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Accounting Policies of EPIC Enzymes Pharmaceuticals & Industrial Chemicals Ltd. Company

Mar 31, 2012

The financial statements have been prepared on historical cost convention on the accrual basis based on Going Concern concept. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

1.1 FIXED ASSETS:

Fixed assets are stated at cost of acquisition including all non-refundable duty or taxes or other levies. All direct costs incidental to acquisition installation or erecion as well as the financing costs relating to any borrowing attributable to acquisition and bringing it to its condition for its intended use are capitalized along with the cost of the asset. Machinery spares that can be used only in conjunction of specific asset is capitalized along with the cost of the asset. Costs ot assets not.ready for their intended use and advances paid to acquire assets are shown under Capital Work-in-progress. Land is stated at the value as revalued in 1990.

1.2 INVESTMENTS:

Investments are shown at cost plus acquisition charges. Long-term investments are shown at cost. Provision to recognize decline in the value of investments in quoted shares have been made.

1.3 INVENTORY:

Inventories are valued at lower of cost or realizable value of the goods computed on the First-In-First-Out

(FIFO) method.

Raw-materials Stores & Spares and Finished goods are stated net of the Modvatable taxes and duties. Work-in-progress and Finished goods are ascertained by including the conversion cost and such other direct costs to bring them to their present location and condition. Net realizable value arrived at after providing for the losess if any due to obsolescence or demand stock or other anticipated losseswherever considerd necessary.

1.4 REVENUE RECOGNITION:

Revenue is recognized when no significant uncertainty as to measurability or collectability exists.

1.5 EXPENSES:

Material known liabilities are provided for on the basis of available information / estimates.

1.6 SALES/INCOME:

Sales are accounted at net of excise duties state of VAT & material returns. Income comprising of Export benefits Duty Drawback etc is accounted on accrual basis based on the completion of the relevant sales.

1.7 OTHER INCOME:

Interest on deposits with banks or other financial institutions interest waivers by IDBI Bank and profit on sale of fixed assets is recognized as they accure on time basis. Dividend income is recognized when the compay's right to receive dividend is established.

1.8 PROVISION OF RETIREMENT BENEFITS:

Contributions to defined contribution schemes such as Provident Fund Family Pension Fund are Charged to the Profit & Loss A/c as it arises.

Provision is made for accruing liability for gratuity and leave encashment in respect of all eligible employees as at the date of the Balance Sheet. Such benefits are provided for on the basis of assessment by an independent actuary.

1.9 DEPRECIATION:

Depreciation has been provided on for single shift operation on straight line basis at the rate prescribed under schedule XIV to the Companies Act 1956 as amended by Notification GSR No.756E dated 16th Devember 1993 read with Government Circular No. 14/93 dated 20th December 1993. Depreciation for assets purchased or sold during the year is proportionately charged. Individual assets acquired for less than Rs. 5000 are entirely depreciated in the year of acquisition.

1.10 PRIOR PERIOD/EXTRAORDINARY ITEMS:

Material items of expenditure or income barring some short or excess provision of expenditure or income have been accounted under the head Prior-period Expenses. Other transactions distinct from ordinary activities of the enterprise having a material bearing on the prdfit/loss of the year such as sale of fixed assets or long term investments settlement of litigation reversal of provisions write-off of inventories etc. have been shown separately.

1.11 FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transations are accounted for at the exchange rate prevailing on the date of the transatcion. Gains or losses resulting from the settlement of such transactions and from the translation of manetary assets and liabilities denominated in foreign currencies are recognized in the Profit & Loss Account. Exchange fluctuation including the difference arising on repayment of liabilities relating to fixed assets purchase if any are adjusted in the cost of the asset.

Monetary items denominated in forign currency remaining unsettled at the end of the accounting period are reported using the closing rates.

1.12 AMORTISATION OF EXPENSES:

The deferred expenditure under the heads Preliminary Expenses Trial Production Expenditure have been amortized at one fifth of the amont to be written of over five years.

1.13 PROVISION FOR TAXATION:

Income tax is computed on the basis that taxes accrue in the same period the related revenue and expenses arise. A provision is made for income tax based on the tax liability computed after considering the tax allowances and exemptions.

The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or liability is recorded for timing differences namely the differences that originate in one accounting period and capable of reversal in another. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized.


Mar 31, 2011

The financial statements have been prepared on historical cost convention on the accrual basis based on Going Concern concept. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

1.1 FIXED ASSETS:

Fixed assets are stated at cost of acquisition including all non-refundable duty or taxes or other levies.

