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Accounting Policies of Raaj Medisafe India Ltd. Company

Mar 31, 2015

A) Financial Statements have been prepared at historical cost and in accordance with the generally accepted accounting principle son Going Concern basis.

b) WIP & Consumables are stated at cost and Raw Material and Finished Goods are valued at cost or market value whichever is lower as per AS- 2. Finished Goods and Process stock include cost of conversion and other cost incurred in bringing the inventories to their present location and condition after considering the credit of VAT and Canvas.

c) Cash Flow Statement is prepared by the "Indirect method" set out in AS 3 on "Cash Flow Statement" and presents the cash flow by operating, investing and financing activities of the company. Cash and Cash equivalents presented in Cash Flow Statement consist of Cash on Hand and demand deposits with banks.

d) Payment related to earlier years booked as expenses in the current year are classified as "Prior Period Item" as per AS- S, as these are clearly distinct from ordinary activities of the company. Further, Accounting policies have been changed in respect of Depreciation on Fixed Assets. The Changes has been made in the estimated useful life of the assets. The revised estimation of useful life of the assets has-been taken on the basis useful life of the assets as prescribed under Schedule II to the Companies Act 2013.

e) Fixed Assets are stated at cost less depreciation charged on "Straight Line Method" in accordance with the schedule HtoCompaniesAct2013.

f) Depreciation on fixed assets has been charged on "Straight Line Method" on Pro-rata basis and has been realigned in accordance with schedule II to the Companies Act, 2013. Life span of all the assets have been recalculate and taken as per schedule II. Carrying value of assets is now depreciated over its remaining useful life. Residual value of the assets has been taken as nil in case of all assets which is also with the provisions of Schedule II. The assets of which residual life remains nil as on 01.04.2014, the book value of these assets has been transferred to retained earnings, which isa deviation from AS 6.

g) All expenses and income are accounted for on accrual basis and accordingly company follows the Mercantile System of Accounting except stated otherwise as per AS 9. Claims / refunds not ascertainable with reasonable certainty are accounted for on settlement basis.

h) No Transactions in foreign currency done during the year. Previous year there was Income arise on account of foreign exchange fluctuation of Rs. 39,048/- which was booked as income as per AS 11, issued by ICAI.

i) As per AS-15, Employee Benefits, provisions of employee benefits are to be done on accrual basis, but in the absence of actuarial valuation it is not possible to quantify the amount payable on account of Gratuity and Leave Encashment benefits and are to be accounted for on cash basis. Its effect on Pro fit and Loss of the company is not determined.

j) Borrowing costs are interest and other costs incurred by an enterprise in connection with the borrowing of funds for acquisition of qualifying asset. A qualifying asset is an asset that necessarily takes a "substantial period of time" to get ready for its intended use or sale. The company has not acquired any "qualifying asset" during the financial year as per AS-16, Borrowing Cost issued by ICAI.

k) The company does not have separate segment that are subject to separate risk and returns. Hence, the provisions of clause 41 of listing agreement and AS-17 issued by ICAI with regard to segmental reporting are not applicable to the company.

l) Transactions entered by the company with the related parties, has been disclosed by way of notes as defined under AS -18 issued by ICAI.

m) Basic earnings per share is calculated by dividing Net profit after tax for the year attributable to Equity Shareholders of the company by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is calculated by dividing Net profit after tax for the year attributable to Equity Shareholders of the company (after adjustment of diluted earnings) by the weighted average number of equity shares outstanding during the year. Basic earnings per share is Rs.(-) 2.35 per share and diluted earnings per share is Rs. (-) 2.35 per share. [Previous Year Basic EPS Rs. (-) 0.94 Per Share and Dilute deposers.(-)0.94].

n) There is no subsidiary company of the company, also the company has neither obtained any economic benefit from its activities nor did the company entered into any joint venture with any entity Hence, the provisions of AS-21,23 and 27 issued by ICAI not applicable to the company.

o) As per AS-22, "Taxes on Income", company has Deferred Tax Asset. The company has been reporting negative income during the year and also over the last few years. Considering the past trend and in the absence of reasonable certainty that sufficient future taxable income would be available against which deferred tax assets would be realized. Hence deferred tax assets has not been accounted for which is in accordance with AS-22 issued by ICAI.

p) Due to having loss in the current financial year and accumulated carried forward loss under the income tax act, no provision for current year taxation is made for the year.

q) During the year the company has again started its commercial production after the production activity was closed since long. The company has introduced new production line in addition of earlier one. The board is of the opinion that the company is still in the line of operation and not discontinued its line of operation as per AS 24.

r) Asset is treated as impaired when carrying cost of the assets exceeds its recoverable amount. No asset is impaired during the year. Also inventory and other assets have realizable value at which it is stated in the books of accounts; hence no impairment loss needs to be booked as per AS-28, issued by ICAI.

s) Contingent liabilities are not provided for but disclosed, if any by way of notes on account and will be accounted for in the year of occurrence as per AS 29.


Mar 31, 2014

Attached to and forming part of the financial statement As at 31st March 2014

1. Financial Statements have been prepared at historical cost and in accordance with the generally accepted accounting principles on Going Concern basis.

2. WIP & Consumables are stated at cost and Raw Material and Finished Goods are valued at cost or market value whichever is lower as per AS-2

3. Property tax and Stock Exchange Fee of earlier years have been paid during the year under audit and hence the amount is treated as "Prior Period Item' as per AS-5, as this is clearly distinct from ordinary activities of the company.

4. Fixed Assets are stated at cost less depreciation charged on S.L M. basrs at the rates and in the manner prescribed and specified in schedule X!V to the Companies Act. 1956 as perAS-6.

