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Accounting Policies of Vivimed Labs Ltd. Company

Mar 31, 2015

BASIS OF PREPARATION:

The financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost conversion on accrual basis, except certain tangible assets which are being carried at revalue amounts. Pursuant to section 133 of the Companies Act 2013 read with Rule 7 of Companies (Accounts) Rules 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act 1956,shall continue to apply. Consequently these financial statements have been prepared to comply in all material respects with the accounting standards notified under Section 211(3C) of the Companies Act,1956 (Companies Accounting Standards Rules, 2006 as amended) and the relevant provisions of the Companies Act, 2013 ('the Act'). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles require the management to make estimates and assumptions that affect the reported amounts of Assets and Liabilities and disclosure of Contingent Liabilities at the date of the financial statements and the result of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Significant estimates used by the management in the preparation of these financial statements include provisions for bad and doubtful debts. Any revision to accounting estimates is recognised prospectively.

1. Accounting Convention and Revenue Recognition:

The Financial Statements have been prepared on a going concern basis in accordance with historical cost convention except for such fixed assets which are revalue. Both Income and Expenditure are recognised on accrual basis.

Sales are accounted Net of Excise Duty, Taxes and Sales Returns. Other Items of Revenue are recognised in accordance with AS-9.

2. Cash Flow Statement: AS-3

The Company has prepared Cash Flow Statement as per the AS-3.

Cash flows are reported using the Indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the group are segregated.

3. Retirements Benefits:

Staff benefits arising out of retirements / death, comprising of contributions to Provident Fund, Superannuation & Gratuity Schemes, accrued Leave Encashment and other post–separation benefits are accounted for on the basis of an independent actuarial valuation, in accordance with AS-15. The actuarial liability is determined with reference to employees at the end of each financial year.

4. Accounting for Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, inclusive of taxes, freight and other incidental expenses related to acquisition, improvements and installation, except in case of revaluation of Fixed Assets where they are stated at revalue amount, as contained in AS-10. Capital Work-in-Progress includes cost of Fixed Assets under installation, any unallocated expenditure and Interest during construction period on loans taken to finance the Fixed Assets.

5. Accounting for Depreciation:

i) Depreciation on Fixed Assets is provided on straight-line method.

ii) Effective 1st April 2014, the Company depreciates its fixed assets over the useful life as prescribed in Schedule II of the Act, 2013 as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.

6. Accounting for Government Grants:

Government Grants / Subsidies are accounted in accordance with AS-12.

7. Accounting for Investments:

Long term investments are stated at cost. However, provision for diminution is made to recognise any decline, other than temporary, in the value of long term investments. Current Investments are stated at the lower of cost and fair value.

8. Accounting for Intangible Assets: Intangible assets are capitalised at cost if :

a) It is probable that the future economic benefits that are attributable to the asset will flow to the Company;

b) The Company will have control over the assets;

c) The cost of these assets can be measured reliably and is more than 10,000/- & this is in accordance with AS-26.

d) Expenditure on Research and Development:

(i) Capital Expenditure on Research and Development has been capitalised as Fixed Assets at the cost of acquisition inclusive of taxes, freight, and other incidental expenses related to acquisition and installation.

(ii) Revenue Expenditure on research including the expenditure during the research phase of Research and Development projects is charged to Profit and Loss Account as expense in the year of occurrence.

9. Transactions in Foreign Exchange:

Sales / Purchases and revenue incomes / expenses in foreign currency are booked at the exchange rate prevailing on the date of transaction. Gain / Loss arising out of fluctuations in exchange based on the rate on date of realisation is accounted for in the Profit and Loss Account as per AS-11.

Foreign Currency Monetary assets and liabilities are translated at year end exchange rates.

Foreign currency loans covered by forward contracts are realigned at the forward contract rates while those not covered by forward contracts are realigned at the rate prevailing at the year end.

Non monitory assets and liabilities are translated at the rate prevailing on the date of transaction and foreign exchange fluctuation gain or loss raised on account of translation of non monitory items like long term loans and advances are accumulated in a reserve account (FCMITDA).

10. Accounting for Borrowing Costs:

Borrowing cost relating to acquisition/ construction of qualifying assets are capitalised until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use/sale. Borrowing costs that are attributable to the projects are charged to the respective projects. All other borrowing costs, not eligible for capitalisation, are charged to revenue.

