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Accounting Policies of Zyden Gentec Ltd. Company

Mar 31, 2014

I. Basis of preparation of Financial Statement

(a) Basis of Accounting & preparation:

The financial statements are prepared on the accounting principles of a going concern. The Company follows accrual method of accounting and the financial statements have been prepared in accordance with the historical cost conventions excepting revalued assets which are in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(b) Use of Estimates

The preparation of financial, statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year.

Although these estimates are based upon management''s best knowledge of current events and actions, accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material their effects are disclosed in the notes to accounts to the financial statements.

II. Valuation of Inventory

Stock in trade is valued at lower of cost and net realizable value.

III. Tangible Assets

Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure is added to book value only if it increases the future benefits from the existing asset.

IV. Depreciation

Depreciation on fixed assets is calculated on the straight line basis using the rates prescribed in Schedule XIV to the Companies Act, 1956. Assets costing upto Rs. 5000/- are written off on pro-rata basis in the year of acquisition,

V. Investments

The Investment is stated at cost as per AS-13.

VI. Taxes on Income

Provision for income tax is made on the basis of prevailing laws and rates applicable for the relevant assessment year. Deferred taxation is recognised for all the timing differences subject to the consideration of prudence and virtual certainty in respect of deferred tax assets in accordance with the accounting standard 22 "Accounting for taxation of income" issued by the Institute of Chartered Accountants of India.

VII. Revenue Recognition

Sales Value is inclusive of Excise Duty but exclusive of VAT, Sale is recognised on removal of goods from factory.

VIII. Contingent Liabilities

As informed by Management the bank guarantee given by the Company in respect of

(i) A Company in which some of the Directors are interested. NIL

(ii) To any supplier/party NIL

A contingent liability in regard with ESI demand of Rs. 210000/- for ESI department for Hyderabad unit is pending with Company.

IX. Employee Benefits

a) PF and ESI are paid as per provisions of relevant statutes with the authorities of respective state and are charged to statement of Profit and Loss in the year to which it relates.

b) Gratuity being defined contribution is accounted for on accrual basis in accordance with the Payment of Gratuity Act, 1972.

c) Accumulated leaves being short term compensated leaves are provided for in the year of becoming due.

X. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period as Per AS 20.

XI. Government Grants

Government grants are accounted for on its becoming reasonably certain that the ultimate collection will be made.

XII. Foreign Currency Transaction

Transactions in foreign currency are recorded using the exchange rates on the date of accruing of the transaction. Balances in the form of current assets and current liabilities outstanding on the date of Balance Sheet are converted at the appropriate exchange rate as on the date of balance sheet. Exchange difference arising out of fluctuation in exchange rate is accounted for on realisation comparing the same with initial transaction amount or converted amount on the date of Balance Sheet comparing original amount as the case may be.


Mar 31, 2013

1. The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India and comply in all material respects with the accounting standards notified under the Companies (Accounting standards) Rules,2006 as amended and the relevant provisions of Companies Act,1956. The financial statements have been prepared on an accrual basis and under the historical cost convention excepting revalued assets.

2. Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure is added to book value only if it increases the future benefits from the existing asset.

3. Depreciation on fixed assets is calculated on the straight line basis using the rates prescribed in Schedule XIV to the Companies Act,1956.Assets costing upto Rs.5000/ are written off on pro-rata basis in the year of acquisition.

4. Stock in trade is valued at lower of cost and net realisable value.

5. Sales Value is inclusive of Excise Duty but exclusive of VAT . Sale is recognised on removal of goods from factory .

6. Transactions in foreign currency are recorded using the exchange rates on the date of accruing of the transaction. Balances in the form of current assets & current liabilities outstanding on the date of Balance Sheet are converted at the appropriate exchange rate as on the date of balance sheet. Exchange difference arising out of fluctuation in exchange rate is accounted for on realisation comparing the same with initial transaction amount or converted amount on the date of Balance Sheet comparing original amount as case may be.

7. Government grants are accounted for on its becoming reasonably certain that the ultimate collection will be made

8. Provision for income tax is made on the basis of prevailing laws and rates applicable for the relevant assessment year. Deferred taxation is recognised for all the timing differences subject to the consideration of prudence and virtual certainty in respect of deferred tax assets in accordance with the accounting standared 22 " Accounting for taxation of income" issued by the Institute of Chartered Accountants of India.

9. Employee Benefits:

a. PF and ESI are paid as per provisions of relevant statutes with the authorities of respective state. a n d are charged to statement of Profit and Loss in the year to which it relates.

b. Gratuity being defined contribution is accounted for on accrual basis in accordance with the Payment of Gratuity Act,1972

c. Accumulated leaves being short term compensated leaves are provided for in the year of becoming due.


Mar 31, 2012

1. The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India and comply in all material respects with the accounting standards notified under the Companies (Accounting standards) Rules,2006 as amended and the relevant provisions of Companies Act,1956. The financial statements have been prepared on an accrual basis and under the historical cost convention excepting revalued assets.

