Sangam Health Care Products Ltd. कंपली की लेखा नीति

Mar 31, 2024

2. Significant accounting policies:

A summary of the significant accounting policies applied in the
preparation of the financial statements is as given below. These
accounting policies have been applied consistently to all the periods
presented in the financial statements.

2.1. Ind AS 105: Non-Current Assets held for Sale or Discontinued
Operations:

This standard specifies accounting for assets held for sale, and the
presentation and disclosure for discontinued operations:

(a) Assets that meet the criteria to be classified as held for sale to be
measured at the lower of carrying amount and fair value less cost
to sell, and depreciation on such assets to cease; and

(b) Assets that meet the criteria to be classified as held for sale to be
presented separately in the balance sheet and the results of

discontinued operations to be presented separately in the
statement of profit and loss.

2.2 Ind AS 106: Exploration for Evolution of Mineral resources:

This standard specifies the financial reporting for the exploration for
evaluation of mineral resources. In particular, this standard requires:

a. Limited improvements to existing accounting practices for exploration
and evaluation of expenditures

b. Entities that recognize exploration and evaluation of assets to assess
such assets for impairment in accordance with this standard and
measure any impairment.

Disclosures that identify and explain the amounts in the entity’s financial
statements arising from the exploration for the evaluation of mineral
resources and help users of those financial statements understand the
amount, timing and certainty of future cash flows from any exploration
and evaluation of assets recognized.

This Ind AS 106 not applicable, the company is in the business of
engaged manufacturing and trading of medical products. Hence this Ind
AS does not have any financial impact on the financial statements of the
company.

2.3 Ind AS-16: Property, Plant and Equipment:

Property, Plant and Equipment are stated at cost less accumulated
depreciation.

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, any directly attributable cost of
bringing the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and restoring the
site on which it is located.

The cost of a self-constructed item of property, plant and equipment
comprises the cost of materials and direct labor, any other costs directly
attributable to bringing the item to working condition for its intended
use, and estimated costs of dismantling and removing the item and
restoring the site on which it is located.

Property, plant and equipment which are significant to the total cost of
that item of Property Plant and Equipment and having different useful
life are accounted for as separately.

Gains or losses arising from de recognition of property, plant and
equipment are measured as the difference between the net disposal
proceeds and carrying amount of the asset is recognized in the statement
of profit or loss when the asset is de recognized.

Depreciation on Property Plant and Equipment is provided on Straight
line method. Depreciation is provided based on useful life as prescribed
under part C of the schedule II of the Companies act, 2013.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e.
from (up to) the date on which asset is ready for use (disposed of).

Impairment

Property Plant and Equipment are evaluated for recoverability whenever
events or changes in circumstances indicate that their carrying amount
may not be recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less cost of
disposal and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash
inflows from other assets or groups of assets (cash-generating units).

2.4 Impairment Assets (Ind AS 36)

The Company’s non-financial assets, other than deferred tax assets are
reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash
inflows are grouped together into cash-generating units (CGUs). Each
CGU represents the smallest group of assets that generates cash inflows
that are largely independent of the cash inflows of other assets or CGUs.
The recoverable amount of a CGU (or an individual asset) is the higher of
its value in use and its fair value less costs to sell. Value in use is based
on the estimated future cash flows, discounted to their present value
using a pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the CGU (or the asset).
An impairment loss is recognized if the carrying amount of an asset or
CGU exceeds its estimated recoverable amount. Impairment losses are
recognized in the statement of profit and loss. Impairment loss
recognized in respect of a CGU is allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the
carrying amounts of the other assets of the CGU (or group of CGUs) on a
pro rata basis.

The books of accounts of the company doesn’t carry any impairment of
assets during the reporting period, hence this accounting standard does
not have financial impact on the financial statements of the company.

2.5 Intangible assets (Ind AS 38):

Intangible assets are stated at cost less accumulated amortization and
impairment. Intangible assets are amortized over their estimated useful
life on straight line basis.

Subsequent costs are included in assets carrying amount or recognized
or recognized as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow
to the entity and the cost can be measured reliably.

The residual Values, useful lives and methods of depreciation of Property
Plant and Equipment are reviewed at each Financial year end and
adjusted prospectively, if appropriate.

Gains or losses arising from de recognition of Intangible asset are
measured as the difference between the net disposal proceeds and

carrying amount of the asset is recognized in the statement of profit or
loss when the asset is de recognized.

The books of accounts of the company doesn’t carry any intangible assets
during the reporting period, hence this accounting standard does not
have financial impact on the financial statements of the company.

2.6 Cash Flow Statement (Ind AS 7):

Cash flows are reported using the indirect method under Ind AS 7,
whereby profit/(loss) before extraordinary items and tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.

Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

2.7 Operating Cycle:

The Company has adopted its normal operating cycle as twelve months
based on the nature of products and the time between the acquisition of
assets for processing and their realization, for the purpose of current /
non-current classification of assets and liabilities.

