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Accounting Policies of Vardhaman Laboratories Ltd. Company

Mar 31, 2014

A. Basis of Accounting:

The Accounts have been prepared on the basis of historical costs and in accordance with the applicable accounting standards except where otherwise stated. For recognition of Profit & Loss, Mercantile system of Accounting is followed except certain Expenditure & Income, which are accounted for, on payments/Receipts basis on account of uncertainties.

B. Revenue Recognition

No Revenue has been recognized during the period.

C. Fixed Assets:

The Company does not hold any Fixed Assets as on Balance Sheet Date.

D. Depreciation

Since the Company does not any Fixed Asset, the provision for Depreciation in the books is not required.

E. Inventories:

The company does not hold any stock as on Balance Sheet date.

F. Foreign Currency Transaction:

The Company has not indulged in the Foreign Currency Transaction. Therefore accounting of foreign currency transaction is out of the purview of accounting policy.

G. Retirement Benefits:

Disclosure under Accounting Standard-15 relating to Employees Benefit is not applicable since there is no employee with the Company.


Mar 31, 2013

A. Basis of Accounting:

The Accounts have been prepared on the basis of historical costs and in accordance with the applicable accounting standards except where otherwise stated. For recognition of Profit & Loss, Mercantile system of Accounting is followed except certain Expenditure & Income, which are accounted for, on payments/Receipts basis on account of uncertainties.

B. Revenue Recognition

No Revenue has been recognized during the period.

C. Fixed Assets:

The Company does not hold any Fixed Assets as on Balance Sheet Date.

D. Depreciation

Since the Company does not any Fixed Asset, the provision for Depreciation in the books is not required.

E. Inventories:

The company does not hold any stock as on Balance Sheet date.

F. Foreign Currency Transaction:

The Company has not indulged in the Foreign Currency Transaction. Therefore accounting of foreign currency transaction is out of the purview of accounting policy.

G. Retirement Benefits:

Disclosure under Accounting Standard – 15 relating to Employees Benefit is not applicable since there is no employee with the Company.


Mar 31, 2012

A. Basis of Accounting: The Accounts have been prepared on the basis of historical costs and in accordance with the applicable accounting standards except where otherwise stated. For recognition of Profit & Loss, Mercantile system of Accounting is followed except certain Expenditure & Income, which are accounted for, on payments/Receipts basis on account of uncertainties.

B. Fixed Assets: Fixed Assets are stated at the cost of acquisition less accumulated depreciation. The cost of assets comprises its purchase price and other directly attributable cost of bringing the Asset to working condition for its intended use. This cost also includes financing cost relating to specific borrowings attributable to Fixed Assets. The Company had not availed any foreign currency loan for acquisition of Fixed Assets thereby there is no adjustment in cost of fluctuation in exchange rate.

C. Depreciation: Depreciation is provided under the straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. Depreciation on addition during the year provided on pro-rata basis from the date of addition.

D. Inventories: Inventories (Other than Stores & Spares) are valued at the cost or estimated net releasable value. The cost includes excise duty when paid.

E. Revenue Recognition:

a. Sales are exclusive of VAT (Sales Tax), Insurance and Freight Charges where applicable.

b. The Expenses (Other than provision for Gratuity) are accounted on mercantile basis.

F. Foreign Currency Transaction: The Company has not indulged in the Foreign Currency Transaction. Therefore accounting of foreign currency transaction is out of the purview of accounting policy.

G. Investments: Investments are valued at cost of acquisition and related expenses.

H. Research & Development: Research & Development expenses of revenue nature are charged to the Profit & Loss Account of the year in which it is incurred and that of capital nature are shown as addition to respective Fixed Assets.

I. Retirement Benefits:

a. The company is not covered under the Provident Fund Act and ESIS Act.

b. Gratuity Liability is accounted as and when due and paid.

J. Marketing Expenditure: The Expenses incurred on marketing and market related activities are charged to Profit & Loss Account of the year in which it is incurred.

K. CENVAT: The Company is not eligible for CENVAT Benefits for domestic sales.

L. Material Events: occurring after Balance Sheet date are taken into cognisance.

M. Contingent Liabilities: Contingent Liabilities are not provided for and are disclosed by way of notes wherever applicable.

N. Taxes on Income : Keeping in view the carry over losses and unabsorbed depreciation as per Income Tax return for the year ending 31/03/2011, the Company has not recognised Deferred Tax Assets, in respect of carry over losses, unabsorbed depreciation and items of timing difference between the accounting income and taxable income for the year, as there is reasonable uncertainty that sufficient taxable income in near future shall be available against which such Deferred Tax Assets can be realised against tax liability.


Mar 31, 2010

1. Basis of Accounting: The Accounts have been prepared on the basis of historical costs and in accordance with the applicable accounting standards except where otherwise stated.

2. Fixed Assets: Fixed Assets are stated at the cost of acquisition less accumulated depreciation. The cost of assets comprises its purchase price and other directly attributable cost of bringing the Asset to working condition for its intended use. This cost also includes financing cost relating to specific borrowings attributable to Fixed Assets.

3. Depreciation: Depreciation is provided under the straight-line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. Depreciation on addition during the year provided on pro-rata basis from the date of addition.

4. Inventories: Inventories (Other than Stores & Spares) are valued at the cost or estimated net realisable value. The cost includes excise duty when paid.

5. Revenue Recognition:

1. Sales are exclusive of VAT (Sales Tax), Insurance and Freight Charges where applicable.

2. The Expenses (Other than provision for Gratuity) are accounted on mercantile basis.

6. Foreign Currency Transaction: The Company has not indulged in the Foreign Currency Transaction. Therefore accounting of foreign currency transaction is out of the purview of accounting policy.

7. Investments: Investments are valued at cost of acquisition and related expenses.

 
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