Enter the first few characters of Company and click 'Go'

Accounting Policies of Venus Remedies Ltd. Company

Mar 31, 2018

Basis of accounting and preparation of standalone financial statements:

Basis of accounting

1) These standalone financial statements of the company have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standards (hereinafter referred to as the Ind As as notified under section 133 of the Companies Act 2013 (the Act read with rule 4 of the Companies (Indian Accounting Standards) Rules 2015 as amended and other relevant provisions of the Act and accounting principles generally accepted in india. These standalone financial statements were authorized for issue by the companyâs Board of Directors on May 28, 2018.

2) These standalone financial statements are the first standalone financial statements prepared in accordance with Indian Accounting standards(Ind AS). For all periods up to and including the year ended March 31,2017 the company reported its Financial statements in accordance with the accounting standards notified under the section 133 of the companies Act 2013.The financial statements for the year ended March 31, 2017 and the opening Balance Sheet as at April 1, 2016 have been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from IGAAP to IND AS on the companyâs Balance Sheet, Statement of Profit and Loss including other comprehensive Income and statement of Cash Flows are provided in note no 41

Functional and Presentation Currency

3) These standalone financial statements are presented in indian rupees which is the functional currency of the Company. The figures in the Balance Sheet and Profit & Loss Account for the year have been rounded off to nearest lacs.

Basis of Measurement

4) These standalone financial statements are prepared under the historical cost convention and on the basis of going concern.

Use of Estimates and Judgements

5) The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. Management believes that estimates used in the preparation of the financial statement are prudent and reasonable. Examples of such estimates include estimation of useful lives of tangible and intangible assets, valuation of inventories, sales return, employees costs, assessment of recoverable amounts of deferred tax assets, provisions against litigations and contingencies.

6) Property, Plant and Equipment & Depreciation (IND AS 16)

Recognition and Measurement

Items of property, Plant and equipment at cost less accumulated depreciation and impairment losses, if any. The cost of an item of property, plant and equipment comprises:

its purchase price, including import duties and non - refundable purchase taxes after deducting trade discounts and rebates.

Expenses incurred up to date of putting them in commercial use.

The Company has elected to continue with the carrying value of all its property ,plant and equipment as recognized in the standalone financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as the deemed cost as at the transition date pursuant to the exemption under Ind As 101.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in the statement of Profit and Loss.

Capital work in progress in respect of assets which are not ready for their intended use are carried at cost comprising of direct costs related incidental expenses and attributable interest.

Depreciation

The Company is following the useful life method of depreciation as per the useful life specified Schedule II to the Act. The Carrying amount of assets is being depreciated over the remaining useful life of the assets. On assets sold, discarded etc, during the year depreciation is provided up to the date of sale/discard.

7) INTANGIBLE ASSETS (IND AS 38)

Recognition and Measurement

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The company amortizes its intangible assets over a period of 20 years.

The cost of an intangible assets comprises of its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities) and any directly attributable expenditure on making the asset ready for its intended use.

The company has changed its policy to expense all Research and Development expenditure as incurred, w.e.f. April 1, 2017. The company believes that this change presents a more objective, reliable and prudent view of the companyâs financial position, especially its cash flows. This change has no material impact on the cash flow position of the company.

In order to maintain comparability of the financial statements across past years and in accordance with IND AS 8, the prior period figures presented herein (i.e. FY 2015-16 and FY 201617) have been modified to reflect this change. A reconciliation of the effect of this change on each line item of the balance sheet is presented in Note 41.

The retrospective application of this change in policy has been limited to the prior periods presented in these financial statements, as it was impracticable to determine the net cumulative effect of this policy change for the periods before those presented in these financial statements.

(8) INVENTORIES (IND AS 2)

Method of valuation of inventories adopted are as under :-

(a) Stock Raw Material and Packing Material: - At cost price.

(b) Stock of Work-in-Progress:- At material cost plus apportioned manufacturing overheads.

