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Accounting Policies of Kerala Ayurveda Ltd. Company

Mar 31, 2018

2. Significant Accounting Policies:

a. Basis of preparation and presentation of financial statements ;''.

Accounting Convention

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

For all periods up to and including the year ended March 31,2017, the company prepared its financial statements in accordance with the Accounting Standards earlier notified under Section 133 of the Companies Act, 2013, read togetherwith Companies (Accounts) Rules, 2014 (Indian GAAP).

These are the Company''s first annual financial statements prepared in accordance with Ind AS. The Company has adopted all applicable standards and adoptions were carried out in accordance with Ind AS 101 - First time adoption of Indian Accounting Standards. An explanation of how the transition to Ind AS has affected the reported financial position, financial performance and cash flows of the Company is provided in Note 3of these financials.

ii. Historical cost convention

The financial statements have been prepared under historical cost convention on accrual basis, unless otherwise stated.

iii. Use of Estimates

The preparation of the financial statements in conformity with Ind AS requires the use of accounting estimates that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year. Actual results could differ from estimates.

iv. Fair Valuation

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) inactive markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 in inputs are unobservable inputs for the asset or liability.

b. Current versus non-current classification The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification. An asset is treated as current when:

o It is expected to be realised or intended to be sold or consumed in normal operating cycle; o It is held primarily for the purpose of trading;

o It is expected to be realised within twelve months after the reporting period; or

o It is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting. o The Company classifies all other assets as noncurrent.

Aliability is current when:

o It is expected to be settled in normal operating cycle; o It is held primarily for the purpose of trading; o It is due to be settled within twelve months after the reporting period; or

o There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

o The Company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle for the purpose of current-non-current classification of assets and liabilities.

Property, plants Equipment /. Property, plant and equipment

All the items of property, plant and equipment are stated at cost, which includes capitalized finance costs, less accumulated depreciation and any accumulated impairment loss. Cost includes expenditure that is directly attributable to the acquisition of the items. The cost of an item of a PPE comprises its purchase price including import duty, and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition of its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Expenditure incurred on start-up and commissioning of the project and/or substantial expansion, including the expenditure incurred on trial runs (net of trial run receipts, if any) up to the date of commencement of commercial production are capitalised. Subsequent costs included in the asset''s carrying amount are recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged off in the relevant reporting period in which they are incurred.

Advances paid towards acquisition of property, plant and equipment outstanding at each Balance Sheet date, are shown under other non-current assets and cost of assets not ready for intended use before the year end, are shown as capital work-in- progress. ;'';''. Intangible assets

Internally generated goodwill is not recognised as an asset. With regard to other internally generated intangible assets:

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in the Statement of Profit and Loss as incurred.

o Development activities involve a plan or design for the production of new or substantially improved products or processes. Development expenditure including regulatory cost and legal expenses leading to product registration/ market authorisation relating to the new and/or improved product and/or process development capitalised only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Company intends to and has sufficient resources to complete development and to use the asset. The expenditure capitalised includes the cost of materials, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use, and directly attribut able finance costs (in the same manner as in the case of tangible fixed assets). Other development expenditure is recognised in the Statement of Profit and Loss as incurred, o Intangible assets that are acquired (including implementation of software system) are measured initially at cost.

o After initial recognition, an intangible asset is carried at its cost less accumulated amortisation and any accumulated impairment loss. Subsequent expenditure is capitalised only when it increases the future economic benefits from the specific asset to which it relates.

iii. Biological Assets

Biological assets are classified as bearer biological assets and consumable biological assets.

Consumable biological assets are those that are to be harvested as agricultural produce. Bearer biological assets which are held to bear produce capable of being used in manufacture are classified as bearer plants.

The Company recognises plants, bushes which are grown and ultimately consumed in the production process as consumable biological assets.

Considering the type of industry and the unpredictability of future economic benefit, expenditure incurred on bearer biological assets is not capitalised. iv. Depreciation and amortization methods, estimated useful lives and residual value

Depreciation is provided on straight line basison the original cost/ acquisition cost of assets or other amounts substituted for cost of fixed assets as per the useful life specified in Part ''C''of Schedule II of the Act, read with notification dated 29 August 2014 of the Ministry of Corporate Affairs.

