Accounting Policies of MediCaps Ltd. Company

Mar 31, 2025

1. Corporate Information:

Medi-Caps Limited (‘the Company’) is a Public Limited Company incorporated in India under the Companies Act, 1956 in 1983
as Medi-Caps Pvt. Ltd. The Company has permanently discontinued its manufacturing activities on 21.11.2019 and now operates
in Real Estate Sector. The registered office of the Company is located at 201, Pushpratna Paradise 9/5, New Palasia, Opp. UCO
Bank, Indore (M.P) - 452001. The financial statements were authorised to be issued in accordance with a resolution of the
directors on 21/05/2025.

The Company’s shares are listed for trading on BSE Limited.

2. Basis of preparation:

(i) Compliance with Ind AS

These financial statements have been prepared to comply in all material aspects with the Indian Accounting Standards
(hereinafter referred to as the (‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Compan ies
Act, 2013 (‘Act’) read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant
provisions of the Act.

(ii) Historical Cost Convention

The financial statements have been prepared and presented under the historical cost convention and on accrual basis of
accounting, Indian Accounting Standards prescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)
Rules, 2014, except where otherwise stated, the accounting principles have been consistently applied.

3. Rounding of amounts:

All amounts disclosed in the financial statement and notes have been rounded off to the nearest Lakhs; except where otherwise
indicated.

4. Current versus non-current classification:

The company presents its assets and liabilities in the balance sheet on current/non-current classification. An Asset is treated as
current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle;

b) Held primarily for the purpose of trading;

c) Expected to be realised within twelve months after the reporting period; or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the
reporting period.

All other assets are classified as non-current.

A liability is Current when:

a) It is expected to be settled in normal operating cycle

b) It is held primarily for the purpose of trading

c) It is due to be settled within twelve months after the reporting period; or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other Liabilities are classified as non- current.

Deferred tax liabilities are classified under non-current Liabilities.

5. Use of Estimates and Assumptions:

The preparation of financial statements in accordance with Ind AS requires subjective and complex judgments to make estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and
expenses at the date of these financial statements.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies
that have the most significant effect on the amounts recognized in the financial statements are as below:

a) Fair value of Financial Assets and Financial liabilities,

b) The useful lives of, or expected pattern of consumption of the future economic
benefits bodied in, depreciable assets,

c) Valuation of Inventories and Inventory obsolescence,

d) Provisions and Bad Debts.

6. Revenue Recognition:

Sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the
buyer, usually on delivery of the goods and when all the following conditions are satisfied:

• The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold;

• The amount of revenue can be measured reliably.

• It is probable that the economic benefits associated with the transaction will flow to the Company; and

• The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable. Amounts disclosed as
revenue are net of returns and allowance, trade discounts and volume rebates and does not include Value added tax (VAT),
Central Sales tax (CST) and any other taxes.

7. Property, Plant and Equipment:

Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. The
initial cost of an asset comprises of its purchase price or construction cost, any costs directly attributable to bringing the asset
into the location and condition necessary for it to be capable of operating in the manner intended by management. The purchase
price or construction cost is the aggregate amount, paid and the fair value of any other consideration given to acquire the asset.
When significant parts of plants and equipment’s are required to be replaced at intervals, the Company depreciates them
separately based on their specific useful life. All other repair and maintenance costs are recognised in Statement of Profit or Loss
as and when incurred.

The residual values and useful lives of property, plant and equipment are reviewed at each financial year end and changes, if any,
are accounted prospectively

Depreciation on Property, Plant & Equipment is provided on straight line method. In accordance with requirements prescribed
under Schedule II of the Companies Act, 2013, Company has assessed the estimated useful lives of its property, plant and
equipment and has adopted the useful lives and residual value as prescribed in Schedule II. The estimated useful lives of assets
are as follows:

8. Inventories:

Inventories are valued at Lower of cost or net realizable value. Costs incurred in bringing each product to its present location and
conditions are accounted for as follows:

Raw materials

Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition.
Finished goods and work-in-progress

Cost includes direct materials, labour and a proportion of manufacturing overheads based on the normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and
estimated costs necessary to make the sale.

