Notes forming part of the Standalone Financial Statements as of and for the year ended March 31, 2016 1 General Information Blue Dart Exbrss Limited (‘the Company’) is engaged in the business of integrated air and ground transportation and distribution of time sensitive packages to various destinations, primarily within India. The Company is a public limited company and its equity shares and debentures are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). 2 Significant Accounting Policies a. Basis of brparation These financial statements have been brpared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are brscribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] of the Companies Act, 1956 and the other relevant provisions of the Companies Act, 2013. The Ministry of Corporate Affairs (MCA) has notified the Companies (Accounting Standards) Amendment Rules, 2016 vide its notification dated March 30, 2016. The said notification read with Rule 3(2) of the Companies (Accounting Standards) Rules, 2006 is applicable to accounting period commencing on or after the date of notification i.e. April 1, 2016. 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 the Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the rendering of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non current classification of assets and liabilities. b. Fixed Assets and Debrciation/Amortisation Tangible Assets: Tangible assets, other than freehold land, are stated at acquisition cost, net of accumulated debrciation. Subsequent expenditure related to an item of fixed assets is added to its book value if it increases the future economic benefits from the existing asset beyond its brviously assessed standard of performance. Freehold land is stated at cost. Capital work-in-progress rebrsents fixed assets that are not yet ready for their intended use as at the balance sheet date. Intangible Assets: Intangible assets are stated at acquisition cost net of accumulated amortisation. The Company capitalises identifiable costs relating to development of internally generated software and these are stated net off accumulated amortization. Goodwill rebrsents the excess of the value of the erstwhile partnership business as a whole over its net asset value as at the date of incorporation as a Company. Intangible assets under development comprises cost relating to development of software that are not yet ready for their intended use as at the balance sheet date. Debrciation/Amortisation Debrciation on tangible assets is calculated on a straightline basis as per the rates as brscribed under Schedule II of the Companies Act, 2013, except in respect of the following assets where the estimated useful lives of the assets based on the technical evaluation, have not undergone a change on account of transition to the Companies Act, 2013. Computers 3 to 6 years Debrciation for assets purchased/sold during a year is proportionately charged. Individual assets costing upto Rs. 5,000 are debrciated over a period of one year from the date put to use. Computer software, other than internally generated, is amortised under straight line method over the estimated useful life of 6 years. Internally generated software is amortised using the straight-line method over a period of 10 years, based upon its estimated useful economic life. Goodwill is amortised over a period of 20 years using the straight-line method. c. Impairment of Assets The Company assesses at each reporting date whether there is any indication that an asset (tangible or intangible) may be impaired. If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash generating unit’s (CGU) net selling price and its value in use. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses are recognised in the Statement of Profit and Loss. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognised for an asset in prior accounting periods may no longer exist or may have decreased and such reversal is recorded in the Statement of Profit and Loss. d. Investments 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. All other investments are classified as non-current investments. Current investments are carried at cost or fair value, whichever is less. Non-current investments are stated at cost. Provision for diminution in value is made, if necessary, to recognise a decline, other than temporary, in the value of non-current investments. e. Inventories Inventories are stated at lower of cost and net realisable value. Inventories primarily consist of packing and stationery consumables which are valued at cost (arrived at using First-in First-out basis). f. Revenue Recognition Service Charges: Service charges for transportation of shipments are recognised as income when shipments are manifested and rebrsent amounts invoiced, net of service tax and all discounts. Interest Income: Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Dividend Income: Dividend income is recognised when the right to receive the dividend is established. g. Foreign Currency Transactions Initial Recognition: On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Exchange differences on restatement and settlement of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Profit and Loss. h. Employee Benefits Defined Contribution Plans: Contribution towards Provident Fund for all employees are made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis. Superannuation is classified as a defined contribution scheme of the Company. Contribution due towards Superannuation Fund for eligible employees is made to an insurance company, and the Company has no further obligation beyond making this payment. The Company also contributes to State plans, namely