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Accounting Policies of Wintac Ltd. Company

Mar 31, 2015

A) Fixed assets are stated at acquisition cost which comprises of purchase price, import duties, levies and any directly attributable cost of bringing the asset to its working condition for its intended use and also include an appropriate share of expenditure (including cost of trial runs and finance charges) during construction / installation. Income (if any) from trial runs is reduced from the Project Cost. Fixed Assets required for Research & Development are capitalized and depreciated in the like manner as other fixed assets of the company. Intangible assets are likewise stated at acquisition cost. Machinery Spares of the nature of capital spares/insurance spares are capitalized separately at the time of their purchase whether procured at the time of purchase of concerned fixed asset or subsequently, and are allocated on a systematic basis over a period not exceeding the useful life of the principal item i.e. the fixed asset to which they relate . When the related fixed asset is either discarded or sold, the written down value less disposal value, if any of the capital spares/insurance spares is written off.

b) Depreciation on tangible assets is provided on straight-line method by amortizing the depreciable amount of an asset over it residual useful life. From 01.04.2014 the residual useful life is determined as per Part 'C' of Schedule II of the Companies Act, 2013. Intangible assets are amortized over their useful life as estimated by the management in accordance with AS-26. Depreciation on assets whose actual cost do not exceed Rs.5000/-is depreciated at the rate of 100%.

c) Current investments are carried at lower of cost or fair value. Long-term investments are carried at cost (except where in the opinion of the Directors, there is a decline in value, other than temporary, in which case appropriate provision is made for such reduction in value).

d) Inventories are valued at lower of cost and net realizable value. Stock of stores are valued at cost. Cost is determined on Moving Weighted Average basis.

e) Expenses incurred at premises taken on lease by the company on modification / partitions etc to meet the company's requirements are expensed under repairs. Extensions / Additions are capitalized.

f) Prepaid expenses, which in the opinion of the management are not material in nature, are not carried forward and are generally absorbed in the year in which they are incurred.

g) Transactions during the year in foreign currencies are recorded at the rate prevailing on the transaction date. Net exchange difference arising on settlement of monetary items or on reporting the monetary items at the closing rate are recognized as income or expense.

h) The Company follows the accrual system of accounting. Revenue from sales is recognized on transfer of significant risks and rewards of ownership to the buyer. Revenue from contract manufacturing charges is recognized on completed contract method. Revenue from Formulation Development Contracts is recognized when the right to receive a non-refundable payment as per the payment mile stones under the individual contract is established. Excise Duty payable on finished goods is recognized when it falls due on clearance from the factory premises/ place of manufacture.

i) Sales as recorded in the books is net of excise duty and value added tax/sales tax. For the purpose of disclosure as per AS-9, Revenue Recognition, the figures of gross sales in Note 20 to the Financial Statements is derived by adding excise duty collected to the recorded sales which is then reduced to arrive at the net sales.

j) Employee Benefits

a) Employee Benefits are recognized, measured and disclosed as per Accounting Standard -15 (Revised 2005) - "Employee Benefits".

b) The company relies on the actuarial valuation made by LIC using Projected Unit Credit Method for measurement of obligation towards Post-Employment Benefits under Defined Benefit Plans such as Gratuity. Actuarial gains or losses are recognized in the Statement of Profit & Loss.

c) Provision towards earned leave is made based on the actual leave accumulated as at the balance sheet date.

d) Termination Benefits are expensed in the year of termination of employment.

k) Borrowing costs directly attributable to the acquisition or construction of a qualifying assets are capitalized as a part of the cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the profit and loss account of the year in which they are incurred.

l) Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the Income tax law and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period). The deferred tax charge or credit and corresponding deferred tax liability or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in 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.

m) Provision is recognized for losses arising from claims, litigations, assessments, fines, penalties, etc., when it is probable that a liability has been incurred and the amount can be reasonably as certained / estimated.

n) The basic earnings (loss) per share is computed by dividing the net profit or loss after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. This is further adjusted for the effect of all dilutive potential equity shares for calculating diluted earnings per share.

o) Disclosure of related party relationships are made when control exists or where there have been related party transactions. For this purpose, transactions which are carried out on the same terms and conditions as applicable to the general public, such as acceptance of Fixed Deposits and payment of interest thereon, are not considered as related party transactions.

p) Leases:

Assets acquired under finance leases are capitalized at the fair value of the leased asset at the inception of the lease and included within fixed assets. Such assets are depreciated as per the depreciation policy for such assets stated in Note 1(b) above.

q) Impairment of Assets

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:

a. the provision for impairment loss, if any, required; or

b. the reversal, if any, required of impairment loss recognized in previous periods.


