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Accounting Policies of Elder Health Care Ltd. Company

Jun 30, 2014

I. Basis of preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (''Indian GAAP''). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

ii. Use of Estimates:

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of Assets & Liabilities, revenue and expenses and disclosures relating to the contingent liabilities. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future events could differ from these estimates. Any revision of accounting estimates is recognised prospectively in the current and future periods.

iii. Fixed Assets

Fixed Assets are stated at their original cost of acquisition or construction including incidental expenses related to acquisition and installation of the concerned assets.

When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit or loss, if any, is reflected in the Profit and Loss Account.

iv. Depreciation

Depreciation on fixed assets is provided on straight line method as per Section 205 (2) (b) of the Companies Act, 1956 at the rates and in the manner prescribed under Schedule XIV to the said Act.

The softwares are an integral part of hardware and accordingly considered part of computers.

v. Impairment of Assets

The Company identifies impairable fixed assets based on cash generating unit concept at the year-end in terms of Para 5 to 13 of AS-28 issued by Institute of Chartered Accountants of India (ICAI) for the purpose of arriving at impairment loss thereon, if any, being the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystallized, is charged against revenue of the year.

vi. Investments

Long term investments are stated at cost. Diminution in value, if any, which is of a temporary nature, is not provided for.

vii. Inventories:

a) Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

b) Raw Materials, Stores & Spare Parts, Packing Materials, Finished Goods and Work-in-Progress are valued at lower of cost and net realizable value.

c) Cost (net of input tax credit availed) of Raw Materials, Stores & Spare Parts, Packing Materials & Finished Goods is determined on FIFO basis.

d) Cost of Finished Goods and Work-in-Progress is determined by taking raw material/packing material cost (net of input tax credit availed), labour and relevant appropriate overheads.

viii. Foreign currency transactions

Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which the transactions occur.

Outstanding balances of foreign currency monetary items are reported using the period end rates.

Non-monetary items carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rate that existed when the values were determined.

Exchange differences arising as a result of the above are recognised as income or expense, as the case may be, in the profit and loss account.

ix. Sales

Revenue from sales of goods is being recognized on accrual basis on transfer of ownership to the customers. The sales are stated net of trade discounts, excise duty, sales returns and sales taxes. Revenue from rendering of services is recognized on completion of service.

x. Leases

Lease rentals are accounted on accrual basis in accordance with the terms of respective lease agreements.

xi. Research and Development

Revenue expenditure incurred on Research and Development is charged to Profit & Loss Account in the year it is incurred.

Capital expenditure is included in the respective heads under fixed assets.

xii. Retirement Benefits

a) Contributions to the Provident Fund are made at a pre-determined rate and charged to the Profit & Loss Account.

b) Liability towards Gratuity and Leave Encashment is provided on the basis of actuarial determination. Liability towards Superannuation is provided in accordance with the scheme administered by Life Insurance Corporation of India.

xiii. Borrowing Costs

Borrowing costs directly attributable to the acquisition or construction of an asset are capitalized as part of the cost of that asset, up to the date such assets are ready for their intended use.

Other borrowing/ financing costs are charged to the Profit & Loss Account.

xiv. Taxation

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of local Income tax as applicable to the financial year.

Deferred income tax reflect the impact of current year timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date.

In case where the tax assessments have been completed but the appeals are pending at various appeal fora, the tax payments have been set-off against the provisions in the Balance Sheet. Appropriate disclosures have been made towards contingent liabilities, if any

xv. Provisions and Contingent Liabilities

A provision is recognized when the Company has a present obligation as a result of a past event. it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimates can be made.

Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligation at the Balance Sheet date.


