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Accounting Policies of Bliss GVS Pharma Ltd. Company
Mar 31, 2025
e) Material Accounting Policies
I. Property, Plant and Equipment
Property, plant and equipment are stated at
their cost less accumulated depreciation and
impairment loss.
Freehold land is carried at historical cost.
Expenditure incurred during the period of
construction is carried as capital work-in¬
progress and on completion the costs are
allocated to the respective items of property,
plant and equipment.
Depreciation on property, plant and
equipment is provided on straight-line
method over the estimated useful life which
is in line with that indicated in Part C of
II. Leases
Company as Lessee
The Company''s lease asset classes primarily
consist of lease for buildings.
The right-of-use assets are subsequently
measured at cost less any accumulated
depreciation, accumulated impairment
losses, if any and adjusted for any
remeasurement of the lease liability.
The right-of-use assets is depreciated
using the straight-line method from the
commencement date over the shorter of
lease term or useful life of right-of-use asset.
The Company measures the lease liability
at the present value of the lease payments
that are not paid at the commencement
date of the lease. The lease payments are
discounted using the incremental borrowing
rate. For short-term and low value leases, the
Company recognises the lease payments as
an operating expense on a straight-line basis
over the lease term.
Company as Lessor
Rental income from operating leases is
recognised on a straight- line basis over the
term of the relevant lease.
III. Financial Instruments
Initial Recognition and Measurement
Except for trade receivables, all financial
assets (not measured subsequently at fair
value through profit or loss) are recognised
initially at fair value plus transaction costs.
All financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings and payables, net of incremental
transaction costs.
Financial Assets and Liability at Amortised
Cost
A ''financial asset'' is measured at the amortised
cost if both the following conditions are met:
i) the asset is held within a business
model whose objective is to hold
assets/liability for collecting/paying
contractual cash flows, and
ii) Contractual terms of the asset/liability
give rise on specified dates to cash flows
that are solely payments of principal
and interest (SPPI) on the principal
amount outstanding.
Such financial assets and financial liabilities
are subsequently carried at amortised
cost using the effective interest method.
Examples include financial assets and
financial liabilities aggregated in cash and
cash equivalents, trade receivables, trade
payables and other financial assets line
items. Refer Note No 33 for disclosure
on categories of financial assets and
financial liabilities.
Financial Instruments at Fair Value through
Profit or Loss
A financial instrument which is not classified
as at amortised cost are subsequently fair
valued through profit or loss except for
equity investments not held for trading and
not under liquidation on initial recognition.
Such equity investments are measured at fair
value with changes in fair value recognised in
other comprehensive income.
IV. Derivative Financial Instruments and
Hedge Accounting
The Company enters into derivative financial
instruments to manage its foreign exchange
rate risk. Derivatives are initially recognised
at fair value at the date a derivative contract
is entered into and are subsequently re¬
measured to their fair value at the end of each
reporting period. The resulting gain or loss
is recognised in profit or loss immediately
unless the derivative is designated and
effective as a hedging instrument, in which
event the timing of the recognition in profit
or loss depends on the nature of the hedging
relationship and nature of hedged items.
V. Impairment of Assets
Financial Assets
For the purpose of measuring lifetime
expected credit loss allowance for trade
receivables, the Company has used a
practical expedient as permitted under Ind
AS 109. This expected credit loss allowance
is computed based on a provision matrix
which takes into account historical credit
loss experience adjusted for forward¬
looking information.
The Company uses both forward-looking
and historical information to determine
whether a significant increase in credit
risk has occurred.
VI. Inventories
Inventories consist of raw materials, packing
materials, consumables and spares, work-in¬
progress, stock-in-trade, and finished goods.
Raw material, packing material, consumables
and spares are valued at cost. Cost of raw
materials is determined using the weighted
average cost method.
Inventories of finished goods and work-in¬
progress are valued at cost or net realisable
value, whichever is lower. Cost is determined
on the moving weighted average method.
The factors that the Company considers in
determining the allowance for slow moving,
obsolete and other non-saleable inventory
include estimated shelf life, price changes,
ageing of inventory, to the extent each of
these factors impact the Company''s business
and markets. The Company considers all these
factors and adjusts the carrying amount of
inventory to reflect its actual experience on
periodic basis.
