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Accounting Policies of BPL Ltd. Company

Mar 31, 2016

21. Significant Accounting Policies

21.1 General

The financial statements have been prepared under historical cost convention in accordance with Generally Accepted Accounting Principles in India and the provisions of the Companies Act, 2013 as adopted consistently by the company.

21.2 Fixed Assets

Fixed Assets, except Land and Building which were revalued as on 30.04.85, are stated at their original cost of acquisition including incidental expenditure related thereto, taxes, duties other than motivate credit availed and installation expenses. Net surplus or deficiency that arise when an asset is disposed/discarded/demolished/destroyed, are duly accounted.

21.3 Depreciation

Depreciation on Fixed Assets are provided on Straight Line Method at the rates and manner prescribed under Schedule II of the Companies Act, 2013.

21.4 Investments

Investments are stated at cost. Provisions are made to recognize permanent diminution in the value of Investments.

21.5 Inventories

Inventories are valued as under:

Finished Goods: At lower of cost or realizable value

Work in Progress: At cost inclusive of appropriate overheads

Materials, Components & Spares: At weighted average cost including taxes & duties Goods in transit : At cost

21.6 Foreign Currency Transaction

Transactions in Foreign Currency, other than those covered by forward contracts are accounted at exchange rates prevailing on the date of the transaction. Assets and liabilities in foreign currency not covered by forward contracts are translated at exchange rate prevailing on the date of the Balance Sheet. The Net loss, if any, on conversion is charged to revenue / asset account but gains if insignificant, is not accounted for.

21.7 Research and Development

Fixed Assets purchased for Research & Development are capitalized and depreciated as per the Company''s policy.

21.8 Retirement Benefit

Contribution to recognized Provident Fund is made at predetermined rates. The Company has an arrangement with Life Insurance Corporation of India to administer its Gratuity and Superannuation Schemes. The Gratuity liability calculated as per Actuarial Valuation is Rs. 91.83 Lakhs for existing employees. The liability for the exit employees is Rs. 26.59 Lakhs. The following table sets out the status of the plan as required under AS 15:

21.9 Borrowing Cost

The Company has discontinued the Superannuation Scheme effective November 2011. The crystallized liability under Superannuation Scheme as on 31st March, 2016 was Rs. 12.56 lakhs. Borrowing Cost that is directly attributable to the acquisition, Construction or production of a qualifying asset are capitalized as part of the asset. Other borrowing costs are recognized as expense in the period in which they are incurred.

21.10 Revenue Recognition

Revenue in respect of Sale of Products is recognized when goods are supplied to customers.

Service Income is accounted as and when services are rendered. Dividend income on Investments is accounted when the right to receive the payment is established. Interest income is recognized on a time proportionate basis considering the amount outstanding and rate applicable. Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

21.11 Contingent Liability

All known liabilities are provided for in the accounts except liabilities of a contingent nature, which are adequately disclosed in accounts.

22.2 Share Capital

2.1 Share Capital includes 21,930 Equity Shares of Rs 10/- each allotted as Fully Paid Up for consideration other than cash and 96, 50,000 Equity Shares of Rs 10/- each allotted as Bonus Shares by Capitalization of General Reserve during an earlier period.

2.2 1,69,58,682 Non- Convertible, Non-Cumulative 0.001% Preference Shares of Rs. 100/- each, were allotted on 23rd September, 2005, pursuant to the Scheme of Arrangement approved by the Hon. High Court of Kerala, Ernakulam. Out of which, 1,41,24,682 shares are redeemable in four equal installments at the end of the 11th,12th,13th and 14th year and the balance of 28,34,000 shares are redeemable in ten equal installments commencing from 31st March, 2008. The Company is yet to redeem these preference shares and the amount outstanding as on 31st March 2016, was Rs.25.51crores. Company is making arrangements for the redemption of the above and the same will be redeemed in due course.

2.3 There are no Micro and Small Enterprises to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2016. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the company.

2.4 As the company has no qualifying assets as defined in Accounting Standard 16, amount of borrowing cost that are directly attributable to the acquisition, construction or production of a qualifying asset have not been capitalized.

2.5 In accordance with the provisions of Accounting Standard 17, the Company has only one reporting segment viz, Electronic Industry. Segmental reporting as defined is therefore not applicable. The operating lease arrangements are renewable on a periodic basis. Some of these lease agreements have price escalation clauses.