2.8 Capital Work in Progress

Capital Work in Progress (CWIP) includes Civil Works in Progress, Plant
& Equipment under erection and Preoperative Expenditure pending
allocation on the assets to be acquired/commissioned, capitalized. It also

includes payments made to towards technical know-how fee and for
other General Administrative Expenses incurred for bringing the asset
into existence.

2.9 Investments:

Investments are classified as Non-Current and Current investments.

Investments, which are readily realisable and are intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as non-current investments.

Current investments are carried at lower of cost and fair value. Non¬
Current Investments are carried at cost less provision for other than
temporary diminution, if any, in value of such investments.

2.10 Effects of changes in Foreign Rates (Ind AS 21):

Foreign currency transactions are recorded at the exchange rates
prevailing on the dates when the relevant transactions took place.
Exchange difference arising on settled foreign currency transactions
during the year and translation of assets and liabilities at the yearend
are recognized in the statement of profit and loss.

In respect of Forward contracts entered into to hedge risks associated
with foreign currency fluctuation on its assets and liabilities, the
premium or discount at the inception of the contract is amortized as
income or expense over the period of contract. Any profit or loss arising
on the cancellation or renewal of forward contracts is recognized as
income or expense in the period in which such cancellation or renewal is
made.

The company has not entered any foreign exchange transactions during
the reporting period, hence this accounting standard does not have
financial impact on the financial statements.

2.11 Borrowing Costs (Ind AS 23):

Borrowing costs directly attributable to the acquisition, construction or
production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use or sale, are
added to the cost of those assets, until such time as the assets are
substantially ready for the intended use or sale.

Investment income earned on temporary investment of specific
borrowings pending their expenditure on qualifying assets is recognized
in statement of profit and loss.

Discounts or premiums and expenses on the issue of debt securities are
amortized over the term of related securities are included within
borrowing costs. Premiums payable on early redemptions of debt
securities, in lieu of future costs, are recognized as borrowing costs.

All other borrowing costs are recognized as expenses in the period in
which it is incurred.

2.12 Revenue Recognition (Ind AS 18):

Revenue is recognized to the extent that it is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured. The following specific recognition criteria must also be met
before revenue is recognized:

a) Sales Revenue is recognized on dispatch to customers as per the
terms of the order. Gross sales are net of returns and applicable trade
discounts and excluding GST billed to the customers.

b) Subsidy from Government is recognized when such subsidy has been
earned by the company and it is reasonably certain that the ultimate
collection will be made.

c) Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head “other income” in the
statement of profit and loss.

d) All other incomes are recognized based on the communications held
with the parties and based on the certainty of the incomes.

2.13 Accounting for Government Grants and Disclosure of Government
Assistance (Ind AS 20):

Government grants:

Government grants are not recognized until there is reasonable
assurance that the Company will comply with the conditions
attached to them and that the grants will be received.

Government grants are recognized in the Statement of Profit and
Loss on a systematic basis over the years in which the Company
recognizes as expenses the related costs for which the grants are
intended to compensate or when performance obligations are me.

Government grants, whose primary condition is that the
Company should purchase, construct or otherwise acquire non-

current assets and nonmonetary grants are recognized and disclosed
as ‘deferred income’ under non-current liability in the Balance Sheet
and transferred to the Statement of Profit and Loss on a systematic
and rational basis over the useful lives of the related assets.

The benefit of a government loan at a below-market rate of interest
and effect of this favorable interest is treated as a government grant.
The loan or assistance is initially recognized at fair value and the
government grant is measured as the difference between proceeds
received and the fair value of the loan based on prevailing market
interest rates and recognized to the income statement immediately
on fulfillment of the performance obligations. The loan is
subsequently measured as per the accounting policy applicable to
financial liabilities.

2.14 Inventories (Ind AS 2):

Inventories are assets:

a. Held for sale in the ordinary course of business;

b. In the process of production for such sale;

c. In the form of materials or supplies to be consumed in the production
process or in the rendering of services

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

Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants
at the measurement date.

• Cost of Material excludes duties and taxes which are subsequently
recoverable.

• Stocks at Depots are inclusive of duty, wherever applicable, paid at the
time of dispatch from Factories.

• Based on the information provided the difference between physical
verification and valuation of the of inventories are charged to the profit

and loss account.

2.15 Trade Receivables - Doubtful debts:

A Trade receivable represents the company’s right to an amount of
consideration that is unconditional.

Provision is made in the Accounts for Debts/Advances which is in the
opinion of Management are Considered doubtful of Recovery.

2.16 Retirement and other Employee Benefits:

Retirement benefit in the form of provident fund is a defined contribution
scheme. The Company has no obligation, other than contribution
payable to the provident fund. The Company recognizes contribution
payable to the provident fund scheme as expenditure, when an employee
renders related service.