VII. Investment in Subsidiaries
The Company accounts for its investments
in subsidiaries at cost less accumulated
impairment, if any.
VIII. Revenue Recognition
The Company recognises revenue from the
following major sources:
⢠Sale of goods
⢠Sale of services
Revenue is measured at the fair value of
consideration received or receivable.
Revenue is recognised when the Company
satisfies a performance obligation by
transferring a promised good or service to
the customer, which is when the customer
obtains control of the good or service. A
performance obligation may be satisfied
at a point in time. The amount of revenue
recognised is the amount allocated to the
satisfied performance obligation.
Revenue is recognised only when it can
be reliably measured, and it is probable
that future economic benefits will flow
to the company.
Revenue from operations includes sales
of goods, services, commission, export
incentives. Revenue excludes Goods and
Service Tax amount collected on behalf
of third parties.
1. Sale of Goods
Revenue from sale of manufactured
and traded goods is recognised when
a promise in a customer contract
(performance obligation) has been
satisfied by transferring control over the
promised goods to the customer. The
control of goods is usually transferred
to the customer depending upon the
incoterms or as agreed with customer
upon shipment, delivery to the customer,
in accordance with the delivery and
acceptance terms agreed with the
customers. Control over a promised
good refers to the ability to direct the
use of, and obtain substantially all of the
remaining benefits from, those goods.
Revenue is measured based on
transaction price, which is the fair
value of the consideration received
or receivable, stated net of rebates,
discounts, returns, indirect taxes or any
other similar allowances. Transaction
price is recognised based on the price
specified in the contract, net of the
sales discounts.
Incentives are accounted based on the
assessment of whether the beneficiary
(of the incentive) is acting as a principal
or an agent. Where the beneficiary is
a principal, the incentive is regarded
as consideration paid to the customer
and is reduced from revenue. However,
where the beneficiary is an agent,
the incentive payment is recognised
as an expense as the same is in the
nature of commission.
Advance received from customer
before transfer of control of goods
to the customer is recognised as
contract liability.
2. Sale of Services
Revenue from services is recognised
in accordance with the terms of the
contract with customers when the related
performance obligation is completed.
The company recognises revenue at the
point of time on the basis of completion
of milestones i.e., when the underlying
services are performed as per the terms
of the contract and when the control is
transferred to the customer.
Upfront non-refundable payments
received under these arrangements are
deferred and recognised as revenue
over the expected period over which
the related services are expected
to be performed.
3. Profit Sharing Revenues
The Company from time to time
enters into arrangements with certain
business partners for the sale of its
products in certain markets. Under such
arrangements, the Company sells its
products to the business partners at a
base purchase price agreed upon in the
arrangement and is also entitled to a
profit share which is over and above the
base purchase price. The profit share is
typically dependent on the ultimate net
sale proceeds or net profits, subject to
any reductions or adjustments that are
required by the terms of the arrangement.
Revenue in an amount equal to the base
purchase price is recognised in these
transactions upon delivery of products
to the business partners. An additional
amount representing the profit share
component is recognised as revenue
only to the extent that it is highly
probable that a significant reversal
will not occur.
Performance Obligation and Transaction
Price (Fixed and Variable)
At inception of the contract, Company
assesses the goods or services promised
in a contract with a customer and
identifies each promise to transfer to the
customer as a performance obligation
which is either:
(a) a good or service (or a bundle of
goods or services) that is distinct; or
(b) a series of distinct goods or services
that are substantially the same
and that have the same pattern of
transfer to the customer.
Based on the terms of the contract and
as per business practice, the Company
determines the transaction price
considering the amount it expects to
be entitled in exchange of transferring
promised goods or services to the
customer. It excluded amount collected
on behalf of third parties such as taxes.
For allocating the transaction price,
the Company has measured the
revenue in respect of each performance
obligation of a contract at its relative
standalone selling price. The price that
is regularly charged for an item when
sold separately is the best evidence of
its standalone selling price.
