Mar 31, 2012
1 Basis of preparation of financial statements:
a. The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956, as adopted
consistently by the Company.
b. The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
2 Fixed Assets and Depreciation:
Fixed Assets are stated at the net of Cenvat eligible for credit less
accumulated depreciation. The cost of assets not put to use before the
year end are disclosed under capital work in progress.
Depreciation has been calculated on Fixed Assets of the Company on
straight line method as per rates specified in Schedule XIV to the
Companies Act, 1956 as amended from fime to time.
3 Investments:
Investments are shown at cost and are long term in nature. Provision
for diminution in the value of long-term investments is made only if
such a decline is other than temporary in the opinion of the
management.
4 Inventories:
Raw materials, packing materials and stores and spares are valued at
cost net of modvat computed on First- in-First out basis.
Work in process is valued at cost of manufacturing which includes
material costfnet of Cenvat), labour cost and production overheads
incurred up to the stage of completion.
Finished goods are valued at lower of cost and net realisable value.
5 Excise Duty
The excise duty in respect of closing inventory of finished goods is
included as part of inventory. The amount of Cenvat credits in respect
of materials consumed for sales is deducted from cost of materials
consumed.
6 Sundry Debtors and Advances:
Specific debts and advances identified as irrecoverable or doubtful are
written off or provided for respectively.
7 Research and Development:
a. Research and Development expenses are charged against revenue in
the year in which they are incurred.
b. Capital Expenditure or Research and Development Assets is included
in Fixed Assets and depreciation provided for at the applicable rates.
8 Foreign Currency Transactions:
Foreign currency transactions remaining unsettled at the year end are
converted into Rupee at contract rates, when covered by foreign
exchange contract and at year end rates in other cases. Realised gains
and losses on foreign exchange transactions other than those relating
to Fixed Assets are recognised in the Profit & Loss Account.
9 Revenue Recognition:
The Company recognises sale of goods as they are despatched to
customers. Sales are net of sales tax, returns and trade discounts.
Dividend income is recognised when right to receive dividend is
established. Income from food and beverages are recognised at the
point of serving these items to the guest. Income stated is exclusive
of amount recovered towards sales tax, luxury tax & service tax.
10 Borrowing Costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. Other borrowing costs are recognized as
an expense in the period in which they are incurred.
11 Taxes on Income:
Tax expense (tax saving) is the aggregate of current year tax and
deferred tax charged (or credited) to the Profit & Loss Account of the
year.
a. Current tax is the provision made for income tax liability on the
profits for the year ended 3151 March, 2011 in accordance with the
provisions of Income Tax Act, 1961.
b. Deferred tax is recognised, on timing differences, being the
differences resulting from the recognition of items in the financial
statements and in estimating its current income tax provision.
c. Deferred tax assets are recognised on unabsorbed depreciation,
unabsorbed business loss and MAT credit under section 115 JA of the
Income Tax Act, 1961 only to the extent that there is virtual certainty
supported by convincing evidence and on others, to the extent that
there is reasonable certainty of their realisation.
d. Deferred tax assets and liabilities are measured using tax rates
and the tax laws that have been enacted or substantially enacted at the
balance sheet date.
12 Contingent Liabilities:
These are disclosed by way of notes to the accounts. Provision is made
in respect of those liabilities which are likely to materialise after
the year end till the finalisation of accounts and have material effect
on the position stated in the Balance Sheet.
13 Impairment of Assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the management estimates the recoverable amount of the asset.lf
such recoverable amount of the asset is less than its carrying amount,
the carrying amount is reduced to its recoverable amount. The reduction
is treated as an impairment loss and is recognized in the profit and
loss account. If at the balance sheet date there is an indication that
if a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciated historical cost.
14 Cash Flow Statement.
Cash Flow Statement has been prepared under indirect method.
15 Intangible Assets.
a. Intangible assets are stated at cost less depreciation
b. Computer Software being intangible assets has been shown as Fixed
Assets & depreciation has been provided on them at applicable rates.
16 Retirement Benefits:
(i) Gratuity to employees is covered under Group Gratuity Life
Assurance Schem of the Life Insurance Corporation of India and the
premium paid to LIC of India during the year id charged to revenue.
(iii) The Company funds the provident fund liability by contributing to
the recognised funds and charges the same to the profit and loss
account.
Mar 31, 2010
1 Basis of preparation of financial statements:
a. The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956, as adopted
consistently by the Company.
b. The Company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
2 Fixed Assets and Depreciation:
Fixed Assets are stated at the net of Cenvat eligible for credit less
accumulated depreciation. The cost of assets not put to use before the
year end are disclosed under capital work in progress.