Gratuity liability is a defined benefit obligation and the cost of providing
the benefits under this plan is determined on the basis of actuarial
valuation at each year-end. Actuarial valuation is carried out for this
plan using the projected unit credit method. Actuarial gains and losses
for defined benefits plan is recognized in full in the period in which they
occur in the statement of profit and loss.

Accumulated leave, which is expected to be utilized within the next 12
months, is treated as short term employee benefit. The Company
measures the expected cost of such absences as the additional amount
that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward
beyond twelve months, as long-term employee benefit for measurement
purposes. Such long-term compensated absences are provided for based
on the actuarial valuation using the projected unit credit method at the
year-end. Actuarial gains/losses are immediately taken to the statement
of profit and loss and are not deferred. The Company presents the leave
as a current liability in the balance sheet, to the extent it does not have
an unconditional right to defer its settlement for 12 months after the
reporting date.

2.17 Ind AS 17- Leases

A Lease is classified as a Finance Lease if it transfers substantially all the
risks and rewards incidental to ownership. A lease is classified as an
operating lease if it does not transfer substantially all the risks and
rewards incidental to ownership.

Finance charges in respect of finance lease obligations are recognized as
finance costs in the statement of profit and loss. In respect of operating
leases for premises, which are cancellable / renewable by mutual
consent on agreed terms, the aggregate lease rents payable are charged
as rent in the Statement of Profit and Loss.

2.18 Insurance Claims:

Insurance Claims are accounted for on the basis of claims
admitted/excepted to be admitted and to the extent that the amount
recoverable can be measured reliably and it is reasonable to expect
ultimate collection.

2.19 Earnings per Share (Ind AS 33):

Basic earnings per share are 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. Partly paid
equity shares are treated as a fraction of an equity share to the extent
that they are entitled to participate in dividends relative to a fully paid
equity share during the reporting period. The weighted average number
of equity shares outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue, share split, and
reverse share split (consolidation of shares) that have changed the
number of equity shares outstanding, without a corresponding change in
resources.

For the purpose of calculating diluted earnings per share, the net profit
or loss for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2013

A. Basis of Accounting-

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards (''AS'') prescribed under the Companies (Accounting Standards) Rules, 2006. The financial statements are presented in Indian rupees rounded off to the nearest rupee.

The Accounting Policies are consistently applied by the company and are consistent with those used in the previous year.

b. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Fixed Assets 8c Depreciation

Fixed Assets are stated at their original cost less accumulated depreciation. Cost includes purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use.

Depreciation on fixed assets is provided according to straight-line method on the basis of the estimated useful life of the assets. The rates of depreciation given in Schedule XIV to the Companies Act, 1956 are considered as minimum rates. If the management''s estimate of the useful life of fixed assets is shorter than given in Schedule XIV, depreciation is accordingly provided at a higher rate.

d. Foreign currency transactions

Foreign currency transactions are accounted at the exchange rates prevalent on the date of the transaction. Realized gains / losses on account of exchange rate fluctuation are recognized in the accounts. Foreign currency assets and liabilities as at the balance sheet date are shown at the exchange rate prevalent on that date .The resultant difference due to exchange fluctuation is recognized in the accounts.

c. Retirement Benefits

Contribution to provident fund, which is a defined contribution plan, is charged to profit & loss account on accrual basis.

Gratuity is a defined benefit plan & provision for gratuity is done on the basis of actuarial valuation carried out as at balance sheet date using the Projected Unit Credit Method.

Retirement age 58 years

Future Salary Rise 4%

Rate of Discounting 8%

Attrition Rate 1 %

Mortality Table LIC (1994-96)

f. Revenue recognition

Income from sale of Goods is recognised at the point of dispatch to customers except in the case of consignment agents where the revenue is recognised only after sale is effected by the consignment agent. Sale Value includes Excise Duty,VAT and applicable freight.

g. Provisions and contingent liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. If the likelihood of outflow of resources is remote, no provision or disclosure is made.

h. Impairment of Assets

At each Balance sheet date,the company assesses whether there is any indication that ant asset may be impaired. If any such Indication exists,the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairement loss is charged to profit and loss account if,at the Balance sheet date there is an indication that a previously assessed impairement loss no longer exists,the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

No asset is impaired during the year as the assets are having recoverable value, which is more than the carrying amount.

i. Inventories

Items of Inventories are measured at Lower of cost or Net realizable value after providing for obsolescene,if any. Cost Comprises of Cost of Purchasc,cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Further the Inventories have been verified and certified by the management not been verified by the auditors.

j. Taxes on Income

i Current Tax

No provision for Income tax is made in the current year in view of computation of income resulting in loss as per the provisions of Income Tax Act. The Company is under the obligation to pay Minimum Alternate Tax (MAT), which is provided in the Books of Account.

ii. Deferred Tax

In view of the unabsorbed depredation and carried forward losses available for set off under the Income Tax Act, Deferred tax for the year is not recognised in the accounts on prudent basis.

