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Accounting Policies of Noida Medicare Centre Ltd. Company

Mar 31, 2014

A. Change in Accounting Policy

Presentation and disclosure of financial statements

During the year ended 31 March 2014, the company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Inventories

Medicines, surgical items, Stores have been valued at cost, Consumables tools have been valued at their usage value.

c) Cash Flow Statement

Cash flows are reported using the indirect method as specified in Accounting Standard (AS-3) ''Cash Flow Statement'' as issued by the Companies (Accounting Standards) Rules,2006.

d) Depreciation / Amortisation

Depreciation has been provided on the straight line method on all the assets as per schedule XIV of the Companies Act, 1956. The Company has been providing higher rates over and above minimum rates prescribed in the Companies Act 1956.

Fixed Assets costing upto Rs. 5,000/- are depreciated fully in the year of purchase.

e) Revenue Recognition

- Revenue is recognized on the performance of related service and includes services of patients undergoing treatment.

- Pharmacy Sales are recognised when the risk and reward of ownership is passed to the customer and are stated net of returns, discounts and exclusive of VAT wherever applicable.

f) Fixed Assets

i) Fixed Assets are stated at cost less accumulated depreciation and impairment loss. Cost comprises the purchase price and any attributable cost including borrowing costs of bringing the asset to its working condition for its intended use. and related pre- operative expenses are capitalized over the total project at the commencement of project/on start of commercial production. However, certain land and building are measured at revalued cost

ii) Land and Building are stated at revalued amount as a result of revaluation on 31/3/1999.

g) Foreign Currency Transactions

i) Exchange differences arising on settlement or restatement of foreign currency denominated liabilities borrowed for the acquisition of Fixed Assets, hither-to recognized in the Statement of Profit and Loss are now capitalised based on Para 46A of Accounting Standard 11 - ''The Effects of Changes in Foreign Exchange Rates (Revised 2003).

ii) Monetary items relating to foreign currency transactions remaining unsettled at the end of the year are translated at the exchange rates prevailing at the date of Balance Sheet. The difference in translation of monetary items and the realised gains and losses on foreign exchange transactions are recognised in the Statement of Profit and Loss in accordance with Accounting Standard 11 - "The Effect of Changes in Foreign Exchange Rates (Revised 2003)" as notified under the Companies (Accounting Standards) Rules, 2006.

h) Employee Benefit

i) The Company has made provision for Gratuity as per the payment of Gratuity Act.

ii) The Company makes contribution towards Provident Fund as a defined contribution retirement benefit fund for qualifying employees.

i) Borrowing Costs

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

j) Leases

Assets acquired under leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the profit & Loss Account on accrual basis.

k) Taxes On Income

Current tax is amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is a virtual certainty that there will be sufficient future taxable income available to reverse such losses.

l) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount

m) Provision, Contingent Liabilities And Contingent Assets

Provisions involving substantial degree of 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 Account. Contingent assets are neither recognized nor disclosed in the financial statements.

Notes

a) Term loan from Kotak Mahindra Bank Ltd is secured by Land and Building including other fixed assets and current assets including movable and immovable assets (present and future) of the company and guaranteed by the promoter directors of the company.

b) Term loan from Dhanlaxmi Bank Ltd is secured by Hypotication of Equipments and Equitable Mortgage Land and factory building of NMC Biopharm Pvt Ltd and personal guarantee of promoters directors of the company.

c) Term loan from Reliance Capital Ltd is secured by Hypotication of Respective Equipments of the company and guaranteed by the promoter directors of the company.

d) Vehicle loans are secured against hypothecation of respective vehicles.

e) Deferred Credit is for the supply of Fixed Assets from supplier and guaranteed by the promoter directors of the company.


Mar 31, 2013

A. Change in Accounting Policy

Presentation and disclosure of financial statements

During the year ended 31 March 2013, the company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Inventories

Medicines, surgical items, Stores have been valued at cost, Consumables tools have been valued at their usage value.

c) Cash Flow Statement

Cash flows are reported using the indirect method as specified in Accounting Standard (AS-3) ''Cash Flow Statement'' as issued by the Companies (Accounting Standards) Rules,2006.

d) Depreciation / Amortisation

Depreciation has been provided on the straight line method on all the assets as per schedule XIV of the Companies Act, 1956. The Company has been providing higher rates over and above minimum rates prescribed in the Companies Act 1956. Fixed Assets costing upto Rs. 5,000/- are depreciated fully in the year of purchase.

e) Revenue Recognition

- Revenue is recognized on the performance of related service and includes services of patients undergoing treatment.

