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Moneycontrol.com India | Accounting Policy > Pharmaceuticals > Accounting Policy followed by Nutraplus Product (India) - BSE: 524764, NSE: N.A
Nutraplus Product (India)
BSE: 524764|ISIN: INE230G01012|SECTOR: Pharmaceuticals
Apr 16, 17:00
0.64 (4.91%)
VOLUME 1,800
Nutraplus Product (India) is not listed on NSE
Mar 12
Accounting Policy Year : Mar '13
1.1 Accounting Convention & Revenue Recognition:
 The financial statements are prepared under the Historical Cost
 Convention on a Going Concern Basis. The Company generally follows the
 Mercantile System of Accounting and recognises Income and Expenditure
 on Accrual basis excepts those with significant uncertainties and is
 consistent with Generally accepted accounting principles. The
 significant accounting policies followed by the Company are stated
 below.  Revenue recognition
 Revenue from sales is recognized on transfer of significant risks and
 rewards of ownership to customers based on the contract with the
 Customers for delivery. Sales include excise duty but are net of sales
 returns and trade discounts and exclude sales tax / value added tax.
 1.2 Use of estimates:
 The preparation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reported period. Difference
 between the actual results and estimates are recognized in the period
 in which the results are known / materialized.
 1.3 Tangible fixed assets
 Fixed assets are carried at cost less accumulated depreciation and
 impairment losses, if any. The cost of fixed assets includes interest
 on borrowings attributable to acquisition of Qualifying fixed assets up
 to the date the asset is ready for its intended use and other
 incidental expenses incurred up to that date. Exchange differences
 arising on restatement / settlement of long-term foreign currency
 borrowings relating to acquisition of depreciable fixed assets are
 adjusted to the cost of the respective assets and depreciated over the
 remaining useful life of such assets. Machinery spares which can be
 used only in connection with an item of fixed asset and whose use is
 expected to be irregular are capitalised and depreciated over the
 useful life of the principal item of the relevant assets. Subsequent
 expenditure relating to fixed assets is capitalised only if such
 expenditure results in an increase in the future benefits from such
 asset beyond its previously assessed standard of Performance.
 Fixed assets acquired and put to use for project purpose are
 capitalised and depreciation thereon is included in the project cost
 till commissioning of the project.  Capital work-in-progress:
 Projects under which assets are not ready for their intended use and
 other capital work-in- progress are carried at cost, comprising direct
 cost, relate''d incidental expenses and attributable interest.
 Intangible fixed Assets:
 Intangible assets are recognised through business combination are
 accounted as per Accounting standard 14 viz. Accounting for
 1.4 Depreciation:
 Depreciation of Fixed Assets is charged on ''Straight Line Method'' as
 per Schedule XIV to the Companies Act, 1956.
 Leasehold land is amortized over the period of lease
 1.5 Impairment of Assets:
 An asset is treated as impaired when the carrying cost of assets
 exceeds its recoverable value.  An impairment loss is charged to the
 profit and loss Account in the year in which an asset is identified as
 impaired. The impairment loss recognized in prior accounting period is
 reversed if there has been a change in the estimate of recoverable
 1.6 Investments:
 Long-term investments (excluding investment properties), are carried
 individually at cost less provision for diminution, other than
 temporary, in the value of such investments. Current investments are
 carried individually, at the lower of cost and fair value. Cost of
 investments include acquisition charges such as brokerage, fees and
 Investment properties are carried individually at cost less accumulated
 depreciation and impairment, if any. Investment properties are
 capitalised and depreciated (where applicable) in accordance with the
 policy stated for Tangible Fixed Assets. Impairment of investment
 property is determined in accordance with the policy stated for
 Impairment of Assets.
 1.7 Inventories:
 Inventories are valued at the lower of cost or estimated net realizable
 value. Cost of finished goods includes cost of material; direct labour,
 direct expenses and production overheads except depreciation.  ''
 1.8 Preliminary and Share Issue Expenses:
 Preliminary and Share Issue Expenses are amortised proportionately over
 a period of 5years.  Preoperative expenses have been amortised over a
 period of 5 years.