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Mar 31, 2012

A. Basis of Accounting-

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards (''AS'') pre- scribed under the Companies (Accounting Standards) Rules , 2006 . The financial statements are presented in Indian rupees rounded off to the nearest rupee.

The Accounting Policies are consistently applied by the company and are consistent with those used in the previous year.

b. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires manage- ment to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Fixed Assets & Depreciation

Fixed Assets are stated at their original cost less accumulated depreciation. Cost includes purchase price and any directly attributable cost of bringing the asset to its working condi- tion for its intended use.

Depreciation on fixed assets is provided according to straight-line method on the basis of the estimated useful life of the assets. The rates of depreciation given in Schedule XIV to the Companies Act, 1956 are considered as minimum rates. If the management''s estimate of the useful life of fixed assets is shorter than given in Schedule XIV , depreciation is accordingly provided at a higher rate .

d. Foreign currency transactions

Foreign currency transactions are accounted at the exchange rates prevalent on the date of the transaction. Realized gains / losses on account of exchange rate fluctuation are recog- nized in the accounts. Foreign currency assets and liabilities as at the balance sheet date are shown at the exchange rate prevalent on that date .The resultant difference due to exchange fluctuation is recognized in the accounts.

e. Employee Benefits

1. Defined Benefit Plan :

i. Gratuity

Gratuity is a defined benefit plan & provision for Gratuity is done on the basis of actuarial valuation carried out as at balance sheet date using the Projected Unit Credit Method.

ii. Contributions to provident fund and employee state insurance are charged to profit & loss account on accrual basis.

f. Revenue recognition

Income from sale of Goods is recognised at the point of dispatch to customers except in the case of consignment agents where the revenue is recognised only after sale is effected by the consignment agent. Sale Value includes Excise Duty, VAT and appliable freight.

g. Provisions and contingent liabilities

The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. If the likelihood of outflow of resources is remote, no provision or disclosure is made.

h. Impairment of Assets

At each Balance sheet date,the company assesses whether there is any indication that ant asset may be impaired. If any such Indication exists,the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairement loss is charged to profit and loss account if,at the Balance, sheet date there is an indication that a previously assessed impairement loss no longer exists,the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost,

i. Inventories

Items of Inventories are measured at Lower of cost or Net realizable value after providing for obsolescene,if any. Cost Comprises of Cost of Purchase,cost of conversion and other costs incurred in bringing the inventories to the present location and condition. Further the Inventories have been verified and certified by the management not been verified by the auditors.

j. Taxes on Income Current Tax

No provision for Income tax is made in the current year in view of computation of , income resulting in loss as per the provisions of Income Tax Act. The Company is under the obligation to pay Minimum Alternate Tax (MAT), which is provided in the Books of Account.

ii. Deferred Tax

In view of the unabsorbed depreciation and carried forward losses available for set off under the Income Tax Act, Deferred tax for the year is not recognised in the accounts on prudent basis.

14. No asset is impaired during the year as the assets are having recoverable value, which is more than the carrying amount.

15. Remuneration to Directors. Remuneration : Rs. 13.00 Lacs ( Previous Year: 10.85 Lacs )

16. Balances of certain debtors, creditors, loans and advances, unsecured loans, receivables and payables are subject to confirmation and reconciliation and consequential adjustment in the accounts.

17. The details of micro and small enterprises units to whom the company owes a sum exceeding rupees one lac which is outstanding for more than 30 days as on the date of Balance Sheet. — NIL —

18. Previous year figures have been regrouped / rearranged wherever necessary to conform to the current year''s grouping / classification.

19. Schedules A to N'' annexed to the Balance Sheet and Profit and Loss Account form part of accounts.

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Mar 31, 2011

Basis of Accounting-

The Financial accounts have been prepared on historical cost convention and on accrual basis. The following are the Significant Accounting Policies followed by the Company-

A. Fixed Assets:

Fixed assets are stated at their original cost less depreciation and are net of modvat, if any. The cost includes cost of installation and all other incidental expenses that are incurred in connection with bringing the asset into working condition.

B. Depreciation:

Depreciation on Fixed Assets is charged as per straight-line method at the rates specified in Schedule XIV to die Companies Act, 1956.

C. Impairment of Assets :

At each Balance Sheet date, the company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairment loss is charged to profit & loss account if, at the Balance Sheet dire is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

D. Inventories:

Raw materials, Stores, Spares, Packing Materials and Work-in-process are valued at Cost. Finished goods are valued at lower of cost or net realizable value and include excise duty payable.

E. Revenue Recognition:

Sales shown are Gross sales and include duties and taxes. Revenue is recognized at the point of dispatch of materials from die factory to the customer.

F. Foreign Exchange transactions:

Foreign Exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations, if any, are accounted for at the time of realization / payment.

G. Miscellaneous Expenditure:

There was no deferred revenue expenditure debited to the Profit and Loss account during the current financial year.

