NOTES FORMING PART OF THE ACCOUNTS NOTE. 1. ACCOUNTNG ASSUMPTIONS : The accounts have been brpared under the historic cost convention on the basis of a going concern concept, with revenues recognized and expenses accounted for on their accrual with due provisions/adjustments for obligations that have been crystallized but not yet incurred. 2. SALES : Sales include VAT. 3. BASIS OF brSENTAION : The structure of the accounts has been drawn in accordance with the Revised Schedule VI of the Companies Act, 1956. 4. FIXED ASSETS: Fixed Assets are stated at cost less debrciation. Cost includes freight, installation Charges, duties, taxes, and other incidental charges thereon. 5. DEbrCIATION: Debrciation is charged on straight line method as per Schedule XIV of the Companies Act, 1956. Debrciation on assets acquired during the year is calculated on pro-rata basis with reference to the date of acquisition. 6. TAXATION: Deferred Tax is recognized, subject to the consideration of prudence, on timing difference being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. 7. INVENTORIES: Inventories are valued as under. a) Raw materials are valued at cost less VAT. b) Finished goods are valued at cost price excluding Central Excise on them. c) Excise duty is accounted for as and when the same is paid on the dispatch of the goods from the factory. 8. RETIREMENT BENEFITS The company has a policy of paying retirement benefits to its employees as and when due. 9. INVESTMENTS: Investments stated at cost. 10. MISCELLANEOUS EXPENDITURE: All expenditure, the benefit of which is sbrad over a number of years grouped under Miscellaneous Expenditure to be amortized in five instalments from the year in which the benefit of such expenditure accrues. Notes forming part of the Balance Sheet as at 31st March, 2015 and Profit and Loss statement for the period ended on that date. 1. SALES OF PLANT L& MACHINERY Since the plant & Machinery are very old and could not be upgraded, the production was getting hampered frequently. Further to this, power cuts and shortages are added burden on the production cycle. With the result, Working capital account became NPA, Under these circumstance, the company took the approval from Shareholders through postal ballot and sold the assets, cleared the liabilities to the bank and other statutory bodies. However the company is planning to manufacture fine chemicals in leased brmises and also trade with Bulk drugs, intermediates and cosmetics to improve workings of the company. 2. SECURED LOANS The secured loan towards working capital was totally repaid to Union Bank of India during the year. 3. DEbrCIATION Debrciation on fixed assets has been provided as per the rate brscribed in Schedule XIV of the Companies Act, 1956 on straight line method. The debrciation in the current year is taken on Plant and Machinery on single shift basis. 6. BONUS No bonus has been paid or provided during the period in the accounts of the Company as no employee is eligible for the same 7. INCOME TAX Since the Company has incurred loss no provision is made for the Income Tax. 8. The Company is dealing only in pharmaceutical segment and only at one location and hence there are no segments to be reported separately Signatures to Notes to 25 As per our report attached For DURGA PRASAD ASSOCIATES CHARTERED ACCOUNTANTS For And On Behalf Of The Board J.S.R DURGA PRASAD Partner Membership No. : 25729 N.V.NARENDER Chairman & Managing Director Dr.A.RAMAKRISHNAIH Director Place : Hyderabad Date: 5th September 2015 |