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Accounting Policies of Zenith Healthcare Ltd. Company

Mar 31, 2015

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENT

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 notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/ materialize.

(c) INVENTORIES

i) Inventories are valued at lower of cost (FIFO Basis) or Net Realisable value.

ii) Cost of inventories have been computed to include all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(d) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(e) CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit / (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.

(f) PRIOR PERIOD AND EXCEPTIONAL ITEMS

(i) All identifiable items of Income and Expenditure pertaining to prior period are accounted through "Prior Period Expense Account".

(ii) Exceptional items are generally non-recurring items of income/profit and expenses/loss within profit and loss from Ordinary activities, which are of such nature or incident at these disclosures is relevant to explain the performance of the Company for the year.

(g) DEPRECIATION

i) Depreciation on Fixed Assets is provided on Written down method at rates and in the manner specified in Schedule III to the Companies Act, 2013 read with the relevant circulars issued by the Department of Company Affairs.

ii) Depreciation on Assets acquired during the year is provided on pro-rata basis with reference to the date of addition.

iii) Individual assets costing less than Rs.5000 are fully depreciated in the year of purchase.

iv) Intangible assets are amortized in span of 10 years.

(h) REVENUE RECOGNITION

i) Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales inclusive of Excise duty but exclude Vat and CST.

ii) Income from services rendered is accounted for when the work is performed.

iii) Interest revenues are recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

(i) FIXED ASSETS

i) Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated depreciation.

ii) Expenditure on accounts of modification/alteration in plant and machinery, which increases the future benefit from the existing asset beyond its previous assessed standard of performance, is capitalized.

(j) FOREIGN CURRENCY TRANSACTIONS

i) There is no Foreign Currency Transaction during the year.

(k) INVESTMENTS

i) Long-term Investments are stated at cost. Provision for diminution in the value of long-term Investments is made only if such a decline is other than temporary in the opinion of the management.

ii) Current investment are carried at the lower of cost and quoted/fair value, computed category wise.

(l) EMPLOYEE BENEFITS

i) Provident Fund and Pension Fund: Contribution to provident and pension fund maintained with the Provident fund authorities is charged to Profit & Loss account on accrual basis.

ii) Gratuity: Gratuity liability as on 31st March, 2015 has not been determined by the actuarial valuation and so that such liability has not been provided for in these accounts the gratuity expenses debited to profit & loss account as and when paid to employees at the time of resignation.

iii) Leave Encashment: The Company has policy to make payment of unutilised leaves every year as per rules of the applicable Act.

iv) Other Employee Benefits: Other Employee Benefits such as bonus etc. are accounted for on accrual basis.

(m) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. 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 revenue.

(n) SEGMENT ACCOUNTING

Accounting Standard Interpretation (ASI) 20 Dated 14th February, 2004 issued by the Accounting Standards Board of the Institute Chartered Accountants of India, on AS 17, Segment Reporting clarifies that in case, by applying the definitions of "business segment" and "geographical segment" given in AS 17, it is concluded that there is neither more than one business segment nor more than one geographical segment. Segment information as per AS 17 is not required to be disclosed.

(o) RELATED PARTY TRANSACTIONS

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party disclosures" has been set out in a separate note forming part of this schedule. Related Parties as defined under clause 3 of the Accounting Standard 18 has been identified on the basis of representation made by key managerial personnel and information available with the Company.

(p) LEASES

The Company's significant leasing arrangements are in respect of operating leases for office premises, stores & godown. The leasing arrangements ranging between 11 months and five years are generally, and are usually Renewable by mutual consent on agreed terms. The aggregate lease rentals payable are charged as rent including lease rentals.

(q) EARNING PER SHARE

The Company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 prescribed under The Companies Accounting Standards Rules, 2006. The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.

(r) TAXES ON INCOME

i) Deferred Taxation

In accordance with the Accounting Standard 22 – Accounting for Taxes on Income, prescribed under The Companies Accounting Standards Rules, 2006, the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet Date.

Deferred tax assets arising from timing differences are recognised to the extent there is virtual certainty that the assets can be realized in future.

Net outstanding balance in Deferred Tax account is recognized as deferred tax liability/asset. The deferred tax account is used solely for reversing timing difference as and when crystallized.

ii) Current Taxation

Provision for taxation has been made in accordance with the income tax laws prevailing for the relevant assessment years.

(s) IMPAIRMENT OF FIXED ASSETS

The carrying amount of assets, other than inventories, is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated.

