SCHEDULE 01: SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO THE FINANCIAL STATEMENTS:-

1.1              Significant Accounting Policies:

The Financial statements are brpared under historical cost convention on an accrual basis and comply with the accounting standards referred to in Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India, to the extent applicable.

1.2              i)  Tangible assets are stated at original cost net of tax / duty credits availed, if   any.

ii) Fixed Assets are debrciated on the basis of useful life of the assets and the methods provided under Schedule II to the Companies Act, 2013. Debrciation in respect of fixed assets put to use during the year is provided on a pro-rata basis with reference to the date of installation of assets.

iii) The company has revised the useful life of its fixed assets to comply with the useful life as mentioned under Schedule II of the Companies Act, 2013. Based on transitional provision given in Schedule II to the Companies Act, 2013, the carrying value of assets whose useful lives are already exhausted amounting to Rs. 25.88 lacs (net of deferred tax) has been reduced in the opening balance of retained earnings, and also the debrciation for the year was higher by Rs. 3.52 Lacs

1.3              Capital work in progress:

            The capital work in progress as on 31-03-2015 is Rs. Nil

1.4              Inventories:

Raw materials and packing materials are valued at cost on FIFO basis as per revised Accounting Standard AS-2 of the Institute of Chartered Accountants of India. Finished goods and semi-finished goods are valued at lower of cost or net realizable value.

1.5              Investments:

Investments are stated at cost.

1.6              Revenue Recognition

i) Income From  sales of goods is recognized upon transfer of significant risk and rewards of ownership of the goods to the customers which generally coincides with delivery  and acceptance of goods sold; sales are shown inclusive of excise duty and exclusive of Sales Tax (VAT).

            ii) Other income:

            Includes interest on Fixed Deposits with Bank and dividends received.

1.7              Research and Development Expenses:

No capitalization of Research and Development expenses is made since no capital expenditure on research and development expenditure has been incurred during the year.

1.8              Foreign Currency Transactions:

            Export earnings of Rs. Nil (Previous Year - Rs. NIL)

            Foreign Exchange Outgo of Rs. NIL (Previous Year – Rs. NIL /-)

1.9              Retirement Benefits:

Retirement benefit or Post separation expenses in respect of gratuity is not provided for, and liability is not ascertained.

i) Privilege leave entitlement: Privilege leave entitlements are recognized as a liability as and when the same is encashed by the employees.

ii) Provident Fund: Contribution to Government provident Fund are made as per the provisions regularly.

1.10         The figures of brvious year have been regrouped wherever necessary.

1.11         As per the available records, there is  no outstanding dues to enterprises registered under Micro, Small and Medium Enterprises Development Act, 2006, at the end of the year. Further no interest   has been paid or payable on delayed payment of dues, if any, to such enterprises during the year.

1.12         Estimated amount of contracts remaining to be executed on capital account and not provided for:    Rs. Nil     [Previous Year : Rs. Nil]

1.13         Contingent liabilities:

Contingent liabilities as defined in Accounting Standard 29 on “Provisions, Contingent   Liabilities and Contingent Assets” are disclosed by ways of notes to the accounts.  Disclosures is not made if the possibility of an outflow of future economic benefits is remote. Provision is made if it is   probable that an outflow of future economic benefits will be required to settle the Obligation.

1.14         Auditors Remuneration:                                                2014- 2015          2013- 2014         

Audit Fees	Rs.   78,652		Rs.   67,416
Tax Audit Fees	Rs.   11,236		Rs.   11,236
Other services	Rs.   13,483		Rs.   13,483
	Rs.1,03,371		Rs.   92,135

1.15         Segment Reporting

The Company is engaged in pharmaceutical formulation business which as per Accounting Standard – AS 17 is considered the only reportable business segment.

1.16         Related party transaction

As required by Accounting Standard – AS 18 ‘Related Parties Disclosure’ issued by the Institute of Chartered Accountants of India are as follows:

            i)   Key Management personnel          

            ii)  Details of Transactions.

            Dr. L. S. Mani.                         Remuneration paid                                       Rs. 9,84,500/-

                                                Rent paid for the brmise hired                  Rs. 1,80,000/-

1.17         With regard to loan given to Company, the Board of Directors are of the opinion that, no Provision for doubtful debt is required to be made as the amount being recovered in installments

1.18         Earnings per share

The Company reports Earning Per Share (EPS) in accordance with Accounting Standard 20 on “Earning Per Share”. Basic EPS is computed by dividing the net profit for the year by the weighted Average number of Equity Shares outstanding during the year.   Diluted EPS is    computed by dividing the net profit or loss for the year by the weighted average number of  equity shares outstanding  during the year as adjusted for the  effects of all dilutive potential equity shares, except where the  results  are anti-dilutive.

1.19         Provisions for Current and Deferred Tax.

i) Provision for Current Tax is made after taking into consideration benefits admissible under the provision of Income Tax Act 1961.

ii) Deferred tax  resulting from  timing  differences  between  taxable and  accounting  income is accounted  for using the tax rate and laws that are enacted or substantively enacted as on  the Balance Sheet date. The deferred tax asset arising on account of brought forward unabsorbed debrciation is recognized only to the extent there is a reasonable certainty of realization.

            Deferred Tax Liability:

            The break up of the deferred tax liability as at 31st March, 2015 is as under:

   

	2014-15   Rupees		2013-14   Rupees
Deferred Tax Liability :
Difference between book debrciation and    Debrciation as per Income Tax Act, 1961.	48,84,228		60,63,214
	48,84,228		60,63,214
Deferred Tax Assets:	6,86,194		20,88,139
Net Deferred Tax  Liability	41,98,034		39,75,075

1.20         AS – 28 Impairment of Assets.

As on the Balance Sheet date the carrying amounts of the assets net of accumulated  debrciation is not less than the recoverable amount of those assets. Hence there is no impairment  loss on the  assets of the company.

In the opinion of Board of Directors, the Current Assets, Loans and advances have a value which on the realization in the ordinary course of business would at least be equal amount stated in the Balance sheet.

Notes 19 - Employee Benefit Expense

Salaries and Allowances Rs. 26,831,581/-

Contribution to Provident and Other Funds Rs. 734,190/-

Gratuity Rs. 97,200/-

Total: Rs. 27,662,971