Software is amortised over a period of five years being their useful life. The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Depreciation and amortization on property, plant and equipment and intangible assets added/disposed off during the year has been provided on pro-rata basis with reference to the date of addition/disposal. v. Derecognition

Property, plant and equipment and intangible assets are derecognised on disposal or when no future economic benefits are expected from its use and disposal. Losses arising from retirement and gains or losses arising from disposal of a tangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss. vi. Transition to Ind AS

On transition to Ind AS, the Company has elected to measure all its property, plant and equipment and intangible assets at the previous GAAP carrying amount as its deemed cost on the date of transition of Ind AS i.e., 1 April 2016

d. Impairment of non-financial assets

The Company''s non-financial assets other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated.

An impairment loss in respect of assets for which impairment loss has been recognized in prior periods, the Company reviews at reporting date whether there is any indication that the loss has decreased or no longer exists. Impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount. Such a reversal is made only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

e. Financial instrument

Financial instruments comprise of financial assets and financial liabilities. Financial assets primarily comprise of investments in subsidiaries and joint ventures, loans and advances, premises and other deposits, trade receivables and cash and cash equivalents. Financial liabilities primarily comprise of borrowings, trade payables and financial guarantee contracts. /. Financial assets

Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets are added to the fair value of the financial assets on initial recognition. After initial recognition all financial assets (other than investments in subsidiaries and joint ventures, other equity investments and derivative instruments) are subsequently measured at amortised cost using the effective interest method. The Company has not designated any financial asset as Fair Value through Profit or Loss (FVTPL). A financial asset is regarded as credit impaired when one or more events that may have a detrimental effect on estimated future cash flows of the asset have occurred. The Company applies the expected credit loss model for recognising impairment loss on financial assets, (i.e. the shortfall between all contractual cash flows that are due and all the cash flows (discounted) that the entity expects to receive).

Investments in subsidiaries and jointventures: The Company has elected to account for its equity investments in subsidiaries and joint ventures under IndAS 27 on Separate Financial Statements, at cost. At the end of each reporting period the Company assesses whether there are indicators of diminution in the value of its investments and provides for impairment loss, where necessary. ;'';''. Financial liabilities

Financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the issue of financial liabilities are deducted from the fair value of the financial liabilities on initial recognition. After initial recognition, all financial liabilities are subsequently measured at amortized cost using the effective interest method. The Company has not designated any financial liability as FVTPL.

f. Inventories

Inventories are valued at lower of cost or net realisable value except scrap, which is valued at net estimated realisable value. Stores and Spares are valued at Cost. The methods of determining cost of various categories of inventories are as follows:

Raw Materials

Cost

Stores and Spares

Work in Progress

Finished goods (Manufactured)

Finished goods (Traded)

Nursing Inventory

Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition inclusive of excise duty wherever applicable. Excise duty liability is included in the valuation of closing inventory of finished goods.

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

The net realisable value of work-in-progress is determined with reference to the selling prices of related finished products. Raw materials and other supplies held for use in the production of finished products are not written down below cost, except in cases where material prices have declined and it is estimated that the cost of the finished products will exceed their net realisable value.

The comparison of cost and net realisable value is made on an item-by-item basis.

g. Trade Receivables

The trade receivables have been recorded at their respective carrying amounts and are not considered to be materially different from their fair values as these are expected to realise within a short period from the date of balance sheet. Management believes that the amounts that are past the credit period are still collectible in full based on historical payment behaviourand analysis of customer credit risk, h. Provisions

Aprovision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and risks specific to the liability. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into accountthe risks and uncertainties surrounding the obligation, i. Cash and cash equivalents

Cash and cash equivalents comprises of cash at bank, cash in hand and short term deposits which are subject to insignificant risk of changes in value, j. Incometax

Income tax expense represents the sum of the tax currently payable and deferred tax. Current and deferred tax are recognized in profit or loss except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

i. Current Income Tax

Current Income tax is measured based on the estimated taxable profit for the year and is calculated using applicable tax rates and tax laws that have been enacted or substantively enacted.

ii. Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available in future to allow the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted.

iii Minimum Alternate Tax

In accordance with the prevalent tax laws, Minimum Alternative Tax (''MAT'') paid over and above the normal income tax in any year is eligible for carry forward and set-off against normal income tax liability.

k. Revenue recognition

Revenue from sale of products is recognised when the property in the goods, or all significant risks and rewards of ownership of the products have been transferred to the buyer, and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of products as well as regarding its collection. Revenues include excise duty and other indirect taxes, net of applicable discounts and allowances if any.