(c) Stock of Finished Goods:- At material cost plus apportioned manufacturing overheads and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value, whichever is lower.

(d) Spares and consumables:- At cost.

(9) REVENUE RECOGNITION - IND AS -18

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns. It include inter unit sale.

(b) Dividends are accounted for as and when received.

(10) EMPLOYEE BENEFITS (IND AS-19)

(a) Short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered.

(b) Post retirement benefits plan are determined on the basis of an actuary valuation by an independent actuary. Liability recognised in the balance sheet in respect of defined benefit obligation is the present value of the defined benefit obligation at the end of reporting period.

Remeasurement gains and losses arising from experience adjustments are recognised in the period in which they occur, directly in other comprehensive income.

(11) IMPAIRMENT OF ASSETS (IND AS 36)

The Company checks for impairment of all its intagible assets on annual basis and an assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired if there is any indication that asset may be impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles.

(12) FOREIGN CURRENCY TRANSACTIONS (IND AS-21)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

(13) BORROWING COSTS (IND AS 23)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

(14) GOVERNMENT GRANTS (IND AS 20)

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to depreciable assets are treated as deferred income and are recognized in the statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of Profit and Loss over the period necessary to match them with the related costs which they are intended to compensate.

Export benefits available under prevalent scheme are accrued in the year in which the goods are exported and there is no uncertainty in receiving the same.

15) PROVISIONS AND CONTINGENT LIABILITIES( IND AS 37)

Provisions involving substantial degree of estimation in management are recognized when there is 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 the notes for

i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or

ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

16) INCOME TAX (IND AS 12)

Income tax expenses comprises current and deferred tax. It is recognized in statement of profit and loss

a) Current Tax : Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax: Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for the taxation purposes. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed at each reporting date.

C) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

17) FINANCIAL INSTRUMENTS (IND AS 109)

Company measures a financial asset or financial liability at fair value plus or minus, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

A financial asset, a part of a financial asset is derecognised when the rights to receive cash flows from the asset have expired.

18) Operating Cycle :

Based on the nature of product /activities of the company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

Mar 31, 2016

STATEMENTS as on 31st March 2016.

(I) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance with Accounting Standard - 1 (i.e. Disclosure of Accounting Policies)

(II) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred up to the date of putting them in commercial use) less depreciation in accordance with Accounting Standard -10 i.e. Accounting for Fixed Assets.

(III) Depreciation

The Company is following the useful life method of depreciation as per the useful life specified in part C of Schedule II of the Companies Act 2013. The Carrying amount of assets is being depreciated over the remaining useful life of the assets.

On assets sold, discarded etc, during the year depreciation is provided up to the date of sale/discard.

(IV) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)â Valuation of Inventoriesâ and the revised "Guidance Note on Accounting Treatment for Excise Dutyâ issued by the Institute of Chartered Accountants of India. Accordingly the method of valuation of inventories adopted are as under

(a) Stock Raw Material and Packing Material:- At cost price.

(b) Stock of Work in Progress:- At material cost plus apportioned manufacturing overheads.

(c) Stock of Finished Goods:- At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value whichever is lower.

(d) Spares and consumables:- at cost.

(V) Investments (AS-13)

(a) Long term investments are stated at cost of acquisition. Provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments.

(b) Current investments are carried at lower of cost or fair market Value.

(VI) Retirement Benefits (AS-15)

(a) A short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered.

(b) Post employment and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

(VII) Revenue Recognition (AS-9)

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

(b) Dividends are accounted for as and when received.

(VIII) Research and Development Costs

(a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

(b) (i) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account.

(ii) Expenditure on development phase in which the activity converts the results to a marketable product but doesn''t result in to any intangible assets, such expenses incurred are not capitalized but otherwise charged to Profit & Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets).

(iii) Expenditure on in-licensed development activities, where by research findings are applied to a plan or design for the production of new products and processes, is capitalized , if the cost can be reliably measured, the product and process is technically and commercially feasible and the Company has sufficient Technical, financial and other resources to complete the development and to use and sell the asset.

