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Accounting Policies of Kerala Ayurveda Ltd. Company

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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