Vasundhara Rasayans Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

NOTE -1

A Corporate Information

Vasundhara Rasayans Limited ("the Company”) is a listed entity incorporated in India having registered office at Shed No.42, Phase II, IDA Mallapur, Hyderabad-500076. The Company is engaged in manufacturing and selling Antacids therapeutic category of Active Pharm Ingredients.

B Material Accounting Policies

a) Basis of preparation of financial statements

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the companies (Indian Accounting Standard) Rules,2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016, the relevent provisions of the Companies Act, 2013 ("the Act) and guidelines issued bt the Securities and Exchange Board of India (SEBI), as applicable

The financial statements are prepared on accrual basis under the historical cost convention method.

b) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are charged to the Statement of Profit and Loss for the period for which they are incurred.

c) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

d) Inventories

Items of inventories are measured at lower cost and net realisable value after providing for obsolescence, if any, except in case of by products which are valued at net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective present location and condition.

Cost of raw materials, chemicals, stores and spares, packing materials, trading and other products are determined on weighted average basis.

e) Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.

f) Revenue Recognition

Revenue from sale of goods is recognised when the significant risk and reward of ownership have been transferred to buyer, recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of revenue can be measured reliably.

Revenue from rendering of service is recognised when the performance of agreed contractual task has been completed.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.

Revenue from operations includes sale of goods, services, service tax, excise duty, GST and adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

Interest income from financial assets is recognised using the effective interest rate method.

Dividend is recognised when the Company’s right to receive the payment has been established.

g) Financial Instrument Financial Assets

A. Initial recognition and measurement

All financial assets and liablities are initially recognised at fair value. Transaction cost that are directly attributable to the acquisition or issue of financial assets and financial liablities, which are not fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.

B. Subsequent measurement

i. Financial asset carried at ammortised cost

A financial asset is measured at ammortised cost if it is held within a business model whose objective is to hold the assset in order to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payment of principal and interest on the principal outstanding.

ii. Financial asset at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cashflows and selling financial assets and the contractual terms of the financial assets give rise on a specified date to cash flows that are solely payment of principal and interest on the principal amount outstanding.

iii. Financial asset at fair value through profit or loss (FVTPL)

A financial asset which is not classified in an y of the above category are measured at FVTPL.

C. Investment in Subsidiaries, Associates and Joint Ventures

The Company has accounted for its investments in subsidiaries at cost.

D. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the company has elected to present the value changes in "Other Comprehensive Income”.

Financial Liablities

A. Initial recognition and measurement

All financial liablities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liablities are carried at ammortized cost using the effective interest method. For trade and other payable maturing within one year from the balance sheet date, the carrying amount approximate fair value due to the short maturity of these instruments.

Derivative financial instrument and Hedge Accounting

Derivate financial instrument are initially recognised at fair value on the date on which derivative contract is entered into and are also susequently measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liablities when the value is negative.

Any gain or losses arising from changes in the fair value of derivatives are taken directly to the Statement of Profit and Loss, except for the effective portion of cash flow hedge which is recognised in Other Comprehensive Income and later to Statement of Profit and Loss when the hedged items affects profit or loss or treated as basis adjustments if a hedged forecast transactions subsequently results in the recognition of non-financial assets or non financial liablity.

Derecognition of financial instrument

The Company derecognizes a financial asset when the contractual right to cash flows from the financial assets expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liablity (or part of a financial liablity) is derecognized from the company’s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

h) Material Accounting Estimates

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affects the reported amounts of revenues, expenses, assets and liablities and the accompanying disclosures and the disclosures of contingent liablities. These includes recognition and measurement of financial instruments, estimates of useful lives and residual value

of Property, Plant and equipment and intangible assets, valuation of Inventories, measurements of employee benefits, actuarial assumptions, provisions etc.

Uncertainty about these assumptions and estimates could result in outcomes that requires a material adjustment to the carrying amount of assets or liablities affected in future periods. The Company continually evaluates these estimates and assumptions based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the Statement of Profit and Loss in the period in which the estimate are revised and in any future periods affected.

A Corporate Information

Vasundhara Rasayans Limited ("the Company”) is a listed entity incorporated in India
having registered office at Shed No.42, Phase II, IDA Mallapur, Hyderabad-500076. The
Company is engaged in manufacturing and selling Antacids therapeutic category of Active
Pharm Ingredients.