Revenue includes sale of cultivated plants. The entity has biological assets and agricultural produce is harvested from biological asset which are bearer biological assets and consumable biological assets.

I. Rent Deposit

As rent deposits do not meet the criteria of amortized cost, are measured at Fair value and classified as fair value through other comprehensive income.

m. Properties taken on lease

Properties taken on lease by the Company are in the nature of operating leases as the lease terms do not transfer substantially all risks and rewards incidental to ownership of such properties to the Company. Operating lease payments are recognised in profit or loss on a straight-line basis over the lease term unless another systematic basis is more representative of the time pattern of the user''s benefit or the lease payments are structured to increase in line with expected general inflationto compensate for the lessor''s expected inflationary cost increases. Interest free lease deposits are remeasured at amortised cost by the effective interest rate method. The difference between the transaction value of the deposit and amortised cost is regarded as prepaid rent and recognised as expense uniformly over the lease period.

n. Capital Work in Progress

Project expenditure incurred as part of Development is capitalised under Capital Work in Progress as the costs can be reliably measured, future economic benefits are probable, the product is technically feasible and the Company has the intent and the resources to complete the project. Development assets are amortised based on the estimated useful life, as appropriate.

o. Other income

Other income consists of interest income on funds invested. Interest income is recognised as it accrues in the statement of profit and loss, using the effective interest rate method on time proportion basis.

p. Employee benefits ;''. Short-term benefits''.

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave and other short term benefits in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Other Long Term benefits:

Post-employment benefit plans are classified into defined benefits plans and defined contribution plans as under: Gratuity

The Company has an obligation towards gratuity as per actuarial valuation. Provident fund Payments to defined contribution plans are recognised as expense when employees have rendered service entitling them to the contributions.

The basis for determination of liability is as under:

Gratuity

Current year

Previous year

Change in present value of obligation

1. Present value of the obligation at the beginning of the year

3,15,65,052

3,00,00,000

2. Current service cost

20,50,031

15,65,052

3. Interest on defined benefit obligation

21,51,205

-

4. Actuarial (gain)/loss

47,07,653

-

5. Benefits paid

(23,96,198)

-

6. Present value of obligation at the end of the year

3,80,77,743

3,15,65,052

Liability recognized in the Financial statements

Long term

3,40,44,691

2,86,08,518

Short term

40,33,052

29,56,534

Costs for the year

Change in the present value of obligation

1. Current service cost

20,50,031

-

2. Interest Cost

21,51,205

-

3. Actuarial (gain)/loss

-

-

Total Expenses

42,01,236

-

Main Actuarial Assumptions

Discount rate(p.a)

7.80%

7.15%

Salary escalation rate (p. a)

8.00%

6.00%

Method

Projected Unit Credit Method

ProjectedUnit Credit Method

q. Finance Costs

Finance costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of that asset. Qualifying assets are assets that necessarily take a substantial period of time to get ready fortheir intended use or sale. All other borrowing costs are charged to revenue, r. Foreign Currency transactions

Transactions in currencies other than the Company''s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date and recognised in profit or loss in the period in which they arise. 3. First-time adoption of Ind AS

The Company has prepared financial statements which comply with Ind AS for periods ending on or after March 31, 2018, together with the comparative period data for the year ended March 31, 2017. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP balance sheet as at April 1,2016. An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is as follows:

1. Under the previous GAAP, there was no separate record in the financial statements for ''Other Comprehensive Income''. Under Ind AS, specified items of income, expense, gains and losses are presented under Other Comprehensive Income.

2. Under the previous GAAP, no actuarial valuations of employee benefits were done. Under Ind AS, employee benefits are accounted as per the actuarial valuation and the actuarial gains and losses on re-measurement of net defined benefit obligations are recognized in other comprehensive income.


Mar 31, 2016

1-Significant Accounting Policies

1.1 Basis for preparation of financial statements and method of accounting

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with policies generally accepted in India including Accounting Standards issued by the Institute of Chartered Accountants of India.

1.2 Use of estimates

The preparation of the financial statements in conformity with the accounting standards generally accepted in India requires the management to make estimates that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year. Actual results could differ from estimates.

