Accounting Policies of BDH Industries Ltd. Company

Mar 31, 2025

A) CORPORATE INFORMATION

BDH INDUSTRIES LIMITED (CIN L24100MH1990PLC059299) 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 segment and Renewable
energy segment. Its shares are listed on the BSE Limited. The company caters to both domestic as well as
international market.

Authorisation of Standalone Financial Statements

The Standalone financial statements were authorised for issue in accordance with a resolution of the Board of
Directors on May 23, 2025

B) BASIS OF PREPARATION

a) Statement of Compliance

The standalone financial statements comply in all material aspects with Indian Accounting Standards (“Ind
AS”) prescribed under Section 133 of the Companies Act, 2013 (“the Act”), the Companies (Indian Accounting
Standards) Rules, 2015 as amended and other relevant provisions of the Act.

The financial statements have been prepared on historical cost basis, except for the following :

i) certain financial assets and liabilities are measured at fair value; and

ii) defined benefit plans - plan assets measured at fair value

Accounting policies have been consistently applied except where a newly issued accounting standard is
initially adopted or a revision to an existing accounting standard requires a change in the accounting policy
hitherto in use.

b) Use of Judgments, Estimates and Assumption

The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions. These estimates, judgements and assumptions affect
the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of
contingent assets and liabilities at the date of financial statements and reported amounts of revenues and
expenses during the period. Accounting estimates could change from period to period. Actual results could
differ from those estimates. Appropriate changes in estimates are made as management becomes aware
of circumstances surrounding the estimates. Changes in estimates are reflected in the financial statement
in the period in which changes are made and if material, their effects are disclosed in the notes to the
financial statements.

The financial statements require management to make judgments, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and
the disclosures of contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
periods .

i) Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable
profit will be available against which the losses can be utilised. Significant management judgment is
required to determine the amount of deferred tax assets that can be recognised, based upon the likely
timing and the level of future taxable profits together with future tax planning strategies.

ii) Defined benefit plans (Gratuity benefits)

The cost of the defined benefit plans, compensated absences and the present value of the defined
benefit obligations are based on actuarial valuation using the projected unit credit method. An actuarial

valuation involves making various assumptions that may differ from actual developments in the future.
These interalia include the determination of the discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date.

iii) Useful lives of Property, Plant and Equipment

The company reviews the useful life of property, plant and equipment at the end of each reporting
period. This reassessment may result in change in depreciation expense in future periods.

iv) Impairment of Property, Plant and Equipment

For property, plant and equipment, an assessment is made at each reporting date to determine
whether there is an indication that the carrying amount may not be recoverable or previously recognised
impairment losses no longer exist or have decreased. If such indication exists, the Company estimates
the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if
there has been a change in the assumptions used to determine the asset’s recoverable amount since
the last impairment loss was recognised.

v) Inventories

The Company estimates the net realisable value (NRV) of its inventories by taking into account
estimated selling price, estimated cost of completion, estimated costs necessary to make the sale,
obsolescence considering the past trend. Inventories are written down to NRV where such NRV is
lower than their cost.

vi) Recognition and measurement of other Provisions

The recognition and measurement of other provisions is based on the assessment of the probability of
an outflow of resources, and on past experience and circumstances known at the closing date. The
actual outflow of resources at a future date may therefore, vary from the amount included in other
provisions.

vii) Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest
Lakhs.

C) SIGNIFICANT ACCOUNTING POLICIES

I) Current and non-current classification

The operating cycle is the time between the acquisition of assets for processing and their realisation in
cash and cash equivalents. The Company has identified twelve months as its operating cycle.

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.
An asset is current when :

- It is expected to be realised or intended to be sold or consumed in normal operating cycle, or

- It is held primarily for the purpose of trading, or

- It is expected to be realised within twelve months after the reporting period, or

- It is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when :

- It is expected to be settled in normal operating cycle, or

- It is held primarily for the purpose of trading, or

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after
the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

II) PROPERTY, PLANT AND EQUIPMENT

i) Land is carried at historical cost. All other items of Property, Plant and Equipment are stated at
historical cost less depreciation. Cost of acquisition comprises its purchase price including import
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; any trade discount and rebates are deducted in arriving at
the purchase price.

ii) Capital Work In Progress represents expenditure incurred on capital assets that are under construction
or are pending capitalisation and includes project expenses pending allocation. Project expenses
pending allocation are apportioned to the Property, Plant and Equipment of the project proportionately
on capitalisation.

iii) Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to
the Company and the cost of the item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance
are charged to profit or loss during the reporting period in which they are incurred.

iv) The residual useful life of Property, Plant & Equipment is reviewed at each balance sheet date and
adjusted if required in the depreciation rates.

v) 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.

