Mar 31, 2018
1 SIGNIFICANT ACCOUNTING POLICIES
i) BASIS OF PREPARATION
a. The financial statements are prepared in accordance with Indian Accounting Standards Ind AS) prescribed under Section 133 of the Act read with Rule 3 of the Companies Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
For all periods upto and including the year ended March 31, 2017 the Company prepared its financial statements in accordance with accounting standards notified under the Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP).
The year ended March 31, 2018 is the first period for which the Company has prepared its financial statements in accordance with Ind AS. The previous period comparatives for the period ended March 31, 2017 which were earlier prepared as per the aforesaid Companies (Accounts) Rules, 2014 have been restated as per Ind AS to make them comparable.
The classification of assets and liabilities of Company is done into current and non-current based on operating cycle of the business of the Company. The operating cycle of the business of the company is less than twelve months and therefore all current and non-current classifications are done based on status of realisability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule III to the Companies Act, 2013.
b. The accounting policies adopted in the preparation of financial statements are consistent with those used in previous year.
ii) USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities ( including contigent liabilities) at the date of the financial statements and the results of operations during the reporting period end. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and estimates are recognised in the periods in which the results are known/materialise.
iii) PROPERTY, PLANT & EQUIPMENT
a. Property, Plant and Equipment are carried at cost less accumulated depreciation/amortisation. Cost comprises its purchase price net of any trade discounts and rebates, duties and taxes (other than those subsequently recoverable from the tax authorities), freight and other incidental expenses directly to make the asset ready for its intended use.
b. The Property, plant and equipment existing on the date of transition are accounted on deemed cost basis by applying para D7AA in accordance with the exemption provided in Ind AS 101 â First-time Adoption of Indian Accounting Standardsâ at previous GAAP carrying value.
c. Depreciation on all assets of the Company is charged on Straight Line Method over the useful life of the assets mentioned in Schedule II to the Companies Act, 2013.
d. Leasehold land is not amortised.
e. No Depreciation is provided on followings :
i) Windmills for Renewable Energy
ii) Warehouse at Kudal
The above assets were yet to be put to use for commercial purposes.
iv) IMPAIRMENT LOSS
On an annual basis the Company makes an assessment of any indicator that may lead to impairment of assets. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. The recoverable amount is higher of an assetâs net selling price and value in use. Value is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.
v) INVENTORIES
a) RAW MATERIAL
Raw Materials are valued at lower of cost or net realizable value.
b) PACKING MATERIAL
Packing Materials are valued at lower of cost or net realizable value.
c) WORK IN PROCESS
Work in Process are valued at cost. The cost of Stock-in-process comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to itâs present location and condition.
d) FINISHED GOODS
Finished Goods are valued at lower of cost or net realizable value. The cost of Finished Goods comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to itâs present location and condition.Net realisable value is the estimate of the selling price in ordinary course of business as applicable.
vi) EMPLOYEE BENEFITS
a) Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, bonus, short term compensated absences, ex-gratia, leave encashment and leave travel allowance is recognised in the period in which the employees renders related services.
b) Long Term Employee Benefits
i) Defined Contribution Plan
The Companyâs contribution to Provident Fund Scheme, Employeeâs State Insurance Scheme are considered as defined contribution plans and are recognised as an expense to the statement of profit and loss, based on the amount of contribution required to be made and when services are rendered by employees.
ii) Defined Benefit Plan
The Company provides for gratuity, a defined benefit retirement plan (âthe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, or termination of employment, of an amount based on the respective employeeâs salary and the tenure of employment with the Company.
Liabilities with regard to Gratuity Plan are determined by actuarial valuation, performed at each balance sheet date using the Projected Unit Credit Method.
The Company contributes ascertained liabilities to the BDH Industries Limited Employeesâ Group Gratuity Cash Accumulation Scheme (the Trust). Trustees administer contributions made to the Trust and contributions are invested in a scheme with Life Insurance Corporation of India as permitted by laws of India.