H. Segment Reporting:

The business of the company, at present, consists of single product viz. Medical Disposables and therefore, there are no reportable Segments as per Accounting Standard (AS-17) 'Segment Reporting".

I. Retirement Benefits:

Provident Fund contributions are provided and charged to the Profit and Loss Account during the financial year. Provision for Gratuity is made on the basis of actuarial valuation in accordance with AS-15 " Employee Benefits" Leave Encashment benefit is accounted on payment basis.

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Mar 31, 2010

Basis of Accounting

The Financial accounts have been prepared on historical cost convention and on accrual basis. The following are the Significant Accounting Policies followed by the Company-

A. Fixed Assets:

Fixed assets are stated at their original cost less depreciation and are net of modvat, if any. The cost includes cost of installation and all other incidental expenses that are incurred in connection with bringing the asset into working condition.

B. Depreciation:

Depreciation on Fixed Assets is charged as per straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

C. Inventories:

Raw materials, Stores, Spares, Packing Materials and Work-in -process are valued at Cost. Finished goods are valued at lower of cost or net realizable value and include excise duty payable.

D. Revenue Recognition:

Sales shown are Gross sales and include duties and taxes. Revenue is recognized at the point of dispatch of materials from the factory to the customer.

E. Foreign Exchange transactions:

Foreign Exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations, if any, are accounted for at the time of realization / payment.

F Miscellaneous Expenditure:

There was no deferred revenue expenditure debited to the Profit and Loss account during the current financial year.

G. Segment Reporting:

The business of the company, at present, consists of single product viz. Medical Disposables and therefore, there are no reportable Segments as per Accounting Standard (AS-17) Segment Reporting".

H. Retirement Benefits:

Provident Fund contributions are provided and charged to the Profit and Loss Account during the financial year.

Gratuity is accounted on acrual basis based on actuarial valuation.

Leave Encashment benefit is accounted on payment basis.

1. Taxation:

A. No provision for Income tax is made in the current year in view of computation of income resulting in loss as per the provisions of Income Tax Act. The Company is under obligation to pay Minimum Alternate Tax (MAT), which is provided in the Books of Account.

B. Deferred Tax: In view of the unabsorbed depreciation and carried forward losses available for set off under Income Tax Act, Deferred tax for the year is not recognized in the accounts on prudent basis.

2. State Bank of Hyderabad, Himmatnagar Branch, Secunderabad has provided the Company with Working Capital facilities, which are secured by first charge on the current assets of the Company (both present and future). Term loans for Syringe project have been sanctioned by a consortium of State Bank of Hyderabad and State Bank of Mysore.

3. Loans from Banks are secured by :

i) First charge over Fixed Assets of the Company for both present and future to the extent of Bank finance by respective banks.

ii) Extension of first charge on all the current assets of the Company to SBH and extension of second charge to SBM.

iii) Extension of charge on all the collateral securities offered to working capital limits.

iv) Extension of equitable mortgage of Flat No.202, Krishna Apartments, Road No:4, Banjara Hills, Hyderabad, standing in the name of M/s. Pagita Leasing and Finance Company Limited.

v) Extension of Equitable mortgage of Flat No. 104, Amarchand Sharma Complex, Secunderabad standing in the name of M/s. Pagita Leasing and Finance Company Limited.

vi) Extension of Equitable mortgage of Factory Land admeasuring 9 acres and 12 guntas in survey nos.l82/b, 175/c at Yellampet village, Medchal Mandal, Ranga Reddy District standing in the name of Company.

vii) Corporate Guarantee of M/s Rayalaseema Concrete Sleepers Private Ltd and M/s. Pagita Leasing and Finance Company Limited.

viii) And further guaranteed by promoter directors of the Company in their personal capacity.

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Mar 31, 2009

Basic of Accounting :

The Financial accounts have been prepared on historical cost convention and on accrual basis. The following are the Significant Accounting Policies followed by the Company-

A. Fixed Assets:

Fixed assets are stated at their original cost less depreciation and are net of modvat, if any. The cost includes cost of installation and all other incidental expenses that are incurred in connection with bringing the asset into working condition.

B. Depreciation:

Depreciation on Fixed Assets is charged as per straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

C. Inventories:

Raw materials, Stores, Spares, Packing Materials and Work-in-process are valued at Cost. Finished goods are valued at lower of cost or net realizable value and include excise duty payable.

D. Revenue Recognition:

Sales shown are Gross sales and include duties and taxes. Revenue is recognized at the point of dispatch of materials from the factory to the customer.

E. Foreign Exchange transactions:

Foreign Exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations, if any, are accounted for at the time of realization / payment.

F Miscellaneous Expenditure:

There was no deferred revenue expenditure debited to the Profit and Loss account during the current financial year.

G. Segment Reporting:

The business of the company, at present, consists of single product viz. Medical Disposables and therefore, there are no reportable Segments as per Accounting Standard (AS-17) Segment Reporting".

