NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2015

NOTE1- CORPORATE INFORMATION

Bhandari Hosiery Exports Limited is a public limited Company incorporated under the provisions of Companies Act, 1956. The Company's CIN is L17115PB1993PLC013930 and the Company's Registered Office is situated in Punjab at Bhandari House, Village Meharban, Rahon Road, Ludhiana. The Company is listed at Bombay Stock Exchange Limited (BSE). The Company does not have any subsidiary Company. The Company is a garment manufacturing company having vertical production facility to produce High Fashion Knitted Garments. With more than 18 year experience and state of that art manufacturing facilities, Bhandari Hosiery manufactures garments of leading international and overseas brands and some overseas retail chains..in the international market, we have a brsence in around 18 countries including quality conscious markets like USA,, Canada,, UK and European Uniion..

The company is engaged primarily in the manufacture and export of knitted hosiery garments such as T- Shirts,, Pull Overs,, Sweat Shirts,, Bermudas,, Pollo Shirts,, Track Suits,, Payajamas,, Lowers,, Ladies Knitted Tops with embroidery and prints etc. The Company conform to International standards in Human Recourses Practices and adopt Eco- friendly standards in production.

NOTE 2-ACCOUNTING POLICIES

2.1 ACCOUNTING POLICIES

(a) Basis of Accounting :

The accounts of the Company are brpared on accrual basis under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India and the provisions of the Companies Act, 2013 .

(b) Basis of Preparation of Financial Statements

The financial statements of the company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The Company has brpared these financial statements to comply in all material respects with the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on an accrual basis and under the historical cost convention. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year. The company has reclassified the brvious year figures in accordance with the requirements applicable in the current year wherever required..

(c) Use of Estimates

The brparation of financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reporting period. The estimates and assumptions used in the financial statements are based upon the Management's evaluation of the relevant facts and circumstances as on the date of financial statements. Management believes that the estimates used in the brparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

(d) Revenue Recognition:

(i) Sale is recognized on dispatch of goods and returns if any made by the parties.

(ii) Claims and Benefits: Insurance and other claims are accounted for to the extent realized, as the ultimate collection thereof is uncertain at the time of raising the claim.

(iii) Opening Stock, Purchases, Sales and Closing stock are stated at net value excluding VAT. Any amount payable/ receivable towards VAT is shown in the Balance Sheet under the head Current Liabilities/ Current Assets.

(f) Fixed Assets:

Fixed Assets are stated at historical cost less accumulated debrciation. The company has capitalized all costs relating to acquisition and installation of fixed assets including interest during construction periods and trail run expenses. During the year, borrowing costs amounting to Rs. 11746060/- is capitalized under the head Plant and Machinery..

(g) Debrciation:

Debrciation is systematically allocated over the useful life of an asset as specified in Schedule II of Companies  Act, 2013.

(h) Inventories:

Stores and spares and raw material are valued at Cost.

Semi Finished Goods are valued at cost of materials and labour together with relevant factory overheads or net realizable value, whichever, is less.

Finished goods are valued at cost or net realizable value, whichever is less. Cost includes materials, direct labour and allocable overheads.

(i) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

. (j) Foreign Currency Conversion/Translation

(i) The export sales are converted at the exchange rates brvailing on the date of custom clearance of export bills. The fluctuations in the exchange rates are accounted for as and when the payment is received and the amount is credited/ debited to the respective Sale Account.

(ii) In respect of export bills remaining unrealized at the year end against which the payments received in the subsequent years the difference arising thereon is recognized as difference in exchange rates under the head misc. income/expenses.

(iii) The total sales are inclusive of export incentives and rebate & discounts received and Rebate of Rs. 574716/-(Previous Year Rs. 15745033/-) has been shown separately under Other Expenses in Statement of Profit and Loss. Contingent Liabilities not provided for (Rs. In Lacs)

Particulars As at As at Sr. 31.03.2015 31.03.2014

(a) Letter of Credit outstanding 68.00 98.15

(b) Bank Guarantee Outstanding 2.00 2.00

(c) Bill discounting with bank against irrevocable Foreign Letter of Credit 262.77 169.53

Following cases are lying pending in appeal against different appellate authorities.

Nature of the case Authority Period Amount (in lacs) Status

Income tax Assessment CIT Appeal A Y 2004-05 8.33 Pending

Income tax Assessment CIT Appeal A Y 2008-09 2.96 Pending

2.1 (a) Sales tax/ VAT liability has been provided for as per the return filed. According to our view there is no other liability in addition to the liability provided but in case any additional liability arises at the time of assessment, the same shall be provided at that time. (b) Provision for Income Tax has been made in the Statement of Profit & Loss on the basis of actual tax liability under MAT as per the Income Tax Act, 1961

2.2 Previous year's figures have been recast/ regrouped wherever necessary to make them comparable with the current year's figures.

For Vipan Kumar Aggarwal & Co.

FRN : 007245N

Chartered Accountants

Sd/- (Vipan Kumar Aggarwal )

Proprietor

Membership No. 081198

 (Manoj Kumar)  

Chief Financial Officer

(Gurinder Makkar )

Company Secretary

Sd/- (VIkas Nayar)

Director DIN:00071047

Sd/- (Nitin Bhandari)

Mg. Director

DIN : 01385065

Place : Ludhiana

Date : 22.07.2015