Case Study: Essay Life Sciences
Background of the company and form of organization:
RPG Life Sciences (RPGLS) is an Indian Pharmaceutical Company. Formerly known as Searle (India) Ltd, RPG Life Sciences is part of RPG Enterprises. It has its corporate office in RPG House in Worli, Mumbai. Its three major activities are manufacturing and marketing of bulk drugs, also known as API, (Active Pharmaceutical Ingredients), pharmaceutical formulation and fermentation & biotechnology. RPGLS is present in the domestic as well as the international market. It exports its products primarily to Europe, Latin America, Australia & South East Asian countries.
RPG life sciences, a part of the 17,000 crore. RPG enterprise is an integrated pharmaceutical company operating …show more content…
Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expense in the year in which they are incurred.
Leases
Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on straight line basis in the statement of profit and loss over the lease term.
Provisions and Contingent …show more content…
Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognised in case of unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be
RPG Life Sciences (RPGLS) is an Indian Pharmaceutical Company. Formerly known as Searle (India) Ltd, RPG Life Sciences is part of RPG Enterprises. It has its corporate office in RPG House in Worli, Mumbai. Its three major activities are manufacturing and marketing of bulk drugs, also known as API, (Active Pharmaceutical Ingredients), pharmaceutical formulation and fermentation & biotechnology. RPGLS is present in the domestic as well as the international market. It exports its products primarily to Europe, Latin America, Australia & South East Asian countries.
RPG life sciences, a part of the 17,000 crore. RPG enterprise is an integrated pharmaceutical company operating …show more content…
Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expense in the year in which they are incurred.
Leases
Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on straight line basis in the statement of profit and loss over the lease term.
Provisions and Contingent …show more content…
Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognised in case of unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be