9. Trade Receivable:

Trade receivables are recognized at fair value, the outstanding balances of sundry debtors, advances etc. are verified by the
management periodically and on the basis of such verification management determines whether the said outstanding balance are
good, bad or doubtful and accordingly same are written off or provided for.

Receivables that are expected in one year or less, are classified as current assets, if not they are presented as non-current assets.

10. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period 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
Company are segregated.

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash in hand and Balances
with Banks.

11. Investments:

The investments are valued at fair market value and are therefore reported as per relevant Ind AS-113 and Comprehensive
Income consequent to the effect has been reported in Financial Statements.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value.

12. Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise of cash in hand and at banks. For the purpose of the statement of cash
flows, cash and cash equivalents consist of cash and bank balances, as defined above.

13. Share Capital:

Ordinary shares are classified as equity.

During the year there is no change in the subscribed share capital as is issued by the company.

14. Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by average number of equity
shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity

shares and the number of shares that are outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.

---

Mar 31, 2024

1. Corporate Information:

Medi-Caps Limited (‘the Company’) is a Public Limited Company incorporated in India under the Companies Act, 1956 in 1983 as Medi-Caps Pvt. Ltd. The Company has permanently discontinued its manufacturing activities on 21.11.2019 and now operates in Real Estate Sector. The registered office of the Company is located at Mhow - Neemuch Road, Sector- 1, Pithampur, Dhar [MP] - 454775. The financial statements were authorised to be issued in accordance with a resolution of the directors on 23/05/2024.

The Company’s shares are listed for trading on BSE Limited.

2. Basis of preparation:

(i) Compliance with Ind AS

These financial statements have been prepared to comply in all material aspects with the Indian Accounting Standards (hereinafter referred to as the (‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (‘Act’) read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

(ii) Historical Cost Convention

The financial statements have been prepared and presented under the historical cost convention and on accrual basis of accounting, Indian Accounting Standards prescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014, except where otherwise stated, the accounting principles have been consistently applied.

3. Rounding of amounts:

All amounts disclosed in the financial statement and notes have been rounded off to the nearest Lakhs; except where otherwise indicated.

4. Current versus non-current classification:

The company presents its assets and liabilities in the balance sheet on current/non-current classification. An Asset is treated as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle;

b) Held primarily for the purpose of trading;

c) Expected to be realised within twelve months after the reporting period; or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the

reporting period.

All other assets are classified as non-current.

A liability is Current when:

a) It is expected to be settled in normal operating cycle

b) It is held primarily for the purpose of trading

c) It is due to be settled within twelve months after the reporting period; or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other Liabilities are classified as non- current.

Deferred tax liabilities are classified under non-current Liabilities.

5. Use of Estimates and Assumptions:

The preparation of financial statements in accordance with Ind AS requires subjective and complex judgments to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses at the date of these financial statements.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as below:

a) Fair value of Financial Assets and Financial liabilities,

b) The useful lives of, or expected pattern of consumption of the future economic benefits bodied in, depreciable assets,

c) Valuation of Inventories and Inventory obsolescence,

d) Provisions and Bad Debts.

6. Revenue Recognition:

Sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the buyer, usually on delivery of the goods and when all the following conditions are satisfied:

• The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• The amount of revenue can be measured reliably;

• It is probable that the economic benefits associated with the transaction will flow to the Company; and

• The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns and allowance, trade discounts and volume rebates and does not include Value added tax (VAT), Central Sales tax (CST) and any other taxes.

7. Property, Plant and Equipment:

Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises of its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management. The purchase price or construction cost is the aggregate amount, paid and the fair value of any other consideration given to acquire the asset.

When significant parts of plants and equipments are required to be replaced at intervals, the Company depreciates them separately based on their specific useful life. All other repair and maintenance costs are recognised in Statement of Profit or Loss as and when incurred.

