Accounting Policies of Colinz Laboratories Ltd. Company

Mar 31, 2014

1.1) The company maintains its accounts on accrual basis following the historical cost convention In compliance with the accounting standards specified by Institute of Chartered Accountants of India, referred to in Section 211 ( 3C ) of the Companies Act, 1956.

1.2) i) Tangible assets are stated at original cost net of tax / duty credits availed, if any.

ii) Depreciation has been provided under Straight Line Method at the applicable rates, as provided under Schedule XIV to the Companies Act, 1956. Depreciation on additions /deletions of assets during the year is provided on a pro-rata basis

1.3) Capital work in progress:

The capital work in progress as on 31-03-2014 is Rs. Nil

1.4) Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India. Finished goods and semi-finished goods are valued at lower of cost or net realizable value.

1.5) Investments:

Investments are stated at cost.

1.6) Revenue Recognition

i) Income From sales of goods is recognized upon transfer of significant risk and rewards of ownership of the goods to the customers which generally coincides with delivery and acceptance of goods sold; sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT).

ii) Other income:

Includes interest on Fixed Deposits with Bank and dividends received.

1.7) Research and Development Expenses:

No capitalization of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year.

1.8) Foreign Currency Transactions:

Export earnings of Rs.Nil (Previous Year - Rs.NIL)

Foreign Exchange Outgo of Rs.NIL (Previous Year - Rs. NIL /-)

1.9) Retirement Benefits:

Retirement benefit or Post separation expenses in respect of gratuity is not provided for, and liability is not ascertained.

i) Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees.

ii) Provident Fund: Contribution to Government provident Fund are made as per the provisions regularly.

1.10) The figures of previous year have been regrouped wherever necessary.

1.11) As per the available records, there is no outstanding dues to enterprises registered under Micro, Small and Medium Enterprises Development Act, 2006, at the end of the year. Further no interest has been paid or payable on delayed payment of dues, if any, to such enterprises during the year.

1.12) Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs.Nil [ Previous Year : Rs. Nil ]

1.13) Contingent liabilities :

Contingent liabilities as defined in Accounting Standard 29 on " Provisions, Contingent Liabilities and Contingent Assets" are disclosed by ways of notes to the accounts. Disclosures is not made if the possibility of an outflow of future economics benefits is remote. Provision is made if it is probable that an outflow of future economics benefits will be required to settle the Obligation.

1.14) Auditors Remuneration : 2013-2014 2012-2013

Audit Fees Rs. 67,416 Rs. 67,416

Tax Audit Fees Rs. 11,236 Rs. -

Other services Rs. 13,483 Rs. 13,236

Rs. 92,135 Rs. 80,652

1.15) Segment Reporting

The Company is engaged in pharmaceutical formulation business which as per Accounting Standard - AS 17 is considered the only reportable business segment.

1.16) Related party transaction

As required by Accounting Standard - AS 18 ''Related Parties Disclosure'' issued by the Institute of Chartered Accountants of India are as follows :

i) Key Management personnel

ii) Details of Transactions.

Dr. L. S. Mani. Remuneration paid Rs. 8,85,500/-

Rent paid for the premise hired Rs. 1,80,000/-

1.17) With regard to loan given to Company, the Board of Directors are of the opinion that, no provision for doubtful debt is required to be made as the amount being recovered in installments

1.18) Earning per share

The Company reports Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share ". Basic EPS is computed by dividing the net profit for the year by the weighted Average number of Equity Shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.

1.19) Provisions for Current and Deferred Tax.

i) Provision for Current Tax is made after taking into consideration benefits admissible under the provision of Income Tax Act 1961.

ii) Deferred tax resulting from timing differences between taxable and accounting income is accounted for using the tax rate and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset arising on account of brought forward unabsorbed depreciation is recognized only to the extent there is a reasonable certainty of realization.

Deferred Tax Liability :

The break up of the deferred tax liability as at 31st March, 2014 is as under:

2013-14 2012-13 Rupees Rupees

Deferred Tax Liability :

Difference between book depreciation and depreciation as per Income Tax Act, 1961. 60,63,214 62,55,558

60,63,214 62,55,558 Deferred Tax Assets: 20,88,139 26,51,302

Net Deferred Tax Liability 39,75,075 36,04,256

1.20) AS - 28 Impairment of Assets.

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is not less than the recoverable amount of those assets. Hence there is no impairment loss on the assets of the company. In the opinion of Board of Directors, the Current Assets, Loans and advances have a value which on the realization in the ordinary course of business would at least be equal amount stated in the Balance sheet.

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Mar 31, 2013

1.1) The company maintains its accounts on accrual basis following the historical cost convention Incompliance with the accounting standards specified by Institute of Chartered Accountants of India , referred to in Section 211 ( 3C ) of the Companies Act, 1956.

