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Accounting Policies of Gufic BioSciences Ltd. Company

Mar 31, 2015

1.1 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS: The financial statements are prepared under historial cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles, the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act, 2013.

1.2 USE OF ESTIMATES : The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

1.3 FIXED ASSETS : Fixed Assets are stated at cost of acquisition or construction (net of cenvat credits). All costs relating to the acquisition and installation of fixed assets are capitalized and include borrowing costs directly attributable to construction or acquisition of fixed assets, up to the date of asset is put to use.

Subsidy received as contribution towards cost of capital investment project is considered as Capital Reserve.

1.4 INVESTMENTS :

Recognition and Measurement : Investments, which are readily realisable and intended to be held for not more than one year from balance sheet date, are classified as current investments. All other investments are classified as non-current investments.

Non Current investments which are intended to be held for more than a year, from the date of acquisition, are considered as long-term investments and are carried at cost. However, provision for diminution in value of investments is made to recognise a decline, other than temporary, in the value of the investments. Investments other than long-term investments being current investments are valued at cost or fair value whichever is lower, determined on an individual basis.

1.5 INVENTORIES : Inventories are valued at lower of cost or net realisable value.

(i) Raw-materials and packing materials are valued on First in First Out basis.

(ii) Work-in process and Finished Goods are valued at cost and includes element of production overheads.

(iii) Traded goods are valued on First in First Out basis.

(iv) Consumable stores are charged to the profit and loss account in the year of its purchases.

1.6 REVENUE RECOGNITION :

(i) Sale is recognised on despatch of goods. Export sales are accounted for on basis of the dates of bill of lading. Sales are net of trade discounts, sales tax, sales returns and remissions. Excise Duty recovered is presented as reduction from gross turnover.

(ii) Provision is made for the non salable returns of goods from the customers estimated on the basis of historical data of such returns. Such provision for non salable returns is reduced from sales for the year.

(iii) Export benefits under duty exemption scheme is being accounted in the year of exports.

(iv) Revenues from services are recognized when such services are rendered.

(v) Dividend is accounted when right to receive is established.

(vi) Interest income is recognised on time proportion basis taking into account the amount outstanding and rate applicable.

1.7 DEPRECIATION/ AMORTISATION : Depreciation on assets is provided on Straight Line Method, pro-rata to the period of use, based on the useful life of the assets as prescribed under the Schedule II of the Companies Act, 2013.

Capital Expenditure incurred on the assets not owned by the company are amortised over a period of five years.

Brands and Technical Know-how are ammortised on a straight line basis over a period of ten years. Software cost is amortised on Straight line basis over a period of three years.

1.8 FOREIGN CURRENCY TRANSACTIONS : Foregin Currency transactions are recorded at the exchange rate prevailing on the date of the transactions. Monetary items (i.e. receivables, payables, loans etc) denominated in foreign currency and outstanding at the Balance Sheet date are translated at the exchange rate prevailing on the date of balance sheet. Exchange difference arising on settlement and conversion of foregin currency transactions are recgonised as income or expenses in the period in which they arise, except those relating to fixed assets whichare adjusted in the cost of assets.

1.9 EMPLOYEE BENEFITS :

i) Defined Contribution Plan:

Employee benefits in the form of contribution to Provident Fund, Employees State Insurance Corporation and Labour Welfare Fund are considered as defined contribution plan and the same is charged to the statement of profit and loss for the year when the contributions to the respective funds are due.

ii) Defined Benefit Plan:

Gratuity

The company has an obligation towards gratuity, a defined benefit plan covering eligible employees. The company has created an Employees' Group Gratuity Fund which has taken a Group Gratuity Assurance Scheme with the Life Insurance Corporation of India. Company's contribution are based on acturial valuation, using the projected unit credit method, as at the date of the balance sheet. Actuarial gains / losses, if any, are recognised in the statement of profit and loss.

iii) Other Long Term Benefits:

Compensated Absences

The company provides for the encashmnet of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for furture encashment. Compensated absences are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the balance sheet. Actuarial gains / losses, if any, are immediately recognised in the statement of profit and loss.

1.10 BORROWING COSTS : Borrowing costs directly attributable to acquisition or construction of those fixed assets which necessarily take substantial period of time to get ready for the intended use are capitalised. Other borrowing costs are charged to the profit and loss account.