. The amount provided by the company in the books of account towards gratuity is sufficient to cover the actuarial value of liability as certified by an external value. However, due to shortage of funds, the company is yet to fund the full actuarial liability under the scheme administered by LIC of India. As per the agreement with employees, the company has no liability for payment of leave encashment to its employees.

. The company has obtained confirmation of balances from its debtors. The balances due to creditors including Group Companies are subject to confirmation/ reconciliation.

- Previous year''s figures have been regrouped/ reclassified, wherever necessary, to correspond with the current year’s classification/ disclosure.


Mar 31, 2015

1.1 General

The financial statements have been prepared under historical cost convention in accordance with Generally Accepted Accounting Principles in India and the provisions of the Companies Act, 2013as adopted consistently by the company.

1.2 Fixed Assets

Fixed Assets, except Land and Building which were revalued as on 30.04.85, are stated at their original cost of acquisition including incidental expenditure related thereto, taxes, duties other than modvat credit availed and installation expenses. Net surplus or deficiency that arise when an asset is disposed/discarded/demolished/ destroyed, are duly accounted.

1.3 Depreciation

Depreciation on Fixed Assets are provided on Straight Line Method at the rates and manner prescribed under Schedule II of the Companies Act, 2013.

1.4 Investments

Investments are stated at cost. Provisions are made to recognize permanent diminution in the value of Investments.

1.5 Inventories

Inventories are valued as under:

Finished Goods : At lower of cost or realisable value

Work in Progress : At cost inclusive of appropriate overheads

Materials, Components & Spares : At weighted average cost including taxes & duties Goods in transit : At cost

1.6 Foreign Currency Transaction

Transactions in Foreign Currency, other than those covered by forward contracts are accounted at exchange rates prevailing on the date of the transaction. Assets and liabilities in foreign currency not covered by forward contracts are translated at exchange rate prevailing on the date of the Balance Sheet. The Net loss, if any, on conversion is charged to revenue / asset account but gains if in significant, is not accounted for

1.7 Research and Development

Fixed Assets purchased for Research & Development are capitalised and depreciated as per the Company's policy.

1.8 Retirement Benefit

Contribution to recognised Provident Fund is made at predetermined rates. The Company has an arrangement with Life Insurance Corporation of India to administer its Gratuity and Superannuation Schemes. The Gratuity liability calculated as per Actuarial Valuation is Rs. 83.22 Lakhs for existing employees. The liability for the exit employees is Rs. 26.94 Lakhs. The following table sets out the status of the plan as required under AS 15:

1.9 Borrowing Cost

Borrowing Cost that are directly attributable to the acquisition, Construction or production of a qualifying asset are capitalised as part of the asset. Other borrowing costs are recognized as expense in the period in which they are incurred.

1.10 Revenue Recognition

Revenue in respect of Sale of Products is recognised when goods are supplied to customers.

Revenue from Annual Maintenance Contract (AMC) is recognized on time proportion basis. Service Income is accounted as and when services are rendered. Dividend income on Investments is accounted when the right to receive the payment is established. Interest income is recognised on a time proportionate basis considering the amount outstanding and rate applicable. Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

1.11 Contingent Liability

All known liabilities are provided for in the accounts except liabilities of a contingent nature, which are adequately disclosed in accounts.


Mar 31, 2014

1.1 General

The financial statements have been prepared under historical cost convention in accordance with Generally Accepted Accounting Principles in India and the provisions of the Companies Act, 1956 / 2013 as adopted consistentlybythecompany.

1.2 Fixed Assets

Fixed Assets, except Land and Building which were revalued as on 30.04.85, are stated at their original cost of acquisition including incidental expenditure related thereto, taxes, duties other than modvat credit availed and installation expenses. Net surplus or deficiency that arise when an asset is disposed/ discarded/ demolished/ destroyed, are duly accounted.

1.3 Depreciation

Depreciation on Fixed Assets are provided on Straight Line Method at the rates and manner prescribed under Schedule XIVofthe Companies Act, 1956.

1.4 Investments

Investments are stated at cost. Provisions are made to recognize permanent diminution in the value of Investments.

1.5 Inventories

Inventories are valued as under:

Finished Goods : At lower of cost or realisable value

Work in Progress : At cost inclusive of appropriate overheads

Materials, Components & Spares : At weighted average cost including taxes & duties Goods in transit : At cost

1.6 Foreign Currency Transaction

Transactions in Foreign Currency, other than those coveredbyforward contracts are accounted at exchange rates prevailing on the date of the transaction. Assets and liabilities in foreign currency not covered by forward contracts are translated at exchange rate prevailing on the date of the Balance Sheet. The Net loss, if any, on conversion is charged to revenue /asset account but gains if insignificant, is not accounted for.

