Accounting Policies of Innocorp Ltd. Company

Mar 31, 2024

Material Accounting Policies

1 Basis of preparation of financial statements

These financial statements have been prepared in accordance Indian Accounting Standards (Ind
As) according to the notification issued by the Ministry of Corporate Affairs under section 133 of
the Companies Act, 2013 (''the act'') read with rule 3 of the Companies (Indian Accounting Stan¬
dards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 with
effect from April 1, 2017.

1.1 Use of Accounting Estimates

The preparation of financial statements requires estimates and assumptions to be made that af¬
fect the reported amount of assets and liabilities on the date of financial Statements, the reported
amount of revenues and expenses during the reported period and disclosure of contingent liabili¬
ties. Management believes that the estimates used in the preparation of financial statements are
prudent and reasonable. Actual results could differ from these estimates. Any revision to account¬
ing estimates is recognised prospectively in the current and future periods.

1.2 Revenue recognition
Sale of goods:

Revenue is recognized when the company satisfies a performance obligation by transferring a
promised good or service to its customers. The company considers the terms of the contract and
its customary business practices to determine the transaction price. Performance obligations are
satisfied at the point of time when the customer obtains controls of the asset.

Revenue is measured based on transaction price, which is the fair value of the consideration
received or receivable, stated net of discounts, returns and value added tax. Transaction price is
recognised based on the price specified in the contract, net of the estimated sales incentives /
discounts. Accumulated experience is used to estimate and provide for the discounts/ right of
return, using the expected value method.

Interest Income:

Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably.

1.3 Property, plant and equipment & Capital work-in-progress

Property, plant and equipment are measured at cost less accumulated depreciation and impair¬
ment losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset.

1.4 Depreciation

Depreciation is provided on the straight-line method as per the useful life prescribed in Schedule
II to the Companies Act, 2013.

The useful lives of assets are periodically reviewed and re-determined and the unamortised de¬
preciable amount is charged over the remaining useful life of such assets. Assets costing Rs.5,000/
-and below are depreciated over a period of one year.

1.5 Foreign Currency Transactions

The company translates all foreign currency transactions at Exchange Rates prevailing on the
date of transactions. Exchange rate differences resulting from foreign exchange transactions settled
during the year are recognized as income or expenses in the period in which they arise.

1.6 Taxes on Income

Income tax comprises current income tax and deferred tax. Income tax expense is recognized in
the statement of profit t and loss except to the extent it relates to items directly recognized in equity
or in other comprehensive income.

a) Current income tax: Current income tax for the current and prior periods are measured at the
amount expected to be recovered from or paid to the taxation authorities based on the taxable
income for the period. The tax rates and tax laws used to compute the current tax amount are
those that are enacted or substantively enacted by the reporting date and applicable for the pe¬
riod. The Company off sets current tax assets and current tax liabilities, where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a net
basis or to realize the asset and liability simultaneously.

b) Deferred tax: Deferred tax asset and liabilities are measured at the tax rates that are expected
to apply to the period when the asset / liability is realized, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are
recognized and carried forward only to the extent that there is a reasonable certainty that sufficient
future taxable income will be available against which such deferred tax assets can be realized.

1.7 Earning Per Share (EPS)

In determining earnings per share, the company considers the net profit after tax expense. The
number of shares used in computing basic earnings per share is the weighted average shares
used in outstanding during the period.

1.8 Impairment of non-financial assets

The Company assess at each reporting date whether there is any indication that the carrying
amount from non-financial assets may not be recoverable. If any such indication exists, then the
asset''s recoverable amount is estimated and an impairment loss is recognised if the carrying
amount of an asset or Cash generating unit (CGU) exceeds its estimated recoverable amount in
the statement of profit and loss.

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Mar 31, 2014

1. Basis of Preparation of Financial Statements:

Financial statements have been prepared and presented under historical cost convention in accordance with the accounting principles generally accepted in India having due regard to fundamental accounting assumptions of going concern, consistency and accrual and comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act, 1956 as applicable and with the relevant provisions of the Companies Act, 1956.

2. 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.

3. Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognized on dispatch of products. Revenue from export sales is recognized on shipment of products. Revenue from products is stated inclusive of duties, taxes but exclusive of returns, and applicable trade discounts and allowances.

Interest income is recognized on time accrual basis, determined by the amount outstanding and the rate applicable.

4. Fixed Assets:

Fixed assets are carried at cost of acquisition less accumulated depreciation. Cost includes non-refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the acquisition and installation of the respective assets.

5. Depreciation:

Depreciation on fixed assets under Straight Line Method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

6. Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value.Cost is arrived at byusing weighted average method and includes all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

7. Tax Expense:

Deferred tax resulting from "Timing Difference" between book and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

Provision is made for tax on Income and dividend distribution tax as per the applicable provisions of Income Tax Act, 1961.