1.11 EARNINGS PER SHARE : Basic earnings per share are 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.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.12 TAXATION : Tax Expenses comprises of current tax and deferred tax.

Current Tax is provided on taxable income using applicable tax rates and tax laws.

The deferred tax for timing difference between the book and tax profits/losses for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of Balance Sheet date.

Deferred tax assets arising on account of unabsorbed depreciation and brought forward losses are recognised to the extent there is virtual certainty that the assets can be realised in furture.

Advance Taxes and provision for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same governing taxation laws.

1.12 IMPAIRMENT OF ASSETS : The Company assesses at each balance sheet date for possible impairment in carrying value of assets based on external and internal sources of information and indications. In case of recoverable amount of assets / cash generating unit is less than carrying amount, impairment loss is recognised in the Profit & Loss Account for difference in carrying value of assets / cash generating units and recoverable amount.

1.14 PROVISION AND CONTINGENT LIABILITIES :

i) Provision in respect of present obligation arising out of past events is made in accounts when reliable estimates can be made of the amount of obligation and it is probable that an outflow of resources will be required to settle the obligation.

ii) Contingent liabilities are disclosed by way of note to the financial statements after careful valuation by the management of the facts and legal aspects of matter involved. Contingent Assets are not recognised in the financial statements.


Mar 31, 2013

(A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements are prepared under the historical cost convention in accordance with the applicable Accounting Standards pursuant to Companies (Accounting Standards) Rules, 2006. All income and expenditure having material bearing on the financial statements are recognised on accrual basis. The preparation of financial statements requires the Management to make certain estimates and assumptions in the reports amounts of assets and liabilities (Including contingent liabilities) as on the date of the financial statements and reported income and expenditure during the reported period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(B) FIXED ASSETS: Fixed Assets are stated at cost of acquisition or construction (net of cenvat credits). All costs relating to the acqusition and installation of fixed assets are capitalized and include borrowing costs directly attributable to construction or acquisition of fixed assets, up to the date of asset is put to use.

(C) INTANGIBLE ASSETS: Cost relating to acquisition of Brands and Technical Know-how are capitalised and ammortised on a straight line basis over a period of ten years. Software cost is ammortised on Straight line basis over a period of three years.

(D) INVESTMENTS: Long term investments are carried at cost less provision, if any, for permanent diminution in value of such investments. Current investments are stated at lower of cost and quoted/fair value computed category wise.

(E) INVENTORIES: Raw-materials and packing materials are valued at lower of cost or market value. Work-in process and Finished Goods are valued at cost and includes element of production overheads. Traded goods are valued at cost. Material-in-Transit valued at cost incurred to date. Consumable stores are charged to the profit and loss account in the year of its purchases.

(F) REVENUE RECOGNITION:

(i) The Company recognises sale on despatch of goods to customers. Sales are exclusive of excise duty, sales tax and sales returns. (ii) Export Benefits under Duty Entitlement Pass Book Scheme, is estimated and accounted in the year of exports. (iii) Revenues from services are recognized when such services are rendered.

(G) EXCISE-DUTY: Excise duty is recognised on goods manufactured for sales purpose.

(H) DEPRECIATION/ AMORTISATION:

(i) Depreciation on all the fixed assets have been charged in accordance with rates specified in Schedule XIV of Companies Act, 1956 on straight line basis. (ii) Capital Expenditure incurred on the assets not owned by the company are amortised over a period of five years (iii) Depreciation on addition to assets or sale of assets is calculated pro-rata from the month such addition or upto the month of sale, as the case may be.

(I) RETIREMENT BENEFITS: Liability in respect of Defined Benefit Plan for Gratuity is accounted based on the Actuarial valuation, arrived at after considering the part funding through Gratuity Policy, in accordance with the method stated in the Accounting Standard 15 (Revised) on "Employees Benefits" The liability in respect of Leave Encashment has been provided as per the rules of the Company.

The contribution to Provident Fund and other recognised funds are calculated as per the prescribed rates under the relevant law and contributions are recognised in the Profit and Loss Account on an accrual basis.