(IX) Intangible Assets (AS 26)

(i) The company has the policy to amortize the patent and trademarks over the period of 15 years as the estimated normal useful life of the patent is 15 years.

(X) Borrowing Costs (AS-16)

(XI) Translation of Foreign Exchange Transactions (AS-11)

(b) Monetary items denominated in foreign currencies remaining unsettled at the yearend if not covered by forward exchange contracts are translated at year end rates.

(XII) Income Tax

a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions.

Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax: Consequent to the Accounting Standard 22 "Accounting for taxes on incomeâ the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

(XIII) Government Grants

(XIV) Impairment of Assets (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired if there is any indication that asset may be impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles.

(XV) Provisions, Contingent Liabilities and Contingent Assets (AS-29)

(XVI) Forward Exchange Contracts (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the transaction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period.

Mar 31, 2015

(I) ACCOUNTING CONCEPTS

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance of Accounting Standard Â 1 (i.e. Disclosure of Accounting Policies).

(II) FIXED ASSETS

Fixed Assets are stated at historical cost (including expenses incurred upto the date of putting them in commercial use) less depreciation in accordance of Accounting Standard -10 (i.e. Accounting for Fixed Assets).

(III) DEPRECIATION

The company has changed the method of charging depreciation as prescribed by the companies act 2013. Now the Company is following the useful life method of depreciation as per the useful life specified in part C of Schedule II of the Companies Act 2013 instead of straight line method of depreciation at the rates as specified in schedule XIV of the Companies Act 1956. The Carrying amount of assets is being depreciated over the remaining useful life of the assets. In case the remaining useful life of an asset is exhausted, the depreciation amount after retaining the residual value is transferred to General Reserve.

On assets sold, discarded etc, during the year depreciation is provided up to the date of sale/discard.

(IV) INVENTORIES

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)" Valuation of Inventories" and the revised "Guidance Note on Accounting Treatment for Excise Duty" issued by the Institute of Chartered Accountants of India. Accordingly the method of valuation of inventories adopted are as under :-

(a) Stock Raw Material and Packing Material: - At cost price.

(b) Stock of Work in Progress:- At material cost plus apportioned manufacturing overheads

(c) Stock of Finished Goods:- At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value whichever is lower.

(d) Spares and consumables:- at cost.

(V) INVESTMENTS (AS-13)

(a) Long term investments are stated at cost of acquisition. Provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments.

(b) Current investments are carried at lower of cost and fair market value.

(VI) RETIREMENT BENEFITS (AS-15)

(a) A short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered.

(b) Post employment and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

(VII) REVENUE RECOGNITION (AS-9)

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

(b) Dividends are accounted for as and when received.

(c) Other income is accounted for on mercantile basis unless otherwise stated in other accounting standard.

(VIII) RESEARCH AND DEVELOPMENT COSTS

(a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

(b) (i) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account.

(ii) Expenditure on development phase in which the activity converts the results to a marketable product but doesn't result in to any intangible assets, such expenses incurred are not capitalized but otherwise charged to Profit & Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets).

(iii) Expenditure on in-licensed development activities, where by research findings are applied to a plan or design for the production of new products and processes, is capitalized, if the cost can be reliably measured, the product and process is technically and commercially feasible and the Company has sufficient Technical, financial and other resources to complete the development and to use and sell the asset.

(IX) INTANGIBLE ASSETS (AS 26)

(i) The company has changed the policy to amortise the patent and trademarks over the period of 12 years from 10 years, as the estimated normal useful life of the patent is 12 years.

(X) BORROWING COSTS (AS-16)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

(XI) TRANSLATION OF FOREIGN EXCHANGE TRANSACTIONS (AS-11)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

(XII) INCOME TAX

a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax : Consequent to the Accounting Standard 22 "Accounting for taxes on income" the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

(c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

(XIII) GOVERNMENT GRANTS

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to depreciable assets are treated as deferred income and are recognized in the statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of Profit and Loss over the period necessary to match them with the related costs which they are intended to compensate.