B Material Accounting Policies

a) Basis of preparation of financial statements

The financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the companies (Indian Accounting Standard)
Rules,2015 as amended by the Companies (Indian Accounting Standards)
(Amendment) Rules, 2016, the relevent provisions of the Companies Act, 2013 ("the
Act) and guidelines issued bt the Securities and Exchange Board of India (SEBI), as
applicable

The financial statements are prepared on accrual basis under the historical cost
convention method.

b) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets. A qualifying asset
is one that necessarily takes substantial period of time to get ready for its intended
use.

Interest income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible
for capitalisation.

All other borrowing costs are charged to the Statement of Profit and Loss for the
period for which they are incurred.

A Corporate Information

Vasundhara Rasayans Limited ("the Company”) is a listed entity incorporated in India
having registered office at Shed No.42, Phase II, IDA Mallapur, Hyderabad-500076. The
Company is engaged in manufacturing and selling Antacids therapeutic category of
Active Pharm Ingredients.

B Material Accounting Policies

a) Basis of preparation of financial statements

The financial statements have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the companies (Indian Accounting Standard)
Rules,2015 as amended by the Companies (Indian Accounting Standards)
(Amendment) Rules, 2016, the relevent provisions of the Companies Act, 2013 ("the
Act) and guidelines issued bt the Securities and Exchange Board of India (SEBI), as
applicable

The financial statements are prepared on accrual basis under the historical cost
convention method.

b) Finance Cost

Borrowing costs that are directly attributable to the acquisition or construction of
qualifying assets are capitalised as part of the cost of such assets. A qualifying asset
is one that necessarily takes substantial period of time to get ready for its intended
use.

Interest income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible
for capitalisation.

All other borrowing costs are charged to the Statement of Profit and Loss for the
period for which they are incurred.

A) ACCOUNTING CONVENTION:

The Financial Statements have been prepared to comply with Generally Accepted Accounting Principles India (Indian GAAP), including the Accounting Standards notified under the relevent provisions of the Companies Act 2013.

The financial statements are prepared on accrual basis under the historical cost convention method.

B) USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires judgement, estimates and assumption to be made that affact the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

C) FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of inward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use.

D) USE OF ESTIMATES:

The preparation of financial statements in conformity with the accounting standards requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of financial statements and the reported amount revenues and expenses during the reporting period. Difference between the actual result and the estimates are recognized in the period in which the result is known.

E) DEPRECIATION:

Depreciation is provided to the extent of depreciable value on the straight line method. Depreciation is provided on useful life of the asset as per prescribed in Schedule II of the Companies Act. 2013.

In respect of additions or extensions forming an intergral part of existing assets, depreciation is proforesaid over the residual life of the respective assets.

F) PURCHASES:

Purchase includes the materials issued for production which has also been shown under raw materials consumption.

G) REVENUE RECOGNITION:

Sale of goods and services are recognized on despatch of goods or when services are rendered.

H) INVENTORIES:

(1) Raw materials are valued at cost.

(2) Work in Progress is valued raw material cost and proportion of process cost.

(3) Finished goods are valued at lower of cost of sales exclusive of excise duty and net realisable value.

I) FOREIGN CURRENCY TRANSACTIONS:

(i) Foreign Currency Transactions are recorded at the exchange rate prevailing on the date of transaction with overseas clients.

(ii) Exchange difference arising on Foreign Currency Transactions are recognized as income or expenses in the period in which they arise.

h) EMPLOYEES BENEFITS:

I) Short term Employees Benefits :

The short term employee benefits are expected to be paid in exchange for the services rendered by the employees when the employees render services and are recognized as an expense during the same period these benefits include performance bonus and other incentives.

II) Defined Benefit Obligations :

The liability in respect of defined benefit plans and other post employment benefits is calaculated using projected unit credit method and spread over the period during which the benefit is expected to be derived from the employees services.

Acturial Gain or Loss in respect of post employment and other long term benefits are changed to the Profit and Loss Statement.

K) INCOME TAX:

Income Taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arises. A provision is made for income tax annually based on the tax liability computed after Considering tax allowance and exemptions.

The differences that result between the profit offered for income taxes and profit as per financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

L) EARNINGS PER SHARE:

In determining earnings per share the company considers the net profit after tax and includes post tax effect of any extra ordinary items. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the period. The company does not have any dilutive potential equity shares.