The residual values and useful lives of property, plant and equipment are reviewed at each financial year end and changes, if any, are accounted prospectively

Depreciation on Property, Plant & Equipment is provided on straight line method. In accordance with requirements prescribed under Schedule II of the Companies Act, 2013, Company has assessed the estimated useful lives of its property, plant and equipment and has adopted the useful lives and residual value as prescribed in Schedule II. The estimated useful lives of assets are as follows:

8. Inventories:

Inventories are valued at Lower of cost or net realizable value. Costs incurred in bringing each product to its present location and conditions are accounted for as follows:

Raw materials

Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Finished goods and work-in-progress

Cost includes direct materials, labour and a proportion of manufacturing overheads based on the normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

9. Trade Receivable:

Trade receivables are recognized at fair value, the outstanding balances of sundry debtors, advances etc. are verified by the management periodically and on the basis of such verification management determines whether the said outstanding balance are good, bad or doubtful and accordingly same are written off or provided for.

Receivables that are expected in one year or less, are classified as current assets, if not they are presented as non-current assets.

10. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period 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 Company are segregated.

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash in hand and Balances with Banks.

11. Investments:

The investments are valued at fair market value and are therefore reported as per relevant Ind AS-113 and Comprehensive Income consequent to the effect has been reported in Financial Statements.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value.

12. Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise of cash in hand and at banks. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and bank balances, as defined above.

13. Share Capital:

Ordinary shares are classified as equity.

During the year there is no change in the subscribed share capital as is issued by the company.

14. Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the number of shares that are outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

---

Mar 31, 2023

NOTE -1- BASIC ACCOUNTING POLICIES (STANDALONE)

1. Corporate Information:

Medi-Caps Limited (‘the Company’) is a Public Limited Company incorporated inIndia underthe Companies Act 1956 in 983 as Medi-Caps Pvt .Ltd. The Companyhas permanently discontinued its manufacturing activities on 21120)9 and now operates in Real Estate SectBihe registered office of the Company is locateMitow - Neemuch Road, Sector- 1,

Pithampur ,Dhar [MI] -454775 . The financial statements were authortsebe issued in accordance with a resolution of the directors on23^th May,2Q23 .

The Company’s shares are listed for trading BS ELimited

2. Basis of preparation:

(i) Compliance with Ind AS

These financial statements have been prepared to comply in all material aspects with the Indian Accounting Standards (hereinafter referred to as the (‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 20B( ‘Act’) read with of the Companies (Indian Accounting Standards)

Rules,2015 as amended and other relevant provisions of the Act.

(ii) Historical Cost Convention

The financial statements have been prepared and presented under the historical cost convitiDmccrual basis of accounting, Indian Accounting Standards prescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 204, except where otherwise stated, the accounting principles have been consistently applied

3. Rounding of amounts:

All amounts disclosed in the financial statement and notes have bsunndad off to the nearest Lakhscept where otherwise indicated

4. Current versus non-current classification:

The company presents its assets and liabilities,enbalance sheet on current/nonrrent classification. An Asset is treated as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle;

b) Held primarily for the purpose of trading;

c) Expected to be realised within twelve months after the reporting peri od; or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after

the reporting period.

All other assets are clasesdifias non-current .

A liability is Current when:

a) It is expected to be settled in normal operating c ycle

b) It is held primaily for the purpose of trading

c) It is due to be settled within twelve months after the reporting period; or

d) There is nunconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other Liabilities are classified as -mmrrent

Deferred tax liabilities are classified under-current Liabilities.

5. Use of Estimates and Assumptions:

The preparation of financial statementsaacordance with Ind AS requiresubjective and complex judgments tcmake estimates and assumptions that affect thapplication of accounting policies and he reported amounts of assets, liabilitiesrevenues and expensesit the date of these financial statements

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognised in the period in which the estimate is revisedrntute periods affected

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statenaslntlow:

a) F air value of F inanciah Aets and F inancial liabilities,

b) The useful lives of, or expected pattern of consumption of the future econmafitsbodied in, depreciable assets ,

c) Valuation of Inventories and Inventory obsolescence,

d) Provisions and Bad Debt s.