1.3 Fixed Assets

a) Fixed assets are stated at cost less depreciation. Cost includes expenses related to acquisition and installation of fixed assets.

b) Depreciation on all other fixed assets is provided based on the useful lives of the asset as prescribed under Schedule II of the Companies Act 2013. Depreciation on additions has been calculated on prorata basis.

Assets Useful Life in years (Schedule II)

Land Nil

Building 30

Office Equipments 5

Computers & Peripherals 3

Vehicles 8

Furniture’s & Fittings 10

1.4 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that has necessarily taken substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.5 Inventories

Raw materials, consumables and work-in-progress are valued at cost or net realizable value, whichever is lower. Stores and Spares are valued at cost.

1.6 Revenue Recognition

Sales are net of rebate, discount, excise duty and VAT. Treatment income & consulting charges is recognized on completion of each service & consultation and research/healthcare consultancy income is recognized on accrual basis.

1.7 Transactions in Foreign Exchange

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Foreign currency assets and liabilities at the yearend are translated into rupees at the rate of exchange prevailing on the date of balance sheet. All exchange differences are dealt with in the statement of Accounts.

1.8 Employee Benefits / Retirement Benefits.

- Leave Encashment Benefit accounted on the basis that such benefits is payable to employees at the end of the year.

- Gratuity Provision is made based on actuarial valuation.

- Provident Fund contribution is as per the rate prescribed by the related Act.

1.9 Research & Development.

Revenue expenditure on research and development is charged to Profit & Loss account. Capital expenditure on research and development is included as a part of fixed assets and depreciated on the same basis as other fixed assets.

1.10 Impairment of assets

Impairment loss if any is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of useful life.

1.11 Investments

Investments are stated at cost less provision for diminution other than temporary in their values.

1.12 Earnings Per Share

The basic and diluted earnings per share (E P S) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

1.13 Provision for Tax

Income tax and Deferred tax provision for the year is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from ''timing difference'' between book and taxable profit is accounted by using the tax rates and laws that are enacted or substantively enacted on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.


Mar 31, 2015

1.1 Basis for preparation of financial statements and method of accounting

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with policies generally accepted in India including Accounting Standards issued by the Institute of Chartered Accountants of India.

1.2 Use of estimates

The preparation of the financial statements in conformity with the accounting standards generally accepted in India requires the management to make estimates that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year. Actual results could differ from estimates

1.3 Fixed Assets

a) Fixed assets are stated at cost less depreciation. Cost includes expenses related to acquisition and installation of fixed assets.

b) Depreciation on all other fixed assets is provided based on the useful lives of the asset as prescribed under Schedule II of the Companies Act 2013. Depreciation on additions has been calculated on prorata basis.

Assets Useful Life in years (Schedule II)

Land Nil

Building 30

Office Equipments 5

Computers & Peripherals 3

Vehicles 8

Furniture & Fittings 10

1.4 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that has necessarily taken substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.5 Inventories

Raw materials, consumables and work-in-progress are valued at cost or net realizable value, whichever is lower. Stores and Spares are valued at cost.

1.6 Revenue Recognition

Sales are net of rebate, discount, excise duty and VAT. Treatment income & consulting charges is recognized on completion of each service & consultation and research/healthcare consultancy income is recognized on accrual basis.

1.7 Transactions in Foreign Exchange

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Foreign currency assets and liabilities at the year end are translated into rupees at the rate of exchange prevailing on the date of balance sheet. All exchange differences are dealt with in the statement of Accounts.

1.8 Employee Benefits / Retirement Benefits.

Leave Encashment Benefit accounted on the basis that such benefits is payable to employees at the end of the year.

Gratuity Provision is made based on actuarial valuation.

Provident Fund contribution is as per the rate prescribed by the related Act.

1.9 Research & Development.

Revenue expenditure on research and development is charged to Profit & Loss account. Capital expenditure on research and development is included as a part of fixed assets and depreciated on the same basis as other fixed assets.

1.10 Employee Benefits / Retirement Benefits.

Leave Encashment Benefit accounted on the basis that such benefits is payable to employees at the end of the year.

Gratuity Provision is made based on actuarial valuation.

Provident Fund contribution is as per the rate prescribed by the related Act.

1.11 Impairment of assets

Impairment loss if any is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of useful life.

1.12 Investments

Investments are stated at cost less provision for diminution other than temporary in their values.

1.13 Earnings Per Share

The basic and diluted earnings per share (E P S) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

1.14 Impairment of assets

Impairment loss if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of useful life.