- Pharmacy Sales are recognised when the risk and reward of ownership is passed to the customer and are stated net of returns, discounts and exclusive of VAT wherever applicable.

f) Fixed Assets

i) Fixed Assets are stated at cost less accumulated depreciation and impairment loss. Cost comprises the purchase price and any attributable cost including borrowing costs of bringing the asset to its working condition for its intended use. and related pre-operative expenses are capitalized over the total project at the commencement of project/on start of commercial production. However, certain land and building are measured at revalued cost.

ii) Land and Building are stated at revalued amount as a result of revaluation on 31/3/1999.

g) Foreign Currency Transactions

I) Exchange differences arising on settlement or restatement of foreign currency denominated liabilities borrowed for the acquisition of Fixed Assets, hither-to recognized in the Statement of Profit and Loss are now capitalised based on Para 46A of Accounting Standard 11 - Rs.The Effects of Changes in Foreign Exchange Rates (Revised 2003)''

ii) Monetary items relating to foreign currency transactions remaining unsettled at the end of the year are translated at the exchange rates prevailing at the date of Balance Sheet. The difference in translation of monetary items and the realised gains and losses on foreign exchange transactions are recognised in the Statement of Profit and Loss in accordance with Accounting Standard 11 - "The Effect of Changes in Foreign Exchange Rates (Revised 2003) " as notified under the Companies (Accounting Standards)Rules, 2006.

h) Employee Benefit

I) The Company has made provision for Gratuity as per the payment of Gratuity Act

ii) The Company makes contribution towards Provident Fund as a defined contribution retirement benefit fund for qualifying employees.

I) Borrowing Costs

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

j) Leases

Assets acquired under leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the profit & Loss Account on accrual basis.

k) Taxes On Income

Current tax is amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of unabsorbed depreciation and carry there will be sufficient future taxable income available to reverse such losses.

l) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount

m) Provision, Contingent Liabilities And Contingent Assets

Provisions involving substantial degree of 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 Account. Contingent assets are neither recognized nordisclosed in the financial statements.


Mar 31, 2012

A. Change in Accounting Policy

Presentation and disclosure of financial Statements

During the year ended 31 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 adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Inventories

Medicines, surgical items, Stores have been valued at cost, Consumables tools have been valued at their usage value.

c) Cash Flow Statement

Cash flows are reported using the indirect method as specified in Accounting Standard (AS-3) ' Cash Flow Statement' as issued by the Companies (Accounting Standards) Rules,2006.

d) Depreciation / Amortisation

Depreciation has been provided on the straight line method on all the assets as per schedule XIV of the Companies Act, 1956. The Company has been providing higher rates over and above minimum rates prescribed in the Companies Act 1956.

Fixed Assets costing upto Rs. 5,000/- are depreciated fully in the year of purchase.

e) Revenue Recognition

- Revenue is recognized on the performance of related service and includes services of patients undergoing treatment.

- Pharmacy Sales are recognised when the risk and reward of ownership is passed to the customer and are stated net of returns, discounts and exclusive of

VATwherever applicable .

f) Fixed Assets

i) Fixed Assets are stated at cost less accumulated depreciation and impairment loss. Cost comprises the purchase price and any attributable cost including

borrowing cost of bringing the asset to its working condition for its intended use. and related pre-operative expenses are capitalized over the total project at the commencement of project/on start of commercial production. However, certain land and building are measured at revalued cost.

ii) Land and Building are stated at revalued amount as a result of revaluation on 31/3/1999.

g) Foreign Currency Transactions

i) Exchange differences arising on settlement or restatement of foreign currency denominated liabilities borrowed for the acquisition of Fixed Assets, hither-to recognized in the Statement of Profit and Loss Account are now capitalised based on Para 46A of Accounting Standard 11

- ' The Effects of Changes in Foreign Exchange Rates (Revised 2003)'.

ii) Monetary items relating to foreign currency transactions remaining unsettled at the end of the year are translated at the exchange rates prevailing at the date of Balance Sheet. The difference in translation of monetary items and the realised gains and losses on foreign exchange transactions are recognised in the Statement of Profit and Loss in accordance with Accounting Standard 11 - "The Effect of Changes in Foreign Exchange Rates (Revised 2003) " as notified under the Companies (Accounting Standards)Rules,2006.

h) Employee Benefit

i) The Company has made provision for Gratuity as per the payment of Gratuity Act.

ii) The Company makes contribution towards Provident Fund as a defined contribution retirement benefit fund for qualifying employees.

i) Borrowing Costs

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

j) Leases

Assets acquired under leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to the profit & Loss Account on accrual basis.

k) Taxes On Income

Current tax is amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.Deferred tax is recognized on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized if there is a virtual certainty that there will be sufficient future taxable income available to reverse such losses.

l) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount

m) Provision, Contingent Liabilities And Contingent Assets

Provisions involving substantial degree of 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 Account. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

(I) Accounting Convention

The financial statements have been prepared to comply with the mandatory accounting standards issued by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the company unless otherwise stated.

