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Accounting Policies of Medi-Caps Ltd. Company

Mar 31, 2015

Company Overview

Medicaps Limited ('the Company") was incorporated in 1983 as Medi Caps Pvt. Ltd. The Company together with its subsidiary operates as a Pharmaceutical organization with business encompassing the entire value chain in the Marketing, production and distribution of Pharmaceutical products. The Company's shares are listed for trading on the Bombay Stock Exchange Limited (BSE) and Madhya Pradesh Stock exchange (MPSE) in India.

a) Basis of preparation of financial statements :-

The Financial Statements of the company have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act,1956 (which continue to be applicable in respect of section 133 of the Companies Act, 2013, to the extent applicable in terms of General Circular 15/2013 dated 13 Sep, 2013 of the Ministry of Corporate Affairs) This Financial Statements have been prepared on accrual basis and the accounting policies adopted are consistent With followed in the previous year.

b) Fixed Assets and Depreciation :-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified in Schedule II to the Companies Act, 2013.

c) Investments:

The Company has policy to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made, as it has temporary in the nature.

d) Valuation of Inventories :-

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

e) Foreign Exchange Transactions :-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction. The difference if any on actual payments / realisation is charged off to revenue.

f) Sundry Debtors and Advances :-

Company's management periodically verify the outstanding balance of sundry debtors, advances etc and on the basis of such verification management determines whether the said outstanding are good, bad or doubtful and Accordingly same are written off or provided for.

g) Research & Developments :-

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h) Terminal Benefits :-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company. Leave Encashment is accounted on Cash basis i.e. It is accounted for as and when paid.

I Taxations:-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax r e c o g n i s e d , s u b j e c t t o t h e consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) Earning Per Share:-

Basic and Diluted earning per share is 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.

k) Revenue Recognition

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect that the collection will be made. Interest income is accounted on accrual basis. Dividend from investment is recognized as revenue when right to receive the payments is established.

l) Employee Benefits: Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encashment Scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

Defined Contribution Plans

The company's contribution paid/ payable for Provident Fund, ESIC and Pension Fund for the year is recognized in the statement of Profit and Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered.


Mar 31, 2014

A) Basis of preparation of finacial statements:-

The Financial Statements of the company have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act, 1956 (which continue to be applicable in respect of section 133 of the Companies Act, 2013, to the extent applicable in terms of General Circular 15/2013 dated 13 Sep, 2013 of the Ministry of Corporate Affairs) This Financial Statements have been prepared on accrual basis and the accounting policies adopted are Consistent with followed in the previous year.

b) Fixed Assets and Depreciation:-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified on Schedule XIV to the Companies Act, 1956 (as amended) and on prorata basis. Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost. Comprising of direct cost, related incidental expenses and attributable interest.

c) Investments:

The Company has policy to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made, as it has temporary in the nature.

d) Valuation of Inventories:

Inventories are valued at low of cost or net realisable value.

e) Foreign Exchange Transactions:

Transaction in foreign currency is recorded by applying rate applicable on the date of transaction. The Difference if any on actual payments/realisation is charged off to revenue.

f) Sunday BDebtors and Advances:

Company''s management periodically verify the outstanding balance of sundry debtors, advances etc and on the basis of such verification management determines whether the said outstanding are good, bad or doubtful and Accordingly same are written off or provided for.

g) Research & Developments:

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h) Terminal Benefits:

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company. Leave Encashment is accounted of Cash basis i.e. It hs accounted for as and when paid.

i) Txations:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised, subject to the consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) Earning Per Share:

Basic and Diluted earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity snares outstanding during the period.

k) Revenue Recognition:

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect that the collection will be made. Interest income is accounted on accrual basis. Dividend from investment is recognized as revenue when right to receive the payments is established.

l) Employee Benefits:

Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encashment Scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

Defined Contribution Plans

The company''s contribution paid/payable for Provident Fund, ESIC and Pension Fund for the year is recognized in the statement of Profit and Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered.