1.2)i) Tangible assets are stated at original cost net of tax / duty credits availed, if any.

ii) Depreciation has been provided under Straight Line Method at the applicable rates, as provided under Schedule XTV to the Companies Act, 1956. Depreciation on additions /deletions of assets during the year is provided on a pro-rata basis

1.3) Capital work in progress:

The capital work in progress as on 31-03-2013 is Rs. Nil

1.4) Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India. Finished goods and semi-finished goods are valued at lower of cost or net realizable value.

1.5) Investments: Investments are stated at cost.

1.6) Revenue Recognition

i) Income from sales of goods is recognized upon transfer of significant risk and rewards of ownership of the goods to the customers which generally coincides with delivery and acceptance of goods sold; sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT).

ii) Other income:

Includes interest on Fixed Deposits with Bank and dividends received.

1.7) Research and Development Expenses:

No capitalization of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year.

1.8) Foreign Currency Transactions:

Export earnings of Rs.Nil (Previous Year - Rs.NIL)

Foreign Exchange Outgo of Rs.NIL (Previous Year - Rs. NIL /-)

1.9)Retirement Benefits:

Retirement benefit or Post separation expenses in respect of gratuity is not provided for, and liability is not ascertained.

i) Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees.

ii) Provident Fund: Contribution to Government provident Fund are made as per the provisions regularly.

1.10) The figures of previous year have been regrouped wherever necessary.

1.11)As per the available records, there is no outstanding dues to enterprises registered under Micro, Small and Medium Enterprises Development Act, 2006, at the end of the year. Further no interest has been paid or payable on delayed payment of dues, if any, to such enterprises during the year.

1.12)Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs.Nil [ Previous Year : Rs. Nil ]

1.13)Contingent liabilities :

Contingent liabilities as defined in Accounting Standard 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by ways of notes to the accounts. Disclosures is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is probable that an outflow of future economic benefits will be required to settle the Obligation.

1.15)Segment Reporting

The Company is engaged in pharmaceutical formulation business which as per Accounting Standard - AS 17 is considered the only reportable business segment.

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Mar 31, 2010

A] General:

The Financial statements are prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to in Section 211 ( 3C ) of the Companies Act, 1956.

b] Fixed Assets:

Fixed assets are stated at original cost net of tax / duty credits availed, if any.

c] Capital work in progress:

The capital work in progress as on 31-03-2010 is Rs. Nil

d] Depreciation:

Fixed Assets are depreciated under Straight Line Method. The applicable rates are as provided under Schedule XIV to the Companies Act, 1956. Depreciation on additions / deletions of assets during the year is provided on a pro-rata basis.

e] Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India. Finished goods and semi-finished goods are valued at lower of cost or net realizable value.

f] Investments: Investments are stated at cost.

g] Sales:

Sales are recognized at the time of dispatch of goods. All sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT). h] Other income:

Includes sales tax refund received, interest on Fixed Deposits with Bank and dividends received.

i] Research and Development Expenses:

No capitalization of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year.

j] Foreign Currency Transactions:

Export earnings of Rs.Nil (Previous Year - Rs.NIL)

Foreign Exchange Outgo of Rs.NIL (Previous Year - Rs. 1,17,024/-) k] Retirement Benefits:

Retirement benefit in respect of gratuity is not provided for, and liability is not ascertained.

Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees.

Provident Fund: Contribution to Government provident Fund are made as per the provisions regularly.

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Mar 31, 2009

A General:

The Financial statements are prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to in Section 211 ( 3C ) of the Companies Act, 1956

b Fixed Assets:

Fixed assets are stated at original cost net of tax / duty credits availed, if any

c Capital work in progress:

The capital work in progress as on 31-03-2009 is Rs Nil

d Depreciation:

Fixed Assets are depreciated under Straight Line Method The applicable rates are as provided under Schedule XIV to the Companies Act, 1956 Depreciation on additions / deletions of assets during the year is provided on a pro-rata basis

e Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India Finished goods and semi-finished goods are valued at lower of cost or net realisable value

f Investments :

Investments are stated at cost

g Sales:

Sales are recognised at the time of dispatch of goods All sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT)

h Other income:

Includes interest on income tax refund received, interest on Fixed Deposits with Bank, dividends received and profit on motor car sold

i Research and Development Expenses:

No capitalisation of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year

j Foreign Currency Transactions :

Export earnings of Rs Nil ( Previous Year - RsNIL )

Foreign Exchange Outgo of Rs 1,17,024 ( Previous Year - Rs NIL )

k Retirement Benefits:

Retirement benefit in respect of gratuity is not provided for, and liability is not ascertained

Retirement benefit policy of the Company differs with AS15 of the Institute of Chartered Accountants of India (Employee Benefit) Quantification of amount is not possible as actuarial valuation is not done

Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees

Provident Fund : Contribution to Government provident Fund is made as per the provisions regularly