(J) FOREIGN CURRENCY TRANSACTIONS: Foreign Currency transactions arising during the year are recorded at the rate of exchange prevailing on the date of transaction. Transactions which remained unsettled on Balance Sheet date are restated at the closing rate prevailing on that date. All exchange differences are dealt with in the statement of Profit & Loss Account , except those relating to the acquisition of fixed assets which are adjusted in the cost of assets.

(K) ACCOUNTING FOR TAXES: Deferred tax is recognised, for all timing differences, subject to consideration of prudence, in respect of Deferred Tax Assets.

(L) SUBSIDY ON FIXED ASSETS: Subsidy received as contribution towards cost of capital Investment project is considered as Capital Reserve .

(M) OPERATING LEASE - AS 19 LEASES : Lease charges paid for operating leases are charged to profit and loss account on a straight- line basis over the lease term.


Mar 31, 2012

(A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements are prepared under the historical cost convention in accordance with the applicable Accounting Standards pursuant to Companies (Accounting Standards) Rules, 2006. All income and expenditure having material bearing on the financial statements are recognised on accrual basis.

The preparation of financial statements requires the Management to make certain estimates and assumptions in the reports amounts of assets and liabilities (Including contingent liabilities) as on the date of the financial statements and reported income and expenditure during the reported period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(B) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition or construction (net of cenvat credits). All costs relating to the acqusition and installation of fixed assets are capitalized and include borrowing costs directly attributable to construction or acquisition of fixed assets, up to the date of asset is put to use.

(C) INTANGIBLE ASSETS:

Cost relating to acquisition of Brands and Technical Know-how are capitalised and ammortised on a straight line basis over a period of ten years. Software cost is ammortised on Straight line basis over a period of three years.

(D) INVESTMENTS:

Long term investments are carried at cost less provision, if any, for permanent diminution in value of such investments. Current investments are stated at lower of cost and quoted/fair value computed category wise.

(E) INVENTORIES:

Raw-materials and packing materials are valued at lower of cost or market value. Work-in process and Finished Goods are valued at cost and includes element of production overheads. Traded goods are valued at cost. Material-in-Transit valued at cost incurred to date. Consumable stores are charged to the profit and loss account in the year of its purchases.

(F) REVENUE RECOGNITION:

(i) The Company recognises sale on despatch of goods to customers. Sales are exclusive of excise duty, sales tax and sales returns.

(ii) Export Benefits under Duty Entitlement Pass Book Scheme, is estimated and accounted in the year of exports.

(iii) Revenues from services are recognized when such services are rendered.

(G) EXCISE-DUTY: Excise duty is recognised on goods manufactured for sales purpose.

(H) DEPRECIATION/ AMORTISATION:

(i) Depreciation on all the fixed assets have been charged in accordance with rates specified in Schedule XIV of Companies Act, 1956 on straight line basis.

(ii) Capital Expenditure incurred on the assets not owned by the company are amortised over a period of five years.

(iii) Depreciation on addition to assets or sale of assets is calculated pro-rata from the month such addition or upto the month of sale, as the case may be.

(I) RETIREMENT BENEFITS:

Liability in respect of Defined Benefit Plan for Gratuity is accounted based on the Actuarial valuation, arrived at after considering the part funding through Gratuity Policy, in accordance with the method stated in the Accounting Standard 15 (Revised) on "Employees Benefits" The liability in respect of Leave Encashment has been provided as per the rules of the Company.

The contribution to Provident Fund and other recognised funds are calculated as per the prescribed rates under the relevant law and contributions are recognised in the Profit and Loss Account on an accrual basis.

(J) FOREIGN CURRENCY TRANSACTIONS:

Foreign Currency transactions arising during the year are recorded at the rate of exchange prevailing on the date of transaction. Transactions which remained unsettled on Balance Sheet date are restated at the closing rate prevailing on that date. All exchange differences are dealt with in the statement of Profit & Loss Account , except those relating to the acquisition of fixed assets which are adjusted in the cost of assets.

(K) ACCOUNTING FOR TAXES:

Deferred tax is recognised, for all timing differences, subject to consideration of prudence, in respect of Deferred Tax Assets.

(L) SUBSIDY ON FIXED ASSETS:

Subsidy received as contribution towards cost of capital Investment project is considered as Capital Reserve .