The retirement benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligations reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme. The company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Actuarial gains and losses are recognised in full in the other comprehensive income for the period in which they occur. The effect of any plan amendments are recognized in the statement of profit and loss.
vii) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at the exchange rate on the date of transaction. The exchange gain/loss on settlement/negotiation during year is recognised in the Statement of Profit and Loss. Foreign currency monetary transactions remaining unsettled at the end of the year are converted at year-end rates. The resultant gain or loss is accounted for in the Statement of Profit and Loss.
viii) REVENUE RECOGNITION
a) Revenue from sale of product is recognized on transfer of all significant risk and rewards of ownership of the products on to the customers, which is generally after dispatch of goods. Sales for the year ended March 31, 2017 and for the period April 1, 2017 to June 30, 2017 were reported gross of excise duty. Consequent to the introduction of Goods and Services Tax (GST) with effect from July 1, 2017, VAT / central sales tax, excise duty etc. have been subsumed into GST and accordingly, the same is not recognised as part of sales in terms of Ind AS 18 on âRevenueâ
b) Revenue from service is recognised as and when services are rendered and related costs are incurred.
c) Interest income is recognised on time proportion method basis taking into account the amounts outstanding and the rate applicable.
d) The Export Incentive are disclosed under Other Operating Revenue.
ix) RESEARCH & DEVELOPMENT
Revenue expenditure on research and development is charged to Statement of Profit and Loss in the year in which it is incurred. Capital expenditure on research and development is considered as an addition to property, plant and equipment.
x) TAXATION
a) CURRENT TAX
Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.
b) DEFERRED TAX
Deferred Tax is recognized on timing differences being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and deferred tax liabilites are offset, if a legally enforceable rights exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities related to the taxes on income levied by same governing taxation laws.
The tax effect is calculated on the accumulated timing difference at the year end based on the tax rates and laws enacted or substantially enacted on balance sheet date.
xi) EXCISE DUTY, SERVICE TAX AND CENVAT
CENVAT credit utilised during the year is accounted in Excise Duty.
xii) CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents includes Cash in hand, deposits with bank and interest accrued thereon.
xiii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions and liabilities are recognized in the period when it becomes probable thatthere will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification ofthe liability requires the application of judgementto existing facts and circumstances, which can be subjectto change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.. Contingent Liabilities are not recognised but disclosed in notes to accounts. Contingent Assets are neither recognised nor disclosed in financial statements.
xiv) EARNING PER SHARE
Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the number of equity shares outstanding during the year.
xv) DIVIDEND
Dividend distribution (including Dividend Distribution Tax thereon) to the Companyâs equity holders is recognized as a liability in the Companyâs annual accounts in the year in which the dividends are approved by the Companyâs equity holders.
Mar 31, 2016
1 GENERAL INFORMATION
BDH INDUSTRIES LIMITED is a public limited company, incorporated in 1990 under the Companies Act, 1956 having its registered office in Mumbai. The company is engaged in manufacturing of therapeutic formulations covering wide range of pharmaceuticals. Its shares are listed on the Bombay Stock Exchange. The company caters to both domestic as well as international market.
2 SIGNIFICANT ACCOUNTING POLICIES
i) BASIS OF PREPARATION
a. The financial statements of the Company have been prepared and presented in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 and Companies Act, 1956 as applicable. The financial statements have been prepared and presented on accrual basis under the historical cost convection.
The classification of assets and liabilities of Company is done into current and non-current based on operating cycle of the business of the Company. The operating cycle of the business of the company is less than twelve months and therefore all current and non-current classifications are done based on status of reliability and expected settlement of the respective asset and liability within a period of twelve months from the reporting date as required by Revised Schedule III to the Companies Act, 2013.
b. The accounting policies adopted in the preparation of financial statements are consistent with those used in previous year.
ii) USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) at the date of the financial statements and the results of operations during the reporting period end. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and estimates are recognized in the periods in which the results are known/materialize.
iii) FIXED ASSETS
a. Fixed assets, are carried at cost less accumulated depreciation/amortization. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, duties and taxes (other than those subsequently recoverable from the tax authorities), freight and other incidental expenses directly to make the asset ready for its intended use.
b. The cost of assets not ready for their intended use before the yearend is disclosed under Capital Work in Progress. Capital work-in-progress are carried at cost, comprising of direct costs, related incidental expenses.
iv) DEPRECIATION
a. Depreciation on all assets of the Company is charged on Straight Line Method over the useful life of the assets mentioned in Schedule II to the Companies Act, 2013.