Mar 31, 2013

A) Fixed assets are stated at acquisition cost which comprises of purchase price, import duties, levies and any directly attributable cost of bringing the asset to its working condition for its intended use and also include an appropriate share of expenditure (including cost of trial runs and finance charges) during construction / installation, income (if any) from trial runs is reduced from the Project Cost. Fixed Assets required for Research & Development are capitalized and depreciated in the like manner as other fixed assets of the company. Intangible assets are likewise stated at acquisition cost.

Machinery Spares of the nature of capital spares/insurance spares are capitalized separately at the time of their purchase whether procured at the time of purchase of concerned fixed asset or subsequently, and are allocated on a systematic basis over a period not exceeding the useful life of the principal item i.e. the fixed asset to which they relate . When the related fixed asset is either discarded or sold, the written down value less disposal value, if any of the capital spares/insurance spares is written off.

b) Depreciation on tangible assets is provided on straight-line method at the rates as prescribed in Schedule XIV to the Companies Act, 1956. Intangible assets are amortized over their useful life as estimated by the management in accordance with AS-26. Depreciation on assets whose actual cost do not exceed Rs.5000/- is depreciated at the rate of 100%.

c) Current investments are carried at lower of cost or fair value. Long-term investments are carried at cost (except where in the opinion of the Directors, there is a decline in value, other than temporary, in which case appropriate provision is made for such reduction in value).

d) Inventories are valued at lower of cost and net realisable value. Stock of samples, stores, sales promotional materials and stationery are valued at cost. Cost is determined on FIFO basis.

e) Expenses incurred at premises taken on lease by the company on modification / partitions etc to meet the company''s requirements are expensed under repairs. Extensions / Additions are capitalised.

f) Prepaid expenses, which in the opinion of the management are not material in nature, are not carried forward and are generally absorbed in the year in which they are incurred.

g) Transactions during the year in foreign currencies are recorded at the rate prevailing on the transaction date. Net exchange difference arising on settlement of monetary items or on reporting the monetary items at the closing rate are recognized as income or expense. -

h) All revenues, cost, assets and liabilities are recognised on accrual basis. Income from manufacturing charges is recognized based on stage of completion of manufacture. Excise duty payable on uncleared finished goods is accounted when they fall due by clearance from the factory.

i) Sales include excise duty and are net of discount and value added tax/sales tax.

j) Employee Benefits

a) Employee Benefits are recognised, measured and disclosed as per Accounting

Standard -15 (Revised 2005) - "Employee Benefits".

b) The company relies on the actuarial valuation made by LIC using Projected Unit Credit Method for measurement of obligation towards Post Employment Benefits under Defined Benefit Plans such as Gratuity. Actuarial gains or losses are recognised in the Profit & Loss Account.

c) Long term benefits such as earned leave are determined based on the actual leave accumulated at the end of the year.

d) Termination Benefits are expensed in the year of termination of employment.

e) The benefits are after taking into consideration actuarial gains or losses.

k) Dividend on chits is being accounted on the basis of auction. Amount foregone for prized chits is amortized over the period of the chit. Unamortized balance is included under loans and advances.

I) Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalised as a part of the cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the profit and loss account of the year in which they are incurred, m) Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the Income tax law and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period ). The deferred tax charge or credit and corresponding deferred tax liability or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in 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 realization of such assets, n) Provision is recognized for losses arising from claims, litigations, assessments, fines, penalties, etc., when it is probable that a liability has been incurred and the amount can be reasonably ascertained / estimated, o) The basic earnings (loss) per share is computed by dividing the net profit, or loss after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. This is further adjusted for the effect of,all dilutive potential equity shares for calculating diluted earnings per share, p) Disclosure of related party relationships are made when control exists or where there have been related party transactions. For this purpose, transactions which are carried out on the same terms and conditions as applicable to the genera! public, such as acceptance of Fixed Deposits and payment of interest thereon, are not considered as related party transactions, q) Leases: Assets acquired under finance leases are capitalized at the fair value of the leased asset at the inception of the lease and included within fixed assets. Such assets are depreciated as per the depreciation policy for such assets stated in Note 1 (b) above, r) Impairment of Assets As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:

a. the provision for impairment loss, if any, required; or

b. the reversal, if any, required of impairment loss recognized in previous periods.