Mar 31, 2013

A. Basis of preparation of financial statements:-

The accompanying statements have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles and as per the provisions of the Companies Act, 1956. During the financial year ended1 31st March 2013 the revised Schedule VI under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its financial statements.The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b. Fixed Assets and Depreciation:-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified on Schedule XIVto theCompanies Act, 1956 (as amended )and on prorata basis.

c. Investments:

The Company has policy.to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made,as it has temporary in the nature.

d. Valuationof Inventories :-

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

e. Foreign Exchange Transactions :-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction.The difference if any on actual payments / realisation is charged off to revenue.

f. Sundry Debtors and Advances:-

Company''s management periodically verify the outstanding balance of sundry debtors,advances etcand on the basis of such verification management determines whether the said outstanding are good, bad or doubtful accordingly same are written off or provided for.

g. Research & Developments :-

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h. Terminal Benefits:-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company Leave Encashment is accounted on Cash basis i.e. It is accounted for as and when paid. However the company entered into Group leave Encashment Scheme with LIC of India during the year with an intial contribution Rs.1,37,369/- based on actuarial valuation

i. Taxations:-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised,subject to the consideration of prudence in respect of deferred tax assets as timing difference.being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j. Earning Per Shares-

Basic and Diluted earning per share is 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.

k. Revenue Recognition

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect except that the collection will be made. Interest income is accounted on accrual basis.Dividend from investment is recognized as revenue when rightto receive the payments is established.

I. Empioyee Benefits:

Defined Benefit Plan

The Employee Gratuity Fund and Leave Encashment Scheme managed by Life Insurance Corporation of India is a Defined

Benefit Plan.

Defined Contribution Plans

The company''s contribution paid/ payable for Provident Fund, ESIC and Pension Fund for the year is recognized in the Statementof Profit and Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the Statement of profit & loss of the year in which the related services are rendered.


Mar 31, 2012

A) Basis of preparation of Financial Statements :-

The accompanying statements have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles and as per the provisions of the Companies Act, 1956. During the financial year ended 31st March 2012 the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its financial statements. The Company has also re- classified the previous year figures in accordance with the requirements applicable in the current year.

b) Fixed Assets and Depreciation

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified on Schedule XIV to the Companies Act, 1956 (as amended )and on prorata basis.

c) Investments:

The Company has policy to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made, as it has temporary in the nature.

d) Valuation of Inventories

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

e) Foreign Exchange Transactions:-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction.The difference if any on actual payments/ realisation is charged off to revenue.

f) Sundry Debtors and Advances:-

Company's management periodically verify the outstanding balance of sundry debtors,advances etc and on the basis of such verification management determines whether the said outstanding are good, bad or doubtful and Accordingly same are written off or provided for.

g) Research & Developments:

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h) Terminal Benefits :-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company Leave Encashment is accounted on Cash basis i.e. It is accounted for as and when paid.

i) Taxations:-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised, subject to the consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) Earning Per Share:-

Basic and Diluted earning per share is 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.

k) Revenue Recognition

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect that the ultimate collection will be made Interest income is accounted on accrual basis. Dividend from investment is recognized as revenue when right to receive the payments is established.

I) Employee Benefits:

Defined Benefit Plan

The Employee Gratuity Fund Scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

Defined Contribution Plans

The company's contribution paid/ payable for Provident Fund, ESIC and Pension Fund for the year is recognized in The statement of Profitand Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered.


Mar 31, 2010

A) Basis of preparation of financial statements :-

The accompanying statements have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles and as per the provisions of the Companies Act, 1956.

b) Sales :-

Sales include excise duty.

c) Export Benefits:-

Export benefits under Exim policy are accounted for on realisation basis.

d) Fixed Assets and Depreciation:-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified on Schedule XIV to the Companies Act, 1956 (as amended )and on prorata basis.

e) Investments :-

The Company has policy to make investments on strategic and long term basis and the investment have been shown as the cost of investments of acquisition, no adjustments for change in the valuation as on the date of the balance sheet being made, as it has temporary in the nature.

f} Valuation of Inventories:-

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

g) Foreign ExchangeTransaction:-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction.The difference if any on actual payments / realisation is charged off to revenue.

h) Sundry Debtors and Advances :-

Companys management periodically verify the outstanding balance of sundry debtors, advances etc and on the basis of sgch verification management determines whether the said outstandings are good, bad or doubtful and accordingly same are written off or provided for.

i) Research & Developments :-

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

j) Terminal Benefits :-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company Leave Encashment is accounted on Cash basis ie. It is accounted for as and when paid.

k) Taxation :-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised, subject to the consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

 
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