11. Accounting & Valuation for Inventories:

a) Materials, Stores & Spares, Tools and Consumables are valued at Cost or Market Value, whichever is lower, on the basis of First In First Out method reflecting the fairest possible approximation to the cost incurred in bringing the items of Inventory to their present location and condition.

b) Finished Stock of completed products is valued at lower of Cost or Net Realisable Value on the basis of actual identified units.

c) Scrap is valued at Net Realisable Value.

d) Work in process in respect of activities is valued at estimated cost.

e) Shuttering and Tools is valued at amortised Cost, spread over a period of three years.

12. Accounting for Taxes on Income:

a) Provision for tax for the year comprises current Income Tax and Deferred Tax and is provided as per the Income Tax Act, 1961.

b) Deferred tax resulting from timing differences between the book and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallise. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in the future; however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets/ liabilities are reviewed as at each balance sheet date.

13. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if

a) The Company has a present obligation as a result of a past event;

b) A probable outflow of resources is expected to settle the obligation; and

c) The amount of the obligation can be reliably estimated.

d) Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of:

a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation;

b) A possible obligation, unless the probability of outflow of resources is remote. Contingent Assets are neither recognised nor disclosed.

14. Earnings per Share:

The earnings considered in ascertaining the companies earning per share comprise net profit after tax and includes the post tax effect of any extra-ordinary/exceptional item is considered. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year.

The no. of shares used in computing diluted earnings per share comprises the weighted average no. of shares considered for deriving basic earnings per share and also the weighted average no. of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

15. Accounting for Impairment of Assets:

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired.

Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of carrying amount over the higher of the asset's net sale price or present value as determined above.

16. Related Party Disclosures:

The Company as required by AS-18 furnishes the details of Related Party Disclosures in the notes to financial statements.


Mar 31, 2014

BASIS OF PREPARATION:

The financial statements have been prepared to comply in all material respects with the accounting standards notified by Companies

Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956 (''the Act''). The financial statements have been prepared under historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

USE OF ESTIMATES:

The preparation of financial statements in conformity with generally accepted accounting principles require the management to make estimates and assumptions that affect the reported amounts of Assets and Liabilities and disclosure of Contingent Liabilities at the date of the financial statements and the result of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Significant estimates used by the management in the preparation of these financial statements include estimates of the economic useful life of Fixed Assets and provisions for bad and doubtful debts. Any revision to accounting estimates is recognized prospectively.

1. Accounting Convention and Revenue Recognition:

The Financial Statements have been prepared on a going concern basis in accordance with historical cost convention except for such fixed assets which are revalued. Both Income and Expenditure are recognized on accrual basis.

Sales are accounted Net of Excise Duty, Taxes and Sales Returns. Other Items of Revenue are recognized in accordance with AS-9.

2. Cash Flow Statement: AS-3

The Company has prepared Cash Flow Statement as per the AS-3.

Cash flows are reported using the Indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the group are segregated.

3. Retirements benefits:

Staff benefits arising out of retirements/death, comprising of contributions to Provident Fund, Superannuation & Gratuity Schemes, accrued Leave Encashment and other post–separation benefits are accounted for on the basis of an independent actuarial valuation, in accordance with AS-15. The actuarial liability is determined with reference to employees at the end of each financial year.

4. Accounting for Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, inclusive of taxes, freight and other incidental expenses related to acquisition, improvements and installation, except in case of revaluation of Fixed Assets where they are stated at revalued amount, as contained in AS-10. Capital Work-in-Progress includes cost of Fixed Assets under installation, any unallocated expenditure and Interest during construction period on loans taken to finance the Fixed Assets.

5. Accounting for Depreciation:

Depreciation on Fixed Assets is provided on straight-line method as per the rates specified in Schedule XIV of the Companies Act, 1956. This is in accordance with the AS-6 and there is no change in the method of Depreciation during the year.

6. Accounting for Government Grants:

Government Grants/Subsidies are accounted in accordance with AS-12.

7. Accounting for Investments:

Long term investments are stated at cost. However, provision for diminution is made to recognise any decline, other than temporary, in the value of long term investments. Current Investments are stated at the lower of cost and fair value.

8. Accounting for Intangible Assets: Intangible assets are capitalized at cost if :

a) It is probable that the future economic benefits that are attributable to the asset will flow to the company;

b) The company will have control over the assets;

c) The cost of these assets can be measured reliably and is more than H10,000/- & this is in accordance with AS-26.

d) Expenditure on Research and Development:

(i) Capital Expenditure on Research and Development has been capitalized as Fixed Assets at the cost of acquisition inclusive of taxes, freight, and other incidental expenses related to acquisition and installation.

(ii) Revenue Expenditure on research including the expenditure during the research phase of Research and Development projects is charged to Profit and Loss Account as expense in the year of occurrence.