All direct costs incidental to acquisition, installation or erecion as well as the financing costs relating to any borrowing, attributable to acquisition and bringing it to its condition for its intended use are capitalized along with the cost of the asset.

Machinery spares that can be used only in conjunction of specific asset is capitalized along with the cost of the asset.

Costs of assets not ready for their intended use and advances paid to acquire assets are shown under

Capital Work-in-progress.

Land is stated at the value as revalued in 1990.

1.2 INVESTMENTS:

Investments are shown at cost plus acquisition charges.

Long-term investments are shown at cost.

Provision to recognize decline in the value of investments in quoted shares have been made.

1.3 INVENTORY:

Inventories are valued at lower of cost or realizable value of the goods computed on the First-In-First-Out (FIFO) method.

Raw-materials, Stores & Spares and Finished goods are stated net of the Modvatable taxes and duties.

Work-in-progress and Finished goods are ascertained by including the conversion cost and such other direct costs to bring them to their present location and condition.

Net realizable value arrived at after providing for the losess if any, due to obsolescence or demand stock or other anticipated losses,wherever considerd necessary

1.4 REVENUE RECOGNITION:

Revenue is recognized when no significant uncertainty as to measurability or collectability exists.

1.5 EXPENSES:

Material known liabilities are provided for on the basis of available information / estimates.

1.6 SALES/INCOME:

Sales are accounted at net of excise duties, state of VAT & material returns. Income comprising of Export benefits, Duty Drawback, etc is accounted on accrual basis based on the completion of the relevant sales.

1.7 OTHER INCOME:

Interest on deposits with banks or other financial institutions interest waivers by IDBI Bank and profit on sale of fixed assets is recognized as they accure on time basis. Dividend income is recognized when the compay's right to receive dividend is established.

1.8 PROVISION OF RETIREMENT BENEFITS:

Contributions to defined contribution schemes such as Provident Fund Family Pension Fund are Charged to the Profit & Loss a/c as it arises.

Provision is made for accruing liability for gratuity and leave encashment in respect of all eligible employees as at the date of the Balance Sheet. Such benefits are provided for on the basis of assessment by an independent actuary.

1.9 DEPRECIATION:

Depreciation has been provided on for single shift operation on straight line basis at the rate prescribed under schedule XIV to the Companies Act, 1956 as amended by Notification GSR No.756E dated 16th December, 1993 read with Government Circular No. 14/93 dated 20th December, 1993. Depreciation for assets purchased or sold during the year is proportionately charged. Individual assets acquired for less than Rs. 5,000 are entirely depreciated in the year of acquisition.

1.10 PRIOR PERIOD/EXTRAORDINARY ITEMS:

Material items of expenditure or income, barring some short or excess provision of expenditure or income, have been accounted under the head Prior-period Expenses. Other transations distinct from ordinary activities of the enterprise, having a material bearing on the profit/ loss of the year, such as sale of fixed assets or long term investments, settlement of litigation, reversal of provisions, write-off of inventories, etc. have been shown separately.

1.11 FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transations are accounted for at the exchange rate prevailing on the date of the transatcion.

Gains or losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the Profit & Loss Account. Exchange fluctuation, including the difference arising on repayment of liabilities, relating to fixed assets purchase, if any, are adjusted in the cost of the asset.

Monetary items denominated in forign currency remaining unsettled at the end of the accounting period are reported using the closing rates.

1.12 AMORTISATION OF EXPENSES:

The deferred expenditure under the heads Preliminary Expenses, Trial Production Expenditure have been amortized at one fifth of the amont to be written of over five years.

1.13 PROVISION FOR TAXATION:

Income tax is computed on the basis that taxes accrue in the same period, the related revenue and expenses arise. A provision is made for income tax based on the tax liability computed after considering the tax allowances and exemptions.

The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and capable of reversal in another. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized.


Mar 31, 2010

The financial statements have been prepared on historical cost convention on the accrual basis based on Going Concern concept. Accounting policies not specifically referred to are consistent with generally accepted accounting practices.

1.1 FIXED ASSETS:

Fixed assets are stated at cost of acquisition including all non-refundable duty or taxes or other levies.

All direct costs incidental to acquisition, installation or erection as well as the financing costs relating to any borrowing, attributable to acquisition and bringing it to its condition for its intended use are capitalized along with the cost of the asset.

Machinery spares that can be used only in conjunction of specific asset is capitalized along with the cost of the asset.

Costs of assets not ready for their intended use and advances paid to acquire assets are shown under Capital Work-in-progress.

Land is stated at the value as revalued in 1990.

