Accounting Policies of Celestial Biolabs Ltd. Company

Mar 31, 2016

SIGNIFICANT ACCOUNTING POLICIES:

a) Basis for Preparation of accounts

a. The accounts have been prepared with the historical cost convention under accrual basis of accounting as per Indian GAAP. Accounts and Disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules 2006 which continue to apply under section 133 of the Companies Act,2013 read with Rule 7 of the Companies (Accounts) Rules 2014, other pronouncement of ICAI, Provisions of the Companies Act and guidelines issued by SEBI as applicable

b. All Assets and Liabilities have been classified as current and non-current as per the Company''s normal operating cycle and other criteria set out in Schedule III to the Companies Act,2013.

b) Use of Estimates

a. Indian GAAP enjoins Management to make estimate and assumptions that affect reported amount of assets, liabilities, revenue, expenses and contingent liabilities pertaining to years, the financial statement relate to. Actual result could differ from such estimates. Any revision in accounting estimates is recognized prospectively from current year and material revision, including its impact on financial statement, is reported in notes to accounts in the year of incorporation of revision.

c) Recognition of Income and Expenses:

1. Sales and Purchase are accounted for on the basis of passing of title to the goods.

2. All the other incomes have been accounted for on accrual basis except for those entailing recognition on realization basis under AS 9 on the ground of uncertainty factor.

3. All Expenses are provided on accrual basis unless stated otherwise.

d) Fixed Assets:

1. Fixed Assets are stated at carrying amount i.e., cost less accumulated depreciation.

2. Depreciation on Fixed Assets has been provided on Written Down Value Method

3. For New Projects all direct expenses and direct overheads (excluding services provided by employees in Company''s regular payroll) are capitalized.

e) Investments:

Investment in Subsidiary (Total Health Kare International Pvt Ltd) are held for long term. No profit or losses of subsidiaries are accounted for.

f) Research and Development Expenditure:

Revenue Expenditure on research & development is expensed as incurred including contribution towards scientific research expenses. Debtors not realized towards clinical data testing services are a part of research services and has been added in the research and development expenditure to the extent not written off and being written off every year @ 10%.

g) Inventories:

Inventories are valued at the lower of cost or net realizable value. Basis of determination of cost remains as follows: Raw Material, Packing Material, Stores & Spares : Moving Weighted Average Basis

Work in Progress: Cost of inputs plus overhead unto the stage of completion Finished Goods: Cost of inputs plus appropriate overhead.

h) Income Tax and Deferred tax :

a. The Liability of Company on account of income tax is estimated considering the provisions of the Income Tax Act, 1961.

b. Deferred Tax is recognized, subject to the consideration of prudence , on timing differences being the difference between the taxation income and accounting income that originate in one year and capable of reversal in one or more subsequent years.

i) Contingent Liabilities:

a. Disputed liabilities and claims against the Company including claims raised by fiscal authorities (Eg. Sales Tax, Income Tax etc) pending in appeal/court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in notes to accounts.

b. However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimate, is recognized in accounts.

j) Earnings per Share:

a. Basic Earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

b. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2015

A) BASIS OF ACCOUNTING :

- The financial statements have been prepared under the historical cost convention and in accordance with the applicable Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 and relevant presentational requirements of the Companies Act, 2013.

- Accounting policies not specifically referred to otherwise are in consonance with prudent accounting principles.

- All revenues, expenses, assets and liabilities having material bearing on the financial statements are recognized on accrual basis, unless otherwise stated.

b) USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

c) FIXED ASSETS:

i) Fixed assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized.

ii) Assets under installation/construction, advances paid towards acquisition of fixed assets, direct costs and related incidental expenses incurred on assets that are not ready for their intended use or not put to use as on the Balance Sheet date are stated as capital work in progress and Incidental Expenditure pending allocation.

d) DEPRECIATION:

i) Depreciation on fixed assets has been provided on Written Down method at the rates specified in schedule XIV to the Companies Act, 1956, except for the following assets, for which management has estimated the useful life and provided depreciation accordingly.