Jun 30, 2013

I. Basis of Accounting Policies: The financial statements have been prepared under the historical cost convention on accrual basis in accordance with the Companies (Accounting standards) Rules, 2006 issued under sub-section (3C) of section 211 of the Companies Act, 1956.

ii. Use of Estimates: The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of assets & Liabilities, revenue and expenses and disclosures relating to the contingent liabilities. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future events could differ from these estimates. Any revision of accounting estimates is recognised prospectively in the current and future periods.

iii. Fixed Assets: Fixed Assets are stated at their original cost of acquisition or construction including incidental expenses related to acquisition and installation of the concerned assets.

When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit or loss, if any, is reflected in the Profit and Loss Account.

iv. Depreciation: Depreciation on fixed assets is provided on straight line method as per Section 205 (2) (b) of the Companies Act, 1956 at the rates and in the manner prescribed under Schedule XIV to the said Act. The software''s are an integral part of hardware and accordingly considered part of computers.

v. Impairment of Assets: The Company identifies impairable fixed assets based on cash generating unit concept at the year-end in terms of Para 5 to 13 of AS-28 issued by Institute of Chartered Accountants of India (ICAI) for the purpose of arriving at impairment loss thereon, if any, being the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystallized, is charged against revenue of the year.

vi. Investments: Long term investments are stated at cost. Diminution in value, if any, which is of a temporary nature, is not provided for.

vii. Inventories:

a) Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

b) Raw Materials, Stores & Spare Parts, Packing Materials, Finished Goods and Work-in-Progress are valued at lower of cost and net realisable value.

c) Cost (net of input tax credit availed) of Raw Materials, Stores & Spare Parts, Packing Materials & Finished Goods is determined on FIFO basis.

d) Cost of Finished Goods and Work-in-Progress is determined by taking raw material/packing material cost (net of input tax credit availed), labor and relevant appropriate overheads.

viii. Foreign currency transactions: Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which the transactions occur.

Outstanding balances of foreign currency monetary items are reported using the period end rates.

Non-monetary items carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rate that existed when the values were determined.

Exchange differences arising as a result of the above are recognised as income or expense, as the case may be, in the profit and loss account.

ix. Sales: Revenue from sales of goods is being recognized on accrual basis on transfer of ownership to the customers. The sales are stated net of trade discounts, excise duty, sales returns and sales taxes. Revenue from rendering of services is recognized on completion of service.

x. Leases : Lease rentals are accounted on accrual basis in accordance with the terms of respective lease agreements.

xi. Research and Development: Revenue expenditure incurred on Research and Development is charged to Profit & Loss Account in the year it is incurred. Capital expenditure is included in the respective heads under fixed assets.

xii. Retirement Benefits:

a) Contributions to the Provident Fund are made at a pre-determined rate and charged to the Profit & Loss Account.

b) Liability towards Gratuity and Leave Encashment is provided on the basis of actuarial determination. Liability towards Superannuation is provided in accordance with the scheme administered by Life Insurance Corporation of India.

xiii. Borrowing Costs: Borrowing costs directly attributable to the acquisition or construction of an asset are capitalized as part of the cost of that asset, up to the date such assets are ready for their intended use. Other borrowing/ financing costs are charged to the Profit & Loss Account.

xiv. Taxation: Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of local Income tax as applicable to the financial year.

Deferred income tax reflect the impact of current year timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date.

In case where the tax assessments have been completed but the appeals are pending at various appeal fora, the tax payments have been set-off against the provisions in the Balance Sheet. Appropriate disclosures have been made towards contingent liabilities, if any

xv. Provisions and Contingent Liabilities: A provision is recognized when the Company has a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimates can be made. Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligation at the Balance Sheet date.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is required.


Mar 31, 2012

I. Basis of Accounting Policies: The financial statements have been prepared under the historical cost convention on accrual basis in accordance with the Companies (Accounting standards) Rules, 2006 issued under sub-section (3C) of section 211 of the Companies Act, 1956.

ii. Use of Estimates: The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of assets & Liabilities, revenue and expenses and disclosures relating to the contingent liabilities. The management believes that the estimates used in preparation of he financial statements are prudent and reasonable. Future events could differ from these estimates. Any revision of accounting estimates is recognised prospectively in the current and future periods.

iii. Fixed Assets: Fixed Assets are stated at their original cost of acquisition or construction including incidental expenses related to acquisition and installation of the concerned assets.

