Notes to the Financial Statements for the year ended March 31, 2015 1. Significant Accounting Policies 1.1. Basis of accounting and brparation of financial statements The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to complywith the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year. 1.2 Use of estimates The brparation of financial statements in confirmity with the generally accepted accounting principles ('GAAP') requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, assets and liabilities and disclosures relating to contingent liabilities as of the date of the financial statements. Actual results could differ from those estimates. Any revision in accounting estimates is recognised prospectively in future periods. 1.3 Fixed Assets and Debrciation 1.3.1 Fixed Assets are stated at cost, less accumulated debrciation. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Financing cost relating to acquisition of fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use. 1.3.2 Debrciable amount for assets is the cost of an assets, less its estimated residual value. Debrciation on tangible fixed assets has been provided under the Straight Line Method as per the useful life brscribed in Schedule II to the Companies Act, 2013. 1.3.3 Fixed assets individually costing Rs. 5,000 or less are fully debrciated in the year of purchase / installation. Debrciation on additions and disposals during the period is provided on a pro-rata basis. 1.3.4 An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss account in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. 1.4 Investments The Company values its investments at cost. In case of quoted investments, provision for diminution in the value of investments is not made as in the opinion of management such diminution is not of a permanent nature. 1.6 Cash and Cash Equivalents Cash and cash equivalents in the cash flow statement comprises cash in hand and balance in bank in current accounts, deposit accounts and in margin money deposits. 1.7 Cash Flow Statement Cash flows are reported using the indirect Method, whereby profit/(loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. 1.8 Foreign Currency Transactions 1.8.1 Initial Recognition: Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. 1.8.2 Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. 1.8.3 Exchange Differences: Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements, are recognised as income or as expense in the year in which they arise. 1.9 Tax Expenses Income tax expense comprises current tax as per Income Tax Act, 1961 and deferred tax charge or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. 1.10 Employee Benefits Pursuant to the requirements of AS 15 (revised 2005) on "Employee benefits", issued by the Institute of Chartered Accountants of India which has become effective from April 1, 2007, the Company has not yet provided for employee benefits as per the revised requirements of the standard. 1.11 Provisions, Contingent liabilities and Contingent Assets Provisions involving substantial degree of estimations in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements. 2. Disclosure required by Accounting Standard (AS) 15 (Revised) on "Employee Benefits": The Company has not made any provision towards Employee Benefits during the financial year 2014-15 and hence there are no details to be disclosed as per Accounting Standard (AS) 15 on "Employee Benefits". However the Company acoounts for these benefits on payment basis as and when the payment is made to the employees. 3. Disclosures of Provisions required by Accounting Standards (AS) 29 on "Provisions, Contingent Liabilities and Contingent Assets": In the opinion of the Management, there are no provisions for which disclosure is required during the financial year 2014-15 as per Accounting Standard (AS) 29 on "Provisions, Contingent Liabilities and Contingent Assets". 4. Contingent Liabilities and Commitments In the opinion of the Management , there are no contingent liabilities and capital commitments which needs to be disclosed in the financial statements. 5. Gain or loss on foreign currency transaction and translation: The Company has made a gain of Rs. 30,71,371.37 on account of foreign currency transactions during the financial year 2014-15 due to exchange price fluctuation. 6. Segment Reporting A. Primary Segment Reporting (by Business Segment): (a) The Company's operation mainly comprises of manufacturing of Peptone, Extract, Culture Media, Chemicals and Trading of handicap goods which have been identified in line with the Accounting Standard 17 on Segment Reporting, taking into account the organizational structure as well as differential risk and return of these segments. 7. The accounts of Sundry Debtors and Creditors are subject to confirmation / reconciliation and adjustment, if any. The Management does not expect any material difference affecting the current year's financial statements. In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the books of accounts. 8. The brvious figure has been reclassified/ rearranged / regrouped in compliance of Revised Schedule VI to correnpond with current year figures Auditor's Report For Titan Biotech Limited As per our separate report of even date attached For Deepika Setia & Co. Chartered Accountants FRN-013515N Naresh Kr. Singla Managing Director DIN-00027448 Suresh Chand Singla Managing Director DIN-00027706 Charanjit Singh Co-Secretary Prem Shankar Gupta Chief Financial Officer ACS-12726 D. S. Kajal F.CA Partner M.No.091609 Date: 28.05.2015 Place : Delhi |