The impairment loss is recognized whenever the carrying amount of an asset or its cash generation unit exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in the uses, which is determined, based on the estimated future cash flow discounted to their present values. All impairment losses are recognized in the profit and loss account.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and is recognized in the profit and loss account.

(t) PROVISION, CONTINGENT LIABILITIES AND CONTIGENT ASSETS

Provisions involving substantial degree of estimation in measurements are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in notes. Contingent assets are neither recognised nor disclosed in the financial statements.

(u) ACCOUNTING OF CLAIMS

i) Claims received are accounted at the time of received return goods and damaged and expiry goods.

ii) Claims raised by Government authorities regarding taxes and duties, which are disputed by the Company, are accounted based on legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(v) EXPORT INCENTIVES

Though other Accounting Standards also apply to the Company by virtue of the Companies Accounting Standards Rules, 2006, no disclosure for the same is being made as the Company has not done any transaction to which said accounting standards apply.


Mar 31, 2014

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENT

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 notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial state- ments have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make esti- mates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/ materialise.

(c) INVENTORIES

i) Inventories are valued at lower of cost (FIFO Basis) or Net Realisable value.

ii) Cost of inventories have been computed to include all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(d) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(e) CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit / (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 segre- gated based on the available information.

(f) PRIOR PERIOD AND EXCEPTIONAL ITEMS

(i) All identifiable items of Income and Expenditure pertaining to prior period are accounted through "Prior Period Expenses Account".

(ii) Exceptional items are generally non-recurring items of income/profit and expenses/loss within profit and loss from ordinary activities, which are of such nature or incident at there disclosures is relevant to explain the performance of the Company for the year.

(g) DEPRECIATION

i) Depreciation on Fixed Assets is provided on Written down method at rates and in the manner specified in Schedule XIV to the Companies Act, 1956 read with the relevant circulars issued by the Department of Company Affairs.

ii) Depreciation on Assets acquired during the year is provided on pro-rata basis with reference to the date of addition.

iii) Individual assets costing less than Rs.5000 are fully depreciated in the year of purchase.

iv) Intangible assets are amortised in spnn of 10 years.

(h) REVENUE RECOGNITION

i) Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales inclusive of Excise duty but exclude Vat and CST.

ii) Income from services rendered is accounted for when the work is performed.

iii) Interest revenues are recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

(i) FIXED ASSETS

i) Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated depreciation.

ii) Expenditure on accounts of modification/alteration in plant and machinery, which increases the future benefit from the existing asset beyond its previous assessed standard of performance, is capitalized.

(j) FOREIGN CURRENCY TRANSACTIONS

i) There is no Foreign Currency Transaction during the year.

(k) INVESTMENTS

i) Long-term Investments are stated at cost. Provision for diminution in the value of long-term Investments is made only if such a decline is other than temporary in the opinion of the management.

ii) Current investment are carried at the lower of cost and quoted/fair value, computed category wise.

(l) EMPLOYEE BENEFITS

i) Provident Fund and Pension Fund: Contribution to provident and pension fund maintained with the Provident fund authorities is charged to Profit & Loss account on accrual basis.

ii) Gratuity: Gratuity liability as on 31st March, 2014 has not been determined by the actuarial valuation and so that such liability has not been provided for in these accounts the gratuity expenses debited to profit & loss account as and when paid to employees at the time of resignation.

iii) Leave Encashment: The Company have policy to make payment of unutilised leaves every year as per rules of the applicable Act.

iv) Other Employee Benefits: Other Employee Benefits such as bonus etc. are accounted for on accrual basis.

(m) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. 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 revenue.

(n) SEGMENT ACCOUNTING

Accounting Standard Interpretation (ASI) 20 Dated 14th February, 2004 issued by the Accounting Standards Board of the Institute Chartered Accountants of India, on AS 17, Segment Reporting clarifies that in case, by applying the definitions of "business segment" and "geographical segment" given in AS 17, it is concluded that there is neither more than one business segment nor more than one geographical segment. Segment information as per AS 17 is not required to be disclosed.

(o) RELATED PARTY TRANSACTIONS

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party disclosures" has been set out in a separate note forming part of this schedule. Related Parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by key managerial personnel and information available with the Company.

(p) LEASES

The Company''s significant leasing arrangements are in respect of operating leases for office premises, stores & godown. The leasing arrangements ranging between 11 months and five years are generally, and are usually renew- able by mutual consent on agreed terms. The aggregate lease rentals payable are charged as rent including lease rentals.