1.15 Provision for Tax

Income tax and Deferred tax provision for the year is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from 'timing difference' between book and taxable profit is accounted by using the tax rates and laws that are enacted or substantively enacted on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.


Mar 31, 2014

1.1 Basis for preparation of financial statements and method of accounting

The financial statements are prepared under the historical cost convention on accrual basis of accounting and In accordance with policies generally accepted In India Including Accounting Standards issued by the Institute of Chartered Accountants of India

1.2 Use of estimates

The preparation of the financial statements in conformity with the accounting standards generally accepteo in India requires the management to make estimates that affect the reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses tor the year Actual results could differ from estimates

1.3 Fixed Assets

a) Fixed assets are stated at cost less depreciation. Cost includes expenses related to acquisition and installation of fixed assets.

b) Depreciation is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956.

1.4 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets arc capitalized as pari of the cost of such assets. A qualifying asset is one that has necessarily taken substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.5 Inventories

Raw materials, consumables and work-in-progress are valued at cost or net realizable value, wnichever is -ower. Stores and Spares are valued at cost

1.6 Revenue Recognition

Sales are net of reoate, discount, excise duty and VAT. Treatment income & consulting charges is recognized on completion of each service & consultation and research/heailhcare consultancy Income Is recognized on accrual basis.

1.7 Transactions in Foreign Exchange

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Foreign currency assets and liabilities at the year end are translated into rupees at the rate o( exchange prevailing on the date of balance sheet. All exchange differences are dealt with in the statement of Accounts.

1.8 Employee Benefits / Retirement Benefits.

Leave Encashment Benefit accounted on the basis that such benefits is payable fo employees af the end of the year. Gratuity Provision is made based on actuanai valuation.

Provident Fund contribution is as per the rate prescribed by the related Act.

1.9 Research & Development

Revenue expenditure on research and development Is charged to Profit & Loss account. Capital expenditure on research and development Is Included as a part of fixed assets and depreciated on the same basis as other fixed assets.

1.10 Impairment of assets

Impairment loss If any Is provided to the extent ihe carrying amount of assefs exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of useful life.

1.11 Investments

Investments are stated at cost 'ess provision lor diminution other than temporary in Iheir values

1.12 Earnings Per Share

The basic and diluted earnings per share (E P S) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year

1.13 Provision for Tax

Income tax and Deferred tax provision lor the year is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from timing differonce between book and taxable profit is accounted by using the tax rates and laws that are enacted or substantively enacted on Ihe Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised In future.


Mar 31, 2011

A. SIGNIFICANT ACCOUNTING POLICIES FOLLOWED IN THE COMPILATION OF ACCOUNTS

I. Basis lord preparation of financial statements and method of accounting

The financial statements am prepared under the historical oust convention on accrual basis of accounting and in accordance with policies generally accepted In India Including Accounting Standards Issued by the Institute of Chartered Accountants of India.

2 Ute of estimated

The preparation of the financial statements in conformity with the accounting standards generally accepted In India requires the management to make estimates met affect me reported amount of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statement and recoded amounts of revenues and expenses for the year. Actual results could differ from estimates

3- Fixed Assets

a) Fixed assets an stated at cost less depreciation. Cost Includes expenses related to acquisition and Installation of flexed assets.

b) Depreciation is charged on Straight Line Method at the rates and in the manner prescribed In Schedule XIV of the Companies Act 1956.

c) In of poet of software developed internally the cost is amoretto over a period of 5 years.

4. Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of ouch assets. A qualifying asset is one that has necessarily taken substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue

5. Inventories

Raw materials, consumables and work-in-progress are valued at cost or net realizable value, whichever Is lower. Stores and Spares are valued at cost.

6. Revenue Recognition

Sales are net of rebate, discount, excise duty and VAT. Treatment Income & consulting charges is recognized on completion of each service & consultation and research Metal care consultancy income is recognized on accrual basis.

7. Transactions In Foreign Exchange

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Foreign currency assets and liabilities at the year and are translated into rupees at the rate of exchange prevailing on the date of balance sheet All exchange differences are dealt with In the statement of Accounts.

8. Employee Benefits/ Retirement Benefits.

- Leave Encashment Benefit accounted on the basis that ouch benefits it payable to employees at the end of the year.

- Gratuity Provision is made based on actuarial valuation.