9. Transactions in Foreign Exchange:

Sales/Purchases and revenue incomes/expenses in foreign currency are booked at the exchange rate prevailing on the date of transaction. Gain/Loss arising out of fluctuations in exchange based on the rate on date of realization is accounted for in the Profit and Loss Account as per AS-11.

Foreign Currency Monetary assets and liabilities are translated at year end exchange rates.

Foreign currency loans covered by forward contracts are realigned at the forward contract rates while those not covered by forward contracts are realigned at the rate prevailing at the year end.

Non monitory assets and liabilities are translated at the rate prevailing on the date of transaction and foreign exchange fluctuation gain or loss raised on account of translation of non monitory items like long term loans and advances are accumulated in a reserve account (FCMITDA).

10. Accounting for borrowing Costs:

Borrowing cost relating to acquisition/construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use/sale. Borrowing costs that are attributable to the projects are charged to the respective projects. All other borrowing costs, not eligible for inventorisation/capitalisation, are charged to revenue.

11. Accounting & Valuation for Inventories:

a) Materials, Stores & Spares, Tools and Consumables are valued at Cost or Market Value, whichever is lower, on the basis of First In First Out method reflecting the fairest possible approximation to the cost incurred in bringing the items of Inventory to their present location and condition.

b) Finished Stock of completed products is valued at lower of Cost or Net Realisable Value on the basis of actual identified units.

c) Scrap is valued at Net Realisable Value.

d) Work in process in respect of activities is valued at estimated cost.

e) Shuttering and Tools is valued at amortised Cost, spread over a period of three years.

12. Accounting for Taxes on Income:

a) Provision for tax for the year comprises current Income Tax and Deferred Tax and is provided as per the Income Tax Act, 1961.

b) Deferred tax resulting from timing differences between the book and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets/liabilities are reviewed as at each balance sheet date.

13. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) The Company has a present obligation as a result of a past event;

b) A probable outflow of resources is expected to settle the obligation; and

SIGNIFICANT ACCOUNTING POLICIES TO THE STANDALONE FINANCIAL STATEMENTS

c) The amount of the obligation can be reliably estimated.

d) Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of:

a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation;

b) A possible obligation, unless the probability of outflow of resources is remote. Contingent Assets are neither recognized nor disclosed.

14. Earnings per Share:

The earnings considered in ascertaining the companies earning per share comprise net profit after tax and includes the post tax effect of any extra-ordinary/exceptional item is considered. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year.

The no. of shares used in computing diluted earnings per share comprises the weighted average no. of shares considered for deriving basic earnings per share and also the weighted average no. of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

15. Accounting for Impairment of Assets:

Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired.

Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of carrying amount over the higher of the asset''s net sale price or present value as determined above.

16. Related Party Disclosures:

The Company as required by AS-18 furnishes the details of Related Party Disclosures in the notes to financial statements.


Mar 31, 2011

BASIS OF PREPARATION

the financial statements have been prepared to comply in all material respects with the accounting standards notified by companies Accounting standards Rules, 2006 and the relevant provisions of the companies Act, 1956 (the Act'). the financial statements have been prepared under historical cost convention on an accrual basis in accordance with accounting principles generally accepted in india. the accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

Use of Estimates

the preparation of financial statements in conformity with generally accepted accounting principles require the management to make estimates and assumptions that affect the reported amounts of Assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. significant estimates used by the management in the preparation of these financial statements include estimates of the economic useful life of fixed Assets and provisions for bad and doubtful debts. Any revision to accounting estimates is recognized prospectively.

(a) Accounting Convention and Revenue Recognition

the financial statements have been prepared on a going concern basis in accordance with historical cost convention except for such fixed assets which are revalued. Both income and expenditure are recognized on accrual basis.

sales are accounted net of excise Duty, taxes and sales Returns. other items of Revenue are recognized in accordance with As-9.

(b) Cash Flow Statement: AS-3

the company has prepared cash flow statement as per As-3.

(c) Retirements Benefits

staff benefits arising out of retirements / death, comprising of contributions to provident fund, superannuation & Gratuity schemes, accrued leave encashment and other post-separation benefits are accounted for on the basis of an independent actuarial valuation, in accordance with As-15. the actuarial liability is determined with reference to employees at the end of each financial year.

(d) Fixed Assets

fixed Assets are stated at cost of acquisition and subsequent improvements thereto, inclusive of taxes, freight and other incidental expenses related to acquisition, improvements and installation, except in case of revaluation of fixed Assets where they are stated at revalued amount, as contained in As-10. capital work-in-progress includes cost of fixed Assets under installation, any unallocated expenditure and interest during construction period on loans taken to finance the fixed Assets.

