Mar 31, 2016
1 Significant Accounting Policies:
1.1 Basis of Accounting:
The Financial Statements are prepared under the historical cost convention, on accrual basis of accounting, in accordance with the generally accepted accounting principles in India and the applicable Accounting Standards referred to under section 133 of the Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014.
1.2 Use of Estimates:
The preparation of Financial Statements requires use of estimates and assumptions to be made that affect the reported amount of assets, liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.
1.3 Fixed Assets
Fixed Assets are stated at cost inclusive of installation and attributable expenses less accumulated depreciation/ amortization thereon and impairment losses, if any.
1.4 Depreciation:
Depreciation on fixed assets is provided on written down value method (WDV) at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013.
Intangible assets are amortized over their estimated useful life on written down value method (WDV).
1.5 Revenue Recognition:
Income and expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from sales transaction is recognized as and when the significant risk and reward attached to ownership in goods is transferred to the buyer. However leave with wages and bonus is accounted on cash basis.
Prompt payment rebate and overdue charges are determined and accounted for on termination of the contracts.
1.6 Inventory
Inventories are valued at the lower of cost and net realizable value.
1. 7 Investments
Long Term Investments are stated at cost net of provision against diminution, if any, in carrying cost of investment other than decline of temporary nature. Non Current investments are carried at lower of cost and market price.
1.8 Impairment:
The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal/external factors. Where the carrying value exceeds the estimated recoverable amount, provision for impairment is made to adjust the carrying value to the recoverable amount. The recoverable amount is the greater of the assets estimated net realizable value and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using an appropriate discounting
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rate. If at the Balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to maximum of depreciable historical cost.
1.9 Borrowing Costs:
Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.
1.10 Cash Flow Statement:
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
1.11 Employee Benefits:
Short term benefits and post employment benefits are accounted in the period during which the services have been rendered.
1.12 Taxation:
Current tax is determined as the amount of tax payable in respect of taxable income for the year computed in accordance with relevant provisions of Income Tax Act, 1961.
In accordance with the guidance note issued by the Institute of Chartered Accountants of India (âICAIâ) on accounting for credit available in respect of Minimum Alternate Tax (MAT) under the Income Tax Act, 1961, the Company recognizes MAT credit as an asset only when and to the extent there is convincing evidence that the Company will be liable to pay normal income tax during the specified period.
Deferred tax charge or credit and correspondingly deferred tax liability or asset is recognized using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is recognized, subject to the consideration of prudence, 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. In the event of unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount i.e. reasonable/virtually certain (as the case may be) to be realized.
1.13 Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized only when there is a present obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation and when a reliable estimate of the amount of the obligation can be made.
Contingent Liability is disclosed for (i) Possible obligation which will be confirmed only by future events not wholly within the control of the company or (ii) Present obligations arising from the past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent Assets are not recognized in the financial statements.
1.14 Earnings per Share:
The basic earnings per share are computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.
1.15 Segment Reporting:
The generally accepted accounting principles used in the preparation of the financial statements are applied to record revenue and expenditure in individual segments.
Mar 31, 2015
1. Corporate Information:
Birdhi Chand Pannalal Agencies Limited is a public limited company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. The company is listed on Bombay Stock Exchange
Ltd. and The Calcutta Stock Exchange. The company is engaged mainly in
the business of textile and trading in Iron & Steel.
2.1 Basis of Preparation:
The Financial Statements have been prepared in accordance with the
generally accepted accounting principles ('GAAP') applicable in India.
The Company has prepared these financial statements to comply in all
material respects with the provisions of the Companies Act, 2013 ('the
Act') and accounting standards notified under Section 133 of the
Companies Act, 2013 read together with paragraph 7 of the Companies
(Accounts) Rules, 2014. The financial statements have been prepared on
an accrual basis and under the historical cost convention. The
financial statements are presented in Indian Rupees.
All Assets and Liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in Schedule III of the Companies Act, 2013.
The accounting policies adopted in the preparation of the financial
statements are consistent with those of the previous year.
2.2 Use of Estimates:
The preparation of Financial Statements in conformity with the
Generally Accepted Accounting Principles (GAAP) requires estimates and
assumptions to be made by management that affect the reported amount of
assets and liabilities and disclosure of contingent liabilities as on
the date of the financial statements and the reported amount of
revenues and expenses during the reporting period. Differences between
the actual results and estimates are recognized in the period in which
the results are known / materialized.
