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.
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.
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
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.