III) 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 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.

IV) INVENTORIES

i) RAW MATERIAL

Raw Materials are valued at lower of cost or net realizable value. Cost is determined on First In First
Out basis.

ii) PACKING MATERIAL

Packing Materials are valued at lower of cost or net realizable value. Cost is determined on First In
First Out basis.

iii) 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.

iv) FINISHED GOODS

Finished Goods are valued at lower of cost or net realizable value. The cost of Finished Goods
comprises of cost of purchases net of refundable taxes, 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.

V) EMPLOYEE BENEFITS

i) 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, compensated absences, ex-
gratia, leave encashment and leave travel allowance is recognised in the period in which the employees
renders related services.

ii) Long Term Employee Benefits

1 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.

2 Defined Benefit Plan

The Company provides for gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) 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 employee’s
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 Employees’ 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.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on the net defined benefit liability and the return on
plan assets (excluding amounts included in net interest on the net defined benefit liability), are
recognised immediately in the balance sheet with a corresponding debit or credit to retained
earnings through OCI in the period in which they occur. Remeasurements are not reclassified to
profit or loss in subsequent periods.

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.

3 Compensated absences

The Company has a policy on compensated absences which are both accumulating and non¬
accumulating in nature. The expected cost of accumulating compensated absences is determined
by actuarial valuation performed by an independent actuary at each balance sheet date using
Projected Unit Credit method on the additional amount expected to be paid/availed as a result of

the unused entitlement that has accumulated at the balance sheet date. Expense on non¬
accumulating compensated absences is recognized in the period in which the absences occur.

4 Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified
as short-term employee benefits. Benefits such as salaries, wages etc. and the expected cost of
ex-gratia, bonus and performance incentive are recognised in the period in which the employee
renders the related service. A liability is recognised for the amount expected to be paid when
there is a present legal or constructive obligation to pay this amount as a result of past service
provided by the employee and the obligation can be estimated reliably.

VI) FOREIGN CURRENCY TRANSACTIONS

The functional currency of the Company is the Indian rupee. These financial statements are presented in
Indian rupees.

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.

VII) REVENUE RECOGNITION

i) The Company derives revenues primarily from sale of products and services.

ii) 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 and the Company
presents revenues net of GST in its statement of profit and loss.

iii) Revenue from service is recognised as and when services are rendered and related costs are
incurred.

iv) Interest income is recognised on time proportion method basis taking into account the amounts
outstanding and the rate applicable.

v) In case of export benefits which are in the nature of neutralisation of duties and taxes are grouped
under material costs. All other export incentives are grouped under other operating revenue.

VIII) 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.

IX) TAXATION

i) CURRENT TAX

The income tax expense or credit for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to temporary differences and to unused tax losses. The current
income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting period in the countries where the company and its subsidiaries and associates
operate and generate taxable income. Management periodically evaluates position taken in tax returns
with respect to situations in which applicable tax regulation is subject to interpretation. It establishes
provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

ii) DEFERRED TAX

Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the standalone financial

statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted by the end of the reporting period and are expected to apply when the related
deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets
are recognised for all deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses. Current and
deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.

For items recognised in OCI or equity, deferred / current tax is also recognised in OCI or equity.

X) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents includes Cash in hand, deposits with bank and interest accrued thereon.

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Mar 31, 2024

A) CORPORATE INFORMATION

BDH INDUSTRIES LIMITED (CIN L24100MH1990PLC059299) 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.

Authorisation of Standalone Financial Statements

The Standalone financial statements were authorised for issue in accordance with a resolution of the Director on May 18, 2024

B) BASIS OF PREPARATION

a) Statement of Compliance

The standalone financial statements comply in all material aspects with Indian Accounting Standards (“Ind AS”) prescribed under Section 133 of the Companies Act, 2013 (“the Act”), the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

The financial statements have been prepared on historical cost basis, except for the following :

i) certain financial assets and liabilities are measured at fair value; and

ii) defined benefit plans - plan assets measured at fair value

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b) Use of Judgments, Estimates and Assumption

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of circumstances surrounding the estimates. Changes in estimates are reflected in the financial statement in the period in which changes are made and if material, their effects are disclosed in the notes to the financial statements.

The financial statements require management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosures of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods .

i) Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

ii) Defined benefit plans (Gratuity benefits)

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligations are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future.