- Provident Fund contribution is an per the rate prescribed by the related Act.

9. Miscellaneous Expenditure

1/S of the preliminary expenses and Initial Advertisement & sales promotion expenditure ore written off every year. Goodwill appearing In the Book has been amortized in the ratio 1/5, from 2006-07 onwards.

10. Research & Development

Revenue expenditure on research and development is charged to Profit & Loss account Capital expenditure on research and development Is Included as e part of fixed assets and depreciated on the same basis as other fixed assets.

11. Intangible Assets

Intangible assets are recognized on the basis of the future economic benefits that will flow to the enterprise. The a seats are recorded al the price paid to acquire them. Intangible assets will be written off over a period of their estimated useful lives

12 Impairment of asset

Impairment loss if any is provided to the extent the carrying amount of assets exceeds their recoverable amount Recoverable amount is higher of an asset's not selling price and Its value In us& Value In use Is the present value of estimated future cash Dows expected to arise from the continuing use of an asset and from its disposal at the end of useful life. During the year the impairment of assets amounting to rs.987,907/- has boon charged to Profit & Loss amount under depreciation..

13. investments

Investments are stated at cost less provision tor diminution other than temporary In their values.

14. Earnings Per Share

The basic and the looted outings per share (E P S) is computed by dividing the not profit after tax tor the year by weighted average number of equity shares outstanding during the year

15. Provision for Tax

Income tax and Deterred tax provision for the year is made after taking into consideration benefits admissible under the provisions of the Income Tax Act. 1961 Deterred tax resulting from` Timing difference' between book and taxable profit is accounted by using the tax rates and laws that are enchased or substantively enacted on the Balance Sheet date. The deferred tax asset is recognised and earned forward only to he extent that there Is a reasonable certainty that the asset will be realized In future’s


Mar 31, 2010

1. Basis for preparation of financial statements and method of accounting

The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with policies generally accepted in India including Accounting Sandards issued by the Institute of Chartered Accountants of India.

2. Use of estimates

The preparation of the financial statements in conformity with the accounting standards generally accepted in India requires the management to make estimates that affect the reported amount of assets and liabilities disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenues and expenses for the year. Actual results could differ from estimates.

3. Fixed Assets

a) Fixed assets are stated at cost less depreciation. Cost includes expenses related to acquisition and installation of fixed assets.

b) Depreciation is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act 1956.

c) In respect of software developed internally the cost is ammortised over a period of 5 years.

4. Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that has necessarily taken substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

5. Inventories

Raw materials, consumables and work-in-progress are valued at cost or net realizable value, whichever is lower. Stores and Spares are valued at cost.

6. Revenue Recognition

Sales are net of rebate, discount, excise duty and sales tax (VAT). Treatment income & consulting charges is recognized on completion of each service & consultation and research/healthcare consultancy income is recognized on accrual basis.

7. Transactions in Foreign Exchange

Foreign currency transactions are recorded at the rates of exchange prevailing on the date of the transaction. Foreign currency assets and liabilities at the year end are translated into rupees at the rate of exchange prevailing on the date of balance sheet. All exchange differences are dealt with in the statement of Accounts.

8. Employee Benefits / Retirement Benefits.

-Leave Encashment Benefit accounted on the basis that such benefits is payable to employees at the end of the year.

-Gratuity Provision is made based on actuarial valuation.

-Provident Fund contribution is as per the rate prescribed by the related Act.

9. Miscellaneous Expenditure

1/5 of the preliminary expenses and initial Advertisement & sales promotion expenditure are written off every year. Goodwill on merger appearing in the Book has been amortized in the ratio 1/5, from 2006-07 onwards.

10. Research & Development.

Revenue expenditure on research and development is charged to Profit & Loss account. Capital expenditure on research and development is included as a part of fixed assets and depreciated on the same basis as other fixed assets.

11. Intangible Assets

Intangible assets are recognized on the basis of the future economic benefits that will flow to the enterprise. The assets are recorded at the price paid to acquire them. Intangible assets will be written off over a period of their estimated useful lives

12. Impairment of assets

Impairment loss if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recover- able amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of useful life.

13. Investments

Investments are stated at cost less provision for diminution other than temporary in their values.

14. Provision for Tax

Income tax and Deferred tax provision for the year is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from timing difference between book and taxable profit is accounted by using the tax rates and laws that are enacted or substantively enacted on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.

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