NOTE 1 -NOTES FORMING PART OF THE FINANCIAL STATEMENTS

A. SIGNIFICANT ACCOUNTING POLICIES :-

Company Overview

Medicaps Limited ('the Company") was incorporated in 1983 as Medi Caps Pvt. Ltd. The Company together with its subsidiary operates as a Pharmaceutical organization with business encompassing the entire value chain in the Marketing, production and distribution of Empty Hard Gelet in Capsules.

The Company's shares are listed for trading on the Bombay Stock Exchange Limited (BSE)and Madhya Pradesh Stock exchange (MPSE) in India.

a) Basis of brparation of financial statements :-

The Financial Statements of the company have been brpared under the historical cost inventions, in accordance with Indian Generally Accepted Accounting Principles to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act,1956 (which continue to be applicable in respect of section 133 of the Companies Act, 2013, to the extent applicable in terms of General Circular 15/2013 dated 13 Sep, 2013 of the Ministry of Corporate Affairs) This Financial Statements have been brpared on accrual basis and the accounting policies adopted are Consistent with followed in the brvious year.

b) Fixed Assets and Debrciation :-

Fixed assets are stated at cost net of cenvat or revalued figures less debrciation provided on straight line basis at the rates specified on Schedule XIV to the Companies Act, 1956 (as amended )and on pro-rata basis. Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost. Comprising of direct cost, related incidental expenses and attributable interest.

c) Investments:

The Company has policy to make investments on strategic and long term basis and the investments have been shown as the cost of investments of acquisition, no adjustments for change in the valuations as on the date of the balance sheet being made, as it has temporary in the nature.

d) Valuation of Inventories :-

Inventories are valued at lower of cost or net realisable value.

e) Foreign Exchange Transactions :-

Transaction in foreign currency is recorded by applying rate applicable on the date of transaction. The Difference if any on actual payments / realisation is charged off to revenue.

f) Sundry Debtors and Advances :-

Company's management periodically verify the outstanding balance of sundry debtors, advances etc and on the basis of such verification management determines whether the said outstanding are good, bad or doubtful and Accordingly same are written off or provided for.

g) Research & Developments :-

Capital Expenditure is treated in same line as any other Capital expenditure and Revenue expenditure is charged to the respective heads of Profit & Loss Accounts.

h) Terminal Benefits :-

Gratuity Liability is accounted for an accrual basis & the company has constituted trust with Life Insurance Corporation of India, Separate accounts for fund deposited with LIC and Provision for Gratuity Payable maintained by Company. Leave Encashment is accounted on Cash basis i.e. It is accounted for as and when paid.

I) Taxations

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax recognised, subject to the consideration of prudence in respect of deferred tax assets as timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

j) Earning Per Share:-

Basic and Diluted earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders bythe weighted average number of equity snares outstanding during the period.

k) Revenue Recognition

Revenue from sale of goods is recognized includes excise duty. Revenue (including in respect of insurance or other claims etc.) is recognized when it is reasonable to expect that the collection will be made. Interest income is accounted on accrual basis. Dividend from investment is recognized as revenue when right to receive the payments is established.

I) Employee Benefits:

Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encashment Scheme managed by Life Insurance Corporation of India is a Defined Benefit Plan.

Defined Contribution Plans

The company's contribution paid/ payable for Provident Fund, ESIC and Pension Fund for the year is recognized in the statement of Profit and Loss.

Short Term Employee benefits

Short term benefits are recognized as an expenses in the statement of profit & loss of the year in which the related services are rendered

Note 2 Segment Information

Information on segment reporting as per Accounting standard-17,the entire operation of the company related to one segment as such there is no separate reporting required. Company's earning include Rs.(176.34) Lacs from interest, Dividend and income from Investments, However as per explanation given in AS-17 Segment revenue does not include Dividend income, interest & income from Investment hence there is no separate reporting required.

Note 3 Deffered Tax

Information on deferred tax has been provided in accordance with AS-22 Accounting for taxation on Income, issued by the Institute of Chartered Accountants of India with effect from 1st April 2001.

The accumulated net deferred tax liability amounting to Rs.12866070/- has been adjusted against the general reserve. Further, the deferred tax assets for the year is Rs.866939/- has been recognized in the Statement of Profit & Loss.

Note 4

The company does not have outstanding for more than 30 days as on 31st March 2014 of S.S.I Units the respective parties.

Note 5

The brvious years figures have been regrouped/ restated wherever necessary to confirm with the current years classification.