Accounting Policies of Arunjyoti Bio Ventures Ltd. Company

Mar 31, 2015

Not available

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Mar 31, 2014

1. Basis of preparation of financial statements

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (which continues to be applicable in terms of General circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013) and other relevant provisions of the Companies Act, 1956.

Management evaluates all recently issued or revised accounting standards on an ongoing basis. The financial statements are prepared under the historical cost convention. Recognition of income and expenses, accrual basis of accounting is followed.

2. Use of Estimates

The preparation of financial statements in conformity with GAAP requires Management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets.

Management periodically assessed using external and internal sources whether there is an indication that an asset may be impaired. Contingencies are recorded when it is probable that a liability will be incurred, and the amount can be reasonably estimated. Actual results could differ from those estimates.

3. Revenue Recognition

Revenues from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred.

Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the contract using the proportionate completion method, with contract costs determining the degree of completion.

Revenues from sale of software licences are recognised upon delivery.

Revenues from maintenance contracts are recognised pro-rata over the period of the contract.

In respect of Business Process Outsourcing (BPO) services, revenue on time and material and unit priced contracts is recognized as the related services, rendered, whereas revenue from fixed price contracts is recognized as per the proportionate completion method with contract cost determining the degree of completion.

4. Expenditure

Expenses are accounted on accrual basis and provisions are made for all known losses and liabilities.

5. Fixed Assets, intangible assets and capital work-in-progress

Fixed Assets are stated at cost, less accumulated depreciation. All direct costs are capitalized until fixed assets are ready for use including taxes, duties, freight and other incidental expenses relating to acquisition and installation. Capital work-in-progress comprises outstanding advances paid to acquire fixed assets, and the cost of fixed assets that are not yet ready for their intended use at the balance sheet date. Intangible assets are recorded at the consideration paid for acquisition.

6. Depreciation and amortization

Depreciation on fixed assets is applied on straight-line method, pro- rata for the period of usage, in accordance with the rates prescribed under schedule XIV of the Companies Act, 1956.

7. Income tax

Income taxes are computed using the tax effect accounting method, in accordance with the Accounting Standard (AS 22) "Accounting for Taxes on Income" which includes current taxes and deferred taxes. Deferred income taxes reflect the impact if current year timing differences between taxable income and accounting income for the year and the relevant of timing difference of earlier years. Deferred tax asset and liabilities are measured at the tax rates that are expected to apply to the period when the asset/liability is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

8. Employee Benefits

Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) 15 (revised) "Employee Benefits " issued by the Institute of Chartered Accountants of India.

Contribution to Provident Fund (a defined contribution plan) made to Regional Provident Fund Commissioner is recognized as expenses.

9. Foreign currency transactions

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognized in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise''s net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve.

10. Inventories

Raw materials, sub-assemblies and components are carried at the lower of cost and net realizable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realizable value. Stores and spare parts are carried at lower of cost and net realizable value. Finished goods produced or purchased by the Company are carried at lower of cost and net realizable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.

11. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.

12. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

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Mar 31, 2012

I. ACCOUNTING POLICES:

The Accounting Policies followed by the company are stated below.

1. General:

Accounting policies, unless specifically stated to be otherwise, are in accordance with the General Accepted Accounting Principles.

2. Revenue Recognition :

The Company follows the Mercantile System of accounting and recognizes the income and expenditure, unless specifically stated to be otherwise, on accrual basis. Interest on arrears of allotment and Call monies on shares are accounted for as and when received.

3. Investment Income:

To account for income from Investments on an accrual basis, inclusive of related tax deducted at source.

4. Prudential Norms:

The Company followed the prudential norms regarding capital Adequacy, asset classification, provisioning and income recognition for Non Performing Assets, as prescribed by Reserve Bank of India, Department of Non Banking Financial Supervision.

5. Fixed Assets :

Fixed Assets are stated at Historical Cost Less Accumulated Depreciation

6. Employee Benefits:

Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) 15 (revised) "Employee Benefits " issued by the Institute of Chartered Accountants of India.

7. Depreciation :

Depreciation has been charged on Straight Line Method at the rates and in the manner specified in the Schedule -XIV of the Companies Act, 1956.

8. Taxes on income :

Tax on Income per the current year is determined on the basis of taxable income estimated in accordance with the provisions of Income-Tax Act 1961.Deferred Tax is recognized on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantially enacted as on the balance sheet date.

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Mar 31, 2011

1. General:

Accounting policies, unless specifically stated to be otherwise, are in accordance with the General Accepted Accounting Principles.

2. Revenue Recognition :

The Company follows the Mercantile System of accounting and recognizes the income and expenditure, unless specifically stated to be otherwise, on accrual basis. Interest on arrears of allotment and Call monies on shares are accounted for as and when received.

3. Investment Income:

To account for income from Investments on an accrual basis, inclusive of related tax deducted at source.

4. Prudential Norms:

The Company followed the prudential norms regarding capital Adequacy, asset classification, provisioning and income recognition for Non Performing Assets, as prescribed by Reserve Bank of India, Department of Non Banking Financial Supervision.

5. Fixed Assets :

Fixed Assets are stated at Historical Cost Less Accumulated Depreciation

6. Employee Benefits

Liability for employee benefits, both short term and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) 15 (revised) "Employee Benefits " issued by the Institute of Chartered Accountants of India.

7. Depreciation :

Depreciation has been charged on Straight Line Method at the rates and in the manner specified in the Schedule -XIV of the Companies Act, 1956.

8. Investments :

Long-term investments are carried at cost. The book value of the investment companies is more than the cost so investments are carried at cost.

9. Taxes on income :

Tax on Income per the current year is determined on the basis of taxable income estimated in accordance with the provisions of Income-Tax Act 1961.Deferred Tax is recognized on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantially enacted as on the balance sheet date.

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Mar 31, 2010

1. The financial statements of the company are prepared on going concern basis under the historical cost convention in accordance with the generally Accepted Accounting Principles applicable in India and the provisions of the Indian Companies act, 1956.

2. Fixed assets have been stated at cost less accumulated depreciation. Depreciation is provided on written down value method in accordance with the rates prescribed under Schedule XIV to the Companies Act 1956.

3. Earnings in foreign exchange - Nil. Foreign exchange outgoing-Nil.

4. The company deals in commodities and equity shares on commodity exchange and stock exchange respectively.

Where the transaction relating to buy and sell are executed on the same day - the resulting profit or loss is accounted for in the books of accounts.

Where the transactions relating to buy and sell are executed on different dates then the transactions are recorded as purchase and sale of shares in the books of accounts.