IX. Government Grants
Export entitlement under the Duty Drawback
scheme, Rodtep scheme, Merchandise
Exports Incentive Scheme ("MEIS") is grant
related to income. The Company presents the
grant income from export entitlements and
related expenses on gross basis.
X. Employee Benefits
a) Short Term Employee Benefits
1. Benefits such as salaries and wages,
etc. and the expected cost of the
bonus/ ex-gratia are recognised in
the period in which the employee
renders the related service.
2. Liability for Leave Travel Allowance
which are in the nature of short¬
term benefits is provided for as per
Company policies based on the
undiscounted amount of benefits
expected to be paid in exchange of
services rendered.
3. Compensated absences which are
not expected to occur within twelve
months after the end of the period
in which the employee renders the
related services are recognized
as a liability at the present value
of the defined benefit obligation
at the balance sheet date. The
discount rate used for determining
the present value of the obligation
under long term employee benefits,
are based on the market yields on
Government securities as at the
balance sheet date.
b) Defined Contribution Plans
The Company has Defined Contribution
Plans for post-employment benefits
charged to the statement of profit and
loss on accrual basis, in the form of
- Provident fund for all employees
which is administered by Regional
Provident Fund Commissioner.
- State Defined Contribution Plans:
Employer''s Contribution to
Employees'' State Insurance.
Mar 31, 2024
Corporate Information
Bliss GVS Pharma Limited ("the Company") is a Public Limited Company, incorporated on December 11, 1984 and domicile in India under the Companies Act, 2013 ("the Act"), having its registered office at 102, Hyde Park, Saki Vihar Road, Andheri (East), Mumbai, Maharashtra - 400072 and is listed on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.
The Company is engaged in manufacturing, marketing, trading and export of pharmaceutical products. The Company is one of among the world leaders in Suppositories and Pessaries dosage forms with one of the largest portfolios in this segment. The Company has its own manufacturing facility at Palghar which is WHO GMP approved.
The financial statements of the Company for the year ended March 31, 2024 are approved and authorised for issue in accordance with a resolution of the Board of Directors on May 02, 2024.
a) Basis of Accounting and Preparation of Financial Statements
The separate financial statements (also referred as standalone financial statements) have been prepared to comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act.
The financial statements are prepared and presented in the form set out in Schedule III of the Act, so far as they are applicable thereto. All assets and liabilities have been classified as current/ non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current/ non-current classification of assets and liabilities.
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.
The material accounting policy used in the preparation of the standalone financials statements have been discussed in below notes.
b) Basis of Measurement
The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting except for certain financial assets and liabilities measured at fair value and assets held for sale measured at fair value less cost to sell and defined benefit plan assets measured at fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if the market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value measurement and/ or disclosure purposes in the financial statements is determined on such a basis and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
I) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
II) Level 2 inputs are inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly; and
III) Level 3 inputs are unobservable inputs for the
asset or liability.
c) Use of Estimates and Judgements
The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make estimates, judgements and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses for
the years presented. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements, which in management''s opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Estimates and underlying assumptions are reviewed at each balance sheet date. Any revision to accounting estimates is recognised prospectively in current and future periods.
Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the accounting policies:
⢠Fair value measurement of financial instruments
⢠Measurement of defined benefit obligations
⢠Income taxes and deferred tax
⢠Measurement and likelihood of occurrence of provisions and contingencies
⢠Leases
⢠Useful lives of property, plant, equipment and intangibles
⢠Impairment of intangibles
⢠Impairment of financial assets
⢠Share based payments
d) Functional and Presentation Currency
The financial statements are presented in Indian Rupee, the currency of the primary economic environment in which the Company operates. All the amounts are stated in Rupees in Lakh.
I. Property, Plant and Equipment
Property, plant and equipment are stated at their cost less accumulated depreciation and impairment loss.
Freehold land is carried at historical cost.
Expenditure incurred during the period of construction is carried as capital work-in-progress and on completion the costs are allocated to the respective items of property, plant and equipment.