H. Retirement Benefits:

Provident Fund contributions are provided and charged to the Profit and Loss Account during the financial year.

Gratuity is accounted on acrual basis based on actuarial valuation.

Leave Encashment benefit is accounted on payment basis.

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Mar 31, 2008

Basis of Accounting-

The Financial accounts have been prepared on historical cost convention and on accrual basis. The following are the Significant Accounting Policies followed by the Company-

A. Fixed Assets:

Fixed assets are stated at their original cost less depreciation and are net of modvat, if any. The cost includes cost of installation and all other incidental expenses that are incurred in connection with bringing the asset into Working condition.

B. Depreciation:

Depreciation on Fixed Assets is charged as per straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

C. Inventories:

Raw materials, Stores, Spares, Packing Materials and Work-in-process are valued at Cost. Finished goods are valued at lower of cost or net realizable value and include excise duty payable.

D. Revenue Recognition:

Sales shown are Gross sales and include duties and taxes. Revenue is recognized at the point of dispatch of materials from the factory to the customer.

E. Foreign Exchange transactions:

Foreign Exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations, if any, are accounted for at the time of realization / payment.

F. Miscellaneous Expenditure:

There was no deferred revenue expenditure debited to the Profit and Loss account during the current financial year.

G. Segment Reporting:

The business of the company, at present, consists of single product viz. Medical Disposables and therefore, there are no reportable Segments as per Accounting Standard (AS-17) Segment Reporting".

H. Retirement Benefits:

Contributions are made to the Statutory Body and are. debited to the Profit and Loss Account during the financial year.

Gratuity is accounted on actual basis based on acturial valuation.

Leave Encashment benefits is accounted on payment basis.

I. Taxation:

A. No provision for Income tax is made in the current year in view of computation of income resulting in loss as per the provisions of Income Tax Act. The Company is under obligation to pay Minimum Alternate Tax (MAT), which is provided in the Books of Account.

B. Deferred Tax: In view of the unabsorbed depreciation and carried forward losses available for set off under Income Tax Act. Deferred tax for the year is not recognized in the accounts on prudent basis.

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Mar 31, 2007

Basis of Accounting

The Financial accounts have been prepared on historical cost convention and on accrual basis. The following are the Significant Accounting Policies followed by the Company-

A. Fixed Assets:

Fixed assets are stated at their original cost less depreciation and are net of modvat, if any. The cost includes cost of installation and all other incidental expenses that are incurred in connection with bringing the asset into working condition.

B. Depreciation:

Depreciation on Fixed Assets is charged as per straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

C. Inventories:

Raw materials, Stores, Spares, Packing Materials and Work-in-process are valued at Cost. Finished goods are valued at lower of cost or net realizable value and include excise duty payable.

D. Revenue Recognition:

Sales shown are Gross sales and include duties and taxes. Revenue is recognized at the point of dispatch of materials from the factory to the customer.

E. Foreign Exchange transactions:

Foreign Exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations, if any, are accounted for at the time of realization / payment.

F. Miscellaneous Expenditure:

There was no deferred revenue expenditure debited to the Profit and Loss account during the current financial year.

G. Segment Reporting:

The business of the company, at present, consists of single product viz. Medical Disposables and therefore, there are no reportable Segments as per Accounting Standard (AS-17) Segment Reporting".

H. Retirement Benefits:

Contributions are made to the Statutory Body and are debited to the Profit and Loss Account during the financial year.

Gratuity and Leave Encashment benefits are accounted on payment basis.

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Mar 31, 2006

Basis of Accounting-

The Financial accounts have been prepared on historical cost convention and on accrual basis. The following are the Significant Accounting Policies followed by the Company-

A. Fixed Assets:

Fixed assets are stated at their original cost less depreciation and are net of modvat, if any.

The cost includes cost of installation and all other incidental expenses that are incurred in connection with bringing the asset into working condition.

B. Depreciation:

Depreciation on Fixed Assets is charged as per straight-line method at the rates specified in Schedule XIV to the Companies Act. 1956.

C. Inventories:

Raw materials, Stores, Spares, Packing Materials and Work-in-process are valued at Cost.

Finished goods are valued at lower of cost or net realizable value and include excise duty payable.

D. Revenue Recognition:

Sales shown are Gross sales and include duties and taxes. Revenue is recognized at the point of dispatch of materials from the factory to the customer.

E. Foreign Exchange transactions:-

Foreign Exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations, if any, are accounted for at the time of realization/payment.

F. Miscellaneous Expenditure:

There was no deferred revenue expenditure debited to the Profit and Loss account during the current financial year.

G. Segment Reporting:

The business of the company, at present, consists of single product viz. Medical Disposables and therefore, there are no reportable Segments as per Accounting Standard (AS-17) Segment Reporting".

