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Accounting Policies of Saamya Biotech (India) Ltd. Company

Mar 31, 2015

1. CORPORATE INFORMATION

Saamya Biotech (India) Ltd. (SBIL), is a new generation Biotechnology company incorporated on 13/08/2002 in India (Hyderabad) with the aim to manufacture and market biopharmaceuticals and recombinant protein products of medical and industrial importance. To avoid gestation period, Company initiated the marketing of drug intermediates and raw materials in domestic & international markets as supplementary means of revenue generation and to strengthen the marketing team. The Company has focused on its projects with revised plans.

a. Basis of Accounting

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"). The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure relating to contingent liabilities as at the date of the financial statements, and the reported amounts of income and expenses during the year. Actual results could differ from those estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the financial statements.

c. Cash Flow Statement

i) Cash and Cash Equivalents (for the purpose of cash flow statement)

Cash comprises cash on hand and cash with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

ii) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

d. Fixed Assets:

i) Fixed assets are carried at the cost of acquisition, less accumulated depreciation. The cost of fixed assets includes taxes (other than those subsequently recoverable from tax authorities), duties, freight and other directly attributable costs related to the acquisition of the respective assets.

ii. Capital Work-in-Progress:

Projects under which assets are not ready for their intended use and other capital work- in-progress are carried at cost, comprising direct cost, related incidental expenses, advances for capital goods and unallocated expenditure.

e. Depreciation and Amortization:

Depreciation on fixed assets is computed on the straight line method and as per useful life as prescribed under Part C of Schedule II of the Companies Act, 2013.

Preliminary Expenses are amortized over the period of 10 years.

f. Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from operations includes revenue from sale of products, services and other operating revenue. Revenue from sale of products: Revenue from sale of products is recognized when all the significant risks and rewards of ownership of products have been passed to the buyer, usually on delivery of the products. The revenue from sale of products is net of discounts, Excise duty, value added taxes and sales tax.

g. Taxation:

Tax expense comprises both current and deferred taxes. The current charge for income taxes is calculated in accordance with the relevant tax regulations.

Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax asset arising from unabsorbed depreciation / carried forward losses under the tax laws, is recognized only to the extent that there is virtual certainty that sufficient future taxable income will be available, against which the deferred tax assets can be realized.

h. Earnings per Share:

The Basic and Diluted Earnings Per Share (EPS) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

i. Related Party Disclosures:

The Company furnishes the Disclosure of transactions with related parties, as required by Accounting Standard 18 "Related Party Disclosure" as specified in the Companies (Accounts) Rules, 2014. Related parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by the management and information available with the company.

j. Provisions, 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 neither recognized nor disclosed in the financial statements Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2014

A. Basis of Accounting

The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost con- vention on accrual basis of accounting to comply with the accounting standard pre- scribed in the Companies (Accounting Standards) Rules, 2006 (as amended) and with the relevant provisions of the Companies Act, 1956.

b. Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Ac- counting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclo- sures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

c. Cash Flow Statement

i) Cash and Cash Equivalents (for the purpose of cash flow statement)

Cash comprises cash on hand and cash with banks. Cash equivalents are short- term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

ii) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before extraor- dinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

d. Fixed Assets:

i) Fixed assets are carried at the cost of acquisition, less accumulated deprecia- tion. The cost of fixed assets includes taxes (other than those subsequently re- coverable from tax authorities), duties, freight and other directly attributable costs related to the acquisition of the respective assets.

ii. Capital Work-in-Progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses, advances for capital goods and unallocated expenditure.

e. Depreciation and Amortization:

Depreciation on all fixed assets is provided under Straight Line Method. The rates of depreciation prescribed in Schedule XIV to the Companies Act, 1956 are considered as the minimum rates.

Preliminary Expenses are amortized over the period of 10 years.

f. Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue from opera- tions includes revenue from sale of products, services and other operating revenue. Revenue from sale of products: Revenue from sale of products is recognized when all the significant risks and rewards of ownership of products have been passed to the buyer, usually on delivery of the products. The revenue from sale of products is net of discounts, Excise duty, value added taxes and sales tax.

g. Taxation:

To provide Current tax as the amount of tax payable in respect of taxable income for the period, measured using the applicable tax rates and tax laws.

To provide deferred tax on timing differences between taxable income and accounting income subject to consideration of prudence, measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Not to recognise Deferred tax assets on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that there will be sufficient future taxable in- come available to realise such assets.

h. Earnings per Share:

The Basic and Diluted Earnings Per Share (EPS) is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

i. Related Party Disclosures:

The Company furnishes the Disclosure of transactions with related parties, as re- quired by Accounting Standard 18 "Related Party Disclosure" as specified in the Com- panies (Accounting Standard) Rules, 2006. Related parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by the management and information available with the company.

j. Provisions, 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 neither recognized nor disclosed in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

General:

(i) These accounts are prepared on the historical cost basis and on the accounting principles of going concern.

(ii) Accounting policies not specifically referred to otherwise or consistent and in consonance with generally accepted accounting principles.

Revenue Recognition:

The Company follows the mercantile system of Accounting and recognizes income and expenditure on accrual basis.

Fixed Assets:

Fixed assets are stated at cost. Cost of acquisition of fixed assets is inclusive of freight, duties, taxes and incidental expenses thereto.

Capital Work-in-Progress:

The Capital Work-in-progress includes cost of Fixed Assets under installation, advances for Capital Goods and unallocated expenditure.

Depreciation and Amortization:

Depreciation is provided on straight line method on pro-rata basis and at the rates and manner specified in the schedule XIV of the Companies Act, 1956.

Preliminary Expenses are amortized over the period of 10 years.

Taxation:

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax asset and liability is recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax asset and liability are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Gratuity:

The company has not made provision for gratuity as per actuarial valuation specified in Accounting Standard 15 (AS 15).

Earnings per Share:

The earning considered in ascertaining the company''s earning per share comprises net profit after tax. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the year as per AS - 20.

Related Party Disclosures:

The Company as required by AS - 18, furnishes the details of Related Party Disclosures.


Mar 31, 2012

(i) These accounts are prepared on the historical cost basis and on the accounting principles of going concern.

(ii) Accounting policies not specifically referred to otherwise or consistent and in consonance with generally accepted accounting principles.

Revenue Recognition:

The Company follows the mercantile system of Accounting and recognizes income and expenditure on accrual basis.

Fixed Assets:

Fixed assets are stated at cost. Cost of acquisition of fixed assets is inclusive of freight, duties, taxes and incidental expenses thereto.

Capital Work-in-Progress:

The Capital Work-in-progress includes cost of Fixed Assets under installation, advances for Capital Goods and unallocated expenditure.

Depreciation and Amortization:

Depreciation is provided on straight line method on pro-rata basis and at the rates and manner specified in the schedule XIV of the Companies Act, 1956.

Preliminary Expenses are amortized over the period of 10 years. Taxation:

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the company. Deferred tax asset and liability is recognized for future tax consequences attributable to the timing difference that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax asset and liability are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date.

Gratuity:

The company has not made provision for gratuity as per acturial valuation specified in Accounting Standard 15 (AS 15).

Earnings per Share:

The earning considered in ascertaining the company's earning per share comprises net profit after tax. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the year as per AS - 20.

Related Party Disclosures:

The Company as required by AS - 18, furnishes the details of Related Party Disclosures.

 
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