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Accounting Policies of Vista Pharmaceuticals Ltd. Company

Mar 31, 2015

(a) Basis of Preparation & Presentation

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 issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless otherwise stated.

(b) The company has regrouped/reclassified the previous year figures wherever necessary in accordance with the requirements applicable in the current year.

(c) Export sales are accounted on the basis of Bill of Lading.

(d) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

3. FIXED ASSETS & IMPAIRMENT

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) An asset will be treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

4. DEPRECIATION

a) Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act 2013.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

5. INVENTORIES

Inventories have been valued at lower of the cost or net realizable value based on the certification by the Management

6. INVESTMENTS

Investments are stated at cost.

7. EMPLOYEE BENEFITS

a) Short- term employee benefits are recognized as an expense in the profit and loss account of the year in which the related service is rendered

b) Post employment and long term employee benefits in general are recognized as an expense in the profit and loss account during the year in which the employee has rendered services. As a onetime measure accrued liability is accounted for during the current year

c) Provision for Gratuity has been made in the books of accounts but amount has not been deposited in any means provided in the Gratuity Act. During the current year no additional gratuity provision is made as the existing provision is felt adequate to meet the gratuity payment.

8. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

9. Taxes on Income

Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the Income tax Act, 1961.

Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future.

10. Contingent Liabilities

Contingent Liabilities not provided for are disclosed as notes to accounts in point no 11.

11. Foreign Exchange Translation and Foreign Currency Transactions

Foreign exchange transactions are recorded using the exchange rates prevailing on the dates of respective transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Profit and Loss Account.

Monetary assets and liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at year end rates. The difference in transaction of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are recognized in Profit and Loss Account.

12. Earnings per Share

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard-20 "Earnings per Shares" notified by the Companies (Accounting Standard) Rules, 2006.

Basic earnings per equity shares is computed by dividing the net profit for the year adjusted for the effects of diluted potential equity shares, attributable to the equity shareholders by the weighted average number of equity shares and dilutive potential shares outstanding during the year except where the results are anti dilutive.


Mar 31, 2014

A. Basis of Preparation of Financial Statements:

The financial statements of the Company prepared under historical cost convention in accordance with the Generally Accepted Accounting Principles (GAAP) applicable in India and the provisions of the Companies Act, 1956.

B. Use of Estimates:

The preparation of financial statements require certain estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses for the reporting period. Difference between the actual and estimates are recognized in the period in which the actual are known/ materialized.

C. Fixed Assets, Depreciation and impairment:

Expenditure of capital nature has been capitalized at cost, comprising of purchase price and the expenditure related to bringing the asset to its working condition for the intended use. Depreciation has been provided from the date the asset is put to use on written down value method at the rates and in the manner specified under XIV to the companies Act, 1956.

An asset will be treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

D. Inventories:

Inventories have been valued at lower of the cost or net realizable value based on the certification by the Management.

E. Investments:

Investments are stated at cost.

F. Income and Expenditure:

Income is accounted for the expenditure recognized on accrual basis. Sales comprise sale of goods and services, net of trade discounts. Purchases are net of transit insurance claims.

G. Employee Benefits:

(i) Short-term employee benefits are recognized as an expense in the profit and loss account of the year in which the related service is rendered.

(ii) Post employment and long term employee benefits in general are recognized as an expense in the profit and loss account during the year in which the employee has rendered services. As a onetime measure accrued liability is accounted for during the current year

(iii) Provision for Gratuity has been made in the books of accounts but amount has not been deposited in any means provided in the Gratuity Act. During the current year no additional gratuity provision is made as the existing provision is felt adequate to meet the gratuity payment.

H. Revenue Recognition

The company recognizes revenue on sale of products, net of discounts, when the product is shipped to customer i.e. when the risks and rewards of ownership are passed to the customer.

Sale of product is disclosed as net of excise duty and breakup of the same.

I. Taxes:

Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the Income tax Act, 1961.

Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future.

J. Foreign Exchange Translation and Foreign Currency Transactions

Foreign exchange transactions are recorded using the exchange rates prevailing on the dates of respective transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Profit and Loss Account.

Monetary assets and liabilities related to foreign currency transactions remaining un settled at the end of the year are translated at year end rates. The difference in transaction of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are recognized in Profit and Loss Account.

K. Earnings per Share

The Company reports basic and diluted earnings per share in accordance with the

Accounting Standard-20 "Earnings per Shares" notified by the Companies (Accounting Standard) Rules, 2006.

Basic earning per equity shares is computed by dividing the net profit for the year adjusted for the effects of diluted potential equity shares, attributable to the equity shareholders by the weighted average number of equity shares and dilutive potential shares outstanding during the year except where the results are anti dilutive.


Mar 31, 2012

A. Basis of Preparation of Financial Statements:

The financial statements of the Company prepared under historical cost convention in accordance with the Generally Accepted Accounting Principles(GAAP) applicable in India and the provisions of the Companies Act,1956.

B. Use of Estimates:

The preparation of financial statements require certain estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses for the reporting period. Difference between the actual and estimates are recognized in the period in which the actual are known/ materialized.

C. Fixed Assets, Depreciation and impairment:

Expenditure of capital nature has been capitalized at cost, comprising of purchase price and the expenditure related to bringing the asset to its working condition for the intended use. Depreciation has been provided from the date the asset is put to use on written down value method at the rates and in the manner specified under XIV to the companies Act, 1956.