2.3 Revenue Recognition:
Income and expenditure are recognized and accounted on accrual basis as
and when they are earned or incurred. Revenue from sales transaction is
recognized as and when the significant risk and reward attached to
ownership in goods is transferred to the buyer. However leave with
wages and bonus is accounted on cash basis.
Prompt payment rebate and overdue charges are determined and accounted
for on termination of the contracts.
2.4 Fixed Assets and Depreciation
Tangible Assets are stated at cost (or revalued amount as the case may
be) less accumulated depreciation and accumulated impairment losses if
any. Cost comprises purchase price and any other attributable cost of
bringing the asset to its working condition for its intended use.
Subsequent expenditure related to an item of fixed 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.
Gain or loss arising from de-recognition of assets are measured as the
difference between the net disposal proceeds and the carrying amount of
the assets and are recognized in the statement of profit and loss when
the asset is derecognized.
Depreciation on fixed assets is provided on written Down Value
Method(WDV) at the rates and in the manner prescribed in Schedule II to
the Companies Act 2013. The residual life of an asset is taken as 5%.
Intangible assets are amortized over their estimated useful life on a
straight line basis.
2.5 Investments
Investments which are readily realizable and intended to be held for
not more than one year from the date on which such investments are made
are classified as current investments in accordance with the RBI
guidelines and Accounting Standard 13 on 'Accounting for Investments'
as notified under the Companies (Accounting Standards) Rules, 2006.
Current investments also include current maturities of long- term
investments. All other investments are classified as non- current
investments. Current investments are carried at lower of cost and
market price determined category- wise. All non  current investments
are carried at cost. However, provision for diminution in value, other
than temporary in nature, is made to recognize a decline, on an
individual basis.
2.6 Inventories:
Stock in trades are valued at cost or net realizable value whichever is
lower.
2.7 Impairment:
The carrying amounts of assets are reviewed at each balance sheet date
for any indication of impairment based on internal/external factors.
Where the carrying value exceeds the estimated recoverable amount,
provision for impairment is made to adjust the carrying value to the
recoverable amount. The recoverable amount is the greater of the assets
estimated net realizable value and value in use. In assessing value in
use, the estimated future cash flows are discounted to their present
value using an appropriate discounting rate. If at the Balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to maximum of depreciable
historical cost.
2.8 Borrowing Costs:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized. Other borrowing
costs are recognized as an expense in the period in which they are
incurred.
2.9 Cash Flow Statement:
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.10 Employee Benefits:
Short term benefits and post employment benefits are accounted in the
period during which the services have been rendered.
2.11Taxation:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year computed in accordance with relevant
provisions of Income Tax Act, 1961. In accordance with the guidance
note issued by the Institute of Chartered Accountants of India ('ICAI')
on accounting for credit available in respect of Minimum Alternate Tax
(MAT) under the Income Tax Act, 1961, the Company recognizes MAT credit
as an asset only when and to the extent there is convincing evidence
that the Company will be liable to pay normal income tax during the
specified period.
Deferred tax charge or credit and correspondingly deferred tax
liability or asset is recognized using tax rates that have been enacted
or substantively enacted at the balance sheet date. Deferred tax is
recognized, subject to the consideration of prudence, 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. In the event of unabsorbed depreciation or carried forward
loss under taxation laws, deferred tax assets are recognized only if
there is virtual certainty supported by convincing evidence that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. Deferred tax assets are reviewed
at each balance sheet date and written down or written up to reflect
the amount i.e. reasonable/ virtually certain (as the case may be) to
be realized.
2.12 Provisions, Contingent Liabilities and Contingent Assets:
Provisions are recognized only when there is a present obligation as a
result of past events; it is more likely than not that an outflow of
resources will be required to settle the obligation and when a reliable
estimate of the amount of the obligation can be made.
Contingent Liability is disclosed for (i) Possible obligation which
will be confirmed only by future events not wholly within the control
of the company or (ii) Present obligations arising from the past events
where it is not probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the amount of the
obligation cannot be made.
Contingent Assets are not recognized in the financial statements.