(II) Use of Estimates

The preparation of financial statements is in conformity with general accepted accounting principles requires making of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets & liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting year. Differences between the actual results and estimates are recognized in the year in which the results are known/ materialized.

(III) Fixed Assets

Land and Building are stated at revalued amount as a result of revaluation on 31/3/1999. Other Fixed assets are accounted for the

historical cost basis, inclusive of the cost of installation as the case may be.

(IV) Depreciation

Depreciation has been provided on the straight line method on all the assets as per schedule XIV of the Companies Act, 1956. The Company has been providing higher rates over and above minimum rates prescribed in the Companies Act 1956. During the year the company has provided higher rates of depreciation on block of assets comprising Building, Medical Equipment Indigenous, Furniture and Fixture, Vehicle and Computers keeping in view the remaining useful life of the respective assets.

The company has charged depreciation amount on higher rates of Rs 8,19,53,192/- to Profit and Loss Account during the year. The depreciation amount on normal rates would have been Rs 5,01,97,860/- during the year.

(V) Inventory

Medicines, surgical items, Stores have been valued at cost, Consumables tools have been valued at their usage value.

(VI) Foreign currency transactions

Transactions in foreign currency are recorded at standard rates/original rates of exchange in force at the time the transactions are effected.

(VII) Investments

- Long term Investments have been valued at cost.

- The company has filed an application with RBI for approval of liquidation of investments in foreign joint venture.

(VIII) Gratuity

The Company has made provision for Gratuity as per the payment of Gratuity Act.

(IX) Revenue Recognition

Revenue is recognized on the performance of related service and includes services of patients undergoing treatment and pending billing.

(X) Tax on Income

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same year the related revenue and expenses arise. A Provision is made for income tax annually based on the tax liability computed after considering tax allowances and exemptions. The differences that result between the profit offered for income taxes and the profits as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one account year and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting year based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognized only if there is a reasonable certainty that they will be realized in future.

(XI) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of 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. Contingent assets are neither recognized nor disclosed in the financial statements.

(XII) Cash Flow Statement

Cash flow are reported using the indirect method as specified in the Accounting Standard AS-3, Cash Flow Statement.

(XIII) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.


Mar 31, 2009

(I) Systems of Accounting

The mercantile system of accounting has been adopted.

(II) Fixed Assets

Land and Building are stated at revalued amount as a result of revaluation on 31/3/1999. Other Fixed Assets are accounted for on the historical cost basis, inclusive of the cost of installation as the case may be.

(III) Depreciation

Depreciation has been provided on the straight tine method on all the assets as per schedule XIV of the Companies Act, 1956. The Company has been providing higher rates over and above minimum rates prescribed in the Companies Act, 1956.

(IV) Inventory

Medicines, Surgical items, Stores have been valued at cost, Consumables tools have been valued at their usage value.

(V) Foreign currency transactions

Transactions in foreign currency are recorded at standard rates/original rates of exchange in force at the time the transactions are effected.

(VI) Investments

- Long term Investments have been valued at cost. - The Company has filed an application with RBI for Approval of liquidation of Investments in foreign joint venture.

(VII) Gratuity

The Company has made provision for Gratuity as per the payment of Gratuity Act.

(VIII) Revenue Recognition

Revenue is recognized on the performance of related service and includes services of patients undergoing treatment and pending billing.

(IX) Tax on Income

Income taxes are computed using the tax effect accounting method, where taxes are accrued in the same year the related revenue and expenses arise. A provision is made for income tax annually based on the tax liability computed after considering tax allowances and exemptions. The differences that result between the profit offered for income taxes and the profits as per the financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting year based on prevailing enacted or substantially enacted i. regulations. Deferred tax assets are recognized only if there is a reasonable certainty that they will be realized in future.

(X) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of 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. Contingent assets are neither recognized nor disclosed in the financial statements.

 
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