(q) EARNING PER SHARE

The Company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 prescribed under The Companies Accounting Standards Rules, 2006. The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.

(r) TAXES ON INCOME

i) Deferred Taxation

In accordance with the Accounting Standard 22 - Accounting for Taxes on Income, prescribed under The Companies Accounting Standards Rules, 2006, the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet Date.

Deferred tax assets arising from timing differences are recognised to the extent there is virtual certainty that the assets can be realised in future.

Net outstanding balance in Deferred Tax account is recognized as deferred tax liability/asset. The deferred tax account is used solely for reversing timing difference as and when crystallized. ii) Current Taxation

Provision for taxation has been made in accordance with the income tax laws prevailing for the relevant assessment years.

(s) IMPAIRMENT OF FIXED ASSETS

The carrying amount of assets, other than inventories, is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated.

The impairment loss is recognized whenever the carrying amount of an asset or its cash generation unit exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in the uses, which is determined, based on the estimated future cash flow discounted to their present values. All impairment losses are recognized in the profit and loss account.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and is recognized in the profit and loss account.

(t) PROVISION, CONTINGENT LIABILITIES AND CONTIGENT ASSETS

Provisions involving substantial degree of estimation in measurements are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in notes. Contingent assets are neither recognised nor disclosed in the financial statements.

(u) ACCOUNTING OF CLAIMS

i) Claims received are accounted at the time of received return goods and damaged and expiry goods.

ii) Claims raised by Government authorities regarding taxes and duties, which are disputed by the Company, are accounted based on legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(v) EXPORT INCENTIVES

Though other Accounting Standards also apply to the Company by virtue of the Companies Accounting Standards Rules, 2006, no disclosure for the same is being made as the Company has not done any transaction to which the said accounting standards apply.


Mar 31, 2013

(a) BASIS OF PREPARATION OF FINANCIAL STATEMENT

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 notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial state- ments have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) USE OF ESTIMATES

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/ materialize.

(c) INVENTORIES

i) Inventories are valued at lower of cost (FIFO Basis) or Net Realizable value.

ii) Cost of inventories have been computed to include all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(d) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

(e) CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit / (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 segre- gated based on the available information.

(f) PRIOR PERIOD ITEMS

All identifiable items of Income and Expenditure pertaining to prior period are accounted through "Prior Period Expenses Account"

(g) DEPRECIATION

i) Depreciation on Fixed Assets is provided on straight line method at rates and in the manner specified in Schedule XIV to the Companies Act, 1956 read with the relevant circulars issued by the Department of Company Affairs.

ii) Depreciation on Assets acquired / disposed off during the year is provided on pro-rata basis with reference to the date of addition/disposal.

iii) Individual assets costing less than Rs.5000 are fully depreciated in the year of purchase.

(h) REVENUE RECOGNITION

i) Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales exclude sales tax/ value added tax.

ii) Income from services rendered is accounted for when the work is performed.

iii) Interest revenues are recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Benefit on account of export incentives in the form of import licenses are being accounted in the year of export based on the certainty of receipt.

(i) FIXED ASSETS

i) Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated depreciation.

ii) Expenditure on accounts of modification/alteration in plant and machinery, which increases the future benefit from the existing asset beyond its previous assessed standard of performance, is capitalized.

iii) Any capital expenditure in respect of assets, the ownership of which would not vest with the Company, are charged off to revenue in the year of incurrence.

(j) FOREIGN CURRENCY TRANSACTIONS

i) Initial Recognition

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

ii) Conversion

At the year-end, monetary items denominated in foreign currencies, other than those covered by forward contracts, are converted into rupee equivalents at the yearend exchange rates.

iii) Exchange Differences

All exchange differences arising on settlement and conversion of foreign currency transaction are included in the Profit and Loss Account.

iv) Forward Exchange Contracts

In respect of transactions covered by forward exchange contracts, the difference between the forward rate and the exchange rate at the date of contract is recognized as income or expense over the life of the contract. (k) INVESTMENTS

i) Long-term Investments are stated at cost. Provision for diminution in the value of long-term Investments is made only if such a decline is other than temporary in the opinion of the management.

ii) Current investment are carried at the lower of cost and quoted/fair value, computed category wise.

(l) EMPLOYEE BENEFITS

i) Provident Fund and Pension Fund: Contribution to provident and pension fund maintained with the Provident fund authorities is charged to Profit & Loss account on accrual basis.

ii) Gratuity: Gratuity liability as on 31st March, 2013 has not been determined by the actuarial valuation and so that such liability has not been provided for in these accounts.

iii) Leave Encashment: The company does not have any policy to carry forward unutilized leaves. Accordingly no provision for same is made in these accounts.

iv) Other Employee Benefits: Other Employee Benefits are accounted for on accrual basis.