b. On an annual basis the Company makes an assessment of any indicator that may lead to impairment of assets. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. The recoverable amount is higher of an asset''s net selling price and value in use. Value is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.
c. Assets costing individually up to Rs. 5,000 are fully depreciated in the year of purchase.
d. Leasehold land is not amortized.
v) INVENTORIES
a) RAW MATERIAL
Raw Materials are valued at lower of cost or net realizable value.
b) PACKING MATERIAL
Packing Materials are valued at lower of cost or net realizable value.
c) WORK IN PROCESS
Work in Process are valued at cost. The cost of Stock-in-process comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to its present location and condition.
d) FINISHED GOODS
Finished Goods are valued at lower of cost or net realizable value. The cost of Finished Goods comprises of cost of purchases, cost of conversion and other cost incurred in bringing the inventories to its present location and condition.Net realizable value is the estimate of the selling price in ordinary course of business as applicable.
vi) EMPLOYEE BENEFITS
a) Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits. Benefits such as salaries, wages, bonus, short term compensated absences, ex-gratia, leave encashment and leave travel allowance is recognized in the period in which the employees renders related services.
b) Long Term Employee Benefits
i) Defined Contribution Plan
The Company''s contribution to Provident Fund Scheme, Employee''s State Insurance Scheme are considered as defined contribution plans and are recognized as an expense to the statement of profit and loss, based on the amount of contribution required to be made and when services are rendered by employees.
ii) Defined Benefit Plan
Gratuity being a defined benefit obligation is provided at the end of each year/period.
vii) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at the exchange rate on the date of transaction. The exchange gain/loss on settlement/negotiation during year is recognized in the Statement of Profit and Loss.
viii) REVENUE RECOGNITION
a) Revenue from sale of product net of returns is recognized on transfer of all significant risk and rewards of ownership of the products on to the customers, which is generally after dispatch of goods and reflected in the accounts at gross realizable value i.e. inclusive of Excise Duty and VAT.
b) Revenue from service is recognized as and when services are rendered and related costs are incurred.
c) Interest income is recognized on time proportion method basis taking into account the amounts outstanding and the rate applicable.
d) The Export Incentive are disclosed under Other Operating Revenue.
ix) RESEARCH & DEVELOPMENT
Revenue expenditure on research and development is charged to Statement of Profit and Loss in the year in which it is incurred. Capital expenditure on research and development is considered as an addition to fixed assets.
x) TAXATION
a) CURRENT TAX
Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.
b) DEFERRED TAX
Deferred Tax is recognized on timing differences being the differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable rights exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities related to the taxes on income levied by same governing taxation laws.
The tax effect is calculated on the accumulated timing difference at the yearend based on the tax rates and laws enacted or substantially enacted on balance sheet date.
xi) EXCISE DUTY, SERVICE TAX AND CENVAT
CENVAT credit utilized during the year is accounted in Excise Duty and unutilized balance at the year end is considered as advance excise duty.
xii) CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents includes Cash in hand, deposits with bank and interest accrued thereon.
xiii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when an enterprise has a present obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but disclosed in notes to accounts. Contingent Assets are neither recognized nor disclosed in financial statements.
xiv) EARNING PER SHARE
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the number of equity shares outstanding during the year.
xv) PROPOSED DIVIDEND
Dividend proposed by the Board of Directors is provided in books of account, pending approval of members in Annual General Meeting.
Mar 31, 2015
GENERAL INFORMATION
BDH INDUSTRIES LIMITED is a public limited company, incorporated in
1990 under the Companies Act, 1956 having its registered Office in
Mumbai. The company is engaged in manufacturing of therapeutic
formulations covering wide range of pharmaceuticals. Its shares are
listed on the Bombay Stock Exchange. The company caters to both
domestic as well as international market.
i) BASIS FOR ACCOUNTING
a. The financial statements of the Company have been prepared and
presented in accordance with the Generally Accepted Accounting
Principles in India (Indian GAAP) to comply with the Accounting
Standards specified under Section 133 of the Companies Act, 2013, read
with Rule 7 of Companies (Accounts) Rules, 2014 and the relevant
provisions of the Companies Act, 2013 and Companies Act, 1956 as
applicable. The financial statements have been prepared and presented
on accrual basis under the historical cost convection.