(XIV) IMPAIREMENT OF ASSETS (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles.

(XV) PROVISIONS, CONTINGENT LIABILITIES AND CONTIGENT ASSETS (AS-29)

Provisions involving substantial degree of estimation in management are recognized when there is 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 the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(XVI) FORWARD EXCHANGE CONTRACTS (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the transaction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period.

Mar 31, 2014

(i) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and ncomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance of Accounting Standard - 1 (i.e. Disclosure of Accounting Policies)

(ii) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred upto the date of putting them in commercial use) less depreciation in accordance of Accounting Standard -10 i.e. Accounting for Fixed Assets

(iii) Depreciation

Depreciation has been provided on straightline method and on single shift basis at the rates specified in the schedule XIV of the Companies Act, 1956, in accordance with accounting standard - 6 l.e accounting for depreciation

(iv) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)" Valuation of Inventories" and the revised "Guidance Note on Accounting Treatment for Excise Duty" issued by the Institute of Chartered Accountants of ndia. Accordingly the method of valuation of inventories adopted are as under :-

(a) Stock Raw Material and Packing Material: - At cost price.

(b) Stock of Work in Progress:- At material cost plus apportioned manufacturing overheads

(c) Stock of Finished Goods:- At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value whichever is lower.

(d) Spares and consumables:- at cost.

(v) Investments (AS-13)

(a) Long term investments are stated at cost of acquisition. Provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments

(b) Current investments are carried at lower of cost and fair market value.

(vi) Retirement Benefits (AS-15)

(a) A short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered

(b) Post employment and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

(vii) Revenue Recognition (AS-9)

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

(b) Dividends are accounted for as and when received

(c) Other income is accounted for on mercantile basis unless otherwise stated in other accounting standard

(viii) Research And Development Costs

(a) Capital Expenditure on assets for research and development is included in cost of fixed assets

(b) (i) The revenue expenditure incurred on research S development up to research phase comprising cost of materials

consumed, salary Swages and other related costs, as identified have been charged to Profit S Loss account.

(ii) Expenditure on development phase in which the activity converts the results to a marketable product but doesn''t result in to any intangible assets, such expenses incurred are not capitalized but otherwise charged to Profit S Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets)

(iii) Expenditure on in-licensed development activities, where by research findings are applied to a plan or design for the production of new products and processes, is capitalized , if the cost can be reliably measured, the product and process is technically and commercially feasible and the Company has sufficient Technical, financial and other resources to complete the development and to use and sell the asset.

(iv) Expenses relating to Patents S Trademarks are written off in ten subsequent years

(ix) Borrowing Costs (AS-16)

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred

(x) Translation of Foreign Exchange Transactions (AS-11)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets

(xi) Income Tax

(a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax: Consequent to the Accounting Standard 22 "Accounting for taxes on income"the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

(c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay ncome taxes at the enacted tax rates and shall be reversed in the year in which it lapses

(xii) Government Grants

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with, and the grants will be received. Government grants related to depreciable assets are treated as deferred income and are recognized in the statement of Profit and Loss on a systematic and rational basis over the useful life of the asset. Government grants related to revenue are recognized on a systematic basis in the statement of Profit and Loss over the period necessary to match them with the related costs which they are intended to compensate.

(xiii) Impairement of Assets (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profits loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles

(xiv) Provisions, Contingent Liabilities and Contigentassets (AS-29)

Provisions involving substantial degree of estimation in management are recognized when there is 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 the notes. Contingent Assets are neither recognized nor disclosed in the financial statements

(xv) Forward Exchange Contracts (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the transaction. As per AS-11 (R) any premiums or discount at the nception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period

Mar 31, 2013

(i) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance of Accounting Standard - 1 (i.e. Disclosure of Accounting Policies)

(ii) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred upto the date of putting them in commercial use) less depreciation in accordance of Accounting Standard -10 i.e. Accounting for Fixed Assets.