(e) Depreciation

Depreciation on fixed Assets is provided on straight-line method as per the rates specified in schedule XiV of the companies Act, 1956. this is in accordance with the As-6 and there is no change in the method of Depreciation during the year.

(f) Accounting for Government Grants

Government Grants / subsidies are accounted in accordance with As-12.

(g) Investments

long term investments are stated at cost. however, provision for diminution is made to recognise any decline, other than temporary, in the value of long term investments. current investments are stated at the lower of cost and fair value.

(h) (a) Intangible Assets

intangible assets are capitalized at cost if:

- It is probable that the future economic benefits that are attributable to the asset will flow to the company;

- The company will have control over the assets;

- The cost of these assets can be measured reliably and is more than Rs. 10,000/- &

- This is in accordance with AS-26.

(b) Expenditure on Research and Development

capital expenditure on Research and Development has been capitalized as fixed Assets at the cost of acquisition inclusive of taxes, freight and other incidental expenses related to acquisition and installation.

Revenue expenditure on research including the expenditure during the research phase of Research and Development projects is charged to profit and loss Account as expense in the year of occurrence. the above accounting is in compliance with As-26.

(i) Transactions in Foreign Exchange

sales / purchases and revenue incomes / expenses in foreign currency are booked at the exchange rate prevailing on the date of transaction. Gain / loss arising out of fluctuations in exchange based on the rate on date of realization is accounted for in the profit and loss Account as per As-11.

foreign currency monetary assets and liabilities are translated at year end exchange rates.

foreign currency loans covered by forward contracts are realigned at the forward contract rates while those not covered by forward contracts are realigned at the rate prevailing at the year end.

(j) Borrowing Cost

Borrowing cost relating to acquisition/ construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use/sale. Borrowing cost that are attributable to the projects are charged to the respective projects. All other borrowing costs, not eligible for inventorisation /capitalisation, are charged to revenue.

(k) Inventories

inventories of Raw materials, packing materials, stores & spares, consumables and work in process is valued at cost on weighted Average basis. finished goods are valued at lower of cost or net realisable Value, as per As-2.

(l) Taxes on Income

a) provision for tax for the year comprises current income tax and Deferred tax and is provided as per the income tax Act, 1961.

b) Deferred tax resulting from timing differences between the book and the tax profits is accounted for, at the current rate of tax, to the extent that the timing differences are expected to crystallize.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future; however where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets/ liabilities are reviewed as at each balance sheet date.

(m) Provisions, Contingent Liabilities and Contingent Assets

provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the Company has a present obligation as a result of a past event;

b) a probable outflow of resources is expected to settle the obligation; and

c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

contingent liability is disclosed in the case of:

a. a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation;

b. a possible obligation, unless the probability of outflow of resources is remote. contingent Assets are neither recognized nor disclosed.

(n) Earnings per Share

the earnings considered in ascertaining the earning per share comprise of net profit after tax. the number of shares used in computing Basic earnings per share is the weighted Average number of shares outstanding during the year, as per As-20.

(o) Impairment of Assets

management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired. impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. the impairment loss to be expensed is determined as the excess of carrying amount over the higher of the asset's net sale price or present value as determined above.

(p) Related Party Disclosures

the company as required by As-18, furnishes the details of Related party Disclosures in schedule 24.










Mar 31, 2010

Financial statements are prepared on a going concern basis under historical cost convention on accrual method and complying with the applicable Accounting standards (As) issued by the institute of Chartered Accountants of India (ICAI), referred to in section 211 (3C) of the Companies Act, 1956 as adopted consistently by the Company. the significant Accounting Policies adopted in presentation of the Accounts are as under:

(a) Accounting Convention and Revenue Recognition:

The Financial statements have been prepared on a going concern basis in accordance with historical cost convention except for such fixed assets which are revalued. Both income and Expenditure are recognized on accrual basis.

Sales are accounted Net of Excise Duty, taxes and sales Returns. Other items of Revenue are recognized in accordance with As-9.

(b) Retirements Benefits:

Staff benefits arising out of retirements / death, comprising of contributions to Provident Fund, superannuation & Gratuity Schemes, accrued Leave En-cashable and other post-separation benefits are accounted for on the basis of an independent actuarial valuation, in accordance with As-15. the actuarial liability is determined with reference to employees at the end of each financial year.