(m) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. 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 revenue.

(n) SEGMENT ACCOUNTING

Accounting Standard Interpretation (ASI) 20 Dated 14th February, 2004 issued by the Accounting Standards Board of the Institute Chartered Accountants of India, on AS 17, Segment Reporting clarifies that in case, by applying the definitions of "business segment" and "geographical segment" given in AS 17, it is concluded that there is neither more than one business segment nor more than one geographical segment. Segment information as per AS 17 is not required to be disclosed.

(o) RELATED PARTY TRANSACTIONS

Disclosure of transactions with Related Parties, as required by Accounting Standard 18 "Related Party disclosures" has been set out in a separate note forming part of this schedule. Related Parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by key managerial personnel and information available with the Company.

(p) LEASES

The Company''s significant leasing arrangements are in respect of operating leases for office premises, stores & godown. The leasing arrangements ranging between 11 months and five years are generally, and are usually renew-

able by mutual consent on agreed terms. The aggregate lease rentals payable are charged as rent including lease rentals.

(q) EARNING PER SHARE

The Company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 prescribed under The Companies Accounting Standards Rules, 2006. The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.

(r) TAXES ON INCOME

i) Deferred Taxation

In accordance with the Accounting Standard 22 - Accounting for Taxes on Income, prescribed under The Companies Accounting Standards Rules, 2006, the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet Date.

Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that the assets can be realized in future.

Net outstanding balance in Deferred Tax account is recognized as deferred tax liability/asset. The deferred tax account is used solely for reversing timing difference as and when crystallized.

ii) Current Taxation

Provision for taxation has been made in accordance with the income tax laws prevailing for the relevant assessment years.

(s) IMPAIRMENT OF FIXED ASSETS

The carrying amount of assets, other than inventories, is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated.

The impairment loss is recognized whenever the carrying amount of an asset or its cash generation unit exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in the uses, which is determined, based on the estimated future cash flow discounted to their present values. All impairment losses are recognized in the profit and loss account.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and is recognized in the profit and loss account.

(t) PROVISION, CONTINGENT LIABILITIES AND CONTIGENT ASSETS

Provisions involving substantial degree of estimation in measurements 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. Contingent Liabilities are not recognized but are disclosed in notes. Contingent assets are neither recognized nor disclosed in the financial statements.

(u) ACCOUNTING OF CLAIMS

i) Claims received are accounted at the time of lodgment depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

ii) Claims raised by Government authorities regarding taxes and duties, which are disputed by the Company, are accounted based on legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(v) EXPORT INCENTIVES

Export benefits under various scheme announced by the Central Government under Exim policies are accounted for in the year of receipt as against accrual basis to the extent considered receivable, depending on the certainty of receipt up to previous year. However there is no impact of the same on the profitability for the current year.

(W) Though other Accounting Standards also apply to the Company by virtue of the Companies Accounting Standards Rules, 2006, no disclosure for the same is being made as the Company has not done any transaction to which they said accounting standards apply.


Mar 31, 2012

I) SYSTEMS OF ACCOUNTING

a) The Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the the Companies Act,1956.

b) Accounting policies not specifically referred to otherwise are consistant with the generally accepted accounting priciples. The Company follows the mercantile systems of accounting and recognises income and expenditure on acrual basis.

II) FIXED ASSETS

a) Fixed Assets are stated as cost less accumulated depreciation. All cost relating to acquisition and installation of Fixed Assets.

III) DEPRECIATION

a) Depreciation on Fixed Assets is provided on Written down value method at rates and in the manner specified under Schedule XIV to the Companies Act,1956 read with the relevant circulars issued by the Department of Company Affairs.

b) Depreciation on Assets acquired during the period is provided on pro-rata basis with reference to the date of addition/disposal.

IV) INVESTMENTS

Long term investments are carried at cost. Provision for demunation in the value of investments is made only, if, such a decline is other than temporary in the opinion of the management.

V) FOREIGN CURRENCIES

Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of transactions. The resulting gain/loss is recognised in the profit and loss account.

VI) INVENTORIES

Stocks of Raw materials,Packing materials and Work-in-process are valued at Cost while Finished Goods is valued at lower of cost or market value.