2.13 Earnings per Share:
The basic earnings per share are computed by dividing the net profit
attributable to the equity shareholders for the year by the weighted
average number of equity shares outstanding during the reporting
period. Diluted EPS is computed by dividing the net profit attributable
to the equity shareholders for the year by the weighted average number
of equity and dilutive equity equivalent shares outstanding during the
year, except where the results would be anti-dilutive.
2.14 Segment Reporting:
The generally accepted accounting principles used in the preparation of
the financial statements are applied to record revenue and expenditure
in individual segments.
Segment revenue and segment results include transfers between business
segments. Such transfers are accounted for at the agreed transaction
value and such transfers are eliminated in the consolidation of the
segments.
Expenses that are directly identifiable to segments are considered for
determining the segment result. Expenses which relate to the company as
a whole and are not allocable to segments, are included under
unallocated corporate expenses.
Segment assets and liabilities include those directly identifiable with
the respective segments. Unallocated corporate assets and liabilities
represent the assets and liabilities that relate to the company as a
whole and not allocable to any segment.
Mar 31, 2014
(a) Use of Estimates
The preparation of the Financial Statements in confirmlty with
Generally Accepted Accounting Principles (GAAP) in India requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amount of income and expenses during the period. Examples of
such estimates includes future obligation with respect to employees
benefits, income taxes, useful lives of fixed assets etc. Although
these estimates are based upon management's best knowledge of current
events and actions, actual results could differ from these estimates.
Difference between the actual results and estimates are recognised in
the period in which the results are known / materialised.
(b) Fixed Assets and Depreciation
(i) Tangible Assets
Tangible assets are stated at their cost of acquisition net of
receivable CENVAT and VAT Credits. All costs, direct or indirect,
relating to the acquisition and ' installation of fixed assets and
bringing it to its working condition for its intended use are
capitalised and include borrowing costs and adjustments arising from
foreign exchange rate variations directly attributable to construction
or acquisition of fixed assets. Depreciation on fixed assets is
provided on written down value method (WDV) on a pro-rata-basis at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956. In respect of assets acquired/sold during the year, depreciation
has been provided on pro-rata basis with reference to the days of
addition/put to use or disposal.
(ii) Intangible Assets
Intangible Assets are stated at their cost of acquisition, less
accumulated amortization and accumulated impair|ment losses thereon. An
intangible asset is recognized where it is probable that future
economic benefits attributable to the asset will flow to the enterprise
and where its cost can be reliably measured. The depreciable amount of
intangible assets is allocated based on the estimates of the useful
life of the asset not exceeding five years.
(c) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
Mar 31, 2013
(a) Use of Estimates
The preparation of the Financial Statements in conforming with
Generally Accepted Accounting Principles (GAAP) in India requires
management to make estimates and assumptions chat affect the reported
amounts of assets and liablities and disclosures relating to contingent
liabilties as at the date of the financial statements and reported
amount of income and expenses during the period. Examples of such
estimates includes future obligation With respect to employees
benefits, income taxes, useful lives of fixed assets etc. Although
these estimates are based upon management''s best knowledge of currrent
events and actions, actual results could differ from these estimates.
Difference between the actual results and estimates are recognised in
the period in which the results are known / materialised.
(i) Tangible Assets
Tangible assets are stared at Their cost of acquisition net of
receivable CENVAT and VAT Credits, All costs, direct or indirect,
relating to the Acquisition and installation of fixed assets and
bringing it to its working condition for Its intended use are
capitalised and include borrowing cost and adjustments arising from
foreign exchange cate variations directly attributed to construction or
acquisition of fixed assets. Depreciation on fixed assets if. provided
on Written down value method (WDV) on a Pro-rate-basis at the rates and
in the manner specified in Schedule XIV to the Companies Act, 1956 In
respect of assets acquired/sold during the year, depreciation has been
provided on pro-rata basis with reference to the days of addition/put
to use or disposal
(il) Intangible Assets
Intangable asset are stated at their cost of acquisition, less
accmulated amortization and accumulated impairment losses thereon. An
intangible asset is recognised where its is probable that future
economic benefits attributable to the asset will flow to the enterprise
and where its cost can be reliably measured. The depreciable amout of
intangible assets is allocated based on the estimates of the useful
life of the asset not exeeding five years.