ii) The company has provided depreciation at 100% in respect of assets costing less than Rs. 5,000/- each and depreciation on the assets acquired during the year is provided on pro-rata basis.

e) Product Development Expenditure:

Expenditure incurred on research of new products has been treated as Product Development expenditure and the same has been written off in 10 years equally yearly installments from the year in which it is incurred.

f) Retirement Benefits:

There are no permanent employees on the rolls of the company and the company is not liable to pay any retirement benefits. Hence, Provision for Retirement benefits is not made in the books of account.

g) Sales and Revenue Recognition:

Revenue from service is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer. Revenue from domestic sales is recognized on dispatch of products from the company.

h). Taxes on Income

Income Tax is provided on the profits of the company as per the Income Tax Act 1961 and other applicable rules and regulations to the company.

Deferred Tax is recognized on time difference between the accounting income and taxable income for the period and quantified using the tax rates and laws enacted or substantially enacted on the balance sheet date.

i) Earning Per Share (EPS)

The basic Earnings per share (EPS) are computed by dividing the net profit after tax for the year by the weighted average number of equity share outstanding during the year.

j) Inventories:

According to the Records of Company Physical verification has been conducted by the Management at reasonable intervals in respect of Stocks are in my opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

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Mar 31, 2014

A) BASIS OF ACCOUNTING :

The financial statements have been prepared under the historical cost convention and in accordance with the applicable Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 and relevant presentational requirements of the Companies Act, 1956.

Accounting policies not specifically referred to otherwise are in consonance with prudent accounting principles.

All revenues, expenses, assets and liabilities having material bearing on the financial statements are recognized on accrual basis, unless otherwise stated.

b) USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

c) FIXED ASSETS:

i) Fixed assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized.

ii) Assets under installation/construction, advances paid towards acquisition of fixed assets, direct costs and related incidental expenses incurred on assets that are not ready for their intended use or not put to use as on the Balance Sheet date are stated as capital work in progress and Incidental Expenditure pending allocation.

d) DEPRECIATION:

i) Depreciation on fixed assets has been provided on Straight Line method at the rates specified in schedule XIV to the Companies Act, 1956, except for the following assets, for which management has estimated the useful life and provided depreciation accordingly.

ii) The company has provided depreciation at 100% in respect of assets costing less than Rs. 5,000/- each and depreciation on the assets acquired during the year is provided on pro-rata basis.

e) Product Development Expenditure:

Expenditure incurred on research of new products has been treated as Product Development expenditure and the same has been written off in 10 years equally yearly installments from the year in which it is incurred.

f) RETIREMENT BENEFITS:

There are no permanent employees on the rolls of the company and the company is not liable to pay any retirement benefits. Hence, Provision for Retirement benefits is not made in the books of account. g). Sales and Revenue Recognition:

Revenue from service is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer. Revenue from domestic sales is recognized on dispatch of products from the company.

h). Taxes on Income

Income Tax is provided on the profits of the company as per the Income Tax Act 1961 and other applicable rules and regulations to the company.

Deferred Tax is recognized on time difference between the accounting income and taxable income for the period and quantified using the tax rates and laws enacted or substantially enacted on the balance sheet date. i). Earning Per Share ( EPS ) The basic Earnings per share (EPS) are computed by dividing the net profit after tax for the year by the weighted average number of equity share outstanding during the year.

j). Inventories : According to the Records of Company Physical verification has been conducted by the Management at reasonable intervals in respect of Stocks are in my opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

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Mar 31, 2013

A) BASIS OF ACCOUNTING :

- The financial statements have been prepared under the historical cost convention and in accordance with the applicable Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 and relevant presentational requirements of the Companies Act, 1956.

- Accounting policies not specifically referred to otherwise are in consonance with prudent accounting principles.

