1) Significant Accounting Policies:
1.1 Company Review and Nature of Operations:
OSEL DEVICES LIMITED was incorporated on 14th Day of August 2006. . The primary business of the company is
manufacture, trade, retail, wholesale, import, export, warehouse, storage, distribution, assemble, repair, maintain,
integrate, operate, test, install, resale of Hearing Aid, & LED Dispaly components, parts & accessories thereof and
also to carry on research and development activity for all kind of hearing aid, components, parts and accessories
related thereto.
1.2 Basis of Preparation of Financial Statements
The financial statements have been prepared to comply in all material aspects with the applicable generally accepted
accounting principles in India, the applicable accounting standards notified under section 133 of the Companies
Act, 2013('the Act') Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act (to the
extent notified). These financial statements have been prepared under the historical cost convention method on an
accrual basis. Accounting policies have been consistently applied except where a newly-issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto
in use.
1.3 Use of Estimates
In preparing the financial statements in conformity with accounting principles generally accepted in India,
management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities
and the disclosure of contingent liabilities as at the date of financial statements and the amounts of revenue and
expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates
is recognized in the period the same is determined.
1.4 Fixed Assets
Tangible Assets
Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added
on revaluation, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its
purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for
its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations
attributable to the assets.
Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the
future benefits from the existing asset beyond its previously assessed standard of performance.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization /depletion
and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to
bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the intangible assets.
1.5 Depreciation
Tangible Assets
Depreciation on tangible assets is provided at straight-line method over the useful lives of assets as prescribed in Part
C of schedule II of the Companies Act 2013. Depreciation for assets purchase/ sold during a period is proportionately
charged.
In respect of additions or extensions forming an integral part of existing assets and insurance spares, including
incremental cost arising on account of translation of foreign currency liabilities for acquisition of Fixed Assets,
depreciation is provided as aforesaid over the residual life of the respective assets.
Intangible Assets
Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis as
prescribed in Part C of Schedule II of the Companies Act 2013.
1.6 Revenue Recognition
Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be
reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods
and services.
1.7 Adjustments pertaining to earlier years and prepaid expenses
Income / expenditure relating to prior period and prepaid expenses are treated as income/expenditure of current
year as the case may be.
1.8 Employees' Benefits
The provisions/liabilities for short term employee benefits comprising salary, allowance, bonuses, Employee
Provident Fund, Gratuity & Employee State Insurance, etc have been recognized at their undiscounted amounts, in
accordance with the policies of the company.
1.9 Impairment of Assets
At each Balance Sheet date, the Company assesses whether there is any indication that assets may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. If the carrying amount of the
assets exceeds its recoverable amount, the impairment loss is recognised in the Profit and Loss account to the extent
the carrying amount exceeds the recoverable amount. After impairment, depreciation is provided on the impaired
amount over the remaining useful life of the asset.
In a subsequent accounting period, if there is an indication that an impairment recognised earlier no longer exists or
has decreased, the previously recognised impairment loss is reversed. However, the carrying value after reversal is
not increased beyond the carrying value that would have prevailed by charging the usual depreciation on the asset
without any impairment.
1.10 Tax Expense
Tax expense comprises both current and deferred tax. Current tax is determined in accordance with the provisions of
Income Tax Act, 1961.
The company provides for deferred tax assets/liability based on the tax effect of timing differences resulting from
the recognition of items in the financial statements and in estimating its current income tax provision. The effect on
deferred tax assets and liabilities of a change in tax rates is recognized in the profit and loss Account using the tax
rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets
on unabsorbed depreciation or carry forward losses, if any, are recognized only if there is virtual certainty that such
deferred tax assets can be realized against future taxable profits. In all other cases, deferred tax assets are recognized
only to the extent there is a reasonable certainty that sufficient future taxable income will be available against which
such deferred tax assets can be realized.
1.11 Preliminary Expenses
Preliminary expenses incurred on incorporation of company has been written off during the period as per the
provision of Accounting Standard - 26, eligible deduction u/s 35D of Income Tax Act.1961 has been claimed while
computing Income Tax liability.
1.12 Earning Per Share (EPS)
Basic earning per share is computed by dividing the net profit after tax for the year attributable to the equity
shareholders by the weighted average number of equity shares outstanding during the year. Since the bonus issue is
an issue without consideration, the issue is treated as if it had occurred prior to the beginning of the year, the earliest
period reported.
1.13 Foreign Currency Transactions
a. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the
transaction or that approximates the actual rate at the date of the transaction.
b. Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of
items which are covered by forward exchange contracts, the difference between the year end rate and rate on
the date of the contract is recognized as exchange difference and the premium paid on forward contracts is
recognized over the life of the contract.
c. Non-monetary foreign currency items are carried at cost.
d. In respect of integral foreign operations, all transactions are translated at rates prevailing on the date of
transaction or that approximates the actual rate at the date of transaction. Monetary assets and liabilities
are restated at the year end rates. i.e. Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Profit and Loss Statement, except in case of long term liabilities,
where they relate to acquisition of Fixed Assets, in which case they are adjusted to the carrying cost of such
assets.
1.14 Valuation of Inventories
Inventories of traded goods are valued at lower of cost or net realizable value. Cost includes cost of Purchase and
other costs incurred in bringing the inventories to their present location and condition. Cost is determined on
weighted average basis. Net realizable value is the estimated selling price in the ordinary course of business less
estimated discounts and costs necessary to make the sale.
Inventories of finished goods are valued at cost. Cost includes cost of material used in assembling And other direct
costs incurred for assembling of goods.
Inventories of raw materials are valued at cost. Cost includes cost of purchase and other costs incurred in bringing
the inventories to their present location and conditions. Cost is determined of first in first out basis.
Consumables, stores and spares are valued as follows: Lower of cost and net realizable value. Cost is determined on
a First in first out basis.
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