When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit or loss, if any, is reflected in the Profit and Loss Account.

iv. Depreciation: Depreciation on fixed assets is provided on straight line method as per Section 205 (2) (b) of the Companies Act, 1956 at the rates and in the manner prescribed under Schedule XIV to the said Act. The software’s are an integral part of hardware and accordingly considered part of computers.

v. Impairment of Assets: The Company identifies impairable fixed assets based on cash generating unit concept at the year-end in terms of Para 5 to 13 ofAS-28 issued by Institute of Chartered Accountants of India (ICAI) for the purpose of arriving at impairment loss thereon, if any, being the difference between the book value and recoverable value of relevant assets. Impairment loss, when crystallized, is charged against revenue of the year.

vi. Investments: Long term investments are stated at cost. Diminution in value, if any, which is of a temporary nature, is not provided for.

vii. Inventories:

a) Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

b) Raw Materials, Stores & Spare Parts, Packing Materials, Finished Goods and Work-in-Progress are valued at lower of cost and net realisable value.

c) Cost (net of input tax credit availed) of Raw Materials, Stores & Spare Parts, Packing Materials & Finished Goods is determined on FIFO basis.

d) Cost of Finished Goods and Work-in-Progress is determined by taking raw material/packing material cost (net of input tax credit availed), labour and relevant appropriate overheads.

viii. Foreign currency transactions: Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which the transactions occur. Outstanding balances of foreign currency monetary items are reported using the period end rates. Non-monetary items carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rate that existed when the values were determined.

Exchange differences arising as a result of the above are recognised as income or expense, as the case may be, in the profit and loss account.

ix. Sales: Revenue from sale of goods is being recognized on accrual basis on transfer of ownership to the customers. The sales are stated net of trade discounts, excise duty, sales returns and sales taxes. Revenue from rendering of services are recognized on completion of service.

x. Leases: Lease rentals are accounted on accrual basis in accordance with the terms of respective lease agreements.

xi. Research and Development: Revenue expenditure incurred on Research and Development is charged to Profit & Loss Account in the year it is incurred. Capital expenditure is included in the respective heads under fixed assets.

xii. Retirement Benefits:

a) Contributions to the Provident Fund are made at a pre-determined rate and charged to the Profit & Loss Account.

b) Liability towards Gratuity and Leave Encashment is provided on the basis of actuarial determination. Liability towards Superannuation is provided in accordance with the scheme administered by Life Insurance Corporation of India.

xiii. Borrowing Costs: Borrowing costs directly attributable to the acquisition or construction of an asset are capitalized as part of the cost of that asset, up to the date such assets are ready for their intended use. Other borrowing/ financing costs are charged to the Profit & Loss Account.

xiv. Taxation: Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of local Income tax as applicable to the financial year. Deferred income tax reflect the impact of current year timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted or substantively enacted at the Balance Sheet date. In case where the tax assessments have been completed but the appeals are pending at various appeal for a, the tax payments have been set-off against the provisions in the Balance Sheet. Appropriate disclosures have been made towards contingent liabilities, if any.

xv. Provisions and Contingent Liabilities: A provision is recognized when the Company has a present obligation as a result of a past event. It is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimates can be made. Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligation at the Balance Sheet date. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is required.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest the above shareholding represent both legal and beneficial ownership of the shares.