These interalia include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

iii) Useful lives of Property, Plant and Equipment

The company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

iv) Impairment of Property, Plant and Equipment

For property, plant and equipment, an assessment is made at each reporting date to determine whether there is an indication that the carrying amount may not be recoverable or previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised.

v) Inventories

The Company estimates the net realisable value (NRV) of its inventories by taking into account estimated selling price, estimated cost of completion, estimated costs necessary to make the sale, obsolescence considering the past trend. Inventories are written down to NRV where such NRV is lower than their cost.

vi) Recognition and measurement of other Provisions

The recognition and measurement of other provisions is based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the closing date. The actual outflow of resources at a future date may therefore, vary from the amount included in other provisions.

vii) Rounding of Amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs.

C) SIGNIFICANT ACCOUNTING POLICIES

I) Current and non-current classification

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is current when :

- It is expected to be realised or intended to be sold or consumed in normal operating cycle, or

- It is held primarily for the purpose of trading, or

- It is expected to be realised within twelve months after the reporting period, or

- It is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when :

- It is expected to be settled in normal operating cycle, or

- It is held primarily for the purpose of trading, or

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

II) PROPERTY, PLANT AND EQUIPMENT

i) Land is carried at historical cost. All other items of Property, Plant and Equipment are stated at historical cost less depreciation. Cost of acquisition comprises its purchase price including import 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; any trade discount and rebates are deducted in arriving at the purchase price.

ii) Capital Work In Progress represents expenditure incurred on capital assets that are under construction or are pending capitalisation and includes project expenses pending allocation. Project expenses pending allocation are apportioned to the Property, Plant and Equipment of the project proportionately on capitalisation.

iii) Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

iv) The residual useful life of Property, Plant & Equipment is reviewed at each balance sheet date and adjusted if required in the depreciation rates.

v) 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.

III) 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 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.

IV) INVENTORIESi) RAW MATERIAL

Raw Materials are valued at lower of cost or net realizable value. Cost is determined on First In First Out basis.

ii) PACKING MATERIAL

Packing Materials are valued at lower of cost or net realizable value. Cost is determined on First In First Out basis.

iii) 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.

iv) FINISHED GOODS

Finished Goods are valued at lower of cost or net realizable value. The cost of Finished Goods comprises of cost of purchases net of refundable taxes, 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.

V) EMPLOYEE BENEFITS

i) 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, compensated absences, ex-gratia, leave encashment and leave travel allowance is recognised in the period in which the employees renders related services.

ii) Long Term Employee Benefits1 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.

2 Defined Benefit Plan

The Company provides for gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) 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 employee’s 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 Employees’ 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.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

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.

3 Compensated absences

The Company has a policy on compensated absences which are both accumulating and nonaccumulating in nature. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary at each balance sheet date using Projected Unit Credit method on the additional amount expected to be paid/availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on nonaccumulating compensated absences is recognized in the period in which the absences occur.

4 Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia, bonus and performance incentive are recognised in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

VI) FOREIGN CURRENCY TRANSACTIONS

The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees.

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.

VII) REVENUE RECOGNITION

i) The Company derives revenues primarily from sale of products and services.

ii) 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 and the Company presents revenues net of GST in its statement of profit and loss.

iii) Revenue from service is recognised as and when services are rendered and related costs are incurred.

iv) Interest income is recognised on time proportion method basis taking into account the amounts outstanding and the rate applicable.

v) In case of export benefits which are in the nature of neutralisation of duties and taxes are grouped under material costs. All other export incentives are grouped under other operating revenue.

VIII) 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.

IX) TAXATION

i) CURRENT TAX

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the company and its subsidiaries and associates operate and generate taxable income. Management periodically evaluates position taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

ii) DEFERRED TAX

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the standalone financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets

are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

For items recognised in OCI or equity, deferred / current tax is also recognised in OCI or equity.

X) CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents includes Cash in hand, deposits with bank and interest accrued thereon.

XI) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provision

A Provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Contingent liabilities

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

XII) EARNINGS PER SHARE

Earnings per share is calculated by dividing the net profit or loss before OCI for the year by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss before OCI for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

XIII) DIVIDEND

Dividend distribution (including Dividend Distribution Tax thereon relating to earlier year) to the Company’s equity holders is recognized as a liability in the Company’s annual accounts in the year in which the dividends are approved by the Company’s equity holders.

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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 “ First-time Adoption of Indian Accounting Standards” 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 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.

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) 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

The Company provides for gratuity, a defined benefit retirement plan (‘the Gratuity Plan’) 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 employee’s 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 Employees’ 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 “Revenue”

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 Company’s equity holders is recognized as a liability in the Company’s annual accounts in the year in which the dividends are approved by the Company’s equity holders.

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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.

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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.

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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

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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.

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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.