1.7 ResearchandDevelopment

Fixed Assets purchased for Research & Development are capitalised and depreciated as per the Company''s policy.

1.8 Retirement Benefit

Contribution to recognised Provident Fund is made at predetermined rates. The Company has an arrangement with Life Insurance Corporation of India to administer its Gratuityand Superannuation Schemes. The Gratuity liability calculated as per Actuarial Valuation is Rs. 68.88 Lakhs for existing employees and for exit employees, it is Rs. 79.90 Lakhs. The following table sets out the status of the planasrequired underAS15:

1.9 Borrowing Cost

Borrowing Cost that are directly attributable to the acquisition, Construction or production of a qualifying asset are capitalised as part of the asset. Other borrowing costs are recognized as expense in the period in which they are incurred.

1.10 Revenue Recognition

Revenue in respect of Sale of Products is recognised when goods are supplied to customers.

Revenue from AMC Income is recognized on time proportion basis. Service Income is accounted as and when services are rendered. Dividend income on Investments is accounted when the right to receive the payment is established. Interest income is recognised on a time proportionate basis considering the amount outstanding and rate applicable. Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

1.11 Contingent Liability

All known liabilities are provided for in the accounts except liabilities of a contingent nature, which are adequately disclosed in accounts.


Mar 31, 2013

1.1 General

The financial statements have been prepared under historical cost convention in accordance with Generally Accepted Accounting Principles in India and the provisions of the Companies Act, 1956 as adopted consistently by the company.

1.2 FixedAssets

Fixed Assets, except Land and Building which were revalued as on 30.04.85, are stated at their original cost of acquisition including incidental expenditure related thereto, taxes, duties other than modvat credit availed and installation expenses. Net surplus or deficiency that arise when an asset is disposed/ discarded/ demolished/ destroyed, are duly accounted.

1.3 Depreciation

Depreciation on FixedAssets are provided on Straight Line Method at the rates and manner prescribed under Schedule XIV of the Companies Act, 1956.

1.4 Investments

Investments are stated at cost. Provisions are made to recognize permanent diminution in the value of Investments.

1.5 Inventories

Inventories are valued as under:

Finished Goods : At lower of cost or realisable value

Work in Progress : At cost inclusive of appropriate overheads

Materials, Components & Spares : At weighted average cost including taxes & duties Goods in transit : At cost

1.6 Foreign Currency Transaction

Transactions in Foreign Currency, other than those covered by forward contracts are accounted at exchange rates prevailing on the date of the transaction. Assets and liabilities in foreign currency not covered by forward contracts are translated at exchange rate prevailing on the date of the Balance Sheet. The Net loss, if any, on conversion is charged to revenue / asset account but gains if insignificant, isnot accounted for.

1.7 Research and Development

FixedAssets purchased for Research & Development are capitalised and depreciated as per the Company''s policy.

1.8 Retirement Benefit

Contribution to recognised Provident Fund is made at predetermined rates. The Company has an arrangement with Life Insurance Corporation of India to administer its Gratuity and Superannuation Schemes. The Gratuity liability calculated as per Actuarial Valuation is Rs. 201.57 Lakhs for existing employees and for exit employees it is Rs. 268.16 Lakhs. The following table sets out the status of the planas required underAS15:

The Company had discontinued the Superannuation Scheme effective November 2011. The crystallized liability under Superannuation Scheme as on 31stMarch 2013 was X 26.39 lakhs.

1.9 Borrowing Cost

Borrowing Cost that are directly attributable to the acquisition, Construction or production of a qualifying asset are capitalised as part of the asset. Other borrowing costs are recognized as expense in the period in which they are incurred.

1.10 Revenue Recognition

Revenue in respect of Sale of Products is recognised when goods are supplied to customers.

Revenue from AMC Income is recognized on time proportion basis. Service Income is accounted as and when services are rendered. Dividend income on Investments is accounted when the right to receive the payment is established. Interest income is recognised on a time proportionate basis considering the amount outstanding and rate applicable. Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

1.11 Contingent Liability

All known liabilities are provided for in the accounts except liabilities of a contingent nature, which are adequately disclosed in accounts.


Mar 31, 2012

1.1 General

The financial statements have been prepared under historical cost convention in accordance with generally accepted accounting principle in India and the provisions of the Companies Act, 1956 as adopted consistently by the company.

