Accounting Policies of Socrus Bio Sciences Ltd. Company

Mar 31, 2013

1. A. METHOD OF ACCOUNTING

The Financial statements are prepared under the historical cost conventions using the accrual method of accounting unless otherwise hereinafter. Accounting policies not referred otherwise are consistent with the normally accepted accounting principles. B. REVENUE RECOGNITION

All Income and Expenditure are accounted for on accrual basis. Dividend income is recognised as and when received.

2. FIXED ASSETS AND DEPRECIATION

C X I. All fixed assets are stated of cost of acquisition or construction less accumulated depreciation (except free hold land). Cost includes cost of acquisition and installation/construction, other direct expenses and allocated preoperative expenses, Depreciation of fixed assets has been provided on straight/line method in the manner specified in schedule XIV to the companies Act 1956. II. Depreciation on fixed assets added/disposed off during the year is provided on pro rata basis.

3. BORROWING COST

Borrowing costs attributable to the acquisition and construction of qualifying assets are capitalized as part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are charged ,to profit & Loss a/c.

4. INVESTMENT

Investments held by company are long term nature.which carries at cost. Provision against diminution in value of investments has been made in case diminution is considered as other than temporary as per the criteria laid down by the board of director,after considering that such investment are if strategic in nature,however unquoted share are valued at cost only.

VALUATION OF INVENTORIES

Trading goods are Valued at cost or net realizable value whichever is lower.

B. Finished goods are valued at cost, or net realizable value whichever is lower

C. Unquoted shares are valued at Cost.

D. Quoted shares are valued at cost or net realizable value whichever is less. -¦ * ¦ Cost for the above purpose is ascertained on FIFO method.

6. TAXES ON INCOME

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the income tax act, 1961. Deferred tax is recognized on timing differences. Being the difference between taxable income & accounting income that-originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets are recognized and carried forward only if there is a reasonable/virtual certainty of realization.

7. RETIREMENT BENEFITS

Gratuity shall be accounted for as and when the company statutorily become liable.

8. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are recorded at the exchange rate prevalent as on the date of the transaction. Any exchange gains or losses arising out of the subsequent fluctuations are accounted for in the profit & loss account except those relating to acquisition of fixed assets, which are adjusted to the cost of the assets.

9. USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts ot assets and liabilities and disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates. 10 In the absence of any information provided to us about the status of company, we are unable to report an amount outstanding and due for more than 30 days in excess of Rs. 1.00 lacs to Small Scale Undertaking as desired vide notification dated 22.02.1999 in the gazette of India by the department of company law C ) affairs Ministry of law Justice and company affairs,Govt of India.