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Accounting Policies of Oceanaa Biotek Industries Ltd. Company

Mar 31, 2015

(i) Basis of preparation of accounts

The company maintains its accounts on accrual basis following the historical cost conventions in compliance with the generally accepted accounting principles and accounting standards, specified to be mandatory under Section 133 of the Companies Act, 2013 read with the Rule 7 of the Companies (Accounts) Rules 2014 and relevant provisions of the Companies Act, 2013.

The company has also reclassified the prior figures in accordance with the requirements applicable for the current period, wherever necessary.

(ii) Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts on the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future periods.

(iii) Revenue Recognition

Revenue from sale of goods is recognized when the substantial risks and rewards of ownership are transferred to the buyer which generally coincides when the goods are dispatched from the factory or delivered to the customers as per the terms of the contract.

Service income is included in sales.

(iv) Tangible and Intangible Fixed Assets and Depreciation

Fixed assets are normally stated at original cost and written down value method has been followed for providing depreciation on Fixed Assets at the rates prescribed under the Schedule II of the Companies Act, 2013.

Intangible assets, that are not yet ready for their intended use, are carried at costs. Cost incurred on intangible assets are capitalized as intangible assets and amortized on a straight-line method

(v) Inventories

Inventories are valued at cost or net realizable value whichever is lower.

(vi) Investments

Long term investments are stated at cost. Current investments are carried at the lower of cost and fair value.

(vii) Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit & Loss.

(viii) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

(ix) Provisions

A provision is recognized when the company has a present obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

(x) Contingent liabilities and contingent assets

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements.

(xi) Miscellaneous Expenditure

Equity share issue expenses to the extent not written off have been disclosed under other current assets.

(xii) Employee benefits

Provident fund:

The Company makes specified monthly contributions towards employee provident fund to Government administered provident fund scheme which is a defined contribution plan.

Gratuity and Pension:

The Company's gratuity benefit scheme and pension plans are defined benefit plans._The Company's net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods.

(xiii) Research and Development:

Research and development costs are charged to operations as incurred.

(xiv) Taxes on Income

Tax expenses comprises of current tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax Assets and Liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of exiting assets and liabilities and their respective tax bases and operating loss carry forward.

(xv) Earnings per share

Basic earnings per share have been computed by dividing net income by the weighted average number of Equity shares outstanding for the period.

Diluted earnings per share have been computed by adjusting the net profit for the period and the weighted average number of shares outstanding during the period.

(xvi) Foreign currency transactions

Foreign currency transactions are recorded at the exchange rates prevailing on the dates of the transaction. Resultant gains and losses are included in the Statement of Profit and Loss.

As per the notification issued by the Ministry of Corporate Affairs, the Exchange Fluctuation arising on reporting of Long Term Foreign Currency Monetary items relating to Depreciable Assets is charged off to Profit & Loss account.


Mar 31, 2014

Method of Accounting

The company maintains its accounts on accrual basis following the historical cost conventions in compliance with the accounting standards, specified to be mandatory by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act.

The company has also reclassified the prior figures in accordance with the requirements applicable for the current period.

Fixed Assets and Depreciation

Fixed assets are normally stated at original cost and WDV method has been followed for providing depreciation on Fixed Assets at the rates prescribed under the Schedule XIV of the Companies Act.

Inventories

Inventories are valued at cost or market value whichever is lower.

Taxes on Income

Tax expenses comprises of current tax and deferred tax. Current taxes are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss account in the year of change. Deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of exiting assets and liabilities and their respective tax bases and operating loss carry forward.

Revenue Recongnition

Revenue from sale of goods is recognized when the substantial risks and rewards of ownership are transferred to the buyer which generally coincides when the goods are dispatched from the factory/stock points/or delivered to customers as per the terms of the contract. The revenue for the construction contract has been based on the basis of percentage of completion method.

Provisions

A provision is recognized when the company has a present obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Miscellaneous Expenditure

Equity share issue expenses have been disclosed under miscellaneous expenditure to the extent not written off under other current assets. The expenditure has been amortized and would be written off over a period of three years.

 
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