A) ACCOUNTING CONVENTION:

The Financial Statements are prepared on an accrual basis and are in accordance with the requirement of the Companies Act, 1956 and the applicable Accounting Standards.

b) FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of inward freight ,taxes and other incidental expenses incurred to bring the assets to their working condition for intended use.

c) DEPRECIATION:

Depreciation is provided for under straight line method at the rates and manner specified Schedule XIV of the Companies Act, 1956.

d) PURCHASES:

Purchase includes the materials issued for production which has also been shown under raw materials consumption.

e) REVENUE RECOGNITION:

Sale of goods and services are recognized on despatch of goods or when services are rendered.

f) INVENTORIES:

(1) Raw materials are valued at cost

(2) Work in Progress is valued raw material cost and proportion of process cost.

(3) Finished goods are valued at lower of cost of sales exclusive of excise duty and net realizable value.

g) FOREIGN CURRENCY TRANSACTIONS:

(i) Foreign Currency Transactions are recorded at the exchange rate prevailing on the date of transaction with overseas clients.

(ii) Exchange difference arising on Foreign Currency Transactions are recognized as income or expenses in the period in which they arise.

h) RETIREMENT BENEFITS:

LEAVE PAY:

Provision/payment of leave pay is made as per the agreement with the employees.

i) INCOME TAX:

Income Taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arises. A provision is made for income tax annually based on the tax liability computed after Considering tax allowance and exemptions.

The differences that result between the profit offered for income taxes and profit as per financial statements are identified and thereafter a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on prevailing enacted or substantially enacted regulations Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

j) EARNINGS PER SHARE:

In determining earnings per share the company considers the net profit after tax and includes post tax effect of any extra ordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The company does not have any dilutive potential equity shares.

2.5 The Company has not issued any securities convertible into equity / preference shares.

2.6 During any of the last years from year ended 31st March, 2014

a) No shares were allotted as fully paid up pursuant to contract(s) without payment being received in cash.

b) No shares were allotted as fully paid up by way of bonus shares.

c) No shares were bought back.

A) ACCOUNTING CONVENTION:

The Financial Statements are prepared on an accrual basis and are In accordance with the requirement of the Companies Act, 1956 and the applicable Accounting Standards.

b) FIXED ASSETS;

Fixed Assets are stated at cost fess accumulated depreciation. Cost of acquisition is inclusive of [nward freight, taxes and other incidental expenses incurred to bring the assets to their working condition for intended use.

c) DEPRECIATION:

Depreciation is provided for under straight line method at the rates and manner specified in Schedule XIV of the Companies Act,''1956.

d) PURCHASES;

Purchase includes the materials issued for production which has also been shown under raw materials consumption.

e) REVENUE RECOGNITION:

Sale of goods and services are recognised on despatch of goods or when services are rendered.

f) INVENTORIES:

(t) Raw material sarevaI ued at cost.

(2) Work in Progress is valued raw material cost and proportion of process cost

(3) Finished goods are valued at lower of cost of sales exclusive of excise duty and net realisable value.

g) FOREIGN CURRENCY TRANSACTIONS:

Foreign Currency Transactions are recorded at the exchange rate prevailing on the date of transaction with overseas clinets.

[if) Exchange difference arising on Foreign Currency Transactions are recognised as income or expenses in the period in which they arise.

h) RETIREMENT BENEFITS: LEAVE PAY; Provision/payment of leave pay is made as per the agreement with the employees.

I) INCOME TAX:

Income Taxes are computed using the tax effect accounting method, where taxes are accrued in the same period the related revenue and expenses arises. A provision is made for income tax annually based on the tax liability computed after considering tax allowance and exemptions.

The differences that result between the profit offered for income taxes and profit as per financial statements are identified and thereafter a deferred tax asset or deferred tax liability Is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount be i n g con sidered. Th e tax effect is ca I cu lated an t he accu mu ta ted ti m in g d ifferences at th e end of an accounting period based on prevailing en acted or substantially enacted regulations. Deferred tax assets are recognized only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

]} EARNINGS PER SHARE:

In determining earnings per share the company considers the net profit after tax and includes post tax effect of any extra ordinary items. The number of shares used in computing basic earning per share is the weighted average number of shares outstanding during the period. The company does not have any dilative potential equity shares.