6. Revenue Recognition:

Sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards ofownership of the goods are transferred to the buyer, usually on delivery of the goodsd when all the following conditions are satisfied

• The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• The amount of revenue can be measured reliably;

• It is probable that theonomic benefits associated with the transaction will flow to the Company;

• The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is measured at the £hie of the consideration caved or receivable. Amounts disclosed as revenue are net of returns and allowanrade discounts and vlume rebates anddoes not nclude Value added tax (VAT), CentraS ales tax (CSTund any other taxes.

7. Property, Plant and Equipment:

Propertyplant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises of its purchase price or construction cost, any costs directly attributable he bringin asset int dhe location and condition necessary for it to be capable of operating imatheer intended by managementThe purchase priceor construction cost is the aggregate amount, paid and the fair value of any otherconsideration given to acquir the asset .

When significant parts of plants and equipments are required to be replaced at intervals, the Company depreciates them separately based on their specific useful life. All other repair and maintenance costs are recognised in Statemenr of Profit Loss asand when incur r ed

The residual values and useful lives of property, plant and equipment are reviewed at each financial year end and changes, if any, are accounted prospective ly

Depreciation on Property, Plant & Equipment is provided on straight line methcdccdandance with requirements prescribed under Schedule II of the Companies Act, 2QB, Company has assfelhe estimated useful livef its property, plant and equipment and has adopted the useful lives and residulalevas prescribed in Schedule. Hhe estimated useful lives of assets aras follows.

8. Inventories:

Inventories are valued Lower ofcost or net ealizable valueCosts incurred in bringing each product to its present location and conditions areaccounted for as follows:

Raw materials

Cost includes cost of purchase and other costs incurred in bringing the inventoriesptestikeirocation andcondition.

Finished goods and work-in-progress

Cost includes direct materials, labour and a proportion of manufacturing overheads basedon the normal operating capacity.

Net realizable value is the estimated selling price in the or doury of business, lesestimatedcosts of completion and estimated costs necessary to make the sale.

9. Trade Receivable:

Trade receivables are recognized fair valuethe outstandngialances of sundry debtors, advances etc. are verified by the management periodicallyand on the basis of such verification management determines whether the said outstanding balance are good, bad or doubtfuland accordingly same are written off or provided for.

Receivables that araexpected in one year or less, enclassified as current assetf . not they are presented as norrent assets .

10. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions a non-cash nature any derrals 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 Company are segregated.

For the purpose of presentation the Statement of Cash Flowssh and cash equivalentsncludes cash inhand and Balances with Banks

11. Investments:

The investments are valued at fair market value and are therefore reported as per relevant and ASmprehensive Income consequent to the effect has been reported in F inancial Statements

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value.

12. Cash and cash equivalents:

Cash and cash equivalent in the balance etieompriseof cash in hand and at bankF or the purpose of the statement ofcash flows, cash and cash equivalents consistof cash talk balances as definedabove

13. Share Capital:

Ordinary shareare classified as equit y.

During the year there is no change in the subscribed share capital as is issued by the company.

14. Earnings per Share:

Basic earnings per share calculated by dividing the profit attributable to owners of the Companyby average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity shares and thnumber of shares that aoutstanding during the period are adjusted for the effects of all dilutive potential equity shares.

---

Mar 31, 2018

NOTE -1- BASIC ACCOUNTING POLICIES

1. Corporate Information:

Medi-Caps Limited (‘the Company’) is a Public Limited Company was incorporated in India under Companies Act 1956 in 1983 as Medi-Caps Pvt. Ltd. The Company together with its subsidiary operates as a Pharmaceutical organization with business encompassing the entire value chain in the Marketing, production and distribution of Pharmaceutical products. The registered office of the Company is located at Mhow - Neemuch Road, Sector- 1, Pithampur, Dhar [MP]- 454775. The financial statements were authorised for issue in accordance with a resolution of the directors on 28 May 2018.

The Company’s shares are listed for trading on the Bombay Stock Exchange Limited (BSE).

