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.
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 Â 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.
Stock in trades are valued at cost or net realizable value whichever is lower.
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.
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
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.
(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
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 ;
The tax provision are made on the basis of regular Income Tax applicable to the domestic company