(iii) Depreciation

Depreciation has been provided on straightline method and on single shift basis at the rates specified in the schedule XIV of the Companies Act, 1956, in accordance with accounting standard - 6 I.e accounting for depreciation

(iv) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)" Valuation of Inventories" and the revised " Guidance Note on Accounting Treatment for Excise Duty" issued by the Institute of Chartered Accountants of India. Accordingly the method of valuation of inventories adopted are as under :-

(a) Stock Raw Material and Packing Material: - At cost price.

(b) Stock of Work in Progress: - At material cost plus apportioned manufacturing overheads.

(c) Stock of Finished Goods: - At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realizable value whichever is lower.

(d) Spares and consumables: - at cost.

(v) Investments (AS-13)

(a) Long term investments are stated at cost of acquisition. Provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments.

(b) Current investments are carried at lower of cost and fair market value.

(vi) Retirement Benefits (AS-15)

(a) A short term employees benefits are recognized as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related service is rendered.

(b) Post employment and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

(vii) Revenue Recognition (AS-9)

(a) Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

(b) Dividends are accounted for as and when received. (c) Other income is accounted for on mercantile basis unless otherwise stated in other accounting standard.

(viii) Research and Development Costs

(a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

(b) (i) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account.

(ii) Expenditure on development phase in which the activity converts the results to a marketable product but doesn''t result in to any intangible assets, such expenses incurred are not capitalized but otherwise charged to Profit & Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets).

(iii) Expenditure on in-licensed development activities, where by research findings are applied to a plan or design for the production of new products and processes, is capitalized , if the cost can be reliably measured, the product and process is technically and commercially feasible and the Company has sufficient Technical , financial and other resources to complete the development and to use and sell the asset.

(ix) Borrowing Costs (AS-16)

Borrowing costs that are attributable to the acquisition or construction of fixed assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

(x) Translation of Foreign Exchange Transactions (AS-11)

(a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

(c) Any income/expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

(xi) Income Tax

a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

(b) Deferred Tax : Consequent to the Accounting Standard 22 "Accounting for taxes on income" the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

(c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

(xii) Amortisation of Intangible Assets and Miscellanceous Expenditure (AS-26)

(a) Public issue expenses, Bond issue expenses and preliminary expenses are amortized over a period of five years.

(b) Expenses relating to Patents & Trademarks are written off in ten subsequent years.

(xiii) Impairement of Assets (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principles.

(xiv) Provisions, Contingent Liabilies and Contigent Assets (AS-29)

Provisions involving substantial degree of estimation in management are recognized when there is 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 the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(xv) Forward Exchange Contracts (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the transaction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period.

Mar 31, 2011

I) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated in accordance of Accounting Standard Ã 1 (i.e. Disclosure of Accounting Policies)

II) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred on putting them in use) less depreciation in accordance of Accounting Standard -10 i.e. Accounting for Fixed Assets.

III) Depreciation (As-6)

Depreciation has been provided on straight -line method and on single shift basis at the rates specified in the schedule XIV of the Companies Act, 1956.

IV) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 "(AS- 2)" Valuation of Inventories" and the revised " Guidance Note on Accounting Treatment for Excise Duty" issued by the Institute of Chartered Accountants of India. According the method of valuation adopted are as under :- a) Stock Raw Material and Packing Material: - At cost price.

b) Stock of Work in Progress: - At material cost plus apportioned manufacturing overheads.

c) Stock of Finished Goods: - At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in brining the inventories to their present location and condition or Net Realizable value whichever is lower.

d) Spares and consumables: - at cost.

V) Investments (AS-13)

a) Long term investments are stated at cost of acquisition, provision for Diminution is made only to recognize a decline other than temporary, if any, in the value of investments.

b) Current investments are carried at lower of cost and fair market value.

c) Dividends are accounted for as and when received.

