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Accounting Policies of Vasundhara Rasayans Ltd. Company

Mar 31, 2015

A) ACCOUNTING CONVENTION:

The Financial Statements have been prepared to comply with Generally Accepted Accounting Principles India (Indian GAAP), including the Accounting Standards notified under the relevent provisions of the Companies Act 2013.

The financial statements are prepared on accrual basis under the historical cost convention method.

B) USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires judgement, estimates and assumption to be made that affact the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

C) FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of inward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use.

D) USE OF ESTIMATES:

The preparation of financial statements in conformity with the accounting standards requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reported amount revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognized in the period in which the result is known.

E) DEPRECIATION:

Depreciation is provided to the extent of depreciable value on the straight line method. Depreciation is provided on useful life of the asset as per prescribed in Schedule II of the Companies Act. 2013.

In respect of additions or extensions forming an intergral part of existing assets, depreciation is proforesaid over the residual life of the respective assets.

F) PURCHASES:

Purchase includes the materials issued for production which has also been shown under raw materials consumption.

G) REVENUE RECOGNITION:

Sale of goods and services are recognized on despatch of goods or when services are rendered.

H) INVENTORIES:

(1) Raw materials are valued at cost.

(2) Work in Progress is valued raw material cost and proportion of process cost.

(3) Finished goods are valued at lower of cost of sales exclusive of excise duty and net realisable value.

I) FOREIGN CURRENCY TRANSACTIONS:

(i) Foreign Currency Transactions are recorded at the exchange rate prevailing on the date of transaction with overseas clients.

(ii) Exchange difference arising on Foreign Currency Transactions are recognized as income or expenses in the period in which they arise.

h) EMPLOYEES BENEFITS:

I) Short term Employees Benefits :

The short term employee benefits are expected to be paid in exchange for the services rendered by the employees when the employees render services and are recognized as an expense during the same period these benefits include performance bonus and other incentives.

II) Defined Benefit Obligations :

The liability in respect of defined benefit plans and other post employment benefits is calaculated using projected unit credit method and spread over the period during which the benefit is expected to be derived from the employees services.

Acturial Gain or Loss in respect of post employment and other long term benefits are changed to the Profit and Loss Statement.

K) INCOME TAX:

Income Taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arises. A provision is made for income tax annually based on the tax liability computed after Considering tax allowance and exemptions.

The differences that result between the profit offered for income taxes and profit as per 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 period based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

L) EARNINGS PER SHARE:

In determining earnings per share the company considers the net profit after tax and includes post tax effect of any extra ordinary items. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the period. The company does not have any dilutive potential equity shares.


Mar 31, 2014

A) ACCOUNTING CONVENTION:

The Financial Statements are prepared on an accrual basis and are in accordance with the requirement of the Companies Act, 1956 and the applicable Accounting Standards.

b) FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of inward freight ,taxes and other incidental expenses incurred to bring the assets to their working condition for intended use.

c) DEPRECIATION:

Depreciation is provided for under straight line method at the rates and manner specified Schedule XIV of the Companies Act, 1956.

d) PURCHASES:

Purchase includes the materials issued for production which has also been shown under raw materials consumption.

e) REVENUE RECOGNITION:

Sale of goods and services are recognized on despatch of goods or when services are rendered.

f) INVENTORIES:

(1) Raw materials are valued at cost

(2) Work in Progress is valued raw material cost and proportion of process cost.

(3) Finished goods are valued at lower of cost of sales exclusive of excise duty and net realizable value.

g) FOREIGN CURRENCY TRANSACTIONS:

(i) Foreign Currency Transactions are recorded at the exchange rate prevailing on the date of transaction with overseas clients.

(ii) Exchange difference arising on Foreign Currency Transactions are recognized as income or expenses in the period in which they arise.

h) RETIREMENT BENEFITS:

LEAVE PAY:

Provision/payment of leave pay is made as per the agreement with the employees.

i) INCOME TAX:

Income Taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arises. A provision is made for income tax annually based on the tax liability computed after Considering tax allowance and exemptions.

The differences that result between the profit offered for income taxes and profit as per 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 period based on prevailing enacted or substantially enacted regulations Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

j) EARNINGS PER SHARE:

In determining earnings per share the company considers the net profit after tax and includes post tax effect of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The company does not have any dilutive potential equity shares.

2.5 The Company has not issued any securities convertible into equity / preference shares.

2.6 During any of the last years from year ended 31st March, 2014

a) No shares were allotted as fully paid up pursuant to contract(s) without payment being received in cash.

b) No shares were allotted as fully paid up by way of bonus shares.

c) No shares were bought back.


Mar 31, 2013

A) ACCOUNTING CONVENTION:

The Financial Statements are prepared on an accrual basis and are In accordance with the requirement of the Companies Act, 1956 and the applicable Accounting Standards.

b) FIXED ASSETS;

Fixed Assets are stated at cost fess accumulated depreciation. Cost of acquisition is inclusive of [nward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use.

c) DEPRECIATION:

Depreciation is provided for under straight line method at the rates and manner specified in Schedule XIV of the Companies Act,''1956.

d) PURCHASES;

Purchase includes the materials issued for production which has also been shown under raw materials consumption.

e) REVENUE RECOGNITION:

Sale of goods and services are recognised on despatch of goods or when services are rendered.

f) INVENTORIES:

(t) Raw material sarevaI ued at cost.

(2) Work in Progress is valued raw material cost and proportion of process cost

(3) Finished goods are valued at lower of cost of sales exclusive of excise duty and net realisable value.

g) FOREIGN CURRENCY TRANSACTIONS:

Foreign Currency Transactions are recorded at the exchange rate prevailing on the date of transaction with overseas clinets.

[if) Exchange difference arising on Foreign Currency Transactions are recognised as income or expenses in the period in which they arise.

h) RETIREMENT BENEFITS: LEAVE PAY; Provision/payment of leave pay is made as per the agreement with the employees.

I) INCOME TAX:

Income Taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arises. A provision is made for income tax annually based on the tax liability computed after considering tax allowance and exemptions.

The differences that result between the profit offered for income taxes and profit as per 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 be i n g con sidered. Th e tax effect is ca I cu lated an t he accu mu ta ted ti m in g d ifferences at th e end of an accounting period based on prevailing en acted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

]} EARNINGS PER SHARE:

In determining earnings per share the company considers the net profit after tax and includes post tax effect of any extra ordinary items. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the period. The company does not have any dilative potential equity shares.

 
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