Notes to Financial Statements for the Year Ended 31st March, 2015 Note No. 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. Note No. 2 SIGNIFICANT ACCOUNTING POLICIES i) BASIS FOR ACCOUNTING a. The financial statements of the Company have been brpared and brsented 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 brpared and brsented 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 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 brparation of financial statements are consistent with those used in brvious year. ii) USE OF ESTIMATES The brparation 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 brparation 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) FIXED ASSETS a. Fixed assets, are carried at cost less accumulated debrciation/amortisation. 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 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) DEbrCIATION a. Debrciation on fixed assets upto 31st March, 2014 was provided on the straight line method at the rates and in the manner brscribed 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, debrciation for the year has been provided on the straight line method as per the useful life brscribed 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 upto Rs. 5,000 are fully debrciated in the year of purchase. d. Leasehold land is not amortised. 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 brsent 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 brsent 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 Company's contribution to Provident Fund Scheme, Employee's 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 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) 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. 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 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 brsent 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 brsent 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. Notes to Financial Statements for the Year Ended 31st March, 2015 Note No.23 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. viii) Previous years figures have been regrouped / reclassified wherever necessary to correspond with the current years classification For L. J. KOTHARI & CO. Firm Registration Number 105313W Chartered Accountants L.J. KOTHARI Proprietor Membership No.030917 For and on Behalf of the Board JAYASHREE NAIR Chairperson & Managing Director DIN : 00027467 S.C. KACHHARA Executive Director & CFO DIN : 00019666 KARTHIKA NAIR Non Executive Director DIN : 00019695 NIKITA PHATAK Company Secretary ACS-23104 Mumbai, May 27, 2015 |