- All revenues, expenses, assets and liabilities having material bearing on the financial statements are recognized on accrual basis, unless otherwise stated.

b) USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

c) FIXED ASSETS:

i) Fixed assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized.

ii) Assets under installation/construction, advances paid towards acquisition of fixed assets, direct costs and related incidental expenses incurred on assets that are not ready for their intended use or not put to use as on the Balance Sheet date are stated as capital work in progress and Incidental Expenditure pending allocation.

d) DEPRECIATION:

i) Depreciation on fixed assets has been provided on Straight Line method at the rates specified in schedule XIV to the Companies Act, 1956, except for the following assets, for which management has estimated the useful life and provided depreciation accordingly.

ii) The company has provided depreciation at 100% in respect of assets costing less than Rs. 5,000 each and depreciation on the assets acquired during the year is provided on pro-rata basis.

e) Product Development Expenditure:

Expenditure incurred on research of new products has been treated as Product Development expenditure and the same has been written off in 10 years equally yearly installments from the year in which it is incurred.

f) RETIREMENT BENEFITS:

There are no permanent employees on the rolls of the company and the company is not liable to pay any retirement benefits. Hence, Provision for Retirement benefits is not made in the books of account.

g). Sales and Revenue Recognition:

Revenue from service is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer. Revenue from domestic sales is recorgnized on dispatch of products from the company.

h). Taxes on Income

Income Tax is provided on the profits of the company as per the Income Tax Act 1961 and other applicable rules and regulations to the company.

Deferred Tax is recognized on time difference between the accounting income and taxable income for the period and quantified using the tax rates and laws enacted or substantially enacted on the balance sheet date.

i). Earning Per Share ( EPS )

The basic Earnings per share (EPS) are computed by dividing the net profit after tax for the year by the weighted average number of equity share outstanding during the year.

j). Inventories :

According to the Records of Company Physical verification has been conducted by the Management at reasonable intervals in respect of Stocks are in my opinion, reasonable and adequate in relation to the size of the Compnay and the nature of its business.

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Mar 31, 2012

A) BASIS OF ACCOUNTING :

- The financial statements have been prepared under the historical cost convention and in accordance with the applicable Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 and relevant presentational requirements of the Companies Act, 1956.

- Accounting policies not specifically referred to otherwise are in consonance with prudent accounting principles.

- All revenues, expenses, assets and liabilities having material bearing on the financial statements are recognized on accrual basis, unless otherwise stated.

b) USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

c) FIXED ASSETS:

i) Fixed assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized.

ii) Assets under installation/construction, advances paid towards acquisition of fixed assets, direct costs and related incidental expenses incurred on assets that are not ready for their intended use or not put to use as on the Balance Sheet date are stated as capital work in progress and Incidental Expenditure pending allocation.

d) DEPRECIATION:

i) Depreciation on fixed assets has been provided on Straight Line method at the rates specified in schedule XIV to the Companies Act, 1956, except for the following assets, for which management has estimated the useful life and provided depreciation accordingly.

ii) The company has provided depreciation at 100% in respect of assets costing less than Rs. 5,000/- each and depreciation on the assets acquired during the year is provided on pro-rata basis.

e) Product Development Expenditure:

Expenditure incurred on research of new products has been treated as Product Development expenditure and the same has been written off in 10 years equally yearly installments from the year in which it is incurred.

f) RETIREMENT BENEFITS:

There are no permanent employees on the rolls of the company and the company is not liable to pay any retirement benefits. Hence, Provision for Retirement benefits is not made in the books of account.

g) Sales and Revenue Recognition:

Revenue from service is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer. Revenue from domestic sales is recorgnized on dispatch of products from the company.

h) Taxes on Income

Income Tax is provided on the profits of the company as per the Income Tax Act 1961 and other applicable rules and regulations to the company.

Deferred Tax is recognized on time difference between the accounting income and taxable income for the period and quantified using the tax rates and laws enacted or substantially enacted on the balance sheet date.

i). Earning Per Share ( EPS )

The basic Earnings per share (EPS) are computed by dividing the net profit after tax for the year by the weighted average number of equity share outstanding during the year.

j). Inventories :

According to the Records of Company Physical verification has been conducted by the Management at reasonable intervals in respect of Stocks are in my opinion, reasonable and adequate in relation to the size of the Company and the nature of its business.