VII)REVENUE RECOGNITION

a) Sales- sales is accounted net of VAT,CST & Excise duty paid on PLA.Sales is recognised at the point of despatch of finished goods. Job Charges income is accounted at end of each quarter on the basis of work done for the parties.

b) Unutilised CENVAT credit accounted at the end of year.

c) Insurance and other claims, to the extent considered recoverable, are accounted for in the year of claim.

d) Interest on loans & advances accounts are provided at the rate mutually decided orally between the parties. If there are no certainty of recoverable of loans & advances, the interest is not provided.

e) The amount of Bad & Doubtfuls written off from Sundry Debtors, loans & advances, accounts on the basis of parties capacity for payment or tentitive decision is possible of court cases.

VIII) CASH FLOW

The cash flow statement is prepared as per method prescribed in accounting Standard-(AS)-3.

IX) CONTINGENT LIABILITIES

Contingent liabilities are defined in accounting Standard (AS)-29 are disclosed by way of notes to the accounts, if required.

X) EARNING PER SHARE

Earning per Share on the basis of diluted earnings per share (EPS) in accordance with Accounting Standard- 20 issued by the Institure of Chartered Accountants of India. The Basis EPS has been computed by dividing the net profit available to equity shareholders by the weighted average number of equity shares outstanding during the accounting period.

XI) SEGMENT REPORTING

The Company's main business is manufacturing of H.L. Medicine. All other activities of the Company revolve around this main business. There are no separate segments within the Company as defined by AS 17 (Segment Reporting) issued by The Institute of Chartered Accountants of India.

XII) DEFERRED IAX :

Deferred Tax assets or liabilities is recognised for timing difference between the profit as per financial statements and the profit offered to income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. The Deferred Tax assests are recognised only, if, there is reasonable certainty that sufficient future taxable income will be available, against which that can be realise.

XIII) IMPAIRMENT LOSS OF ASSETS :

Considering absence of indication of impairment from external and internal sources of information as laid down under AS-28 issued by ICAI and considering the nature of business, no exercise for impairment of fixed assets has been deemed necessary in terms of para 6 of relevant standard.


Mar 31, 2011

I) SYSTEMS OF ACCOUNTING

a) The Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the the Companies Act,1956.

b) Accounting policies not specifically referred to otherwise are consistant with the generally accepted account- ing priciples. The Company follows the mercantile systems of accounting and recognises income and expendi- ture on accrued basis.

II) FIXED ASSETS

a) Fixed Assets are stated as cost less accumulated depreciation. All cost relating to acquisition and installation of Fixed Assets including financial cost upto the date the assets are put to used and adjustment arising from exchange rate variation relating to specific borrowing towards to the fixed assets.

III) DEPRECIATION

a) Depreciation on Fixed Assets is provided on Written down value method at rates and in the manner specified under Schedule XIV to the Companies Act,1956 read with the relevant circulars issued by the Department of Company Affairs.

b) Depreciation on Assets acquired during the period is provided on pro-rata basis with reference to the date of addition/disposal.

IV) INVESTMENTS

Long term investments are carried at cost. Provision for demunation in the value of investments is made only, if, such a decline is other than temporary in the opinion of the management.

V) FOREIGN CURRENCIES

Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of transactions. The resulting gain/loss is recognised in the profit and loss account.

VI) INVENTORIES

Stocks of Raw materials,Packing materials and Work-in-process are valued at Cost while Finished Goods is valued at lower of cost or market value.

VII) REVENUE RECOGNITION

a) Sales- sales is accounted net of VAT,CST & Excise duty paid on PLA.Sales is recognised at the point of despatch of finished goods. Job Charges income is accounted at end of each quarter on the basis of work done for the parties.

b) Unutilised CENVAT credit accounted at the end of year.

c) Insurance and other claims, to the extent considered recoverable, are accounted for in the year of claim.

d) Interest on loans & advances accounts are provided at the rate mutually decided orally between the parties. If, there are no certainty of recoverable of loans & advances, the interest is not provided.

e) The amount of Bad & Doubtfuls written off from Sundry Debtors, loans & advances, accounts on the basis of parties capacity for payment or tentitive decision is possible of court cases.

VIII) CASH FLOW

The cash flow statement is prepared as per method prescribed in accounting Standard-(AS)-3.

IX) CONTINGENT LIABILITIES

Contingent liabilities are defined in acocunting Standard (AS)-29 are disclosed by way of notes to the accounts, if required.

X) EARNING PER SHARE

Earning per Share on the basis of diluted earnings per share (EPS) in accordance with Accounting Standard- 20 issued by the Institure of Chartered Accountants of India. The Basis EPS has been computed by dividing the net profit available to equity shareholders by the weighted average number of equity shares outstanding during the accounting period.