The classification of assets and liabilities of Company is done into
current and non-current based on operating cycle of the business of the
Company. The operating cycle of the business of the company is less
than twelve months and therefore all current and non-current
classifications are done based on status of reliability and expected
settlement of the respective asset and liability within a period of
twelve months from the reporting date as required by Revised Schedule
VI to the Companies Act, 1956.
b. The accounting policies adopted in the preparation of financial
statements are consistent with those used in previous year.
ii) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities (including contingent liabilities) at the date of the
financial statements and the results of operations during the reporting
period end. The management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Future results could differ due to these estimates and the differences
between the actual results and estimates are recognized in the periods
in which the results are known/materialize.
iii) FIXED ASSETS
a. Fixed assets, are carried at cost less accumulated
depreciation/amortization. The cost of fixed assets comprises its
purchase price net of any trade discounts and rebates, duties and taxes
(other than those subsequently recoverable from the tax authorities),
freight and other incidental expenses directly to make the asset ready
for its intended use.
b. The cost of assets not ready for their intended use before the
yearend is disclosed under Capital Work in Progress. Capital
work-in-progress are carried at cost, comprising of direct costs,
related incidental expenses.
iv) DEPRECIATION
a. Depreciation on fixed assets up to 31st March, 2014 was provided on
the straight line method at the rates and in the manner prescribed in
Schedule XIV to the Companies Act, 1956.
b. Pursuant to the notification of the Schedule II to the Companies
Act, 2013 with effect from 1st April, 2014, depreciation for the year
has been provided on the straight line method as per the useful life
prescribed in Schedule II to the Companies Act, 2013. Accordingly, for
assets which had no residual life as at 1st April 2014, the book value
has been adjusted against Surplus (net of deferred tax).
c. Assets costing individually up to Rs, 5,000 are fully depreciated
in the year of purchase.
d. Leasehold land is not amortized.
v) INVENTORIES
a) RAW MATERIAL
Raw Materials are valued at lower of cost or net realizable value.
b) PACKING MATERIAL
Packing Materials are valued at lower of cost or net realizable value.
c) WORK IN PROCESS
Work in Process are valued at cost. The cost of Stock-in-process
comprises of cost of purchases, cost of conversion and other cost
incurred in bringing the inventories to its present location and
condition.
d) FINISHED GOODS
Finished Goods are valued at lower of cost or net realizable value. The
cost of Finished Goods comprises of cost of purchases, cost of
conversion and other cost incurred in bringing the inventories to its
present location and condition.Net realizable value is the estimate of
the selling price in ordinary course of business as applicable.
vi) EMPLOYEE BENEFITS
a) Short Term Employee Benefits
All employee Benefits payable wholly within twelve months of rendering
the services are classified as short term employee Benefits. Benefits
such as salaries, wages, bonus, short term compensated absences,
ex-gratia, leave encashment and leave travel allowance is recognized in
the period in which the employees renders related services.
b) Long Term Employee Benefits
i) Defend Contribution Plan
The Company's contribution to Provident Fund Scheme, Employee's State
Insurance Scheme are considered as defend contribution plans and are
recognized as an expense to the statement of Profit and loss, based on
the amount of contribution required to be made and when services are
rendered by employees.
ii) Defend Benefit Plan
Gratuity being a defend Benefit obligation is provided at the end of
each year/period.
vii) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at the
exchange rate on the date of transaction. The exchange gain/loss on
settlement/negotiation during year is recognized in the Statement of
Profit and Loss.
viii) REVENUE RECOGNITION
a) Revenue from sale of product net of returns is recognized on
transfer of all significant risk and rewards of ownership of the
products on to the customers, which is generally after dispatch of
goods and reflected in the accounts at gross realizable value i.e.
inclusive of Excise Duty and VAT.
b) Revenue from service is recognized as and when services are rendered
and related costs are incurred.
c) Interest income is recognized on time proportion method basis taking
into account the amounts outstanding and the rate applicable.
ix) RESEARCH & DEVELOPMENT
Revenue expenditure on research and development is charged to Statement
of Profit and Loss in the year in which it is incurred. Capital
expenditure on research and development is considered as an addition to
fixed assets.
x) TAXATION
a) CURRENT TAX
Current Tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the applicable tax rates and the
provisions of the Income Tax Act, 1961 and other applicable tax laws.
b) DEFERRED TAX
Deferred Tax is recognized on timing differences being the differences
between the taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable rights exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax
liabilities related to the taxes on income levied by same governing
taxation laws.