Depreciation on property, plant and equipment is provided on straight-line method over the estimated useful life which is in line with that indicated in Part C of Schedule II of the Companies Act, 2013.
|
Sr. No |
Assets |
Useful Life |
|
i) |
Buildings |
30 to 60 Years |
|
ii) |
Plant and Equipment |
15 Years |
|
iii) |
Plant and Equipment (Pharmaceutical and Chemical Manufacture) |
20 Years |
|
iv) |
Electrical Installations and Equipment |
10 years |
|
v) |
Laboratory Equipment |
10 years |
|
vi) |
Computers |
3 years |
|
vii) |
Furniture and Fixtures |
10 years |
|
viii) |
Office Equipments |
5 years |
|
ix) |
Vehicles |
8 Years |
|
x) |
Servers and Networks |
6 years |
II. Leases
Company as Lessee
The Company''s lease asset classes primarily consist of lease for buildings.
The right-of-use assets are subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the incremental borrowing rate. For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term.
Company as Lessor
Rental income from operating leases is recognised on a straight- line basis over the term of the relevant lease.
III. Financial Instruments
Initial Recognition and Measurement
Except for trade receivables, all financial assets (not measured subsequently at fair value through profit or loss) are recognised initially at fair value plus transaction costs.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of incremental transaction costs.
Financial Assets and Liability at Amortised Cost
A ''financial asset'' is measured at the amortised cost if both the following conditions are met:
i) the asset is held within a business model whose objective is to hold assets/liability for collecting/paying contractual cash flows, and
ii) Contractual terms of the asset/liability give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
Such financial assets and financial liabilities are subsequently carried at amortised cost using the effective interest method. Examples include financial assets and financial liabilities aggregated in cash and cash equivalents, trade receivables, trade payables and other financial assets line items. Refer Note No 33 for disclosure on categories of financial assets and financial liabilities.
Financial Instruments at Fair Value through Profit or Loss
A financial instrument which is not classified as at amortised cost are subsequently fair valued through profit or loss except for equity investments not held for trading and not under liquidation on initial recognition. Such equity investments are measured at fair value with changes in fair value recognised in other comprehensive income.
IV. Derivative Financial Instruments and Hedge Accounting
The Company enters into derivative financial instruments to manage its foreign exchange rate risk. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedging relationship and nature of hedged items.
V. Impairment of Assets
Financial Assets
For the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience adjusted for forwardlooking information.
The Company uses both forward-looking and historical information to determine whether a significant increase in credit risk has occurred.
VI. Inventories
Inventories consist of raw materials, packing materials, consumables and spares, work-inprogress, stock-in-trade, and finished goods.
Raw material, packing material, consumables and spares are valued at cost. Cost of raw materials is determined using the weighted average cost method.
Inventories of finished goods and work-inprogress are valued at cost or net realisable value, whichever is lower. Cost is determined on the moving weighted average method.
The factors that the Company considers in determining the allowance for slow moving, obsolete and other non-saleable inventory include estimated shelf life, price changes, ageing of inventory, to the extent each of these factors impact the Company''s business and markets. The Company considers all these factors and adjusts the carrying amount of inventory to reflect its actual experience on periodic basis.
VII. Investment in Subsidiaries
The Company accounts for its investments in subsidiaries at cost less accumulated impairment, if any.
VIII. Revenue Recognition
The Company recognises revenue from the following major sources:
⢠Sale of goods
⢠Sale of services
Revenue is measured at the fair value of consideration received or receivable.
Revenue is recognised when the Company satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation.
Revenue is recognised only when it can be reliably measured, and it is probable that future economic benefits will flow to the company.
Revenue from operations includes sales of goods,
services, commission, export incentives. Revenue
excludes Goods and Service Tax amount collected
on behalf of third parties.
1. Sales of Goods
Revenue from sale of manufactured and traded goods is recognised when a promise in a customer contract (performance obligation) has been satisfied by transferring control over the promised goods to the customer. The control of goods is usually transferred to the customer depending upon the incoterms or as agreed with customer upon shipment, delivery to the customer, in accordance with the delivery and acceptance terms agreed with the customers. Control over a promised good refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, those goods.
Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable, stated net of rebates, discounts, returns, indirect taxes or any other similar allowances. Transaction price is recognised based on the price specified in the contract, net of the sales discounts.