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Mar 31, 2011

1. Basis of Accounting:

The Financial Statements have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the accounting policies generally accepted in India ("GAAP") and comply with the mandatory Accounting Standards ("AS") issued by the Institute of Chartered Accountants of India ("ICAI") to the extent applicable and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Actual results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods The previous period's figures have been rearranged/regrouped/reclassified wherever necessary.

3. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized.

4. Depreciation & Amortization:

Depreciation on Fixed Assets has been provided on the Straight Line method and Depreciation on the assets acquired during the year is provided on Pro-rata basis at the rates specified in Schedule XIV of the Companies Act, 1956.

5. Product Development Expenditure:

Expenditure incurred on research of new products has been treated as Product Development expenditure and the same has been written off in 10 years equally yearly installments from the year in which it is incurred.

6. Retirement Benefits:

a) Provident Fund: The Company is contributing to the funds maintained by the Government towards Provident Fund to employees.

b) Gratuity: No provision for gratuity has been made as none of the employees had completed the minimum stipulated period for entitlement of gratuity.

7. Sales and Revenue Recognition:

Revenue from services is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer. Revenue from domestic sales is recognized on dispatch of products from the company.

8. Foreign Currency transactions

The reporting currency of the company is Indian Rupee. Expenditure in Foreign currency during the month is accounted at a rate, which approximates the actual rate during that month. The exchange differences arising on foreign currency translation during the year are recognized as income or expenses in the profit and loss account.

9. Taxes on Income

Income tax is provided on the profits of the company as per the Income Tax Act, 1961 and other applicable rules and regulations to the company.

Deferred Tax is recognized on time difference between the accounting income and taxable income for the period and quantified using the tax rates and laws enacted or substantially enacted on the balance sheet date.

10. Earning Per Share (EPS):

The basic Earnings per Share ("EPS") are computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year.

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Mar 31, 2010

1. Basis of Accounting:

The Financial Statements have been prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with the accounting policies generally accepted in India ("GAAP") and comply with the mandatory Accounting Standards ("AS") issued by the Institute of Chartered Accountants of India ("ICAI") to the extent applicable and the relevant provisions of the Companies Act, 1956.

2. USE OF ESTIMATES:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. Actual results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods The previous periods figures have been rearranged/regrouped/reclassifled wherever necessary.

3. Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized.

4. Depreciation & Amortization:

Depreciation on Fixed Assets has been provided on the Straight Line method and Depreciation on the assets acquired during the year is provided on Pro-rata basis at the rates specified in Schedule XIV of the Companies Act, 1956.

5. Deferred Revenue Expenditure:

Expenditure incurred on research of new products has been treated as deferred revenue expenditure and the same has been written off in 10 years equally yearly installments from the year in which it is incurred.

6. Retirement Benefits:

a) Provident Fund:The Company iscontributing to the funds maintained by the Government towards Provident Fund to employees.

b). Gratuity: No provision for gratuity has been made as none of the employees had completed the minimum stipulated period for entitlement of gratuity.

7. Sales and Revenue Recognition:

Revenue from services is recognized when significant risks and rewards in respect of ownership of the products are transferred to the customer. Revenue from domestic sales is recognized on dispatch of products from the company.

8. Foreign Currency transactions

The reporting currency of the company is Indian Rupee. Expenditure in Foreign currency during the month is accounted at a rate, which approximates the actual rate during that month. The exchange differences arising on foreign currency translation during the year are recognized as income or expenses in the profit and loss account.

9. Taxes on Income

Income tax is provided on the profits of the company as per the Income Tax Act, 1961 and other applicable rules and regulations to the company.

Deferred Tax is recognized on time difference between the accounting income and taxable income for the period and quantified using the tax rates and laws enacted or substantially enacted on the balance sheet date.

10. Earning Per Share (EPS):

The basic Earnings per Share ("EPS") is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.