2. Basis of preparation:

(i) Compliance with Ind AS

These financial statements have been prepared to comply in all material aspects with the Indian Accounting Standards (hereinafter referred to as the (‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (‘Act’) read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

The financial statements for the year ended 31st March, 2018 are the first financials with comparatives, that are prepared under Ind AS, for all previous periods including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under companies (Accounting Standard) Rule, 2006 (as amended) and other relevant provisions of the Act (hereinafter referred to as ‘Previous AS’) used for its statutory reporting requirement in India.

The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at 1st April, 2016 being the date of transition to Ind AS.

(ii) Historical Cost Convention

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting, Indian Accounting Standards prescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014, except where otherwise stated, the accounting principles have been consistently applied.

3. Rounding of amounts:

All amounts disclosed in the financial statement and notes have been rounded off to the nearest Rupees; except where otherwise indicated.

4. Current versus non-current classification:

The company presents its assets and liabilities in the balance sheet on current/non-current classification. An Asset is treated as current when it is:

a) Expected to be realized or intended to be sold or consumed in normal operating cycle;

b) Held primarily for the purpose of trading;

c) Expected to be realized within twelve months after the reporting period; or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is Current when:

a) It is expected to be settled in normal operating cycle

b) It is held primarily for the purpose of trading

c) It is due to be settled within twelve months after the reporting period; or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other Liabilities are classified as non- current.

Deferred tax liabilities are classified under non-current Liabilities.

5. Use of Estimates and Assumptions:

The preparation of financial statements in accordance with Ind AS requires subjective and complex judgments to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses at the date of these financial statements.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are as below:

a) Fair value of Financial Assets and Financial liabilities,

b) The useful lives of, or expected pattern of consumption of the future economic benefits bodied in, depreciable assets,

c) Valuation of Inventories and Inventory obsolescence,

d) Provisions and Bad Debts.

6. Revenue Recognition:

Sale of Goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods are transferred to the buyer, usually on delivery of the goods and when all the following conditions are satisfied:

The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

The amount of revenue can be measured reliably;

It is probable that the economic benefits associated with the transaction will flow to the Company; and

The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns and allowance, trade discounts and volume rebates and does not include Value added tax (VAT), Central Sales tax (CST) and any other taxes.

7. Property, Plant and Equipment:

Property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises of its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management. The purchase price or construction cost is the aggregate amount, paid and the fair value of any other consideration given to acquire the asset.

When significant parts of plants and equipment’s are required to be replaced at intervals, the Company depreciates them separately based on their specific useful life. All other repair and maintenance costs are recognized in Statement of Profit or Loss as and when incurred.

The residual values and useful lives of property, plant and equipment are reviewed at each financial year end and changes, if any, are accounted prospectively

8. Inventories:

Inventories are valued at Lower of cost or net realizable value. Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials

Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Finished goods and work-in-progress

Cost includes direct materials, labour and a proportion of manufacturing overheads based on the normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

9. Trade Receivable:

Trade receivables are recognized at fair value, the outstanding balances of sundry debtors, advances etc. are verified by the management periodically and on the basis of such verification management determines whether the said outstanding balance are good, bad or doubtful and accordingly same are written off or provided for.

Receivables that are expected in one year or less, are classified as current assets, if not they are presented as non-current assets.

10. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby profit for the period 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 Company are segregated.

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash in hand and Balances with Banks.

11. Investments:

The investments are valued at cost and are therefore not reported as per relevant Ind-AS 113. The Investments are treated as such because investments primarily contain Short - Term Liquid funds & cash Funds. These are subject to various market fluctuations. If valued at Fair value, the investments shall not give true and fair view to the stakeholders of the company and would result in unnecessary inclination of Net Profit by way of unrealized profits through Other Comprehensive Income.

12. Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise of cash in hand and at banks. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and bank balances, as defined above.

13. Share Capital:

Ordinary shares are classified as equity.

During the year there is no change in the subscribed share capital as is issued by the company.

14. Earnings per Share:

Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders is adjusted for after income tax effect of interest and other financing costs associated with dilutive potential equity shares and the number of shares that are outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

15. Provisions:

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

16. Deferred Tax:

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.