The tax effect is calculated on the accumulated timing difference at
the yearend based on the tax rates and laws enacted or substantially
enacted on balance sheet date.
xi) EXCISE DUTY, SERVICE TAX AND CENVAT
CENVAT credit utilized during the year is accounted in Excise Duty and
unutilized balance at the year end is considered as advance excise
duty.
xii) CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents includes Cash in hand, deposits with bank and
interest accrued thereon.
xiii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when an enterprise has a present obligation
as a result of past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates. Contingent Liabilities are not recognized but disclosed in
notes to accounts. Contingent Assets are neither recognized nor
disclosed in financial statements.
xiv) EARNING PER SHARE
Basic earnings per share is calculated by dividing the net Profit or
loss for the year attributable to equity shareholders by the number of
equity shares outstanding during the year.
xv) PROPOSED DIVIDEND
Dividend proposed by the Board of Directors is provided in books of
account, pending approval of members in Annual General Meeting.
Mar 31, 2014
I) BASIS FOR ACCOUNTING
a. The financial statements have been prepared to comply in all
material respects with the notified accounting standards by the
Companies (Accounting Standards) Rules 2006 (as amended) and the
relevant provisions of the Companies Act, 1956 and Companies Act,2013
read with the General Circular 15/2013 dated September 13, 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act,2013 and General Circular 08/2014 dated April 4, 2014
with respect to the Financial Statements. The financial statements have
been prepared under the historical cost convention, on an accrual basis
of accounting.
The classification of assets and liabilities of Company is done into
current and non-current based on operating cycle of the business of the
Company. The operating cycle of the business of the company is less
than twelve months and therefore all current and non-current
classifications are done based on status of realisability and expected
settlement of the respective asset and liability within a period of
twelve months from the reporting date as required by Revised Schedule
VI to the Companies Act, 1956
b. The accounting policies adopted in the preparation of financial
statements are consistent with those used in previous year.
ii) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contigent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon management''s best
knowledge of current events and actions, actual result could differ
from these estimates.
iii) FIXED ASSETS
a. Fixed Assets are carried at cost less accumulated depreciation.
Tangible Assets are recorded at cost of acquisition or construction.
Cost of acquisition comprises its purchase price including inward
freight, duties and other non-refundable taxes or levies and any
directly attributable cost of bringing the asset to its working
condition for its intended use.
b. The cost of assets not ready for their intended use before the year
end is disclosed under Capital Work in Progress. Capital
work-in-progress are carried at cost, comprising of direct costs,
related incidental expenses.
iv) DEPRECIATION
Depreciation on fixed assets has been provided on the straight line
method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956. Assets costing Rs. 5000/- or less are depreciated at
100% rate on prorata basis in the year of purchase. The Company carries
out exercise of assessment of any impairment to its fixed assets as at
each balance sheet date.
v) INVENTORIES
a) RAW MATERIAL
Raw Materials are valued at lower of cost or net realizable value.
b) PACKING MATERIAL
Packing Materials are valued at lower of cost or net realizable value.
c) WORK IN PROCESS
Work in Process are valued at cost. The cost of Stock-in-process
comprises of cost of purchases, cost of conversion and other cost
incurred in bringing the inventories to it''s present location and
condition.
d) FINISHED GOODS
Finished Goods are valued at lower of cost or net realizable value. The
cost of Finished Goods comprises of cost of purchases, cost of
conversion and other cost incurred in bringing the inventories to it''s
present location and condition.Net realisable value is the estimate of
the selling price in ordinary course of business as applicable.
vi) EMPLOYEE BENEFITS
a) Retirement Benefit in the form of Provident Fund is a defined
contribution scheme and contributions are charged to the Statement of
Profit and Loss for the year/period when the contributions are due.
