1. ACCOUNTNG ASSUMPTIONS :
The Acc. have been prepared under the historic cost convention on
the basis of 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 includes excise duty & VAT.
3. BASIS OF PRESENTAION :
The structure of Acc. have been drawn in accordance with the
Schedule VI of Companies Act, 1956.
4. FIXED ASSETS:
Fixed Assets are stated at cost less depreciation. Cost includes
freight, installation Charges, duties, taxes, & other incidental
charges thereon. The plant & Machinery acquired during the year has
been capitalized net of CENVAT & VAT Credit available on such
purchase.
5. DEPRECIATION:
Depreciation has been charged on straight line method as per Schedule
XIV of Companies Act, 1956. Depreciation on assets acquired during
the year is calculated oh 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 income and
accounting income that originate in one period & are capable of
reversal in one or more subsequent period.
7. INVENTORIES:
Inventories are valued as under.
as] Raw materials are valued at cost less Cenvat & Vat.
bs] Finished goods are valued at cost price excluding Central Excise on
them.
cs] Excise duty is accounted for as & when the same is paid on the
dispatch of goods from the factory.
7. INVESTMENTS: Investments stated at cost.
8. RETIREMENT BENEFITS:
The Comp. has a policy of paying the retirement benefits to its
employees as & when due.
9. PRELIMINARY EXPENSES AND PRE OPERATIVE EXPENSES:
as]. All expenditure, the benefit of which is spread over a number of
years grouped under Miscellaneous Expenditure as 'Preliminary Expenses'
to be amortised in Ten installments from the year in which the benefit
of such expenditure accrues. The year 2005-06 installment was the last
one.
bs]. All preoperative expenditure for acquiring fixed assets or raising
capital are amortised over a period of five years.
10. MISCELLANEOUS EXPENDITURE:
Research and Development & Preoperative Expenditure is being written
off over a period of five years. During the yea Rs. 5,99,089/- have
been written off under the respective heads.
11. The Comp. is dealing only in pharmaceutical segment & only at
one location & hence there are no segments to be reported separately
12. COMPUTATION OF EARNINGS PER SHARE
2007-08 2006-07
Profit / loss for year 5,59,835 1,19,06,342
Number of Equity Shares 66,85,300 52,85,300
Earning per share 0.08 2.25
13. Related Party Disclosure:
[is] Key Management Personnel: N.V.Narendaarr - Managing Director
Interested to the extent of Salary only
14. None of employee were in receipt of over Rs.2,00,000/- p.m. or
Rs.24,00,000/- p.a. whether the employed for whole or part of the
year respectively.
15. The balances of all Sundry Debtors, Sundry Creditors, Loans and
advances payables & receivables have not been confirmed by the
parties.
16. Previous year figures have been regrouped & reclassified wherever
considered necessary.