Employee’s State Insurance Fund and Employee’s Pension Scheme 1995, and has no further obligation beyond making its contribution. Company’s contributions to the above funds are charged to the Statement of Profit and Loss for the year for which the contributions are due for payment. Defined Benefit Plans: Gratuity: The Company provides for gratuity, under a defined benefit plan (the “Gratuity Plan”) covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s basic salary and the tenure of employment. The Company’s liability is actuarially determined (using the Projected Unit Credit Method) at the end of each year. Actuarial losses/ gains are recognised in the Statement of Profit and Loss in the year in which they arise. Compensated absences : (i) Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the Balance Sheet date are treated as short term employee benefits. The liability in respect of compensated absences of short term nature is not actuarially valued and is provided on an estimated basis. (ii) Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of Balance Sheet date are treated as other long term employee benefits. The Company’s liability is actuarially determined (using the Projected Unit Credit Method) at the end of each year. Actuarial losses/ gains are recognised in the Statement of Profit and Loss in the year in which they arise. i. Leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Operating lease rental payments are recognized as an expense in the Statement of Profit and Loss. j. Current and Deferred Tax Tax expense for the year, comprising current tax and deferred tax, are included in the determination of the net profit or loss for the year. Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the taxation laws during the relevant assessment year. Deferred tax is recognised for all timing differences, subject to consideration of prudence, in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty (virtual certainty in respect of any carried forward losses and unabsorbed debrciation) that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the Company reassesses unrecognised deferred tax assets, if any. Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off assets against liabilities rebrsenting current tax and where the deferred tax assets and the deferred tax liabilities relate to taxes on income levied by the same governing taxation laws. k. Provisions Provisions are recognised when there is a brsent obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the brsent obligation at the Balance sheet date and are not discounted to its brsent value. l. Contingent Liabilities Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a brsent obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Where there is a possible obligation or a brsent obligation and the likelihood of outflow of resources is remote, no provision or disclosure is made. m. Cash and Cash Equivalents In the cash flow statement, cash and cash equivalents include cash in hand, cheques in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less. n. Use of Estimates The brparation of Financial Statements in accordance with the generally accepted accounting principles requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of Financial Statements and the reported amount of expenses of the year. Actual results could differ from these estimates. Any revision to such accounting estimates is recognised in the accounting period in which such revision takes place. 3 SEGMENT INFORMATION The Company is primarily engaged in a single segment business, within the same geography of integrated air and ground transportation and distribution of time sensitive packages within India and is managed as one entity for its various service offerings and is governed by a similar set of risks and returns. 4 During the year, the Company has received a repayment of Rs. 3,208 Lacs [Previous year Rs. 6,943 Lacs] from Blue Dart Aviation Limited, a subsidiary company. As at March 31, 2016 the outstanding loan balance is Rs. 9,348 Lacs, [Previous year Rs. 12,556 Lacs] of which Rs. 3,911 Lacs [Previous year Rs. 3,208 Lacs] is receivable within 12 months from balance sheet date. The loan carries an interest computed at an average ‘base’ rate of IDBI Bank and ICICI Bank with the interest being reset on six month basis. 5 During the year, after receipt of approval from the Foreign Investment Promotion Board (FIPB), the Company acquired 6,000,000 Equity Shares of Blue Dart Aviation Limited (BDAL) (5,040,000 Equity Shares on June 22, 2015 and 960,000 Equity Shares on July 29, 2015) for a total consideration of Rs. 5,368 Lacs and thereby increased its shareholding in BDAL from 49% to 74%. Consequently, BDAL became a Subsidiary of the Company with effect from June 22, 2015. The Company has ‘put’ and ‘call’ option arrangements in respect of the balance 26% equity shares of BDAL. 6 brSENTATION AND DISCLOSURE OF FINANCIAL STATEMENTS Previous year’s figures have been regrouped/ reclassified, wherever necessary to conform to the current year’s classification. Signatures to Notes 1 to 40 form an integral part of the financial statements. As per our report of even date For Price Waterhouse Firm Registration Number: 301112E Chartered Accountants Sumit Seth Partner For and on behalf of the Board of Directors Sharad Upasani Chairman DIN:01739334 Thomas Kipp Director DIN:06921955 Anil Khanna Managing Director DIN:01334483 Malcolm Monteiro Director DIN:00089757 Narendra Sarda Director DIN:03480129 Surendra Sheth Director DIN:00089981 Yogesh Dhingra Chief Financial Officer & Chief Operating Officer Tushar Gunderia Company Secretary Membership No. 105869 Place: Mumbai Date: April 15, 2016 |