Incentives are accounted based on the assessment of whether the beneficiary (of the incentive) is acting as a principal or an agent. Where the beneficiary is a principal, the incentive is regarded as consideration paid to the customer and is reduced from revenue. However, where the beneficiary is an agent, the incentive payment is recognised as an expense as the same is in the nature of commission.
Advance received from customer before transfer of control of goods to the customer is recognised as contract liability.
2. Sales of Services
Revenue from services is recognised in accordance with the terms of the contract with customers when the related performance obligation is completed.
The company recognises revenue at the point of time on the basis of completion of milestones i.e., when the underlying services are performed as per the terms of the contract and when the control is transferred to the customer.
Upfront non-refundable payments received under these arrangements are deferred and recognised as revenue over the expected period over which the related services are expected to be performed.
Performance Obligation and Transaction Price (Fixed and Variable)
At inception of the contract, Company assesses the goods or services promised in a contract with a customer and identifies each promise to transfer to the customer as a performance obligation which is either:
(a) a good or service (or a bundle of goods or services) that is distinct; or
(b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.
Based on the terms of the contract and as per business practice, the Company determines the transaction price considering the amount it expects to be entitled in exchange of transferring promised goods or services to the customer. It excluded amount collected on behalf of third parties such as taxes.
For allocating the transaction price, the Company has measured the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price.
IX. Government Grants
Export entitlement under the Duty Drawback scheme, Rodtep scheme, Merchandise Exports Incentive Scheme ("MEIS") is grant related to income. The Company presents the grant income from export entitlements and related expenses on gross basis.
X. Employee Benefits
a) Short Term Employee Benefits
Benefits such as salaries and wages, etc. and the expected cost of the bonus/ ex-gratia are recognised in the period in which the employee renders the related service.
Liability for Compensated Absences and Leave Travel Allowance which are in the nature of short-term benefits is provided for as per Company policies based on the
undiscounted amount of benefits expected to be paid in exchange of services rendered.
b) Defined Contribution Plans
The Company has Defined Contribution Plans for post-employment benefits charged to the statement of profit and loss on accrual basis, in the form of
- Provident fund for all employees which is administered by Regional Provident Fund Commissioner.
- State Defined Contribution Plans: Employer''s Contribution to Employees'' State Insurance.
c) Defined Benefits Plans
The Company''s liability towards gratuity to its employees is covered by a group gratuity policy with an insurance company. 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 salary and the tenure of employment. Liability towards gratuity is provided on the basis of an actuarial valuation using the Projected Unit Credit method and the current service cost and interest on the net defined benefit liability/ (asset) is recognised in the statement of profit and loss. Past service cost is immediately recognised in the statement of profit and loss. Actuarial gains and losses net of deferred taxes arising from experience adjustment and changes in actuarial assumptions are recognised in other comprehensive income in the period in which they arise and aggregated with retained earnings in statement of changes in equity.
XI. Share Based Payment Transactions
The Company operates equity-settled share based remuneration plans for its employees. All services received in exchange for the grant of any share
based payment are measured at their fair values on the grant date and is recognised as an employee expense, in the profit or loss with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The increase in equity recognised in connection with share-based payment transaction is presented as a separate component in equity under "Share Options Outstanding Account". The amount recognised as an expense is adjusted to reflect the actual number of stock options that vest. Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated to share capital up to the nominal (or par) value of the shares issued with any excess being recorded as share premium.
XII. Taxation
Tax Expense comprises of current tax and deferred tax.
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.
Deferred taxes arising from deductible and taxable temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The deferred tax arising from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction are not recognised. The Company has recognised deferred tax on right-of-use assets and lease liabilities on gross basis in accordance with the amendment to Ind AS 12.
Mar 31, 2023
Corporate Information
Bliss GVS Pharma Limited (âthe Companyâ) is a Public limited Company, incorporated on December 11, 1984 and domicile in India under the Companies Act, 2013 (âthe Actâ), having its registered office at 102, Hyde Park, Saki Vihar Road, Andheri (East), Mumbai, Maharashtra - 400072 and is listed on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.
