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Accounting Policies of Vivanza Biosciences Ltd. Company

Mar 31, 2014

A) Basis of preparation of Financial Statements:

i) The financial statements have been prepared under the historical cost convention on accrual basis as a going concern in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 and in accordance with applicable accounting standard as prescribed by the Companies (Accounting Standard) Rules, 2006.

ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B) Revenue Recognition:

General systems of accounting is mercantile, accordingly the income/ expenditure are recognized on accrual basis based on reasonable certainty concept.

C) Investment:

Investment is shown at cost.

D) Income-tax expenses:

Considering the carried forward assessed losses no provision of Income Tax is required.

Accounting for Taxes on Income:

Considering the loss in the current year, accounting for taxes on income for current year''s tax liability is NIL. The management of the Company is of the opinion that there is virtual uncertainty of realization of the benefit of past losses and differed tax assets. As such the accounting of such deferred tax assets and taxes thereon is not recognized.

E) Prior Period Adjustment :

Expense and income pertaining to earlier/previous years are accounted as prior period item.

F) Employee Benefits (AS -15):

As informed to us and explained to us there are no employees who are eligible for such benefits and hence not applicable

G) Provisions and Contingent Liabilities :

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. A contingent liability is disclosed when the company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognised nor disclosed in the Financial Statements.

H) The accounting standard 28 on impairment of assets is not applicable to the company as there are no Fixed Assets with the Company.


Mar 31, 2013

A) Basis of preparation of Financial Statements:

i) The financial statements have been prepared under the historical cost convention on accrual basis as a going concern in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956 and in accordance with applicable accounting standard as prescribed by the Companies (Accounting Standard) Rules, 2006.

ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B) Revenue Recognition:

General systems of accounting is mercantile, accordingly the income/ expenditure are recognized on accrual basis based on reasonable certainty concept.

C) Fixed Assets and Depreciation:

The company has disposed off / write off all the assets during the year therefore this is not applicable during the year.

D) Investment:

Investment is shown at cost.

E) Income-tax expenses:

Considering the carried forward assessed losses no provision of Income Tax is required.

Accounting for Taxes on Income:

Considering the loss in the current year, accounting for taxes on income for current year''s tax liability is NIL. The management of the Company is of the opinion that there is virtual uncertainty of realization of the benefit of past losses and differed tax assets. As such the accounting of such deferred tax assets and taxes thereon is not recognized.

F) Prior Period Adjustment :

Expense and income pertaining to earlier/previous years are accounted as prior period item.

G) Employee Benefits (AS -15):

As informed to us and explained to us there are no employees who are eligible for such benefits and hence not applicable

H) Provisions and Contingent Liabilities :

A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. A contingent liability is disclosed when the company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognised nor disclosed in the Financial Statements.


Mar 31, 2011

1) Books of accounts are maintained on historical cost basis by adopting going concern concept. However fixed assets were revalued as on 31.03.1994 with value mentioned in Schedule - 5 as such the book value of such items have been shown at such revalued amount.

2) General systems of accounting is mercantile, accordingly the income/ expenditure are recognized on accrual basis based on reasonable certainty concept.

3) Inventory is taken, valued and certified by the executive full time directors.

4) Raw materials is valued at cost or market value whichever is lower.

5) Finished good and goods in quarantine i.e. work in progress have been valued at cost or market value whichever is lower after making provision for normal rejection and sampling. Scrap stock is valued at estimated market value.

6) Fixed assets have been disclosed at cost/ revalued amount less accumulated depreciation calculated by applying rates on straight line method as per schedule XIV of the Companies Act, 1956. Company has revalued its assets on 31st March, 1994 and has incorporated revaluation addition in the accounts for the year ended 31st March, 1994 under the heads shown in Schedule 5. Company has provided depreciation on revalued cost of asset at prescribed rates of which depreciation pertaining to revaluation addition has been withdrawn from revaluation reserve and depreciation on historical cost has been charged to Profit & Loss Account.

7) Sundry debtors over six months included Rs. 7,78,154/- non-performing in nature. In the opinion of the Directors, they are good and recoverable. The Directors are hopeful of getting recoveries in the next year as the market conditions are not favourable. However in the opinion ot the Auditors, it shall be prudent to identify the same as doubtful of recovery requiring adequate provision. It has been explained that the management of the company is pursuing recoveries and actual losses, if any, shall be adjusted as and when arises.

8) In opinion of the management of the company, all loans, advances and deposits are recoverable in nature for which no provision is required. However in the opinion of the Auditors, it shall be prudent to make sufficient provision for such non performing assets amounting to Rs. 1,53,68,061/-.