Plant and Machinery worth Rs. 912.02 had been identified as unusable, but continued in the books.

1.2 INVESTMENTS:

Investments are shown at cost plus acquisition charges.

Long-term investments are shown at cost.

Provision to recognize decline in the value of investments in quoted shares have been made.

1.3 INVENTORY:

Inventories are valued at lower of cost or realizable value of the goods computed on the First-In-First-Out (FIFO) method.

Raw-materials, Stores & Spares and Finished goods are stated net of the Modvatable taxes and duties.

Work-in-progress and Finished goods are ascertained by including the conversion cost and such other direct costs to bring them to their present location and condition.

No provision has been made for the losses due to obsolescence or damaged stock or other anticipated losses, which as per the management is approximately Rs. 70 Lacs.

1.4 REVENUE RECOGNITION:

Revenue is recognized when no significant uncertainty as to measurability or coliectabiiity exists.

1.5 EXPENSES:

Material known liabilities are provided for on the basis of available information / estimates.

1.6 SALES/INCOME:

Sales are accounted at net of excise duties, state of VAT & material returns. Income comprising of Export benefits, Duty Drawback, etc is accounted on accrual basis based on the completion of the relevant sales.

1.7 OTHER INCOME:

Interest on deposits with banks or other financial institutions is recognized as they accrue on time basis. Dividend income is recognized when the companys right to receive dividend is established.

1.8 PROVISION OF RETIREMENT BENEFITS:

Contributions to defined contribution schemes such as Provident Fund Family Pension Fund are charged to the Profit & Loss a/c as it arises.

Provision is made for accruing liability for gratuity and leave encashment in respect of all eligible employees as at the date of the Balance Sheet. Such benefits are provided for on the basis of assessment by an independent actuary.

1.9 DEPRECIATION:

Depreciation has been provided on machinery / electrical installation for single shift operation on straight line basis at the rate prescribed under schedule XIV to the Companies Act, 1956 as amended by Notification GSR No.756E dated 16th December, 1993 read with Government Circular No. 14/93 dated 20th December, 1993. Depreciation for assets purchased or sold during the year is proportionately charged. Individual assets acquired for less than Rs. 5,000 are entirely depreciated in the year of acquisition.

1.10 PRIOR PERIOD/EXTRAORDINARY ITEMS:

Material items of expenditure or income, barring some short or excess provision of expenditure or income, have been accounted under the head Prior-period Expenses. Other transactions distinct from ordinary activities of the enterprise, having a material bearing on the profit/ loss of the year, such as sale of fixed assets or long term investments, settlement of litigation, reversal of provisions, write-off of inventories, etc. have been shown separately under this head.

1.11 FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transactions are accounted for at the exchange rate prevailing on the date of the transaction.

Gains or losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the Profit & Loss Account.

Exchange fluctuation, including the difference arising on repayment of liabilities, relating to fixed assets purchase, if any, are adjusted in the cost of the asset.

Monetary items denominated in foreign currency remaining unsettled at the end of the accounting period are reported using the closing rates.

1.12 AMORTISATION OF EXPENSES:

The deferred expenditure under the heads Preliminary Expenses, Trial Production Expenditure have been amortized at one tenth of the amount to be written of over five years.

1.13 PROVISION FOR TAXATION:

Income tax is computed on the basis that taxes accrue in the same period, the related revenue and expenses arise. A provision is made for income tax based on the tax liability computed after considering the tax allowances and exemptions.

The differences that result between the profit offered for income tax and the profit as per the financial statements are identified and thereafter a deferred tax asset or liability is recorded for timing differences, namely the differences that originate in one accounting period and capable of reversal in another. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized.

2.0 OTHER NOTES ON BALANCE SHEET AND PROFIT & LOSS ACCOUNT:

2.1 Dues to Small Scale Industries:

Based on the information available with the company, there is no amount owed by the Company to any micro, small and medium Enterprises covered under the Micro, Small & Medium Enterprises Development Act, 2006. Hence no disclosure under Section 22 of the said Act is required.

2.11 DETAILS OF DEFERRED TAX ASSETS/LIABILITY:

No provision has been made for deferred tax asset/ liability in view of the losses and absence of certainty that the deferred tax asset would be realized.

2.14 The Company has identified and written-back certain very old creditors worth Rs. 9.59 lacs & Debtors amounting to Rs.0.55 Lacs & same has been written off as not realizable during the year.

2.15 The Associate Company, M/s. Mahakrishna Chemicals Ltd. is in the opinion of the Auditors, constitute subsidiaries of the Company. But the financial results of the same are not consolidated with the Companys accounts.