XI) SEGMENT REPORTING

The Company's main business is manufacturing of H.L. Medicine. All other activities of the Company revolve around this main business. There are no separate segments within the Company as defined by AS 17 (Segment Reporting) issued by The Institute of Chartered Accountants of India.

XII) DEFERRED TAX :

Deferred Tax assets or liabilities is recognised for timing difference between the profit as per financial state- ments and the profit offered to income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. The Deferred Tax assests are recognised only, if, there is reasonable certainty that sufficient future taxable income will be available, against which that can be realise.

XIII) IMPAIRMENT LOSS OF ASSETS :

Considering absence of indication of impairment from external and internal sources of information as laid down under AS-28 issued by ICAI and considering the nature of business, no exercise for impairment of fixed assets has been deemed necessary in terms of para 6 of relevant standard.


Mar 31, 2010

I) SYSTEMS OF ACCOUNTING

a) The Financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the the Companies Act,1956.

b) Accounting policies not specifically referred to otherwise are consistant with the generally accepted account- ing priciples. The Company follows the mercantile systems of accounting and recognises income and expendi- ture on acrual basis.

II) FIXED ASSETS

a) Fixed Assets are stated as cost less accumulated depreciation. All cost relating to acquisition and installation of Fixed Assets including financial cost upto the date the assets are put to used and adjustment arising from exchange rate variation relating to specific borrowing towards to the fixed assets.

III) DEPRECIATION

a) Depreciation on Fixed Assets is provided on Written down value method at rates and in the manner specified under Schedule XIV to the Companies Act,1956 read with the relevant circulars issued by the Department of Company Affairs.

b) Depreciation on Assets acquired during the period is provided on pro-rata basis with reference to the date of addition/disposal.

IV) INVESTMENTS

Long term investments are carried at cost. Provision for demunation in the value of investments is made only, if. such a decline is other than temporary in the opinion of the management.-

V) FOREIGN CURRENCIES

Transactions in foreign currencies are recorded at the exchange rates prevailing at the date of transactions. The resulting gain/loss is recognised in the profit and loss account.

VI) INVENTORIES

Stocks of Raw materials,Packing materials and Work-in-process are valued at Cost while Finished Goods is valued at lower of cost or market value.

VII) REVENUE RECOGNITION

a) Sales- sales is accounted net of VAT, CST & Excise duty paid on PLA.Sales is recognised at the point of despatch of finished goods. Job Charges income is accounted at end of each quarter on the basis of work done for the parties.

b) Unutilised CENVAT credit accounted at the end of year.

c) Insurance and other claims, to the extent considered recoverable, are accounted for in the year of claim.

d) Interest on loans & advances accounts are provided at the rate mutually decided orally between the parties. If there are no certainty of recoverable of loans & advances, the interest is not provided

e) The amount of Bad & Doubtfuls written off from Sundry Debtors, loans & advances, accounts on the basis of , parties capacity for payment or tentitive decision is possible of court cases.

VIII) CASH FLOW

The cash flow statement is prepared as per method prescribed in accounting Standard-(AS)-3.

IX) CONTINGENT LIABILITIES

Contingent liabilities are defined in acocunting Standard (AS)-29 are disclosed by way of notes to the accounts, if required.

X) EARNING PER SHARE

Earning per Share on the basis of diluted earnings per share (EPS) in accordance with Accounting Standard- 20 issued by the Institure of Chartered Accountants of India. The Basis EPS.has been computed by dividing the net profit available to equity shareholders by the weighted average number of equity shares outstanding during the accounting period.

XI) SEGMENT REPORTING

The Companys main business is manufacturing of H.L. Medicine. All other activities of the Company revolve around this main business. There are no separate segments within the Company as defined by AS 17 (Segment Reporting) issued by The Institute of Chartered Accountants of India.

XII) DEFERRED TAX:

Deferred Tax assets or liabilities is recognised for timing difference between the profit as per financial state- ments and the profit offered to income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. The Deferred Tax assests are recognised only, if, there is reasonable certainty that sufficient future taxable income will be available, against which that can be realise.

XIII) IMPAIRMENT LOSS OF ASSETS :

Considering absence of indication of impairment from external and internal sources of information as laid down under AS-28 issued by ICAI and considering the nature of business, no exercise for impairment of fixed assets has been deemed necessary in terms of para 6 of relevant standard.



 
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