Mar 31, 2010

1) Books of accounts are maintained on historical cost basis by adopting going concern concept.

However fixed assets were revalued as on 31.03.1994 with value mentioned in Schedule - 5 as such the book value of such items have been shown at such revalued amount.

2) General systems of accounting is mercantile, accordingly the income/ expenditure are recognized on accrual basis based on reasonable certainty concept.

3) Inventory is taken, valued and certified by the" executive full time directors.

4) Raw materials is valued at cost or market value whichever is lower.

5) Finished good and goods in quarantine i.e. work in progress have been valued at cost or market value whichever is lower after making provision for normal rejection and sampling. Scrap stock is valued at estimated market value.

6) Fixed assets have been disclosed at cost/ revalued amount less accumulated depreciation calculated by applying rates on straight line method as per schedule XIV of the Companies Act, 1956. Company has revalued its assets on 31st March, 1994 and has incorporated revaluation addition in the accounts for the year ended 31st March, 1994 under the heads shown in Schedule 5. Company has provided depreciation on revalued cost of asset at prescribed rates of which depreciation pertaining to revolution addition has been withdrawn from revaluation reserve and depreciation on historical cost has been charged to Profit & Loss Account.

7) Sundry debtors over six months included Rs.7,78,154/- non-performing in nature. In the opinion of the Directors, they are good Ana recoverable. The Directors are hopeful of getting recoveries in the next year as the market cones are not favorable. However in the opinion of the Auditors, it shall be prudent to identify the same as doubtful of recovery requiring adequate provision. It has been explained that the management of the company is pursuing recoveries and actual losses, if any, shall be adjusted as and when- arises.

8) In opinion of the management c,: -~e company, all loans, advances and deposits are recoverable in nature for which no provision s required. However in the opinion of the Auditors, it shall be prudent to make sufficient provision for such non performing assets amounting to Rs. 1,53,68,061/-.

9) No Provision for gratuity and censed leave has been made in accordance with labor law consultant's advice. Actuarial vacation in this regard is yet to be made.

10) Company has in earlier year ac'.sted the debit balance of Profit & Loss account aggregating to Rs. 96,27,661/- against the creclying in revaluation reserve account, which in the opinion of auditors, is not in the accordance with the Accounting Standard recommended by the Institute of Chartered Accountants of India. As a result of this adjustment, the credit balance of revolution reserve and debit balance c Profit & Loss A/c gets under stated by the said sums. The management of the Company '--ends to pass corrective entries, if required prior to declaration of dividend.

11) Contingent liabilities for claims against company not acknowledged and not provided for amounts to Rs. 5,01,271/- (P.Y. Rs.5,01,271/-). As ascertained and certified by the management there is no other contingent lab for which provision is required.

12) Considering the carried forward assessed losses no provision of Income Tax is required.

13) Balance of all personal accord-; deluding Sundry debtors. Sundry creditors, Loans and Advances, Deposits etc. are subject to conation, recondition and appropriate adjustment.

14) DISCLOSURE ON RELATED PARTIES:

2) M/s. Nirman Infrastructure Ltd.

In which our Director Dr. N. V. Vasavada is director. Inter corporate loan & advances given to them earlier which remains outstanding as on 31.03.2010 Rs. 31,35,000/- maximum balance during the year Rs. 31,35,000/- in opinion of auditor same is doubtful of recovery however the directors are hopeful of recovery.

B) Key Management Person : 1) Mr. H. D. Nanavati - M.D.

C) Directors & Relatives : 1) Mr. H. D. Nanavati

Unsecured Loan received Rs. 6,59,94/-

2) Mrs. A. H. Nanavati

- Unsecured Loan received Rs. 80.000/-

3) Mrs. Amitaben Vasavada

Unsecured Loan received Rs. 98,000/-

15) Segment Activities Discloser:

The company is exclusively engaged in the business of manufacture and sale of Ivey fluids, Pharmaceuticals products in India and there is no other segmental activities hence no separate disclosure of reportable segment is required.

16) Accounting for Taxes on Income:

Considering the loss in the current year, accounting for taxes on income for current year's tax liability is NIL The management of the Company is of the opinion that there is virtual uncertainty of realization of the benefit of past losses and differed tax assets. As such the accounting of such deferred tax assets and taxes thereon is not recognized.

17) In absence of any manufacturing activity, the particulars required under Clause 4C & 4D of Part - II of Schedule - VI is not given.

18) Earning & Expenditure in Foreign Currency : NIL