Deferred tax assets and liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

17. Borrowings:

Borrowings are initially recognized at fair value, net of transaction costs incurred. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in statement of profit or loss over the period of the borrowings. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

18. Borrowings Cost:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur.

The Company ceases capitalising borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.

19. Trade payables:

These amounts represent liabilities for goods that have been acquired in the ordinary course of business from suppliers. Trade payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.

20. Current Tax:

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the relevant tax laws and based on the expected outcome of assessments / appeals.

Where current tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

21. Employee Benefits:

(a) Gratuity:

The Employee’s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India (LIC). The liability with respect to Gratuity is made as per the method stipulated in the payment of gratuity Act, 1972.

(b) Provident Fund:

Provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the employee’s salary (currently 12% of employees’ salary). The contributions, are made to the provident fund as specified under the Employees Provident Fund & Miscellaneous provisions Act, 1952.

---

Mar 31, 2016

SIGNIFICANT ACCOUTING POLICIES :-Company Overview

Medicaps Limited (''the Company") was incorporated in 1983 as Medi Caps Pvt. Ltd. The Company together with its subsidiary operates as a Pharmaceutical organization with business encompassing the entire value chainin the Marketing, production and distribution of Pharmaceutical products.

The Company''s shares are listed for trading on the Bombay Stock Exchange Limited (BSE) and Madhya Pradesh Stock exchange (MPSE) in India.

a) Basis of preparation of financial statements :-

The Financial Statements of the company have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act,1956 (which continue to be applicable in respect of section 133 of the Companies Act, 2013, to the extent applicable in terms of General Circular 15/2013 dated

13 Sep, 2013 of the Ministry of Corporate Affairs)This Financial Statements have been prepared on accrual basis and the accounting policies adopted are consistent With followed in the previous year.

b) Fixed Assets and Depreciation :-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified in Schedule II to the Companies Act, 2013.

c) Investments:

The Company has policy to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made, as it has temporary in the nature.

d) Valuation of Inventories :-

Inventories are valued at lower of cost or net realizable value.

e) Foreign Exchange Transactions :-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction. The difference if any on actual payments / realization is charged off to revenue.

f) Sundry Debtors and Advances :-

Company''s management periodically verify the outstanding balance of sundry debtors, advances etc and on the basis of such verification management determines whether the said outstanding are good, bad or doubtful and Accordingly same are written off or provided for.

g) Research & Developments :-

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h) Terminal Benefits :-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company. Leave Encashment is accounted on Cash basis i.e. It is accounted for as and when paid.

i) Taxations:-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognized ,subject to the consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) Earnings Per Share:-

Basic and Diluted earnings per share is 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.

k) Revenue Recognition

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect that the collection will be made. Interest income is accounted on accrual basis. Dividend from investment is recognized as revenue when right to receive the payments is established. l) Employee Benefits:

Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encashment Scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

Defined Contribution Plans

The company''s contribution paid/ payable for Provident Fund, ESIC and Pension Fund for the year is recognized in the statement of Profit and Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered.

---

Mar 31, 2015

Company Overview

Medicaps Limited ('the Company") was incorporated in 1983 as Medi Caps Pvt. Ltd. The Company together with its subsidiary operates as a Pharmaceutical organization with business encompassing the entire value chain in the Marketing, production and distribution of Pharmaceutical products. The Company's shares are listed for trading on the Bombay Stock Exchange Limited (BSE) and Madhya Pradesh Stock exchange (MPSE) in India.

a) Basis of preparation of financial statements :-

The Financial Statements of the company have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act,1956 (which continue to be applicable in respect of section 133 of the Companies Act, 2013, to the extent applicable in terms of General Circular 15/2013 dated 13 Sep, 2013 of the Ministry of Corporate Affairs) This Financial Statements have been prepared on accrual basis and the accounting policies adopted are consistent With followed in the previous year.

b) Fixed Assets and Depreciation :-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified in Schedule II to the Companies Act, 2013.