Mar 31, 2011

I) Basis of Accounting :

The Financial statement have been prepared under the historical cost convention on accrual basis in accordance with the Companies (Accounting standards Rule,2006 issued under sub section (3C) of section 211 of the Companies Act, 1956.

ii) Use of Estimates

The preparation of Financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of Assets and Liabilites, revenue and expenses and disclosures relating to the contigent liabilities. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future events could differ from these estimates. Any revision of accouting estimates is recognised prospectively in the current and future periods.

iii) Fixed Assets:

Fixed Assets are stated at their original cost of acquisition or construction including incidental expenses related to acquisition and installation of the conferred assets. When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit or loss, if any, is reflected in the Profit and Loss account.

iv) Depreciation:

Depreciation on fixed assets is provided on straight line method as per Section 205 (2)(b) of the Companies Act, 1956 at the rates and in the manner prescribed under Schedule XIV to the said Act. The software which are an integral part of hardware and accordingly considered part of computer.

v) Impairment of Assets:

The Company identifies impairable fixed assets based on cash generating unit concept at the year-end in term of para 5 to 13 of AS-28 issued by ICAI for the purpose of arriving at impairment loss thereon, if any, being the difference between the book value and recoverable value of relevant assets, Impairment loss when crystallized is charged against revenue of the year.

vi) Investments:

Long term investments are stated at cost. Diminution in value, if any, which is of a temporary nature, is not provided for. vii) Inventories:

a. Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

b. Raw Materials, Stores & Spare Parts, Packing Materials, Finished Goods and Work-in-Progress are valued at lower of cost and net realisable value.

c. Cost ( net of Input tax credit availed ) of Raw Materials, Stores & Spare Parts, Packing Materials & Finished Goods is determined on FIFO basis.

d. Cost of Finished Goods and Work-in-Process is determined by taking raw materials/packing materials cost (net of input tax credit availed), labour and relevant appropriate overheads.

viii) Foreign currency transactions:

Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which the transactions occur. Outstanding balances of foreign currency monetary items are reported using the period end rates. Exchange differences arising as a result of the above are recognised as income or expense in the profit and loss account.

ix) Sales:

Revenue from sales of goods is being recognized on accrual basis on transfer of ownership to the customers. The sales is stated net of trade discounts, excise duty, sales returns and sales taxes.

Revenue from rendering of services are recognized on completion of service.

x) Leases:

Lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

xi) Deferred Revenue Expenditure, Expenditure relating to new marketing divisions, the benefit of which accrues to the Company over a period of years, are being treated as deferred revenue expenditure and written off over a period of Ten years from the year subsequent to the year of accurance.

xii) Retirement Benefits:

a. Contributions to the Provident Fund are made at a pre-determined rate and charged to the Profit & Loss Account.

b. Liability towards Gratuity and Leave Encashment is provided on the basis of actuarial determination. Liability towards Superannuation is provided in accordance with the scheme administered by Life Insurance Corporation of India.

xiii) Borrowing Costs:

Borrowing costs directly attributable to the acquisition or construction of an asset are capitalized as part of the cost of that asset, up to the date such assets are ready for their intended use.

Other borrowing/financing costs are charged to the Profit & Loss Account.

xiv) Taxation

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provision of local Income tax as applicable to the financial year.

Deferred income tax reflect the impact of current year timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted on substantively enacted at the Balance Sheet date.

In case where the tax assessments have been completed but the appeals are pending at various appeal for tax payments have been set-off against the provisions in the Balance sheet. Appropriate disclosure have been made towards contingent liabilities, if any.

xv) Provision and Contingent Liabilities

A provision is recognized when the Company has a present obligation as a result of part event, it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimates can be made. Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligation at the Balance Sheet date.


Mar 31, 2010

I) Basis of Accounting :

The Financial statement have been prepared under the historical cost convention on accrual basis in accordance with the Companies (Accounting standards Rule,2006 issued under sub section (3C) of section 211 of the Companies Act, 1956.

ii) Use of Estimates :

The preparation of Financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of Assets and Liabilites, revenue and expenses and disclosures relating to the contigent liabilities. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future events could differ from these estimates. Any revision of accouting estimates is recognised prospectively in the current and future periods.

iii) Fixed Assets :

Fixed Assets are stated at their original cost of acquisition or construction including incidental expenses related to acquisition and installation of the conferned assets.

