Company Information The Company was incorporated on 2nd February, 1999 to carry on the business Clinical research, Data management, education and staffing services. 1. Statement of significant accounting policies a.Basis of brparation of financial statements The financial statements have been brpared in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with all material respects with the accounting standard notified under section 133 of the Companies act 2013 read with rule 7 of the companies (Accounts) Rules, 2014. The accounting policies adopted in brparation of the financial statements are consistent with those followed in brvious year unless otherwise stated below. b.Use of estimates The brparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. c.Revenue recognition Revenue is recognized only when there is no significant uncertainty as to the measurability / collectability of the amounts. Export Revenue in foreign currency is accounted for at the exchange rate brvailing at the time of sale or service. Gain/Loss arising out of variances in the exchange rates is recognized as income / expenditure of the year. d.Fixed assets and capital work-in-progress Fixed assets are stated at cost, less accumulated debrciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to put to use. e.Debrciation VThe Company provides debrciation for tangible assets on straight line method over the useful lives of assets estimated by the management. Debrciation for assets purchased and sold during a period proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a >straight line basis, commencing form the date the asset is available to the company for its use. The management estimates the useful lives for the following class of assets, based on internal assessment and independent technical evaluation carried out by external valuers , the management believes that useful lives as given below best rebrsents the period over which the management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as brscribed under Part - C of schedule II of the companies act 2013. f. Impairment i.The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their brsent value at the weighted average cost of capital. ii.After impairment, debrciation is provided on the revised carrying amount of the asset over its remaining useful life. g.Inventories Inventories are valued as under: Components and consumables are valued at lower of cost. Work-in-progress and finished goods are valued at lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. h.Retirement and other employee benefits The Company's liability towards retirement benefits in the form of gratuity is provided in accordance with the payment of Gratuity Act, 1972 to all the employees other than the whole time Directors. i. Income taxes An amount of Rs. 44.73 lakhs Deferred Tax asset which was recognized in the earlier year is being continued.As a measure of prudence and in the absence of virtual certainty that sufficient future taxable income will be available, the company has not recognized Deferred Tax asset during the current financial year. j. Foreign currency transaction i. 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. ii. Conversion Foreign currency monetary items denominated in foreign currencies at the yearend are restated at year end rates. In case of monetary items which are covered by foreign exchange contracts, the difference between the original entry dates to forward contract date is recognized as an exchange difference. Iii .Exchange differences Exchange differences arising on the settlement of monetary items, or on reporting such monetary items of company at rates different from those at which they were initially recorded during the year, or reported in brvious financial statements, are recognized as income or as expenses in the year in which they arise. k. Earnings per share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus Issue; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. Earnings per share are calculated by dividing the net profit after tax for the year attributable to equity shareholders by the number of equity shares outstanding on the balance sheet date. l. Provisions A provision is recognized when an enterprise has a brsent obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. m. Contingent liabilities A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence of non-occurrence of one or more uncertain future events beyond the control of the company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements. The contingent liability is Rs. NIL during the financial year. n. Cash and Cash equivalents Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term investments with an original maturity of three months or less. b.Rights attached to equity shares The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. d. Shares reserved for issue under options The company has not reserved any shares for issue under employee stock option (ESOP), loan agreements or contracts for supply of capital goods, etc. 1..The management has carried assessment of impairment of assets and no impairment loss has been recognized during the year. 2.Previous year's figures are regrouped/ reclassified wherever considered necessary to confirm to current year's classifications. Per our report of even Date for and on behalf of the Board of Directors for L N P & Co., Jeevan Scientific Technology Limited Chartered Accountatnts Firm Regn No:008918S Sd/-Purna Chandra Sekhar P Partner Membership No:214746 Sd/-K.Krishna Kishore Executive Vice Chairman Sd/-K. Gopi Krishna Managing Director Place: Hyderabad Date: 29-05-2015 |