Leave Encashment and Leave Travel Allowances paid has been charged to
the Statement of Profit and Loss.
b) Gratuity being a defined benefit obligation is provided at the end
of each year/period.
vii) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at the
exchange rate on the date of transaction. The exchange gain/loss on
settlement/negotiation during year is recognised in the Statement of
Profit and Loss.
viii) REVENUE RECOGNITION
a) Revenue from sale of product net of returns is recognized on
transfer of all significant risk and rewards of ownership of the
products on to the customers, which is generally after dispatch of
goods and reflected in the accounts at gross realisable value i.e.
inclusive of Excise Duty and VAT.
b) Interest income is recognised on time proportion method basis taking
into account the amounts outstanding and the rate applicable.
ix) RESEARCH & DEVELOPMENT
Revenue expenditure on research and development is charged to Statement
of Profit and Loss in the year in which it is incurred. Capital
expenditure on research and development is considered as an addition to
fixed assets.
x) TAXATION
a) CURRENT TAX
Current Tax is calculated as per the provisions of Income Tax Act,
1961.
b) DEFERRED TAX
Deferred Tax is recognized on timing differences being the differences
between the taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets and deferred tax liabilites are offset, if a
legally enforceable rights exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax
liabilities related to the taxes on income levied by same governing
taxation laws. The tax effect is calculated on the accumulated timing
difference at the year end based on the tax rates and laws enacted or
substantially enacted on balance sheet date.
xi) EXCISE DUTY, SERVICE TAX AND CENVAT
CENVAT credit utilised during the year is accounted in Excise Duty and
unutilised balance at the year end is considered as advance excise
duty.
xii) CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents includes Cash in hand, deposits with bank and
interest accrued thereon.
xiii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when an enterprise has a present obligation
as a result of past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates. Contingent Liabilities are not recognised but disclosed in
notes to accounts. Contingent Assets are neither recognised nor
disclosed in financial statements.
xiv) EARNING PER SHARE
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the number of
equity shares outstanding during the year.
xv) PROPOSED DIVIDEND
Dividend proposed by the Board of Directors is provided in books of
account, pending approval of members in Annual General Meeting.
3 Notes on Accounts
i) Disclosure as required by Accounting Standard -AS 17 "Segment
Reporting" issued by Institute of Chartered Accountants of India
The entire operations of the Company relate only to one segment viz.
pharmaceuticals. As such, there is no separate reportable segment under
Accounting Standard -AS 17 on Segment Reporting.
ii) Disclosure as required by Accounting Standard - AS 18 "Related
Parties" issued by Institute of Chartered Accountants of India
a) Key Management Personnels
Mrs. Jayashree Nair (Chairperson and Managing Director) Mr.
S.C.Kachhara (Executive Director) Mrs. Karthika Nair (Director)
b) Relatives of Key Management Personnels
Name of Related Party Mr. G.L.Kachhara Mr. Ankit Kachhara
c) Others
Karthika Nair Smarak Samithi
Mar 31, 2013
I) BASIS FOR ACCOUNTING
a. The financial statements have been prepared to comply in all
material respects with the notified accounting standards by the
Companies (Accounting Standards) Rules 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared under the historical cost convention, on
an accrual basis of accounting.
The classification of assets and liabilities of Company is done into
current and non-current based on operating cycle of the business of the
Company. The operating cycle of the business of the company is less
than twelve months and therefore all current and non-current
classifications are done based on status of realisability and expected
settlement of the respective asset and liability within a period of
twelve months from the reporting date as required by Revised Schedule
VI to the Companies Act, 1956
b. The accounting policies adopted in the preparation of financial
statements are consistent with those used in previous year.
ii) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contigent liabilities at the date of the
financial statements and the results of operations during the reporting
period end. Although these estimates are based upon management''s best
knowledge of current events and actions, actual result could differ
from these estimates.
iii) FIXED ASSETS
Fixed Assets are recorded at cost of acquisition or construction less
CENVAT/Service Tax/VAT credit availed.
iv) DEPRECIATION
Depreciation on fixed assets has been provided on the straight line
method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
v) INVENTORIES
a) RAW MATERIAL
Raw Materials are valued at lower of cost or net realizable value.
b) PACKING MATERIAL
Packing Materials are valued at lower of cost or net realizable value.
c) WORK IN PROCESS
Work in Process are valued at cost. The cost of Stock-in-process
comprises of cost of purchases, cost of conversion and other cost
incurred in bringing the inventories to it''s present location and
condition.
d) FINISHED GOODS
Finished Goods are valued at lower of cost or net realizable value. The
cost of Finished Goods comprises of cost of purchases, cost of
conversion and other cost incurred in bringing the inventories to it''s
present location and condition.Net realisable value is the estimate of
the selling price in ordinary course of business as applicable.