Depreciation has been calculated on Fixed Assets of the Company on
straight line method as per rates specified in Schedule XIV to the
Companies Act, 1956 as amended from time to time.
3 Investments:
Investments are shown at cost and are long term in nature. Provision
for diminution in the value of long-term investments is made only if
such a decline is other than temporary in the opinion of the
management.
4 Inventories:
Raw materials, packing materials and stores and spares are valued at
cost net of modvat computed on First-in- First out basis.
Work in process is valued at cost of manufacturing which includes
material cost(net of Cenvat), labour cost and production overheads
incurred up to the stage of completion.
Finished goods are valued at lower of cost and net realisable value.
5 Retirement Benefits:
(i) Gratuity to employees is covered under Group Gratuity Life
Assurance Scheme of the Life Insurance Corporation of India and the
premium paid to LIC of India during the year is charged to revenue. The
working of actuarial valuation is given as under.
6 Excise Duty
The excise duty in respect of closing inventory of finished goods is
included as part of inventory. The amount of Cenvat credits in respect
of materials consumed for sales is deducted from cost of materials
consumed.
7 Sundry Debtors and Advances:
Specifc debts and advances identified as irrecoverable or doubtful are
written off or provided for respectively.
8 Research and Development:
a. Research and Development expenses are charged against revenue in
the year in which they are incurred.
b. Capital Expenditure or Research and Development Assets is included
in Fixed Assets and depreciation provided for at the applicable rates.
9 Foreign Currency Transactions:
Foreign currency transactions remaining unsettled at the year end are
converted into Rupee at contract rates, when covered by foreign
exchange contract and at year end rates in other cases. Realised gains
and losses on foreign exchange transactions other than those relating
to Fixed Assets are recognised in the Profit & Loss Account.
10 Revenue Recognition:
The Company recognises sale of goods as they are despatched to
customers. Sales are net of sales tax, returns and trade discounts.
Dividend income is recognised when right to receive dividend is
established. Income from food and beverages are recognised at the point
of serving these items to the guest. Income stated is exclusive of
amount recovered towards sales tax, luxury tax & service tax.
11 Borrowing Costs :
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. Other borrowing costs are recognized as
an expense in the period in which they are incurred.
12 Business Segments :
The company has identified two business segments viz PHARMACEUTICALS &
HOSPITALITY Divisions. Revenue & expenses have been identified to
respective segments on the basis of operating activities of the
enterprise.
Segment assets & liabilities represent asset & liabilities in
respective segment.
SEGMENT REPORTING :
Based on the guiding principles given in the Accounting Standard on
Segment Reporting ( AS-17) issued by the Institute of Chartered
Accountants of India , the Companys primary business segments are
Manufacturing and Hospitality / Restaurant divisions.The financial
details of the segments are as under.
13 Taxes on Income :
Tax expense (tax saving) is the aggregate of current year tax and
deferred tax charged (or credited) to the Profit & Loss Account of the
year.
a. Current tax is the provision made for income tax liability on the
profits for the year ended 31st March, 2010 in accordance with the
provisions of Income Tax Act, 1961.
b. Deferred tax is recognised, on timing differences, being the
differences resulting from the recognition of items in the financial
statements and in estimating its current income tax provision.
c. Deferred tax assets are recognised on unabsorbed depreciation,
unabsorbed business loss and MAT credit under section 115 JA of the
Income Tax Act, 1961 only to the extent that there is virtual certainty
supported by convincing evidence and on others, to the extent that
there is reasonable certainty of their realisation.
d. Deferred tax assets and liabilities are measured using tax rates
and the tax laws that have been enacted or substantially enacted at the
balance sheet date.
14 Contingent Liabilities:
These are disclosed by way of notes to the accounts. Provision is made
in respect of those liabilities which are likely to materialise after
the year end till the finalisation of accounts and have material effect
on the position stated in the Balance Sheet.
15 Impairment of Assets
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the management estimates the recoverable amount of the asset.If
such recoverable amount of the asset is less than its carrying amount,
the carrying amount is reduced to its recoverable amount. The reduction
is treated as an impairment loss and is recognized in the profit and
loss account. If at the balance sheet date there is an indication that
if a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is refected at the
recoverable amount subject to a maximum of depreciated historical cost.
16. Cash Flow Statement.
Cash Flow Statement has been prepared under indirect method.
17. Intangible Assets.
a. Intangible assets are stated at cost less depreciation
b. Computer Software being intangible assets has been shown as Fixed
Assets & depreciation has been provided on them at applicable rates.
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