Dr. Sabharwal's Manufacturing Labs Ltd. कंपली की लेखा नीति

Mar 31, 2013

1. SYSTEM OF ACCOUNTING : Unless otherwise stated hereunder the financial accounts of the Company have been drawn up on historical cost convention and on accrual basis.

2. USE OF ESTIMATES : The preparation of financial statement requires management to make certain estimates and assumption that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period in which they are materialised.

3. SALES : Sales are net of taxs and sales returns but inclusive of excise duty and exchange rates fluctuations.

4. FIXED ASSETS : Fixed assets are capialised at cost of acquisition and subsequent improvements thereto including taxes, duties etc other than Cenvat credit wherever applicable. Freight & other incidental expenses related to acquisition and installation are added to cost. In case of write-up due to revaluation are shown at such higher amount.

5. DEPRECIATION : Depreciation on all assets has been charged by written down value methid in accordance with the rates and manner specified in Schedule XIV to the Companies Act. 1956.

In respect of revalued assets, the incremental depreciation attributable to the Revaluation is transferred to Revaluation Reserve.

6. INVENTORIES : Inventories have been valued as follows :-

Raw Materials - At Cost * Packing Material - At Cost *

Finished Goods - At lower of the cost and net realisable value**

Work in Progress - At Cost* Trading Goods - At Cost*

*The cost has been arrived at by using ''FIFO'' method.

** The cost of finished goods has been determined by considering standard conversion cost.

7. Impairment of Assets : the Company determines whether there is any indication of impairment of the carrying amount of the company''s assets. The recoverable amount of such assets are estimated, if any indication exists, and impairment losses recognised wherever the carrying amount of the assets exceeds its recoverable amount.

8. Employees'' Benefits : Company''s contribution to Provident Fund and ESI fund are charged to profit & loss account. Provision for Gratuity and Leave Encashment benefits, inrespect of employees governed by Indian rules and regulations is made on the basis of actuarial valuation as at the end of the year in confirmity with the Accounting standard-15 (Revised) issued by the Insititute of Chartered Accountants of India and the provision for leave encashment (including long term leave) Contribution to Employee Group Gratuity Trust for the current yea are charged to Profit & Loss Account and for the past years are adjusted in the Provision for Gratuity a/c.

9. FOREIGN CURRENCY TRANSACTIONS : Transactions in foreign currency are accounted for at the exchange rates prevailing at the date of transaction. Gains and losses resulting from the settlement of such. Transactions and from the translation of monetary assets and liabilities denominated in foreign currency are recognised in the profit and loss account. Exchange differences arising on account of monetary liabilities related to fixed assets are adjusted in the cost of assets. Bank Guarantee in Foreign currency are Duty Entitlemtn Credit on Export Sales under DEPB (Duty Entitlement Pass Book Scheme) is being accounted for the year of actual credit claimed and received.

11. RESEARCH & DEVELOPMENT : Revenue expenditure pertaining to research and development is charged to revenue in .the year in which it is incurred. Capital Expenditure is treated as forming part of Fixed Assets.

12. GOVERNMENT GRANTS : i) Revenue grants are accounted for in Profit & Loss Account. ii) Capital grants other than relating to specific fixed assets are credited to Capital Reserve.

14. MISCELLANEOUS EXPENDITURE: Public Issue Expense, Deferred Revenue Expenses & other expenses on intangible assets are recognised & amortised as per the Accounting Standard no. 26 on intangible Assets issued by the Institute of Chartered Accountants of India.

15. BORROWING COST : Interest and other costs in connection with borrowing of funds to the extent related / attributed to the acquisition/construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing cost are charged to Profit and Loss Account.

15. PROVISION FOR DEFERRED AND CURRENT TAX

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deffered tax assets is recognised and carried forward only to the extent that there is a reasonable certaintly that the assets will be realised in future.

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Mar 31, 2012

1. SYSTEM OF ACCOUNTING : The financial statements have been prepared in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956 and are based on the historical cost convention as adopted consistently by the company. The company follows mercantile system of accounting.

2. SALES: Sales are inclusive of duty, if any and net of return and usual trade discounts.

3. FIXED ASSETS: Fixed Assets are capitalised at cost, inclusive of all direct expenses attributable to such assets. .

4. DEPRECIATION: The Depreciation on all assets is provided on a straight line basis at rates specified in schedule XIV to the Companies Act, 1956.

5. INVENTORIES: The Raw materials, Packing materials, Diesel & Trading Goods are valued at cost determined on FIFO basis. The Finished & Semi Finished Goods are valued at lower of cost and net realisable value arrived at on the basis of selling price less percentage of gross profit margin included therein.

6. INVESTMENT: The investment in quoted shares are being stated at cost. The earning on Investment are recognised on receipt basis.

7. EMPLOYEES BENEFITS: For Gratuity Liability the policy of life Insurance corporation is being taken and premium for the year is being paid. The liability for earned leave is being charged to Profit & Loss Account every year. The companies contribution to Provident Fund & Family Pension fund are charged against revenue of every year.

8. INSURANCE CLAIMS: The insurance claims are being accounted for on actual realisation of amount claimed.

9. FOREIGN CURRENCY TRANSACTIONS: The foreign currency transactions are accounted for at the rate of exchange prevailing at the date of transactions and subsequent gains and losses are being properly accounted for.

10. Duty Entitlement Credit on export sales under DEPB (Duty Entitlement Pass Book Scheme) is being accounted for in the year of actual credit claimed and received.

11. RESEARCH & DEVELOPMENT: The Research & Development Cost (other than cost of fixed assets acquired) are charged as an expenses in the year in which these are incurred.

12. GOVERNMENT GRANTS:

i) Revenue grants are recognised as income in the period in which it becomes receivable.

ii) Capital grants, if any, have been credited to capital reserve.

13. Contingencies which can be reasonably ascertained are provided for.

14. PROVISION FOR CURRENT & DEFERRED TAX: Provision for current tax is made on the basis of estimated taxable income for the current Accounting year and in accordance with the provision of the Income Tax Act. 1961. Deferred Tax resulting from timing difference'' between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted as on Balance Sheet date.

15. PROVISION FOR INCOME TAX:

a) The provision of Income Tax has been made because of carried forward losses of previous year.

b) No provision for MAT has been made because of carried forward losses of previous year.