8. Foreign Exchange Transactions:

There are no foreign currency transactions during the period

9. Dues to Micro, Small and Medium Enterprises

There are no amounts due to the suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006; this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose.

10. Employee Benefits

Retirement benefits to employees comprise of payments under Defined Contributions Plans like Provident Fund and payments under Defined Benefit Schemes like Gratuity and Leave Encashment Payment under Defined Contribution plans are charged to revenue on accrual. The Liability in respect of defined benefit schemes is arrived based on actuarial valuation made at the end of the year by using projected unit credit method

11. Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are Capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

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Mar 31, 2012

(a) Basis of Preparation of Financial Statements:

Financial statements have been prepared and presented under historical cost convention in accordance with the accounting principles generally accepted in India having due regard to fundamental accounting assumptions of going concern, consistency and accrual and comply with the Accounting Standards referred to in Sec.211 (3C) of the Companies Act, 1956 as applicable and with the relevant provisions of the Companies Act, 1956.

(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) Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognized on dispatch of products. Revenue from export sales is recognized on shipment of products. Revenue from products is stated inclusive of duties, taxes but exclusive of returns, and applicable trade discounts and allowances.

Revenue from services is recognized as per the terms of contract with customers when the related services are performed, or the agreed milestones are achieved.

(d) Fixed Assets:

Fixed assets are carried at cost of acquisition less accumulated depreciation. Fixed assets which were revalued were carried at revalued values.

Cost includes non-refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the acquisition and installation of the respective assets.

Fixed assets which are found to be not usable or retired from active use or when no further benefits are expected from their use are removed from the books of account and the difference if any, between the cost of such assets and the accumulated depreciation thereon is charged to Statement of Profit & Loss.

(e) Depreciation:

Depreciation on fixed assets under Straight-Line Method (SLM) at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

(f) Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value.

Cost is arrived at by using weighted average method and includes all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(g) Tax Expense:

Deferred tax resulting from "Timing Difference" between book and taxable profit is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future.

Provision is made for tax on Income and dividend distribution tax as per the applicable provisions of Income Tax Act, 1961.

(h) Foreign Exchange Transactions:

Exchange differences arising out of foreign currency transaction are recorded at the exchange rates prevailing at the transaction date.

(i) Employee Benefits:

Retirement benefits to employees comprise of payments under Defined Contribution Plans like Provident Fund and payments under Defined Benefit Schemes like Gratuity and Leave encashment.

Payments under defined contribution plans are charged to revenue on accrual. The liability in respect of defined benefit schemes is arrived based on actuarial valuation made at the end of the year by using projected unit credit method

(j) Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(k) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

(I) Cenvat Credit :

Excise duty paid on inputs is debited to a separate account namely cenvat on Raw Material Account. This account is credited as and when cenvat actually utilised against payment of excise duty on Final dispatches. Balance in cenvat on Raw Materials is shown on assets side of Balance sheet under the Current assets.

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Mar 31, 2010

1 Accounting Convention: these accounts have been prepared under historical cost convention and on the accounting principles of going concern. Accounting policies not Specifically referred to otherwise be consistent and in accordance with generally accepted accounting principles.

2 Revenue recognition: the Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis

3 Inventories: Inventories are valued as under:

a. Raw materials are valued at purchase price and other attributable costs.

b. Finished Goods are valued at lower of cost or net realizable value.

c. Work in Progress is valued at lower of cost or net realizable value

4 Foreign Currency transactions: exchange difference arising out of foreign currency transactions are recorded at the exchange rates prevailing at the transaction date.

5 Depreciation of Fixed Assets, which have been put, to use has been provided on Straight line method as per the classification and on the basis of Schedule XIV of the Companies Act, 1956.

6 Fixed Assets are stated at cost of acquisition.

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Mar 31, 2009

1. Accounting Convention: These accounts have been prepared under historical cost convention and on the accounting principles of going concern. Accounting policies not specifically referred to otherwise be consistent and in accordance with generally accepted accounting principles.

2. Revenue Recognition: The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis

3. Inventories: Inventories are valued as under:

a. Raw Materials are valued at purchase price and other attributable costs.

b. Finished Goods are valued at lower of cost or net realizable value.

c. Work in Progress is valued at lower of cost or net realizable value

4. Foreign Currency Transactions: Exchange difference arising out of foreign currency transactions are recorded at the exchange rates prevailing at the transaction date.

5. Depreciation of Fixed Assets, which have been put, to use has been provided on Straight line method as per the classification and on the basis of Schedule XIV of the Companies Act, 1956.

6. Fixed Assets are stated at cost of acquisition.