(M) OPERATING LEASE - AS 19 LEASES :

Lease charges paid for operating leases are charged to profit and loss account on a straight- line basis over the lease term.

Each holder of equity shares is entitled to one vote per share with a right to receive per share dividend declared by the Company. In the event of liquidation, the equity shareholders are entitled to receive remaining assets of the Company (after distribution of all preferential amounts) in the proportion of equity shares held by the shareholders. During the year, the Company has recorded Dividend @ 5% (previous year: 5% ) on a share of teach.


Mar 31, 2011

(A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS :

The Financial Statements are prepared under the historical cost convention in accordance with the applicable Accounting Standards pursuant to Companies (Accounting Standards) Rules, 2006. All income and expenditure having material bearing on the financial statements are recognised on accrual basis.

The preparation of financial statements requires the Management to make certain estimates and assumptions in the reports amounts of assets and liabilities (Including contingent liabilities) as on the date of the financial statements and reported income and expenditure during the reported period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

(B) FIXED ASSETS:

Fixed Assets are stated at cost of acquisition or construction (net of cenvat credits) .All costs relating to the acqusition and installation of fixed assets are capitalized and include borrowing costs directly attributable to construction or acquisition of fixed assets, up to the date of asset is put to use.

(C) INTANGIBLE ASSETS:

Cost relating to acquisition of Brands and Technical Know-how are capitalised and ammortised on a straight line basis over a period of ten years. Software cost is ammortised on Straight line basis over a period of three years.

(D) INVESTMENTS:

Long term investments are carried at cost less provision, if any, for permanent diminution in value of such investments. Current investments are stated at lower of cost and quoted/fair value computed category wise.

(E) INVENTORIES:

Raw-materials and packing materials are valued at lower of cost or market value. Work-in process and Finished Goods are valued at cost and includes element of production overheads. Traded goods are valued at cost. Material-in- Transit valued at cost incurred to date. Consumable stores are charged to the profit and loss account in the year of its purchases.

(F) REVENUE RECOGNITION

(i) The Company recognises sale on despatch of goods to customers. Sales are exclusive of excise duty, sales tax and sales returns.

(ii) Export Benefits under Duty Entitlement Pass Book Scheme, is estimated and accounted in the year of exports.

(iii) Revenues from services are recognised when such services are rendered.

(G) EXCISE-DUTY:

Excise duty is recognised on goods manufactured for sales purpose.

(H) DEPRECIATION/AMORTISATION:

(i) Depreciation on all the fixed assets have been charged in accordance with rates specified in Schedule XIV of Companies Act, 1956 on straight line basis.

(ii) Capital Expenditure incurred on the assets not owned by the company are amortised over a period of five years.

(iii) Depreciation on addition to assets or sale of assets is calculated pro-rata from the month such addition or upto the month of sale, as the case may be.

(I) RETIREMENT BENEFITS:

Liability in respect of Defined Benefit Plan for Gratuity is accounted based on the Actuarial valuation, arrived at after considering the part funding through Gratuity Policy, in accordance with the method stated in the. Accounting Standard 15 (Revised) on "Employees Benefits" The liability in respect of Leave Encashment has been provided as perthe rules of the Company.

The contribution to Provident Fund and other recognised funds are calculated as per the prescribed rates under the relevant law and contributions are recognised in the Profit and Loss Account on an accrual basis.

(J) FOREIGN CURRENCYTRANSACTIONS:

Foreign Currency transactions arising during the year are recorded at the rate of exchange prevailing on the date of transaction. Transactions which remained unsettled on Balance Sheet date are restated at the closing rate prevailing on that date. All exchange differences are dealt with in the statement of Profit & Loss Account, except those relating to the acquisition of fixed assets which are adjusted in the cost of assets.

(K) ACCOUNTING FOR TAXES:

Deferred tax is recognised, for all timing differences, subject to consideration of prudence, in respect of Deferred Tax Assets.

(L) SUBSIDY ON FIXED ASSETS:

Subsidy received as contribution towards cost of capital investment project is considered as Capital Reserve.

(M) OPERATING*.EASE -AS 19 LEASES

Lease charges paid for operating leases are charged to profit and loss account on a straight- line basis overthe lease term.

 
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