Mar 31, 2012

A) Fixed assets are stated at acquisition cost which comprises of purchase price, import duties, levies and any directly attributable cost of bringing the asset to its working condition for its intended use and also include an appropriate share of expenditure (including cost of trial runs and finance charges) during construction / installation. Income (if any) from trial runs are reduced from the Project Cost. Fixed Assets required for Research & Development are capitalized and depreciated in the like manner as other fixed assets of the company. Intangibles assets are likewise stated at acquisition cost.

Machinery Spares of the nature of capital spares/insurance spares are capitalized separately at the time of their purchase whether procured at the time of purchase of fixed asset concerned or subsequently, and are allocated on a systematic basis over a period not exceeding the useful life of the principal item i.e. the fixed asset to which they relate . When the related fixed asset is either discarded or sold, the written down value less disposal value, if any of the capital spares/insurance spares is written off.

b) Depreciation on tangible assets is provided on straight-line method at the rates as prescribed in Schedule XIV to the Companies Act, 1956. Intangible assets are amortized over their useful life as estimated by the management in accordance with AS-26. Depreciation on assets whose actual cost do not exceed Rs. 5000 is depreciated at the rate of 100%.

c) Current investments are carried at lower of cost or fair value. Long-term investments are carried at cost (except where in the opinion of the Directors, there is a decline in value, other than temporary, in which case appropriate provision is made for such reduction in value).

d) Inventories are valued at the lower cost and net realisable value. Stock of samples, stores, sales promotional materials and stationery are valued at cost. Cost is determined on FIFO basis.

e) Expenses incurred at premises taken on lease by the company on modification / partitions etc to meet the company's requirements are expensed under repairs. Extensions / Additions are capitalised.

f) Prepaid expenses, which in the opinion of the management are not material in nature, are not carried forward and are generally absorbed in the year in which they are incurred.

g) Transactions during the year in foreign currencies are recorded at the rate prevailing on the transaction date. Net exchange difference arising on settlement of monetary items or on reporting the monetary items at the closing rate are recognized as income or expense for the year.

h) All revenues, cost, assets and liabilities are recognised on accrual basis. Income from manufacturing charges is recognized based on stage of completion of manufacture. Excise duty payable on uncleared finished goods is accounted when they fall due by clearance from the factory.

i) Sales include excise duty and are net of discount and value added tax/sales tax.

j) Employee Benefits

a) Employee Benefits are recognised, measured and disclosed as per Accounting Standard -15 (Revised 2005) - "Employee Benefits".

b) The company relies on the actuarial valuation made by LIC using Projected Unit Credit Method for measurement of obligation towards Post Employment Benefits under Defined Benefit Plans such as Gratuity. Actuarial gains or losses are recognised in the Profit & Loss Account.

c) Long term benefits such as earned leave are determined based on the actual leave accumulated at the end of the year.

d) Termination Benefits are expensed in the year of termination of employment.

e) The benefits are after taking into consideration actuarial gains or losses.

k) Dividend on chits is being accounted on the basis of auction. Amount foregone for prized chits is amortized over the period of the chit. Unamortized balance is included under loans and advances.

I) Borrowing costs directly attributable to the acquisition of construction of a qualifying asset are capitalised as a part of the cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to profit and loss account of the year in which they are incurred.

m) Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the Income tax law and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period). The deferred tax charge or credit and corresponding deferred tax liability or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in 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 realization of such assets.

n) Provision is recognized for losses arising from claims, litigations, assessments, fines, penalties, etc., when it is probable that a liability has been incurred and the amount can be reasonably ascertained / estimated.

o) The basic earnings (loss) per share is computed by dividing the net profit or loss after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. This is further adjusted for the effect of all dilutive potential equity shares for calculating diluted earnings per share.

p) Disclosure of related party relationships are made when control exists or where there have been related party transactions. For this purpose, transactions which are carried out on the same terms and conditions as applicable to the general public, such as acceptance of Fixed Deposits and payment of interest thereon, are not considered as related party transactions.

q) Leases:

Assets acquired under finance leases are capitalized at the fair value of the leased asset at the inception of the lease and included within fixed assets. Such assets are depreciated as per the depreciation policy for such assets stated in Note 1(b) above.

r) Impairment of Assets .

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine:

a. the provision for impairment loss, if any, required; or

b. the reversal, if any, required of impairment loss recognized in previous periods.

 
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