1.2 Fixed Assets

Fixed Assets, except land and building which were revalued as on 30.04.85, are stated at their original cost of acquisition including incidental expenditure related thereto, taxes, duties other than modvat credit availed and installation expenses. Net surplus or deficiency that arise when an asset is disposed/ discarded/ demolished/destroyed, are duly accounted.

1.3 Depreciation

Depreciation on Fixed Assets are provided on Straight Line Method at the rates and manner prescribed under Schedule XIV of the Companies Act, 1956.

1.4 Investments

Investments are stated at cost. Provisions are made to recognize permanent diminution in the value of investments.

1.5 Inventories

Inventories are valued as under:

Finished Goods : At lower of cost or realizable value

Work in Progress : At cost inclusive of appropriate overheads

Materials, Components & Spares : At weighted average cost including taxes & duties Goods in transit : At cost

1.6 Foreign Currency Transaction

Transactions in Foreign Currency, other than those covered by forward contracts are accounted at exchange rates prevailing on the date of the transaction. Assets and liabilities in foreign currency not covered by forward contracts, are translated at exchange rate prevailing on the date of the Balance Sheet. The net loss, if any, on conversion is charged to revenue / asset account but gains if insignificant is not accounted for.

1.7 Research and Development

Fixed Assets purchased for Research and Development are capitalized and depreciated as per the Company's policy.

1.8 Retirement Benefit

Contribution to recognized Provident Fund is made at predetermined rates. The company has an arrangement with Life Insurance Corporation of India to administer its Gratuity and Superannuation Schemes. The gratuity liability calculated as per Actuarial Valuation is Rs. 252.26 lakhs for existing employees and for exit employees it is Rs. 195.38 lakhs. The following table sets out the status of the plan as required under AS 15:

1.9 Borrowing Cost

Borrowing Cost that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the asset. Other borrowing costs are recognized as expense in the period in which they are incurred.

1.10 Revenue Recognition

Revenue in respect of sale of products is recognized when goods are supplied to customers.

Revenue from AMC income is recognized on time proportion basis. Service income is accounted as and when services are rendered. Dividend income on investments is accounted when the right to receive the payment is established. Interest income is recognized on a time proportionate basis considering the amount outstanding and rate applicable. Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

1.11 Contingent Liability

All known liabilities are provided for in the accounts except liabilities of a contingent nature, which are adequately disclosed in accounts.


Mar 31, 2010

General : The financial statements have been prepared under historical cost convention in accordance with generally accepted accounting principle in India and the provisions of the Companies Act, 1956, as adopted consistently by the company.

Fixed Assets : Fixed Assets, except Land and Building which were revalued as on 30.4.85, are stated at their original cost of acquisition including incidental expenditure related thereto, taxes, duties other than modvat credit availed and installation expenses. Net surplus or deficiency arising when an asset is disposed, discarded, demolished or destroyed are duly accounted.

Depreciation : Depreciation on Fixed Assets are provided on Straight Line Method at the rates and manner prescribed under Schedule XIV of the Companies Act, 1956.

Investments : Investments are stated at cost. Provisions are made to recognize permanent diminution in the value of Investments.

Inventories : Inventories are valued as under :

Finished Goods : At lower of cost or realisable value

Work in Progress : At cost, inclusive of appropriate

overheads Materials, Components : At weighted average cost & Spares including taxes & duties

Goods-in-transit : At cost

Foreign Currency Transaction : Transactions in foreign currency, other than those covered by forward contracts are accounted at exchange rates prevailing on the date of the

transaction. Assets and Liabilites in foreign currency not covered by forward contracts, are translated at exchange rate prevailing on the date of the Balance Sheet. The net loss, if any, on conversion is charged to revenue / asset account but gains, if insignificant, is not accounted for.

Research and Development : Fixed Assets purchased for Research and Development are capitalised and depreciated as per the Companys policy.

Retirement Benefit : Contribution to recognised Provident Fund is made at predetermined rates. There is no defined benefit scheme for Leave Encashment. The Company has an arrangment with Life Insurance Corporation of India to administer its Gratuity and Superannuation Schemes.

Borrowing Cost : Borrowing Cost that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

Revenue Recognition : Revenue in respect of sale of products are recognised when goods are supplied to customers. Dividend income on Investments are accounted for when the right to receive the payment is established. Interest income is recognised on a time proportionate basis considering the amount outstanding and rate applicable. Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.

Contingent Liability : All known liabilites are provided for in the accounts except liabilites of a contingent nature, which are adequately disclosed in accounts.

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