| Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory 1. Basis of brparation
The financial statements are brpared under the historical cost convention in accordance with the applicable accounting standards brscribed in the Companies (Accounting Standards) Rules, 2006 issued by Central Government, in consultation with the National Advisory Committee on Accounting Standards and the Provisions of the Companies Act, 2013.
2. Fixed Assets & Debrciation
- Fixed assets are stated at cost less debrciation and impairment loss, if any. The cost of assets comprises of purchased price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date of commissioning.
- Debrciation on Fixed Assets is provided for under W.D.V. method at the rates and in the manner brscribed in Schedule II of the Companies Act, 2013.
- Debrciation on additions to Gross Block is calculated on pro-rata basis
3. Investments.
- Investments are stated at cost of acquisition.
4. Foreign Currency Transactions
Transactions in foreign currency are recorded in the reporting currency by applying currency rate at the date of transaction. Receivables and payables involving foreign currency are translated at the rates of exchange brvalent on the Balance Sheet date. Variations arising on account of fluctuation in foreign exchange rates are treated as Revenue except relating to the fixed assets, which are adjusted in the carrying amount of the respective assets.
5. Inventories
- Raw Material & WIP are valued at cost & Finished goods is valued at cost or
net realizable value whichever is lower
6. Retirement Benefits to Employees
- Company’s contribution to Provident Fund and Employee’s State Insurance
are accounted for on accrual basis.
6. Sales / Revenue Recognition
a. Sales are net of Sales Tax. Revenue from sales is recognized at the point of
dispatch to customers when risk and reward stand transferred to the customers.
b. Interest income is recognized on time proportion basis.
7. Research and Development Expense
Revenue expenditure pertaining to Formulation and Development is charged to the Statement of Profit and Loss. Capital Expenditure pertaining to Formulation and Development is capitalized.
8. Taxes on Income
Provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted or substantially enacted tax rates.
Deferred tax assets are recognized, only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.
Disclosure of general information about companyBharat Parenterals
Limited is engaged in the
b u s i n e s s o f
manufacturing of
pharmaceut ical
formulations. Disclosure of employee benefits explanatoryCompany’s contribution
to Provident Fund is
accounted for on accrual
basis |