5. As per the requirement of Companies (Amendment) Act, 1988 all expenses and income are accounted for on accrual basis and accordingly Company follows the Mercantile System of Accounting except stated otherwise as per AS 9,

6. Income arises on account of foreign exchange fluctuation towards payment in foreign currency to M/s Health Machinery Company Ltd. as advance against machine purchase. Later on on cancellation of the order, the amount was received back in foreign currency and income is booked of Rs, 39048/- against foreign exchange fluctuation. The difference in the transaction value is booked as income as per AS 11 issued by ICAI.

7. As per AS-15, Employee Benefits, provisions of employee benefits are to be done on accrual basis, but in the absence of actuarial valuation it is not possible to quantify the amount payable on account of Gratuity and Leave Encashment benefits and are to be accounted for on cash basis. Its effect on Profit and Loss of the company is not determined.

8. The company has not acquired any qualifying assets during the financial year as per AS-16, Borrowing Cost issued by ICAI.

9. The company does not have separate segment that are subject to separate risk and returns. Hence, the provisions of clause 41 of listing agreement and AS-17 issued by ICAI with regard to segmental reporting are not applicable to the company

10 No transactions have been entered by the company with the related parties, as defined under AS -18 issued by ICAI, during the year under audit.

11. Asper AS 20, Earnings per share comes to Rs.(-) 0.94 per share and diluted EPS is Rs. (-) 0.94 per share, [Previous Year Rs. (-) 0.83 Per Share].

12. There is no subsidiary company of the company, also the company has neither obtained any economic benefit from its activities nor did the company entered into any joint venture with any entity. Hence, the provisions of AS-21,23 and 27 issued by ICAI not applicable to the company

13. As per AS-22, "Taxes on Income company has Deferred Tax Asset. The company has been reporting negative income during the year and also over the last few years, Considering the past trend and in the absence of reasonable certainty that sufficient future taxable income would be available against which deferred tax assets would be realized. Hence deferred tax assets has not been accounted for which is in accordance with AS-22 issued by ICAI.

14. Due to having loss in the current financial year and accumulated carried forward loss under the income tax act, no provision for current year taxation is made for the year.

15. During the year under audit, the company has not done any commercial production nor done any related activities. However, as per the explanations of board, the company is still in the line of operation and not discontinued its line of operation as per AS 24.

16. During the year under audit, on the basis of explanation and information given to us, inventory and other assets have realizable value at which it is stated in the books of accounts. Hence no impairment loss needs to be booked as perAS-28, issued by ICAI.

17. Contingent liabilities are not provided for but disclosed, if any by way of notes on account and will be accounted for in the year of occurrence as per AS 29.


Mar 31, 2012

1. Financial Statements have been prepared at historical cost and in accordance with the generally accepted accounting principles on Going Concern basis.

2. WIP & Consumables are stated at cost and Raw Material and Finished Goods are valued at cost or market value whichever is lower as per AS- 2.

3. Fixed Assets are stated at cost less depreciation charged on S.L.M. basis at the rates and in the manner prescribed and specified in schedule XIV to the Companies Act, 1956 as per AS-6.

4. As per the requirement of Companies (Amendment) Act, 1988 all expenses and income are accounted for on accrual basis and accordingly Company follows the Mercantile System of Accounting except stated otherwise as per AS – 9.

5. No Transaction in Foreign Exchange has entered into by the company during the year. Hence, there arises no difference in transaction values as per AS – 11, issued by ICAI.

6. As per AS-15, Employee Benefits, provisions of employee benefits are to be done on accrual basis, but in the absence of actuarial valuation it is not possible to quantify the amount payable on account of Gratuity and Leave Encashment benefits and are to be accounted for on cash basis. Its effect on Profit and Loss of the company is not determined.

7. The company has not acquired any qualifying assets during the financial year as per AS-16, Borrowing Cost issued by ICAI.

8. The company does not have separate segment that are subject to separate risk and returns. Hence, the provisions of clause 41 of listing agreement and AS-17 issued by ICAI with regard to segmental reporting are not applicable to the company.

9. As per AS – 20, Earnings per share comes to Rs. (-) 3.78 per share and diluted EPS is Rs. (-) 3.78 per share. [Previous Year Rs. (-) 0.88 Per Share].

10. There is no subsidiary company of the company, also the company has neither obtained any economic benefit from its activities nor did the company entered into any joint venture with any entity. Hence, the provisions of AS-21, 23 and 27 issued by ICAI not applicable to the company.

11. As per AS-22, "Taxes on Income" company has Deferred Tax Asset. The company has been reporting negative income during the year and also over the last few years. Considering the past trend and in the absence of reasonable certainty that sufficient future taxable income would be available against which deferred tax assets would be realized. Hence deferred tax assets has not been accounted for which is in accordance with AS-22 issued by ICAI.

12. Due to having loss in the current financial year and accumulated carried forward loss under the income tax act, no provision for current year taxation is made for the year.

13. Major part of obsolete inventory disposed off during the year by the company but as per the explanations of board, the company is still in the line of operation and not discontinued its line of operation as per AS – 24.

14. Obsolete / unusable Inventory of the company has been disposed off at its market value and the residual inventory has value at which it is stated in the books of accounts. Loss on account of impairment is booked on disposing off of obsolete inventory in the profit and loss account and no further impairment loss need to be booked as per AS-28, issued by ICAI.

15. Contingent liabilities are not provided for but disclosed, if any by way of notes on account and will be accounted for in the year of occurrence as per.

 
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