canvas Benefit

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

(U) Prior Period Adjustment & Extra Ordinary Item

Income and expenditure pertaining to prior period duly reflected under head of prior period items in the Profit & loss Account during the financial year.

(V) Excise Duty

a) Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared as also provision made for goods lying in go down and accordingly liability of excise duty provided is NIL (P.Y. Rs. 25,332/-) as certified by the Management.

b) Excise duty on sales amounting to Rs.4, 93,036.00 (P.Y. 6, 46,846.00) has been reduced from sales in profit & loss account and excise duty on stock considered as nil (P.Y. 25,332.00) has been considered in the financial statement

(W) Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

(X) Impairment of Assets

Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair value of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a charge in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise. There is no impairment of assets accordingly no adjustment in respect of loss or impairment of assets is required to be made in the accounts.


Mar 31, 2010

A. Basis of Accounting

1. The accounts of the Company are prepared under the historical cost convention and in accordance with the applicable Accounting Principle in India, The Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956. Accounting policies not specifically referred otherwise are in consistence with generally accepted accounting principles followed by the Company.

2. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

b. Sales

Sales are inclusive of freight and octroi claimed in the sales invoices, but net of excise duty and sales return.

c. State Subsidy

State capital investment subsidy not specifically related to any Fixed Assets and has been credited to Capital Subsidy Account.

d. Fixed Assets

Fixed assets are stated at cost of acquisition or construction (net of CENVAT where applicable). They are stated at historical cost less accumulated depreciation.

e. Depreciation

Depreciation is provided on the basis of Written Down Value method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

f. Stores and Spares including Chemical

Stores, Spares & Chemical are charged to the Profit and Loss Account as and when these are incurred.

g. Revenue Recognition

In appropriate circumstances revenue income is recognized when no significant uncertainty as to the determination or realization exist.

h. Inventories

Inventories consisting of Raw Material and Packing Material have been valued at lower of cost or net realizable value on FIFO cost basis. Finished goods have been valued at lower of cost or net realisable value. Costs for Finished Goods includes direct material, labour, excise duty and appropriate production overheads.

i. Investment

Investment in Equity Shares is stated at cost Company has made the investment amounting to Rs.67.84 lacs (P.Y. Rs.67.84 lacs) in Beryl Securities Ltd. a Company under the same management. But no provision of Rs.6105600.00 (P.Y. Rs.6105600.00) has been made for diminution in value of Securities [(Market Value Rs. 678400.00) (P.Y. Rs. 678400.00)] due to temporary in nature in the opinion of the management.

j. Foreign Currency Transactions

There is no foreign currency transaction recorded during the year.

k. Borrowing Cost

Borrowing cost are treated as revenue expenditure and are charged to the Profit and Loss Account for the

year. There is no borrowing cost regarding acquisition of capital assets.

l. Segment Reporting

Since the company is being operated in a single segment, namely "Injectable" (SV & LV) Thus the disclosure requirement of AS-17 issued by the ICAI is not applicable.

m. Taxation

a) Provision for current tax has been provided in accordance with the Income Tax Act, 1961.

b) Deferred Income tax is recognised for future tax consequences of timing differences. It is measured using enacted tax rates and tax laws applicable to taxable income of the current year.

n. Earning per share

The company reports basic and diluted Earning per Shares (EPS) in accordance with AS-20. Basic EPS is computed by dividing the Net Profit after tax for the year by the weighted Average number of Equity Shares outstanding during the year.

o. Employee Benefit

Expenses & Liabilities in respect of employees benefit are recorded in accordance with Revised Accounting Standard 15- Employee Benefits (Revised 2005)

1) Short Term Employee Benefit

All Employee benefit payable wholly within twelve month of rendering the service are classified as short termemployee benefit and they are recognized in the period in which employee rendered the related service.

2) Post Employee benefit

a) Defined Contribution Plan

Defined contribution Plan are government administered Provident Fund, Employee State Insurance Scheme of all employee, company contribution to defined contribution plan are recognized in the profit & loss account in the financial year in which the employee rendered the related services.

b) Defined Benefit Gratuity Plan

Gratuity is a defined benefit plan, the liabilities recognized in the balance sheet in respect of Gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair market value of plan assets, together with adjustment for unrecognized actuarial gains or losses and Past service cost, the defined benefit obligation is calculated at or near the balance sheet date by are in dependent actuary using the projected unit credit method. Actuarial gain and Losses arising from past experience and changes in actuarial assumption are charged to the prior period item, in the year in which such gains or losses are determined.

p. Provision Contingent Liabilities& Contingent Assets

Provision is recognized when the company has a present obligation as a results of past events and it is probable that there will be an outflow of resources would be required to settle the obligation and in respect of which a reliable estimate can be made.

q. Cenvat Benefit

CENVAT Benefit is accounted on accrual basis on purchase of Raw material, and Packing Material as per amended rules and regulation.

r. Prior Period Adjustment & Extra Ordinary Item

Income and expenditure pertaining to prior period duly reflected in prior period items in during the financial year.

s. Excise Duty

a) Excise Duty on manufactured excisable goods has been accounted on the basis of both payment made in respect of goods cleared as also provision made for goods lying in godown and accordingly liability of excise duty is provided Rs.25,332/- (P.Y. Rs.58,821/-) as certified by the Management.

b) Excise duty on sales amounting to Rs.6,46,846.00 (P.Y. 3,48,385) has been reduced from sales in profit & loss account and excise duty on stock amounting Rs. 25,332.00 (P.Y. 58,821.00) has been considered in the financial statement.

u. Contingencies and Events occurring after the Balance Sheet date.

Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material.

v. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed, if there has been a charge in the estimate of recoverable amount. By virtue of this Company has carried out comprehensive exercise, to assess the impairment loss of assets based on such exercise. There is no impairment of assets accordingly no adjustment in respect of loss or impairment of assets is required to be made in the accounts.

 
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