H. Retirement Benefits:

Contributions are made to the Statutory Body and are debited to the Profit and Loss Account during the financial year.

Gratuity and Leave Encashment benefits are accounted on payment basis.

I. Taxation:

A. Current Tax: No provision for income tax is made in the current year in view of computation of income resulting in loss as per the provisions of Income Tax Act and further there is no obligation to pay MAT tax inview of reliefs under Income Tax Act.

B. Deferred Tax: In view of the unabsorbed depreciation and carried forward losses available for set off under Income Tax Act. Deferred tax for the year is not recognized in the accounts on prudent basis.

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Mar 31, 2005

Basis of Accounting

The Financial accounts have been prepared on historical cost convention and on accrual basis. The following are the Significant Accounting Policies followed by the Company.

A. Fixed Assets:

Fixed assets are stated at their original cost less depreciation and are net of modvat, if any. The cost includes cost of installation and all other incidental expenses that are incurred in connection with bringing the asset into working condition.

B. Depreciation:

Depreciation on Fixed Assets is charged as per straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

C. Inventories:

Raw materials, Stores, Spares, Packing Materials and Work-in-process are valued at Cost. Finished goods are valued at lower of cost or net realisable value and include excise duty payable.

D. Revenue Recognition:

Sales shown are Gross sales and include duties and taxes. Revenue is recognized at the point of dispatch of materials from the factory to the customer.

E. Foreign Exchange transactions:

Foreign Exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations, if any, are accounted for at the time of realisation/payment.

F. Miscellaneous Expenditure:

There was no deferred revenue expenditure debited to the Profit and Loss account during the current financial year.

G. Segment Reporting:

The business of the company, at present, consists of single product viz.

Medical Disposables and therefore, there are no reportable Segments as per Accounting Standard (AS-17) Segment Reporting".

H. Retirement Benefits:

Contributions are made to the Statutory Body and are debited to the Profit and Loss Account during the financial year.

Gratuity and Leave Encashment benefits are accounted on payment basis.

I. Taxation:

A. Current Tax: No provision for income tax is made in the current year in view of computation of income resulting in loss as per the provisions of Income Tax Act and further there is no obligation to pay MAT tax inview of reliefs under Income Tax Act.

B. Deferred Tax: In view of the unabsorbed depreciation and carried forward losses available for set off under Income Tax Act. Deferred tax for the year is not recognized in the accounts on prudent basis.

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Mar 31, 2001

Basis of Accounting.

The Financial accounts have been prepared on historical cost convention and on accrual basis. The following are the significant Accounting policies followed by the Company.

A. Fixed Assets:

Fixed assets are stated at their original cost less Depreciation and are net of any excise credit.

The total cost includes all the incidental expenses incurred in order to bring the asset into working condition.

B. Depreciation:

Depreciation on Fixed Assets is charged as per straight-line method at the rates specified in Schedule XIV to the Companies Act, 1956.

C. Inventories:

Raw materials, Stores, Spares, Packing materials and Work-in-process are valued at Cost. Finished goods are valued at lower of cost or net realisable value. Excise duty payable on finished goods is accounted for on clearance from the factory. However, the products manufactured by the Company are completely exempt from Excise duty with effect from 01.04.01.

D. Sales:

Sales include duty and are net of trade discounts. Revenue is recognized at the point of despatch of materials to the customer from the factory.

E. Foreign Exchange transactions:

Foreign Exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations, if any, are accounted for at the time of realisation/payment.

F. Miscellaneous Expenditure:

Public issue expenses are amortised over 5 years and are completely written off during this period under review, being the fifth and last year. Preliminary expenses, to be amortised over a period of 10 years, also are written off completely during this year. Market development expenditure as on 31.03.1999 was to be amortised over a period of 5 years. But the directors expressed the view that, as no benefit on price front is likely to accrue it will be prudent to write off the Brand/Product development expenditure in 3 years instead of 5 years. Accordingly the expenditure up to 31.03.1999 was totally written off as the three years period was over and 2/3rds of the expenditure incurred up to 30.06.2000 also was written off. Both the write offs were given effect in this current year.

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Jun 30, 2000

Basis of accounting :

The financial accounts have been prepared on historical cost convention and on accrual basis. The significant accounting policies followed by the Company are as stated below.

Fixed Assets :

Fixed assets are stated at their original cost less depreciation and are net of MODVAT. Cost includes all incidental expenses incurred in order to bring the assets into working condition.

Depreciation :

Depreciation on fixed assets is provided as per Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

Inventories :

Raw materials, Stores, Spares and Packing Material and Work in process are valued at Cost. Finished Goods are valued at lower of cost or net realisable value.

Excise Duty payable on finished goods is accounted for on clearance of goods from factory.

Sales :

Sales include excise duty and are net of trade discounts. Revenue is recognised at the point of despatch of materials to the customers from the factory.

Foreign Exchange transactions :

Foreign exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations are accounted for at the time of realisation/payment.