c) Investments:

The Company has policy to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made, as it has temporary in the nature.

d) Valuation of Inventories :-

Inventories are valued at lower of cost or net realisable value.

e) Foreign Exchange Transactions :-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction. The difference if any on actual payments / realisation is charged off to revenue.

f) Sundry Debtors and Advances :-

Company's management periodically verify the outstanding balance of sundry debtors, advances etc and on the basis of such verification management determines whether the said outstanding are good, bad or doubtful and Accordingly same are written off or provided for.

g) Research & Developments :-

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h) Terminal Benefits :-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company. Leave Encashment is accounted on Cash basis i.e. It is accounted for as and when paid.

I Taxations:-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax r e c o g n i s e d , s u b j e c t t o t h e consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) Earning Per Share:-

Basic and Diluted earning per share is 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.

k) Revenue Recognition

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect that the collection will be made. Interest income is accounted on accrual basis. Dividend from investment is recognized as revenue when right to receive the payments is established.

l) Employee Benefits: Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encashment Scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

Defined Contribution Plans

The company's contribution paid/ payable for Provident Fund, ESIC and Pension Fund for the year is recognized in the statement of Profit and Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered.

---

Mar 31, 2014

A) Basis of preparation of finacial statements:-

The Financial Statements of the company have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act, 1956 (which continue to be applicable in respect of section 133 of the Companies Act, 2013, to the extent applicable in terms of General Circular 15/2013 dated 13 Sep, 2013 of the Ministry of Corporate Affairs) This Financial Statements have been prepared on accrual basis and the accounting policies adopted are Consistent with followed in the previous year.

b) Fixed Assets and Depreciation:-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified on Schedule XIV to the Companies Act, 1956 (as amended) and on prorata basis. Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost. Comprising of direct cost, related incidental expenses and attributable interest.

c) Investments:

The Company has policy to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made, as it has temporary in the nature.

d) Valuation of Inventories:

Inventories are valued at low of cost or net realisable value.

e) Foreign Exchange Transactions:

Transaction in foreign currency is recorded by applying rate applicable on the date of transaction. The Difference if any on actual payments/realisation is charged off to revenue.

f) Sunday BDebtors and Advances:

Company''s management periodically verify the outstanding balance of sundry debtors, advances etc and on the basis of such verification management determines whether the said outstanding are good, bad or doubtful and Accordingly same are written off or provided for.

g) Research & Developments:

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h) Terminal Benefits:

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company. Leave Encashment is accounted of Cash basis i.e. It hs accounted for as and when paid.

i) Txations:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised, subject to the consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) Earning Per Share:

Basic and Diluted earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity snares outstanding during the period.

k) Revenue Recognition:

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect that the collection will be made. Interest income is accounted on accrual basis. Dividend from investment is recognized as revenue when right to receive the payments is established.

l) Employee Benefits:

Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encashment Scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

Defined Contribution Plans

The company''s contribution paid/payable for Provident Fund, ESIC and Pension Fund for the year is recognized in the statement of Profit and Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered.

---

Mar 31, 2013

A. Basis of preparation of financial statements:-

The accompanying statements have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles and as per the provisions of the Companies Act, 1956. During the financial year ended1 31st March 2013 the revised Schedule VI under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its financial statements.The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b. Fixed Assets and Depreciation:-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified on Schedule XIVto theCompanies Act, 1956 (as amended )and on prorata basis.

c. Investments:

The Company has policy.to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made,as it has temporary in the nature.

d. Valuationof Inventories :-

Inventories are valued at lower of cost or net realisable value.

e. Foreign Exchange Transactions :-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction.The difference if any on actual payments / realisation is charged off to revenue.

f. Sundry Debtors and Advances:-

Company''s management periodically verify the outstanding balance of sundry debtors,advances etcand on the basis of such verification management determines whether the said outstanding are good, bad or doubtful accordingly same are written off or provided for.

g. Research & Developments :-

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h. Terminal Benefits:-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company Leave Encashment is accounted on Cash basis i.e. It is accounted for as and when paid. However the company entered into Group leave Encashment Scheme with LIC of India during the year with an intial contribution Rs.1,37,369/- based on actuarial valuation

i. Taxations:-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised,subject to the consideration of prudence in respect of deferred tax assets as timing difference.being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j. Earning Per Shares-

Basic and Diluted earning per share is 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.

k. Revenue Recognition

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect except that the collection will be made. Interest income is accounted on accrual basis.Dividend from investment is recognized as revenue when rightto receive the payments is established.

