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Accounting Policies of Hemo Organic Ltd. Company

Mar 31, 2015

1) Basis of Accounting:

Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of the Companies Act, 1956.

2) Use of Estimates:

The presentation 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 result and estimates are recognized in the period in which the results are known / materialized.

3) Fixed Assets:

Fixed Assets are stated at historical cost net of Cenvat credit / Value Added Tax, including appropriate direct and allocated expenses less accumulated depreciation and impairment losses , if any. Self constructed assets are capitalized at factory cost.

4) Valuation of Inventories:

Inventories are valued at lower of costs or estimated net realizable value. The cost of inventories is arrived at on the following basis:

Raw Material and Stores : Weighted Average Cost

Stock-in-process : Raw Material at Weighted Average Cost & absorption of Labour and Overhead

Finished Goods : Raw Material at Weighted Average Cost & absorption of Labour and Overhead

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5) Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) Any income or expense on account of exchange difference on settlement is recognized in the profit and loss Account.

6) Depreciation:

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

7) Recognition of Revenue:

The company recognizes sales on the basis of actual delivery of the goods. Sales are recorded at invoice values net of excise duties, value added tax and trade discounts. The purchases are recorded at the invoice value.

All expenses and income to the extent considered payable and receivable respectively are accounted for on mercantile basis except encasement of leave salary and interest on income tax refunds which are treated on cash basis.

8) Employee Benefits: Post-employment benefit plans:

a) Defined Contribution Plan: Contribution for Provident Fund is not recognized since the provisions of

Provident Act are not applicable to the Company.

b) Defined Benefit Plan: The liabilities in respect of gratuity is not recognized since the provisions of respective are not applicable to the Company.

Short-term employee benefits: All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia, are recognized in the period in which the employee renders the related services.

9) Borrowing Cost:

Interest on borrowings, if any, attributable to acquisition of qualifying Assets are capitalized and included in the cost of the asset, as appropriate.

10) Earnings Per Share:

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the equity shareholders by the weighted average number of Equity Shares outstanding during the year.

11) Taxation:

Provision for income-tax is made on the basis of estimated taxable income for the year. Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

12) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree or estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13) Impairment of Asset:

An asset is treated as impaired when the carrying amount of the asset exceeds its estimated recoverable value. Carrying amounts of fixed assets are reviewed at each balance sheet date to determine indications of impairment, if any, of those assets. If any such indication exists, the recoverable amount of the asset is estimated and an impairment loss equal to the excess of the carrying amount over its recoverable value is recognized as an impairment loss. The impairment loss, if any, recognized in prior accounting period is reversed if there is a change in estimate of recoverable amount.


Mar 31, 2013

1) Basis of Accounting:

Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of the Companies Act, 1956.

2) Use of Estimates:

The presentation 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 result and estimates are recognized in the period in which the results are known / materialized.

3) Fixed Assets:

Fixed Assets are stated at historical cost net of Cenvat credit / Value Added Tax, including appropriate direct and allocated expenses less accumulated depreciation and impairment losses , if any. Self constructed assets are capitalized at factory cost.

4) Valuation of Inventories:

Inventories are valued at lower of costs or estimated net realizable value. The cost of inventories is arrived at on the following basis:

Raw Material and Stores : Weighted Average Cost

Stock-in-process : Raw Material at Weighted Average Cost & absorption of

LabourAnd Overhead Finished Goods : Raw Material at Weighted Average Cost & absorption of

LabourAnd Overhead

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5) Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) Any income or expense on account of exchange difference on settlement is recognized in the profit and loss Account.

6) Depreciation:

Depreciation has been provided at the rate specified in Schedule XIV (as amended) of the Companies Act, 1956 on SLM method. Depreciation on additions during the year is provided on pro rata time basis.

7) Recognition of Revenue:

The company recognizes sales on the basis of actual delivery of the goods. Sales are recorded at invoice values net of excise duties, value added tax and trade discounts. The purchases are recorded at the invoice value.

All expenses and income to the extent considered payable and receivable respectively are accounted for on mercantile basis except encasement of leave salary and interest on income tax refunds which are treated on cash basis.

Employee Benefits:

Post-employment benefit plans:

a) Defined Contribution Plan: Contribution for Provident Fund is not recognized since the provisions of Provident Act are not applicable to the Compny.

b) Defined Benefit Plan: The liabilities in respect of gratuity is not recognesed since the provisions of respective are not applicable to the Company.

Short-term employee benefits: All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia, are recognized in the period in which the employee renders the related services.

8) Borrowing Cost:

Interest on borrowings, if any, attributable to acquisition of qualifying Assets are capitalized and included in the cost of the asset, as appropriate.

9) Earnings Per Share:

Basic Earnings per share is calculated by dividing the Net Profit after tax attributable to the equity shareholders by the weighted average number of Equity Shares outstanding during the year.

10) Taxation:

Provision for income-tax is made on the basis of estimated taxable income for the year. Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

11) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree or estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

12) Impairment of Asset:

An asset is treated as impaired when the carrying amount of the asset exceeds its estimated recoverable value. Carrying amounts of fixed assets are reviewed at each balance sheet date to determine indications of impairment, if any, of those assets. If any such indication exists, the recoverable amount of the asset is estimated and an impairment loss equal to the excess of the carrying amount over its recoverable value is recognized as an impairment loss. The impairment loss, if any, recognized in prior accounting period is reversed if there is a change in estimate of recoverable amount.


Mar 31, 2012

1) Basis of Accounting:

Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of the Companies Act, 1956.

2) Use of Estimates:

The presentation 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 result and estimates are recognized in the period in which the results are known / materialized.