(c) Fixed Assets:

Fixed Assets are stated at cost of acquisition and subsequent improvements thereto, inclusive of taxes, freight, and other incidental expenses related to acquisition, improvements and installation, except in case of revaluation of Fixed Assets where it is stated at revalued amount, as contained in As-10. Capital Work-in-Progress includes cost of Fixed Assets under installation, any unallocated expenditure and interest during construction period on loans taken to finance the Fixed Assets.

(d) Depreciation:

Depreciation on Fixed Assets is provided on straight-line method as per the rates specified in schedule XIV of the Companies Act, 1956. this is in accordance with the As-6 and there is no change in the method of Depreciation during the year.

(e) Accounting for Government Grants:

Government Grants / subsidies are accounted in accordance with As-12. the Company has correctly accounted the amounts received from Govt. Departments / Agencies to Reserve A/c. instead of Crediting the Block of Asset. the pre-condition is that the company should be existing for the ensuing 10 years from the date of sanction of the subsidy, and that such 10 year period has not expired as on the date of the Balance sheet.

(f) Accounting for investments: Investments are valued at cost of acquisition including related expenses thereto. No Provision has been made by the Company during the year, since there is no permanent fall in valuation of investments. this is in accordance with As-13.

(g) Intangible Assets:

Intangible assets are capitalized at cost if:

- It is probable that the future economic benefits that are attributable to the asset will flow to the company;

- The company will have control over the assets;

- The cost of these assets can be measured reliably and is more than Rs. 10,000/-;

- This is in accordance with AS-26.

(h) Expenditure on Research and Development:

Capital Expenditure on Research and Development has been capitalized as Fixed Assets at the cost of acquisition inclusive of taxes, freight, and other incidental expenses related to acquisition and installation.

Revenue Expenditure on research including the expenditure during the research phase of Research and Development projects is charged to Profit and Loss Account as expense in the year of occurrence.

The above accounting is in compliance with As-8.

(i) Transactions in Foreign Exchange:

Sales / Purchases and revenue incomes / expenses in foreign currency are booked at the exchange rate Prevailing on the date of transaction. Gain / Loss arising out of fluctuations in exchange based on the rate on date of realization is accounted for in the Profit and Loss Account as per AS-11.

Foreign Currency monetary assets and liabilities are translated at year end exchange rates.

Foreign currency loans covered by forward contracts are realigned at the forward contract rates while those not covered by forward contracts are realigned at the rate prevailing at the year end.

(j) Borrowing Cost:

Borrowing cost that is attributable to the acquisition / construction of Fixed Assets is capitalized as part of the cost of respective assets. Other Borrowing Costs are recognized as expense and charged to revenue in the Profit and Loss Account in the period in which they are incurred, as per AS-16.

(k) Inventories:

Inventories of Raw materials, Packing materials, Consumables and Work in Process is valued at Cost on Weighted Average basis. Finished Goods are valued at lower of Cost or Net Realizable Value, as per As-2. (l) taxes on income:

(i) Income tax is computed in accordance with As-22 on Accounting for taxes on income. tax expenses are accounted in the period to which the revenue and expenses relate.

(ii) Income tax: Provision for current income tax is made on the tax liability calculated on taxable income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax Laws.

(iii) Deferred Tax Liability: Provision for Deferred Income Tax Liability is made on the accumulated timing differences at the end of the accounting year in accordance with prevailing Tax Laws. Timing differences are those differences between taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods.

(iv) Deferred tax Assets: Deferred tax Assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance sheet date. there are no Deferred tax Assets recognized by the Company during the year.

(m) Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions have been recognized by the Company for all present obligations arising from past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made by using a substantial degree of estimation. this is as per As-28. Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on-going basis and only those having a largely probable outflow of resources are provided for. Contingent Assets have not been recognized in the financial statements.

(n) Earnings per share:

The earnings considered in ascertaining the Earning Per share comprise of Net Profit after tax. the number of shares used in computing Basic Earnings Per share is the Weighted Average number of shares outstanding during the year, as per As-20.

(o) Impairment of Assets:

The Company assesses at each Balance sheet date whether there is any indication that an asset may be impaired. if any such indication exists, the management estimates recoverable amounts of the assets and if such amounts are less than its carrying cost the carrying cost is reduced to its recoverable amount. the reduction is treated as an impairment loss and is recognized in the Profit and Loss Account. If at the Balance Sheet date, there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost, in accordance with As-28. however, there are no impairment losses recognized by the Company in the Financial statements during the year.

(p) Related Party Disclosures:

The Company as required by As-18, furnishes the details of Related Party Disclosures in schedule 24.

 
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