I. Empioyee Benefits:

Defined Benefit Plan

The Employee Gratuity Fund and Leave Encashment Scheme managed by Life Insurance Corporation of India is a Defined

Benefit Plan.

Defined Contribution Plans

The company''s contribution paid/ payable for Provident Fund, ESIC and Pension Fund for the year is recognized in the Statementof Profit and Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the Statement of profit & loss of the year in which the related services are rendered.

---

Mar 31, 2012

A) Basis of preparation of Financial Statements :-

The accompanying statements have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles and as per the provisions of the Companies Act, 1956. During the financial year ended 31st March 2012 the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its financial statements. The Company has also re- classified the previous year figures in accordance with the requirements applicable in the current year.

b) Fixed Assets and Depreciation

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified on Schedule XIV to the Companies Act, 1956 (as amended )and on prorata basis.

c) Investments:

The Company has policy to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made, as it has temporary in the nature.

d) Valuation of Inventories

Inventories are valued at lower of cost or net realisable value.

e) Foreign Exchange Transactions:-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction.The difference if any on actual payments/ realisation is charged off to revenue.

f) Sundry Debtors and Advances:-

Company's management periodically verify the outstanding balance of sundry debtors,advances etc and on the basis of such verification management determines whether the said outstanding are good, bad or doubtful and Accordingly same are written off or provided for.

g) Research & Developments:

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h) Terminal Benefits :-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company Leave Encashment is accounted on Cash basis i.e. It is accounted for as and when paid.

i) Taxations:-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised, subject to the consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) Earning Per Share:-

Basic and Diluted earning per share is 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.

k) Revenue Recognition

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect that the ultimate collection will be made Interest income is accounted on accrual basis. Dividend from investment is recognized as revenue when right to receive the payments is established.

I) Employee Benefits:

Defined Benefit Plan

The Employee Gratuity Fund Scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

Defined Contribution Plans

The company's contribution paid/ payable for Provident Fund, ESIC and Pension Fund for the year is recognized in The statement of Profitand Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered.

---

Mar 31, 2010

A) Basis of preparation of financial statements :-

The accompanying statements have been prepared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles and as per the provisions of the Companies Act, 1956.

b) Sales :-

Sales include excise duty.

c) Export Benefits:-

Export benefits under Exim policy are accounted for on realisation basis.

d) Fixed Assets and Depreciation:-

Fixed assets are stated at cost net of cenvat or revalued figures less depreciation provided on straight line basis at the rates specified on Schedule XIV to the Companies Act, 1956 (as amended )and on prorata basis.

e) Investments :-

The Company has policy to make investments on strategic and long term basis and the investment have been shown as the cost of investments of acquisition, no adjustments for change in the valuation as on the date of the balance sheet being made, as it has temporary in the nature.

f} Valuation of Inventories:-

Inventories are valued at lower of cost or net realisable value.

g) Foreign ExchangeTransaction:-

Transaction in foreign currency are recorded by applying rate applicable on the date of transaction.The difference if any on actual payments / realisation is charged off to revenue.

h) Sundry Debtors and Advances :-

Companys management periodically verify the outstanding balance of sundry debtors, advances etc and on the basis of sgch verification management determines whether the said outstandings are good, bad or doubtful and accordingly same are written off or provided for.

i) Research & Developments :-

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

j) Terminal Benefits :-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company Leave Encashment is accounted on Cash basis ie. It is accounted for as and when paid.

k) Taxation :-

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised, subject to the consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.