3) Fixed Assets:

Fixed Assets are stated at historical cost net of Cenvat credit / Value Added Tax, including appropriate direct and allocated expenses less accumulated depreciation and impairment losses , if any. Self constructed assets are capitalized at factory cost.

4) Valuation of Inventories:

Inventories are valued at lower of costs or estimated net realizable value. The cost of inventories is arrived at on the following basis:

Raw Material and Stores : Weighted Average Cost

Stock-in-process : Raw Material at Weighted Average Cost & absorption of Labour And Overhead

Finished Goods : Raw Material at Weighted Average Cost & absorption of Labour And Overhead

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5) Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) Any income or expense on account of exchange difference on settlement is recognized in the profit and loss Account.

6) Depreciation:

Depreciation has been provided at the rate specified in Schedule XIV (as amended) of the Companies Act, 1956 on SLM method. Depreciation on additions during the year is provided on pro rata time basis.

7) Recognition of Revenue:

The company recognizes sales on the basis of actual delivery of the goods. Sales are recorded at invoice values net of excise duties, value added tax and trade discounts. The purchases are recorded at the invoice value.

All expenses and income to the extent considered payable and receivable respectively are accounted for on mercantile basis except encasement of leave salary and interest on income tax refunds which are treated on cash basis.

8) Employee Benefits: Post-employment benefit plans:

a) Defined Contribution Plan: Contribution for Provident Fund is not recognized since the provisions of Provident Act are not applicable to the Company.

b) Defined Benefit Plan: The liabilities in respect of gratuity is not recognesed since the provisions of respective are not applicable to the Company.

Short-term employee benefits: All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia, are recognized in the period in which the employee renders the related services.

9) Borrowing Cost:

Interest on borrowings, if any, attributable to acquisition of qualifying Assets are capitalized and included in the cost of the asset, as appropriate.

10) Earning Per Share:

Basic Earning per share is calculated by dividing the Net Profit after tax attributable to the equity shareholders by the weighted average number of Equity Shares outstanding during the year.

11) Taxation:

Provision for income-tax is made on the basis of estimated taxable income for the year. Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

12) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree or estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13) Impairment of Asset:

An asset is treated as impaired when the carrying amount of the asset exceeds its estimated recoverable value. Carrying amounts of fixed assets are reviewed at each balance sheet date to determine indications of impairment, if any, of those assets. If any such indication exists, the recoverable amount of the asset is estimated and an impairment loss equal to the excess of the carrying amount over its recoverable value is recognized as an impairment loss. The impairment loss, if any, recognized in prior accounting period is reversed if there is a change in estimate of recoverable amount.


Mar 31, 2010

1) Basis of Accounting:

Financial statements are prepared under historical cost convention on accrual basis in accordance with the requirements of the Companies Act, 1956.

2) Use of Estimates:

The presentation 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 result and estimates are recognized in the period in which the results are known / materialized.

3) Fixed Assets:

Fixed Assets are stated at historical cost net of Cenvat credit / Value Added Tax, including appropriate direct and allocated expenses less accumulated depreciation and impairment losses , if any. Self constructed assets are capitalized at factory cost.

4) Valuation of Inventories:

Inventories are valued at lower of costs or estimated net realizable value. The cost of inventories is arrived at on the following basis:

Raw Material and Stores : Weighted Average Cost

Stock-in-process : Raw Material at Weighted Average Cost & absorption of Labour And Overhead

Finished Goods : Raw Material at Weighted Average Cost & absorption of Labour And Overhead

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

5) Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(b) Any income or expense on account of exchange difference on settlement is recognized in the profit and loss Account.

6) Depreciation:

Depreciation has been provided at the rate specified in Schedule XIV (as amended) of the Companies Act, 1956 on SLM method. Depreciation on additions during the year is provided on pro rata time basis.

7) Recognition of Revenue:

The company recognizes sales on the basis of actual delivery of the goods. Sales are recorded at invoice values net of excise duties, value added tax and trade discounts. The purchases are recorded at the invoice value.

All expenses and income to the extent considered payable and receivable respectively are accounted for on mercantile basis except encasement of leave salary and interest on income tax refunds which are treated on cash basis.

8) Employee Benefits: Post-employment benefit plans:

a) Defined Contribution Plan: Contribution for Provident Fund is not recognized since the provisions of Provident Act are not applicable to the Compny.

b) Defined Benefit Plan: The liabilities in respect of gratuity is not recognesed since the provisions of respective are not applicable to the Company.

Short-term employee benefits: All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like.salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia, are recognized in the period in which the employee renders the related services.

9) Borrowing Cost:

Interest on borrowings, if any, attributable to acquisition of qualifying Assets are capitalized and included in the cost of the asset, as appropriate.

10) Earning Per Share:

Basic Earning per share is calculated by dividing the Net Profit after tax attributable to the equity shareholders by the weighted average number of Equity Shares outstanding during the year.

11) Taxation:

Provision for income-tax is made on the basis of estimated taxable income for the year. Deferred tax resulting from timing differences between the book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

12) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree or estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

13) Impairment of Asset:

An asset is treated as impaired when the carrying amount of the asset exceeds its estimated recoverable value. Carrying amounts of fixed assets are reviewed at each balance sheet date to determine indications of impairment, if any, of those assets. If any such indication exists, the recoverable amount of the asset is estimated and an impairment loss equal to the excess of the carrying amount over its recoverable value is recognized as an impairment loss. The impairment loss, if any, recognized in prior accounting period is reversed if there is a change in estimate of recoverable amount.

 
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