(c) Impairment Of AssetS
An asset is treated at impaired when the carrying cost of assets
exceeds its recoverable value An impairment loss is charged to the
Profit & loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised In prior accounting period is
reversed if there has been a change in the of recoverable amount
(d) Investments
Investment that are readily realisble and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investment. Current investment
are carried at lower of cost and fan value deiermined on an individual
item basis. long-term invusunents are carried at cost, However,
provision for diminution in value Is made to recognise a decline other
Than temporary in the value of the investments.
(e) Investments
(i) Finished and Semi-Finished products produced and purchased by the
Company are carried at lower of cost and net realisable value after
providing. for obsolescence, if ;any-
(ii) Work-in-progress is carrired at lower of Cost and net realisable
value.
(iii) Stock of raw materials, stores, spare parts and packing;
materials are valued at lower of cost less CENVAT Credit/ VAT availed
or net realisable value.
(iv) Cast of investories comprises all costs of purchase. cost of
conversion and other costs incurred in brining them to their respective
present location and condition.
(v) Liability for excise duty in respect of goods manufactured by the
Company is accounted upon removal of goods from the factory
(f) Revenue Recongnistion ..................
Income and expenditure is recognised and accounted for on accrual
basis. Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue from sale of goods is recognised on transfer
of singficant risks and reward of ownership to the customer and when no
significant uncertainty exists regarding realisation of the
consideration. Sales are recoded net of sales re turns, sales tax/VAT.
cash and made discounts.
(g) Foreign Currency Transactions
the company follows Accounting; Standard 11 issued by the institute of
Charered Accountants of India to account for the foreign exchange
transaction.
(h) Government Grants and Subsidies
GrantS and Subsidies from the Government are recognized when there is
reasonable certainty certainly that the Grant/Subsidy will be recived
and all attching conditions be complied with. When the Grant or Subsidy
relates to an expense, item it is recognised as income over the period
necessary to match them on a systematic basis to the costs, which it is
intended to compensate. Where the Grant or Subsidy relates to an asset
its value is deducted him the gross value of the asset concerned in
arrving at the carrying amount of the related asset. Government Grants
of the nature- of Promoters'' contribution lion are credited to Capital
Reserved and treated as a part of Shareholders'' Funds.
(i) Retirement Benefits
Cotributions to the provident fund and employee state insurance (if
any) is made monthly in a pre-determined rete to the Provident Fund
Commissioner and Employees State Insurance Fund respectively and
debited to the profit & loss account on an accrual basis.
Provision for outstanding Leave Encashment benefit and Gratuity (if
any) for employees, if any is accounted for on accrual basis
(i) Borrowing Cost ...
Borrowing cost that are attributable to the acquisition or construction
of qualifying asset are capitalised as part of the cost of such assets.
All other borrowing cost are charged to revenue.
(k) Lease policy
(i) Finance Leases
leases which effectively transfer to the company substantially all the
risks and benefits incidental to ownership of the Leased item are
capitalised at the inception of the lease term at the lower of the fab
value of the leased property and present value of minimum lease payment
Lease payments are apportioned between the finance charges and
reduction of the lease liability so as to achieve a constant cate of
interest on the remaining balance of the liability. Finance charge are
recognised as finance costs in the Statement of Profit and Loss.
A leased Asset is depreciated on a straight - line basis over the
useful life- of the asset or the useful life envisaged in Schedule XIV
to the Companies Act, 1956, whichever is lower.
(ii) Operating Leases
leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item, are classified as
Operating lease operating lease payments are recognised as an expense
in the statement of profit and loss on a straight-line basis over the
lease term.
Mar 31, 2012
Not Available.
Mar 31, 2011
1. ACCOUNTING CONCEPTS
i) The company maintains its account on accrual basis and in accordance
with other generally accepted fundamental: principles of accounting.
ii) The financial statements are prepared under the Historical Cost
Convention and on the principle of a going concern. All revenues are
recognized & ail expenses are accounted for on their accrual unless
otherwise specifically stated. Claims and /or refunds not ascertainable
with reasonable certainty are accounted for on cash basis.
2. SALES
NIL
3. FIXED ASSETS AND DEPRECIATION ;
NIL
4. INVENTORIES
NIL
5. TAXATION
The tax provision are made on the basis of regular Income Tax
applicable to the domestic company