| 11. SIGNIFICANT
ACCOUNTING POLICIES AND NOTES TO ACCOUNTS: - |
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A. ACCOUNTING
POLICIES
The accounts of the Company are prepared under the historical
cost convention and on accrual basis except for liquidated
damages, which are accounted for as and when ascertained,
in accordance with the applicable Accounting Standards,
except where otherwise stated. |
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(a)
FIXED ASSETS:
I. Fixed Assets except Land and building are valued at
cost (net of Modvat).
II. In case of Revaluation of Fixed Assets, the differential
amount is transferred to Revaluation Reserve
III. Cost of fixed assets financed by foreign currency
loans, are adjusted so as to show the liabilities for
these loans, to the extent not covered by forward contract,
at the rate of exchange prevailing at end of each accounting
period and such additional liabilities/gains are Capitalised/De-capitalised
as the case may be .
IV. Leased Assets under Financial lease are shown under
Fixed Assets at cash value and are depreciated at the
rates specified under Schedule XIV of the Companies Act,1956
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(b) DEPRECIATION:
1. Depreciation on Fixed Assets is provided at the rate
prevalent at the time of their acquisition, while in respect
of addition to these Fixed Assets depreciation is considered
at the rates and in the manner specified under schedule
XIV of the Companies Act, 1956 as under-
a) Leasehold Land - Lease value of Leasehold Land are
amortised over the period of lease.
b) Motor Vehicles – Written down value method
c) All other Assets – Straight line method
Depreciation on additions/deletion during the year is
charged on prorata basis from the date of such addition/deletion.
In respect of revalued depreciable assets, the differential
depreciation on the amounts added on revaluation is set
off by transfer from Revaluation Reserve. |
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| (c)
INVENTORIES : Inventories are valued as under : |
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At lower
of cost or net realisable value:
Stores & Spares.
At estimated net realisable value:
Scrap.
Cost includes all cost of purchase, conversion and other
cost incurred in bringing the inventories to their present
location and condition.
The basis of determining cost for different categories
of inventories are :
Stores – weighted average |
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(d).
REVENUE RECOGNITION
Income is recognised on accrual basis if reasonable
certainty of realisation exists. |
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| (e).
RETIREMENT BENEFITS |
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i) Defined Contribution Plan
Retirement benefit is administered by independent trust
and payment to the trust is made at the year end on accrual
basis.
(ii) Defined Benefit Plan
Retirement benefit in respect of leave encashment is provided
in the books of account on the basis of actual estimate
at the year end on completed period of service/eligibility.
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f)
GOVERNMENT GRANTS
Revenue grants are recognised in the Profit & Loss
Account. Capital grants are credited to Capital Reserves.
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(g) RESEARCH & DEVELOPMENT EXPENSES
a) Research Expenditure is charged to Profit & Loss
Account in the year of incurrence. However, expenditure
on Fixed Assets relating to Research & Development is
treated in the same way as other Fixed Assets.
b) Development expenditure of a Project is identified
as such where it demonstrates that future economic benefit
from the asset is probable . Other development expenditure
is charged off in the year of incurred. |
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(h) CONTINGENT
LIABILITIES
Disputed claims and liabilities that are contingent
in nature, are not provided in the Accounts, but, are
separately disclosed by way of Notes to Accounts, if no
Cash out flows are envisaged. |
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NICCO BIOTECH LIMITED
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| B. NOTES
TO ACCOUNTS |
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1a.
Land and Building has been transferred by Nicco Corporation
Limited at a consideration of Rs. 1,270,000,00
The said consideration for transfer of Assets is to be
satisfied by issue of 7,200,000 and 550,000 nos. of fully
paid equity shares and preferance shares of Rs. 10/- and
100/- each respectively at par.
b). Requisite transfer fee has been paid to WBIDC for
Land. |
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| 2). Land
and Building have been mortgaged to Banks, Financial Institutions
against borrowing of Nicco Corporation Limited. |
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| 3).
Estimated amount of contracts remaining to be executed
on capital account and not provided for amounts to NIL
(Previous year Rs. NIL) net of advance. |
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| 4).
Contingent Liability: Counter Guarantee furnished to Allahabad
Bank for Margin money of Rs 9,95,573/- |
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| 5).
Information on related Parties pursuant to AS 18 issued
by ICAI |
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| Related
Party disclosure : |
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| a) List
of related Parties where control exists : |
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| Nicco Corporation
Limited (Holding Company) |
| Nicco Engineering
Services Limited (Fellow Subsidiary) |
| NE Cables
Limited (Fellow Subsidiary) |
| Nicco Internet
Ventures Limited (Associate Concern) |
| Nicco Education
& Research Trust (Trust ) |
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| b) Key
Management Personnel : |
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| Mr. Rajive
Kaul |
| Mr. Udayan
Ray |
| Mr. Sanjoy
Bhattacharya |
| Ms. Pallavi
Kaul |
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| The following
transactions were carried out with related parties in
the ordinery course of business. |
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| Nicco Corporation
Limited |
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- Rent recd.
Rs.NIL (Previous period Rs.20,25,000) for rendering services.
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- Collateral
of Land & Building Cost Rs. 127,000,000 |
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(Previous
year Rs. 127,000,000) |
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- Pledge
of 72,00,000 Equity Shares of Rs 720,00,000/-(Prev. Yr
Rs 720,00,000/-)
& 5,50,000 Preference shares of Rs 550,00,000/-(Prev Yr
Rs 550,00,000/-), to Bank |
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NICCO BIOTECH LIMITED
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| B. NOTES
TO ACCOUNTS. |
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| Nicco Education
& Research Trust: (Outstanding amount as on 31.03.2010
Rs.9498926/-) |
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| 6. Earning
per share for year ended 31.03.10 : Basic (Rs.0.21), Diluted
(Rs.0.21) |
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| Earning
per share for year ended 31.03.09 : Basic (Rs.0.43), Diluted
(Rs.0.43) |
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| 7.
Interest on FDR ,Rs 1,54,989/-, wrongly debited twice
in earlier years, since rectified during the year. |
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| 8.
Revenue Recognition – In absence of any cash inflow for
the Rent income from the premises used by NCL, revenue
recognition on this stands discontinued during the year.
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| 9. As
an abundant precaution, no Deferred Tax has been considered
on Carry Forward Loss and Unabsorbed Depreciation. |
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| 10. Figures,
in respect of previous year, have been regrouped and rearranged
wherever necessary. |
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As per our attached Report of even
date
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For G.Basu
& Co.
Chartered Accountants |
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N Das
Director & Chairman
(Audit Committee) |
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| Manoj
Kumar Das |
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| Parter
(M No. 013783) |
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Udayan
Ray |
| Basu House
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Director
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| 3 Chowringhee
Approach |
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| Kolkata
-700 072 |
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Rajive
Kaul |
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Chairman
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| Dated
the 19th day of May,2010 |
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