Liability in respect of Foreign Currency Term Loans for the capital goods has been translated at the applicable exchange rate prevailing on the last working day of the year. The resultant difference on account of such translation is added to/deducted from the cost of Fixed Assets.

Miscellaneous Expenditure :

Preliminary expenses are amortised over 10 years. Public issue expenses are amortised over 5 years. Market development expenditure is written off over a period of 5 years.

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Mar 31, 1999

Basis of accounting :

The Financial accounts have been prepared on historical cost convention and on accrual basis. The Significant accounting policies followed by the Company are as stated below.

Fixed Assets :

Fixed assets are stated at their original cost less depreciation and are net of MODVAT. Cost includes all incidental expenses incurred in order to bring the assets into working condition.

Depreciation :

Depreciation on fixed assets is provided as per Straight Line Method at the rates Specified in Schedule XIV to the Companies Act, 1956.

Inventories :

Raw materials, Stores, Spares and Packing Material and Work in process are valued at Cost. Finished Goods are valued at lower of cost or net realisable value.

Excise Duty payable on finished goods is accounted for on clearance of goods from factory.

Sales :

Sales include excise duty and are net of trade discounts. Revenue is recognised at the point of despatch of materials to the customers from the factory.

Foreign Exchange transactions :

Foreign exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations are accounted for at the time of realisation/payment.

Liability in respect of Foreign Currency Term Loans for the capital goods has been translated at the applicable exchange rate prevailing on the last working day of the year. The resultant difference on account of such translation is added to/deducted from the cost of Fixed Assets.

Miscellaneous Expenditure :

Preliminary expenses are amortised over 10 years. Public issue expenses are amortised over 5 years Market development expenditure to be written off over a period of 5 years from the year-2000.

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Mar 31, 1998

1. Basis of Accounting :

The accounts are prepared on historical cost basis.

Revenue is recognised and expenditure accounted on accrual basis.

2. Fixed Assets :

Fixed assets are stated at cost of acquisition plus all incidental expenses incurred in order to bring the assets into working condition and are net of MODVAT.

3. Depreciation :

Depreciation on fixed assets is provided as per Straight Line Method at the rates Specified in Schedule XIV to the Companies Act, 1956.

4. Inventories :

Raw materials, Stores, Spares and Packing Material and Work in process are valued at Cost, Finished Goods are valued at lower of cost or net realisable value.

Excise Duty payable on finished goods is accounted for on clearance of goods from factory. The amount of excise duty payable on finished goods not cleared from factory as at 31-03-98 is estimated at Rs.1,28,637 (Previous year Rs.1,54,099/-). However, non-accounting of this liability will not affect loss for the year.

5. Sales :

Sales (other than Export Sales) include excise duty. Revenue is recognised at the point of despatch of materials to the customers from the factory.

6. Foreign exchange transactions :

Foreign exchange transactions are recorded at exchange rates prevailing on the date of the transaction. Exchange fluctuations are accounted for at the time of realisation/payment.

Liability in respect of Foreign Currency Term Loans for the capital goods has been translated at the applicable exchange rate prevailing on the last working day of the year. The resultant difference on account of such translation is added/deducted to the Fixed Assets.

7. Miscellaneous Expenditure :

Preliminary expenses are amortised over 10 years. Public issue expenses are amortised over 5 years. Market development expenditure to be written off over a period of 5 years from the year 1999-2000.

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Mar 31, 1997

Basis of Accounting

The accounts are prepared on historical cost basis. Revenue is recognised and expenditure accounted on accrual basis.

Fixed Assets :

Fixed assets are stated at cost of acquisition plus all incidential expenses incurred in order to bring the assets into working condition.

Depreciation :

Depreciation on fixed assets is provided as per Straight line method at the rates specified in Schedule XIV to the Companies Act, 1956.

Inventories :

Raw materials are valued at lower of cost or net realisable value. Stores, Spares and Packing materials are valued at cost. Work in Process is valued at Cost. Finished Goods are valued at lower of cost or net realisable value. Excise Duty payable on finished goods is accounted for on clearance of goods from factory. The amount of excise duty payable on finished goods not cleared from factory as at 31-03-97 is estimated at Rs. 1,54,099 (Previous year Rs. Nil). However, non-accounting of this liability will not affect profit for the period.

Sales :

Sales (Other than Export Sales) include excise duty. Revenue is recognised at the point of despatch of materials to the customers from the factory.

Foreign exchange transactions :

Foreign exchange transactions are accounted at exchange rates prevailing on the date the transaction. Exchange fluctuations are accounted for at the time of realisation/payment. Liability in respect of Foreign Currency Term Loans for the capital goods has been translated at the applicable exchange rate prevailing on the last working day of the year. The resultant difference on account of such translation is added to the Fixed Assets.

Miscellaneous Expenditure : Preliminary expenses are amortised over 10 years. Public issue expenses are amortised over 5 years.