VI) Retirement Benefits (AS-15)

a) A short term employees benefits are recognized as an expenses at the undiscounted Amount in the profit and loss accounts of the year in which the related is rendered.

b) Post employees and other long term employees benefits are recognized as an expense in the profit and loss account for the year in which the employees has rendered services. The expenses are recognized at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

c) In respect of Employees Stock Option, the Reserve has already been created over the years of option and is shown under the General reserve.

VII) Revenue Recognition (AS-9)

Sales of goods and services are recognized upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

VIII)Research and Development Costs

a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

b) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account and expenditure on development phase in which the activity converts the results to a marketable product doesn't result in to any intangible assets so expenses incurred are not capitalized but otherwise charged to Profit & Loss account in accordance with AS-26 (Accounting Standard on Intangible Assets).

IX) Borrowing Costs (AS-16)

Borrowing costs that are attributable to the acquisition or construction of fixed assets are capitalized as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which incurred.

X) Translation of Foreign Exchange Transactions (AS-11)

a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

c) Any income / expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

XI) Income Tax

a) Current Tax: Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

b) Deferred Tax : Consequent to the Accounting Standard 22 "Accounting for taxes on income" the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

c) MAT: Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognized as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

XII) Amortisation of Intangible Assets and Miscellanceous Expenditure (AS-26)

a) Public issue expenses, Bond issue expenses and preliminary expenses are amortized over a period of five years.

b) Seed Marketing Expenses incurred during the year are written off equally in the subsequent five years. Seed marketing expenses comprises of expenses Relating to marketing and launching of new products, development of new products, development of new market and area, the benefits of which in the opinion of the management, will accrue to the company over the next five years.

c) Expenses relating to Patents & Trademarks are written off in ten subsequent years.

XIII) Provisions, Contingent Liabilies and Contigent Assets (AS-29)

Provisions involving substantial degree of estimation in management are recognized when there is 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 the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

XIV) Impairement of Assets (AS-28)

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principals.

XV) Forward Exchange Contracts (AS-30)

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, Which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the traction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortized over the life of the contract and exchange difference on such contracts are recognized in the statement of profit or loss in the reporting period.

XVI) In accordance with the guidance notes of the ICAI, the company has recognized Minimum Alternative Tax of Rs. 3.00 crores related to the current year and Rs. 2.29 crores pertaining to the previous year as assets during the year.

Mar 31, 2010

I) Accounting Concepts

The accounts are prepared under the historical cost convention and on the basis of going concern. All expenses and incomes to the extent ascertainable are accounted for on mercantile basis unless otherwise stated.

II) Fixed Assets

Fixed Assets are stated at historical cost (including expenses incurred on putting them in use less depreciation).

III) Depreciation

Depreciation has been provided on straight-line-method, on single shift basis at the rates specified in the schedule XIV of the Companies Act, 1956.

IV) Inventories

The inventories are valued in accordance, with the revised Accounting Standard-2 Ã(AS-2)Ã Valuation of InventoriesÃ and the revised Ã Guidance Note on Accounting Treatment for Excise DutyÃ issued by the Institute of Chartered Accountants of India. According the method of valuation adopted are as under :- a) Stock Raw Material and Packing Material :- At cost price

b) Stock of Work in Progress :- At material cost plus apportioned manufacturing overheads.

c) Stock of Finished Goods :- At material cost plus apportioned manufacturing overheads plus excise duty and other costs incurred in bringing the inventories to their present location and condition or Net Realisable value whichever is lower.

d) Spares and consumable :- At cost.

V) Investments

a) Long term investments are stated at cost of acquisition, provision for diminution is made only to recognise a decline other than temporary, if any, in the value of investments.

b) Current investments are carried at lower of cost and fair market value.

c) Dividends are accounted for as and when received.