2. During the year ended 31st March, 2012, the revised Schedule VI notified under Companies Act,1956, has become applicable to the company, for preparation and presentation of its financial statements.

The adoption of revised schedule VI, does not impact recognition and measurement principles followed for preparation of financial statements. However it has significant impact on presentation and disclosures made in financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in current year.

3. Fixed assets are stated at cost, net of accumulated depreciation. The cost comprises purchase price , borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditure is added to book value only if it increases the future benefits from the existing asset.

4. Depreciation on fixed assets is calculated on the straight line basis using the rates prescribed in Schedule XIV to the Companies Act,1956.Assets costing upto Rs.5000/- are written off on pro-rata basis in the year of acquisition.

5. Stock in trade is valued at lower of cost and net realisable value.

6. Sales Value is inclusive of Excise Duty but exclusive of VAT . Sale is recognised on removal of goods from factory

7. Transactions in foreign currency are recorded using the exchange rates on the date of accruing of the transaction. Balances in the form of current assets and current liabilities outstanding on the date of Balance Sheet are converted at the appropriate exchange rate as on the date of balance sheet. Exchange difference arising out of fluctuation in exchange rate is accounted for on realisation comparing the same with initial transaction amount or converted amount on the date of Balance Sheet comparing original amount as the case may be.

8. Government grants are accounted for on its becoming reasonably certain that the ultimate collection will be made.

9. Provision for income tax is made on the basis of prevailing laws and rates applicable for the relevant assessment year. Deferred taxation is recognised for all the timing differences subject to the consideration of prudence and virtual certainty in respect of deferred tax assets in accordance with the accounting standared 22 " Accounting for taxation of income" issued by the Institute of Chartered Accountants of India.

10. Employee Benefits:

a PF and ESI are paid as per provisions of relevant statutes with the authorities of respective state and are charged to statement of Profit and Loss in the year to which it relates.

b. Gratuity being defined contribution is accounted for on accrual basis in accordance with the Payment of Gratuity Act,1972

c. Accumulated leaves being short term compensated leaves are provided for in the year of becoming due.


Mar 31, 2010

1 SYSTEM OF ACCOUNTING

The Company follows Mercantile System of accounting.

2 FIXED ASSETS

Fixed Assets are stated at historical cost inclusive of all incidental expenses incurred for acquition of such assets.

3 INVESTMENTS

Investments are classified into current investment and long term investment. Current investments are value at cost or market price whichever is lower. Long term investments are valued at cost. Provision for diminution in value is made script wise to recognize a decline, other than temporary.

4 INVENTORIES

Stock of shares is valued at cost or market value whichever is lower. Stock of traded items is valued at cost. Raw materials, stores, consumables, packing materials and stocks in process are valued at cost. Finished goods is valued at cost or market value whichever is lower.

5 RESEARCH & DEVELOPMENT COSTS & INTERNALLY GENERATED INTANGIBLE ASSETS

a. Expenditure up to research stage is charged as expenditure in the respective heads of expenditure in the Profit & Loss Account of the relevant accounting period.

b. Development expenditure of molecule is treated as internally generated intangible assets where it is probable of flowing future economic benefits to the Company and amortize the same over a period of five years equally on straight line basis after the assets start giving economic benefits. Such assets are derecognized on disposal or when no future economic benefits are expected from its use/subsequent disposal.

6 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are recorded using the exchange rates on the date of accruing of transaction. Balances in the form of current assets & current liabilities outstanding on the date of Balance Sheet are converted at the appropriate exchange rate as on the date of Balance Sheet. Exchange difference arising out of fluctuation in exchange rate is accounted for on realization comparing the same with initial transaction amount or converted amount on the date of Balance Sheet comparing original amount as the case may be.

7 GOVERNMENT GRANTS

Government grants are accounted for on its becoming reasonably certain that the ultimate collection will be made.

8 DEPRECIATION

a. Depreciation is provided on straight line method at the rate specified and in accordance with the provisions of Schedule XIV to the Companies Act, 1956 on pro-rate basis.

b. Construction on assets taken on lease is written off over the period of lease.

9 MISCELLANEOUS EXPENDITURE

a. The Company amortizes expenditure in relation to its share issue including preliminary expenditure equally over a period of ten years

b. Expenses incurred on or after April 01, 2003 are charged to revenue in the year in which expenses are incurred in confor- mity with accounting standard AS-26 Intangible Assets.

10 TAXATION

Provision for income-tax is made on the basis of prevailing laws and rates applicable for the relevant assessment year. Deferred taxation is recognized for all the timing differences subject to the consideration of prudence in respect of deferred tax assets in accordance with the accounting standard no. 22 Accounting for taxes on Income issued by the Institute of Chartered Accountants of India.

 
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