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Accounting Policies of Vivanza Biosciences Ltd. Company

Mar 31, 2016

25. Significant Accounting Policies Company Overview

Vivanza Biosciences Limited ("the company") is a listed company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is engaged in the business of trading of various steel products and in the electronic items. The company is listed on Bombay Stock Exchange.

Basis for Preparation of Financial statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India, on the basis of going concern under the historical cost convention and also on accrual basis. These financial statements comply, in all material aspects, with the provisions the Companies Act, 2013 (to the extent applicable) and also accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006, which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. All the divisions of the Company have normal operating cycle of less than twelve months, hence a period of twelve months has been considered for bifurcation of assets and liabilities into current and non-current as required by Schedule III to the Companies Act, 2013 for preparation of Financial Statements The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

Use of Estimates

The preparation of financial statements is conformity with generally accepted accounting principles require management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit or (loss) 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.

Revenue Recognition

The principles of revenue recognition are given below:

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

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. Liabilities which are of contingent nature are not provided but are disclosed at their estimated amount in the notes forming part of the accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

Investments

Investments that are readily realizable and intended to be held for not more than a year from the date on which such investments are made, are classified as current investments. All other investment are classified as long-term investments. Current investments are measured at cost or market value whichever is lower, determined on an individual investment basis. Long Term Investments are stated at cost. Provision for diminution in the value of long term investment is made only if such a decline is other than temporary.

Event occurring after the Balance Sheet Date

On 17th June, 2016, The Company has issued 19,12,000 Equity Shares to Mr. H. A. Parikh through Preferential Allotment and in consideration acquired 10,00,000 Equity shares of the Vivanza Life Sciences Pvt. Ltd. from Mr. H. A. Parikh . So from 17th June, 2016 onwards Vivanza Life Sciences Pvt. Ltd. has become wholly Owned Subsidiary Company of Vivanza Biosciences Limited.

Prior period Items

Prior period expenses/income is accounted for under respective heads. Material items, if any, are disclosed separately by way of note.

Earnings Per Share

The earning considered in ascertaining the Company''s Earnings Per Share (EPS) comprises the net profit after tax. The number of shares used in computing Basic and diluted EPS is weighted average number of shares outstanding during the year as per the guidelines of AS-20 and calculation of EPS is shown in notes to account.

Segment reporting

Accounting standards interpretation (ASI) 20 dated 14-02-2004, issued by the accounting standard board of ICAI, on AS-17, Segment reporting clarifies that in case by applying the definition of "Business Segment and Geographical Segment" given in AS-17, it is concluded that there has one geographic segment as Primary segment and There has been not identified secondary segment.

26. Notes on Accounts Contingent Liabilities

There is no contingent liability as informed by management.

Capital Expenditure Commitments: Nil Related Party Transactions:-

As per Accounting Standard (AS -18) issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related parties are given below:

List of related parties where control exists and related parties with whom transactions have taken place and relationships:

Earnings per Share:-

The earning considered in ascertaining the company''s EPS comprises the profit available for shareholders

i.e. profit after tax and statutory/regulatory appropriations. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year as per the guidelines of AS-20.

Others

- Scheme of Arrangement: The Company had filed petition in High Court u/s 391 and 394 for sanction of the scheme of Arrangement in the nature of Re- organization of share capital of the company in the previous year. Date of order from High court is 30th April 2015. As per the scheme, the Paid up capital of the company has been reduced from Rs. 3,76,00,000/- to Rs. 18,80,000/-. Accordingly upon such reduction of share capital, the shareholders of the company have been issued one new equity share of company for every twenty equity shares held by them in the company on the record date.

- In opinion of the management of the company, all loans, advances and deposits are recoverable thus there is no need to make any provision thereon. However in the opinion of the auditors, it shall be prudent to make sufficient provision for such non-performing assets amounting to Rs. 59,33,061/-.

- Balance sheet is still carrying "P & P Expenses and issue related expenses" of Rs. 1,02,731/- as "Other Current Assets" after writing off Rs. 8,09,613/- against the Revaluation Reserve as well as Capital Subsidy Reserve under the Capital Reduction Scheme approved under the Order of High Court, which in our opinion needs to be written off.

- Balance of sundry debtors and creditors, loans and advances accepted and given in the balance sheet are subject to confirmation.

- Above Disclosure is made after taking into account the principle of materiality.

- In the events of non-availability of suitable supporting vouchers, Directors have given us certificate that these expenses are incurred mainly for the business activities of the company

- Balance with Scheduled bank CBI for Rs. 1700/- is subject to confirmation as no details been produced before us for the same.

- As regards sundry creditors for Rs. 3,53,252/- which were outstanding since long, the company has not provided with us details for its verification, also as informed to us there is no interest is payable thereon, thus not provided for.

- The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


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

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