When an asset is scrapped or otherwise disposed off, the cost and related depreciation are removed from the books of account and resultant profit or loss, if any, is reflected in the Profit and Loss account

iv) Depreciation :

Depreciation on fixed assets is provided on straight line method as per Section 205 (2)(b) of the Companies Act,1956 at the rates and in the manner prescribed under Schedule XIV to the said Act.

The software which are an integral part of hardware and accordingly considered part of computer.

v) Impairment of Assets :

The Company identifies impairable fixed assets based on cash generating unit concept at the year-end in term of para 5 to 13 of AS-28 issued by ICAI for the purpose of arriving at impairment loss thereon, if any, being the difference between the book value and recoverable value of relevant assets, Impairment loss when crystallized is charged against revenue of the year.

vi) Investments :

Long term investments are stated at cost. Diminution in value, if any, which is of a temporary nature, is not provided for

vii) Inventories :

a. Inventories comprise all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

b. Raw Materials, Stores & Spare Parts, Packing Materials, Finished Goods and Work-in-Progress are valued at lower of cost and net realisable value.

c. Cost ( net of Input tax credit availed ) of Raw Materials, Stores & Spare Parts, Packing Materials & Finished Goods is determined on FIFO basis.

d. Cost of Finished Goods and Work-in-Process is determined by taking raw material/packing material cost (net of input tax credit availed), labour and relevant appropriate overheads.

viii) Foreign currency transactions :

Transactions in foreign currencies are normally recorded at the exchange rate prevailing on the date on which the transactions occur.

Outstanding balances of foreign currency monetary items are reported using the period end rates.

Non-monetary items carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rate that existed when the values were determined.

Exchange differences arising as a result of the above are recognised as income or expense in the profit and loss account

In respect of forward contract, the premium or discount on these contracts is recognized as Income or Expenditure over the period of the contracts. Any profit or loss arising on cancellation or renewal of such contracts is recognized as income or expenses of the year.

ix) Sales :

Revenue from sales of goods is being recognized on accrual basis on transfer of ownership to the customers. The sales is stated net of trade discounts, excise duty, sales returns and sales taxes.

Revenue from rendering of services are recognized on completion of service.

x) Leases :

Lease rentals are accounted on accrual basis in accordance with the respective lease agreements.

xi) Deferred Revenue Expenditure :

Expenditure relating to new marketing divisions, the benefit of which accrues to the Company over a period of number of years, are being treated as deferred revenue expenditure and written off over a period of Ten years from the year subsequent to the year of accurance

xii) Retirement Benefits :

a. Contributions to the Provident Fund are made at a pre-determined rate and charged to the Profit & Loss Account.

b. Liability towards Gratuity and Leave Encashment is provided on the basis of actuarial determination. Liability towards Superannuation is provided in accordance with the scheme administered by Life Insurance Corporation of India

xiii) Borrowing Costs :

Borrowing costs directly attributable to the acquisition or construction of an asset are capitalized as part of the cost of that asset, up to the date such assets are ready for their intended use.

Other borrowing/financing costs are charged to the Profit & Loss Account

xiv) Taxation :

Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the provision of local Income tax as applicable to the financial year.

Deferred income tax reflect the impact of current year timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and tax laws enacted on substantively enacted at the Balance Sheet date.

In case where the tax assessments have been completed but the appeals are pending at various appeal for tax payments have been set-off against the provisions in the Balance sheet.

Appropriate disclosure have been made towards contingent liabilities, if any.

xv) Provision and Contingent Liabilities :

A provision is recognized when the Company has a present obligation as a result of part event, it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimates can be made. Provisions are not discounted to its present value and are determined based on best estimates required to settle the obligation at the Balance Sheet date.

xvi) Earning per Share :

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

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