VI) Retirement Benefits

a) A short term employees benefits are recognised as an expenses at the undiscounted amount in the profit and loss accounts of the year in which the related is rendered.

b) Post employees and other long term employees benefits are recognised as an expense in the profit and loss account

for the year in which the employees has rendered services. The expenses is recognised at the present value of the amount payable determined using actuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to profit and loss account.

c) In respect of Employees Stock Option, the excess of fair price on the date of grant over the exercise price is recognised as deferred compensation cost amortised over period.

VII) Revenue Recognition

Sales of goods and services are recognised upon passage of the title to the customer, which generally coincides with the delivery. Sale is net of sale returns but includes excise duty.

VIII)Research and Development Costs

a) Capital Expenditure on assets for research and development is included in cost of fixed assets.

b) The revenue expenditure incurred on research & development up to research phase comprising cost of materials consumed, salary & wages and other related costs, as identified have been charged to Profit & Loss account and expenditure on development phase in which the activity converts the results to a marketable product doesnt result in to any intangible assets so expenses incurred are not capitalised but otherwise charged to Profit & Loss account in accordance with as -26 (Accounting Standard on Intangible Assets).

IX) Borrowing Costs Borrowing costs that are attributable to the acquisition or construction of fixed assets are capitalised as part of costs of such assets till such time as the assets is ready for its intended use. All other borrowing costs are recognised as an expense in the period in which incurred.

X) Translation of Foreign Exchange Transactions

a) Foreign exchange transactions in respect of import payments are stated at the exchange rate prevailing at the time of transaction and variation, if any, accounted for on the date of payment is squared during the same accounting year.

b) Monetary items denominated in foreign currencies remaining unsettled at the year end if not covered by forward exchange contracts are translated at year end rates.

c) Any income / expense arising from foreign currency transactions is dealt in the profit and loss account for the year except in cases where they relate to acquisition of fixed assets in which case they are adjusted in the carrying cost of such assets.

XI) Income Tax

a) Current Tax : Provision is made for income tax based on the liability as computed after taking credit for allowance and exemptions. Adjustments in books are made only after the completion of the assessment.

b) Deferred Tax : Consequent to the Accounting Standard 22 ÃAccounting for taxes on incomeÃ the differences that result between the profit offered for income tax and the profit as per the financial statement are identified and thereafter a deferred tax liability is recorded for timing differences, namely the differences that originate is one accounting period and reverse in another. The tax effect is calculated on the accumulated timing difference at the end of an accounting period based on prevailing enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

c) MAT : Minimum Alternative Tax payable under the provisions of the income tax Act, 1961 is recognised as an asset in the year in which credit becomes eligible and is set off in the year in which the Company becomes liable to pay income taxes at the enacted tax rates and shall be reversed in the year in which it lapses.

XII) Amortisation of Intangible Assets and Miscellaneous Expenditure

a) Public issue expenses, Bond issue expenses and preliminary expenses are amortised over a period of five years.

b) Seed Marketing Expenses incurred during the year are written off equally in the subsequent five years. Seed marketing expenses comprises of expenses relating to marketing and launching of new products, development of new products, development of new market and area, the benefits of which in the option of the opinion of the management, will accrue to the company over the next five years.

c) Expenses relating to Patents & Trademarks are written off in ten subsequent years.

XIII)Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in management are recognised when there is 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 the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

XIV)Impairment of Assets

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit & loss account in the year in which an assets is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. Accounting policies not specially referred to are consistent with generally accepted accounting principals.

XV) Forward Exchange Contract

A company may enter into a forward exchange contract or another financial Instrument that is in substance a forward exchange contract, Which are not intended for trading or speculation purposes, to establish the amount of the reporting currency required or available at the settlement date of the traction. As per AS-11 (R) any premiums or discount at the inception of such a forward exchange contract are amortised over the life of the contract and exchange difference on such contracts are recognised in the statement of profit or loss in the reporting period.

XVI)In accordance with the guidance notes of the ICAI, the company has recognised minimum alternative tax of Rs 2 crores related to the current year and Rs 4 crores pertaining to the previous year as assets during the year.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article