 1.9 Employee Benefits:
 i. Gratuities liabilities are worked out as per own estimates.  ii. The
 provident fund Rules are not applicable to the Company.
 1.10 Taxes on Income: Current tax
 Provision for Income Tax is determined in accordance with the
 provisions of the Income Tax Act, 1961.
 Deferred tax Provision:
 Deferred tax assets and liabilities arising on account of timing
 differences, being the Difference between the taxable income and the
 accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods, are recognized using the
 tax rates and tax laws that have been enacted.
 1.11 Segment Reporting:
 The Company operates only in one segment viz. Bulk Drugs Intermediates
 and hence there are no other reportable segments as per the Accounting
 Standard 17.
 1.12 Borrowing Cost:
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of the cost
 of such assets A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to revenue.
 1.13 Financial Derivatives:
 Financial derivatives contracts are accounted on the date of their
 settlement and realized gain / loss, if any, in respect of settled
 contract are recognized in the profit and loss account, along with the
 underlying transactions.
 1.14 Foreign Currency Transactions:
 Transactions in foreign currencies, to the extent not covered by
 forward contracts, are accounted at exchange rates prevailing at the
 time of the transactions are affected and expressed at the year-end
 exchange rates. Any other exchange differences except relating to Fixed
 Assets are dealtwith in the Profit and Loss Account. Non-monetary
 foreign currency items, if any, are carried at cost.
 Export Incentive
 The export made through merchant exporter, the company is eligible for
 export incentive in the form of license, which company utilizes for
 import of raw materials, which is accounted for duty exemption. The
 unutilized part of the license is sold in the market. Company accounts
 such sale under the head other income. The accounting of export
 incentive is recognized on accrued basis.  The sale of such license and
 benefit accrued thereon is accounted in sales.
 1.15 Provision, Contingent Liabilities and Contingent Assets:
 Provision involving substantial degree of estimation in measurement is
 recognized when there is present obligation as result of past events
 and it is probable that will be an outflow of resources.  Contingent
 Liabilities are not recognized but are disclosed in the notes.
 1.16 Cash and cash equivalents (for purposes of Cash Flow Statement)
 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.
 1.17 Cash flow statement
 Cash flows are reported using the indirect method, whereby
 profit/(loss) before extraordinary items and tax is adjusted forthe
 effects of transactions of non-cash nature and any deferrals or
 accruals of pastor future cash receipts or payments. The cash flows
 from operating, investing and financing activities of the Company are
 segregated based on the available information.
 1.18 Earnings per share
 Basic earnings per share is computed by dividing the profit/(loss)
 after tax (including the post tax effect of extraordinary items, if
 any) by the weighted average number of equity shares outstanding during
 the year. Diluted earnings per share is computed by dividing the profit
 / (loss) aftertax (including the post tax effect of extraordinary
 items, if any) as adjusted for dividend, interest and other charges to
 expense or income relating to the dilutive potential equity shares, by
 the weighted average number of equity shares considered for deriving
 basic earnings per share and the weighted average number of equity
 shares which could have been issued on the conversion of all dilutive
 potential equity shares. Potential equity shares are deemed to be
 dilutive only if their conversion to equity shares would decrease the
 net profit per share from continuing ordinary operations. Potential
 dilutive equityshares are deemed to be converted as atthe beginning
 ofthe period, unless they have been issued at a later date. The
 dilutive potential equity shares are adjusted forthe proceeds
 receivable had the shares been actually issued at fair value (i.e
 average marketvalue ofthe outstanding shares).  Dilutive potential
 equity shares are determined independently for each period presented.
 The number of equity shares and potentially dilutive equity shares are
 adjusted for share splits / reverse share splits and bonus shares, as
 1.19 Insurance claims
 Insurance claims are accounted for on the basis of claims admitted /
 expected to be admitted and to the extent that there is no uncertainty
 in receiving the claims.
 1.20 Service tax input credit
 Service tax input credit is accounted for in the books in the period in
 which the underlying service received is accounted and when there is no
 uncertainty in availing / utilising the credits
Source : Dion Global Solutions Limited
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