vi) EMPLOYEE BENEFITS
a) Retirement benefit in the form of provident fund is a defined
contribution scheme and contributions are charged to Statement of
Profit and Loss for the year/period when the contributions are due.
b) Gratuity being a defined benefit obligation is provided at the end
of each year/period.
vii) FOREIGN CURRENCY TRANSACTIONS
Transactions denominated in foreign currency are recorded at the
exchange rate on the date of transaction. The exchange gain/loss on
settlement/negotiation during year is recognised in the Statement of
Profit and Loss.
viii) REVENUE RECOGNITION
a) Revenue from sale of product net of returns is recognized on
transfer of all significant risk and rewards of ownership of the
products on to the customers, which is generally after dispatch of
goods and reflected in the accounts at gross realisable value i.e.
inclusive of Excise Duty and VAT.
b) Interest income is recognised on time proportion method basis taking
into account the amounts outstanding and the rate applicable.
ix) TAXATION
a) CURRENT TAX
Current Tax is calculated as per the provisions of Income Tax Act,
1961.
b) DEFERRED TAX
Deferred Tax is recognized on timing differences being the differences
between the taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets and deferred tax liabilites are offset, if a
legally enforceable rights exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax
liabilities related to the taxes on income levied by same governing
taxation laws.
The tax effect is calculated on the accumulated timing difference at
the year end based on the tax rates and laws enacted or substantially
enacted on balance sheet date.
x) EXCISE DUTY, SERVICE TAX AND CENVAT
CENVAT credit utilised during the year is accounted in Excise Duty and
unutilised balance at the year end is considered as advance excise
duty.
xi) CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents includes Cash in hand, demand deposits with
bank and interest accrued thereon.
xii) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when an enterprise has a present obligation
as a result of past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
xiii) PROPOSED DIVIDEND
Dividend proposed by the Board of Directors is provided in books of
account, pending approval of members in Annual General Meeting.
Mar 31, 2010
1. BASIS OF ACCOUNTING
The Financial statements are prepared In accordance with the accounting
principles generally accepted in India and comply with the Accounting
Standards specified Qy the Institute of Chartered Accountants ot India
under section 211 (3c) ol the Companies Act, 1956
2. METHOD OF ACCOUNTING
The Company is following accrual basis o accounting.
All expenses and income to the extent considered payable and receivable
respectively are accounted on accrual basis
3. REVENUE RECOGNITION
Revenue on sales are recognized net ot returns and discounts. on
dispatch ot goods to customers and reflected in the accounts at gross
realizable value ie inclusive ol Excise duty and Sales tax.
4. FIXED ASSETS
Fixed assets acquired consequent to amalgamation are stated al the cost
ol acquisition at the time ol amalgamanonThe lixed assets which were
revalued during earlier year(s) are stated at their revalued pnce The
other ttxed assets are stated at cost inclusive ol incidental expenses
thereto All fixed assets are stated at value less accumulated
depreciation
5. DEPRECIATION
Depredation on fixed assets has been provided on the straight line
method at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956
6. INVENTORIES
inventories are valued at lower ol cost or net realizable valueThe cost
ol Stock-in-process and Finished Goods comprises ol cost ol purchases,
Cos! ol conversion and other cost incurred in bringing the inventories
to Its present location and condition.Net realisable value is the
estimate ol Ihe selling price in ordinary course ol business as
applicable
7. PROVISION FOR TAXATION
Provision tor taxation has been made in accordance with the provisions
of Income Tax Act, 1961 and the rules made thereunder applicable lor
Ihe relevant Assessment Year
8. DEFERRED TAXATION
Deferred Tax resulting from timing differences between book profits and
tax Profits is accounted lor under the liability method. at the current
rates ot tax, to the extent thai the timing differences are expected to
crystallise
9. FOREIGN CURRENCY TRANSACTIONS :
1 Transactions in Foreign Currency are accounted at the Exchange rale
prevailing at the time ol transaction.
2 Balance in EEFC account with Central Bank of India, Sundry Debtors
and Creditors denominated *i Foreign Currency nave been converted at
the rates prevailing on the date ol the Balance Sheet.