SIGNIFICANT ACCOUNTING POLICIES:
a) Basis for Preparation of accounts
a. The accounts have been prepared with the historical cost convention under accrual basis of accounting as per Indian GAAP. Accounts and Disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules 2006 which continue to apply under section 133 of the Companies Act,2013 read with Rule 7 of the Companies (Accounts) Rules 2014, other pronouncement of ICAI, Provisions of the Companies Act and guidelines issued by SEBI as applicable
b. All Assets and Liabilities have been classified as current and non-current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Companies Act,2013.
b) Use of Estimates
a. Indian GAAP enjoins Management to make estimate and assumptions that affect reported amount of assets, liabilities, revenue, expenses and contingent liabilities pertaining to years, the financial statement relate to. Actual result could differ from such estimates. Any revision in accounting estimates is recognized prospectively from current year and material revision, including its impact on financial statement, is reported in notes to accounts in the year of incorporation of revision.
c) Recognition of Income and Expenses:
1. Sales and Purchase are accounted for on the basis of passing of title to the goods.
2. All the other incomes have been accounted for on accrual basis except for those entailing recognition on realization basis under AS 9 on the ground of uncertainty factor.
3. All Expenses are provided on accrual basis unless stated otherwise.
d) Fixed Assets:
1. Fixed Assets are stated at carrying amount i.e., cost less accumulated depreciation.
2. Depreciation on Fixed Assets has been provided on Written Down Value Method
3. For New Projects all direct expenses and direct overheads (excluding services provided by employees in Company's regular payroll) are capitalized.
e) Investments:
Investment in Subsidiary (Total Health Kare International Pvt Ltd) are held for long term. No profit or losses of subsidiaries are accounted for.
f) Research and Development Expenditure:
Revenue Expenditure on research & development is expensed as incurred including contribution towards scientific research expenses. Debtors not realized towards clinical data testing services are a part of research services and has been added in the research and development expenditure to the extent not written off and being written off every year @ 10%.
g) Inventories:
Inventories are valued at the lower of cost or net realizable value. Basis of determination of cost remains as follows: Raw Material, Packing Material, Stores & Spares : Moving Weighted Average Basis
Work in Progress: Cost of inputs plus overhead unto the stage of completion Finished Goods: Cost of inputs plus appropriate overhead.
h) Income Tax and Deferred tax :
a. The Liability of Company on account of income tax is estimated considering the provisions of the Income Tax Act, 1961.
b. Deferred Tax is recognized, subject to the consideration of prudence , on timing differences being the difference between the taxation income and accounting income that originate in one year and capable of reversal in one or more subsequent years.
i) Contingent Liabilities:
a. Disputed liabilities and claims against the Company including claims raised by fiscal authorities (Eg. Sales Tax, Income Tax etc) pending in appeal/court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts.
b. However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimate, is recognized in accounts.
j) Earnings per Share:
a. Basic Earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
b. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
|