An asset will be treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

D. Inventories:

Inventories have been valued at lower of the cost or net realizable value based on the certification by the Management.

E. investments:

Investments are stated at cost.

F. Income and Expenditure:

Income is accounted for the expenditure recognized on accrual basis. Sales comprise sale of goods and services, net of trade discounts. Purchases are net of transit insurance claims.

G. Contingent Liabilities:

All liabilities have been provided for in the accounts except liabilities of contingent nature which have been disclosed at their estimated value in the notes on accounts.

H. Employee Benefits:

(i) Short- term employee benefits are recognized as an expense in the profit and loss account of the year in which the related service is rendered.

(ii) Post employment and long term employee benefits in general are recognized as an expense in the profit and loss account during the year in which the employee has rendered services. As a onetime measure accrued liability is accounted for during the current year.

Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

I. Revenue Recognition

The company recognizes revenue on sale of products, net of discounts, when the product is shipped to customer i.e. when the risks and rewards of ownership are passed to the customer. Sale of product is disclosed as net of excise duty and breakup of the same.

J. Taxes:

Provision for current tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of the Income tax Act, 1961.

Deferred tax resulting from "timing difference" between, book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future.

K. Foreign Exchange Translation and Foreign Currency Transactions

Foreign exchange transactions are recorded using the exchange rates prevailing on the dates of respective transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Profit and Loss Account.

Monetary assets and liabilities related to foreign currency transactions remaining un settled at the end of the year are translated at year end rates. The difference in transaction of monetary assets and liabilities and realized gains and losses on foreign exchange transactions are recognized in Profit and Loss Account.

L. Earnings per Share

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard-20 "Earnings per Shares" notified by the Companies (Accounting Standard! Rules, 2006.

Basic earning per equity shares is computed by dividing the net profit for the year adjusted for the effects of diluted potential equity shares, attributable to the equity shareholders by the weighted average number of equity shares and dilutive potential shares outstanding during the year except where the results are aim dilutive.


Mar 31, 2011

1) The Financial statements are prepared on the Historical cost convention on an accrual basis and in accordance with normally accepted accounting principles. Ared on the Historical cost convention on an accrual basis and in accordance with normally accepted accounting principles.

2) Fixed Assets and Depreciation: Fixed Assets are stated at cost less depreciation. Depreciation on Fixed Assets has been provided on straight line method at the rates specified under Schedule XIV of the Companies Act, 1956. Depreciation has been provided prorate from the date of the Asset is put to use.

3) Inventory: Raw Materials, Stores & Spares and Packing Materials are valued at cost. Work in Progress and Finished Goods is stated at cost or net realizable value whichever is lower.

4) Research and Development:

a) Capital Expenditure is shown separately under respective heads of fixed assets.

b) Revenue Expenditure is included under the respective heads of expenditure.

5) Current Tax and Deferred Tax: No Provision for taxation is made as the Company has no taxable profits.

Deferred tax is recognized, subject to the considences, being the difference between taxable income and accounting income that originate in one period and may be reversed in one or more subsequent periods.

Since the Company has seration of prudence, on timing differubstantial carried forward business losses and unabsorbed depreciation, it is unlikely to have taxable profits in near future and hence it is not considered necessary to create deferred tax assets in accordance with the Accounting

Standard - 22 issued by the Institute of Chartered Accountants of India.

6) Investments: Investments are shown at cost.

7) Recognition oflncome: SalesrepresenttheCIF price of Goods sold. Exchange fluctuations and other export benefits shall be accounted for intheyear of receipt/realization.

8) 1/10 Value of stores and consumables such as machinery punches and dies, packing machine change parts are written of during theyear.

9) Contingent Liabilities: Contingent Liabilities not provided for are disclosed by way of notes to Balance Sheet.

10) Retirement Benefits: Gratuity has been provided for according to the Service Rules of the Company.


Mar 31, 2010

1) The Financial statements are prepared on the Historical cost convention on an accrual basis and in accordance with normally accepted accounting principles.

2) Fixed Assets and Depreciation: Fixed Assets are stated at cost less depreciation. Depreciation on Fixed Assets has been provided on straight line method at the rates specified under Schedule XIV of the Companies Act, 1956. Depreciation has been provided prorate from the date of the Asset is put to use.

3) Inventory Raw Materials, Stores & Spares and Packing Materials are valued at cost. Work in Progress and Finished Goods is stated at cost or net realizable value whichever is lower.

4) Research and Development :

a) Capital Expenditure is shown separately under respective heads of fixed assets.

b) Revenue Expenditure is included under the respective heads of expenditure.

5) Current Tax and Deferred Tax : No Provision for taxation is made as the Company has no taxable profits.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and may be reversed in one or more subsequent periods.

Since the Company has substantial carried forward business losses and unabsorbed depreciation, it is unlikely to have taxable profits in near future and hence it is not considered necessary to create deferred tax assets in accordance with the Accounting

Standard - 22 issued by the Institute of Chartered Accountants of India.

6) Investments: Investments are shown at cost.

7) Recognition of Income: Sales represent the CIF price of Goods sold. Exchange fluctuations and other export benefits shall be accounted for in the year of receipt/ realization.

8) 1/10 Value of stores and consumables such as machinery punches and dies, packing machine change parts are written of during the year.

9) Contingent Liabilities: Contingent Liabilities not provided for arc disclosed by way of notes to Balance Sheet.

10) Retirement Benefits: Gratuity has been provided for according to the Service Rules of the Company.

 
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