The Company is engaged in manufacturing, marketing, trading and export of pharmaceutical products and product development services. The Company is one of among the world leaders in Suppositories and Pessaries dosage forms with one of the largest portfolios in this segment. The Company has its own manufacturing facility at Palghar which is WHO GMP approved.
The standalone financial statements of the Company for the year ended March 31, 2023 are approved and authorised for issue in accordance with a resolution of the Board of Directors on May 11,2023.
Note 1. Significant Accounting Policies
a) Basis of Accounting and Preparation of Financial Statements
The separate financial statements (also referred as standalone financial statements) have been prepared to comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act.
The financial statements are prepared and presented in the form set out in Schedule III of the Act, so far as they are applicable thereto. All assets and liabilities have been classified as current/ non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of services and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current/ non-current classification of assets and liabilities.
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.
The significant accounting policy used in the preparation of the standalone financials statements have been discussed in below notes.
b) Basis of Measurement
The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting except for
certain financial assets and liabilities measured at fair value and assets held for sale measured at fair value less cost to sell and defined benefit plan assets measured at fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if the market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value measurement and/or disclosure purposes in the financial statements is determined on such a basis and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
I) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
II) Level 2 inputs are inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly; and
III) Level 3 inputs are unobservable inputs for the asset or liability.
c) Use of Estimates and Judgements
The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make estimates, judgements and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the years presented. The estimates and assumptions used in the accompanying financial statements are based upon managementâs evaluation of the relevant facts and circumstances as of the date of financial statements, which in management''s opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Estimates and underlying assumptions are reviewed at each balance sheet date. Any revision to accounting estimates is recognised prospectively in current and future periods.
Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the accounting policies:
⢠Fair value measurement of financial instruments
⢠Measurement of defined benefit obligations
⢠Income taxes and deferred tax
⢠Measurement and likelihood of occurrence of provisions and contingencies
⢠Leases
⢠Useful lives of property, plant, equipment and intangibles
⢠Impairment of intangibles
⢠Impairment of financial assets
⢠Share based payments
d) Functional and Presentation Currency
The financial statements are presented in Indian Rupee, the currency of the primary economic environment in which the Company operates. All the amounts are stated in Rupees in Lakh.
Summary of Significant Accounting Policies
I. Property, Plant and Equipment
Property, plant and equipment are stated at their original cost (net of Goods and Service Tax wherever applicable) including freight, non-refundable taxes, duties, customs and other incidental expenses relating to acquisition and installation less accumulated depreciation and impairment loss. Interest and other finance charges paid on loans for the acquisition of tangible qualifying assets are apportioned to the cost of fixed assets till they are ready for use.
Freehold land is carried at historical cost.
Capital work-in-progress includes the acquisition cost, cost incurred to date on assets under expansion/acquisition and pending commissioning.
Expenditure incurred during the period of construction is carried as capital work-in-progress and on completion the costs are allocated to the respective fixed assets.
Pre-operative expenditure comprising of revenue expenses incurred in connection with project implementation during the period up to commencement of commercial production are treated as part of the project costs and are capitalised. Such expenses are capitalised only if the project to which they relate, involve substantial expansion of capacity or upgradation.
When major items of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.
The cost of replacement of any property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefit associated with the item will flow to the Company and its cost can be measured reliably.
When an asset is scrapped or otherwise disposed of, the cost and related depreciation are removed from the books of account and resultant profit (including capital profit) or loss, if any, is reflected in the statement of profit and loss.
Depreciation on tangible assets is provided on straight-line method over the useful life of asset prescribed in Part C of Schedule II of the Companies Act, 2013 in order to reflect the actual usages of the assets.
|
Sr. No. |
Assets |
Useful Life |
|
i) |
Buildings |
30 to 60 Years |
|
ii) |
Plant and Equipment |
15 Years |
|
iii) |
Plant and Equipment (Pharmaceutical and Chemical Manufacture) |
20 Years |
|
iv) |
Electrical Installations and Equipment |
10 years |
|
v) |
Laboratory Equipment |
10 years |
|
vi) |
Computers |
3 years |
|
vii) |
Furniture and Fixtures |
10 years |
|
viii) |
Office Equipments |
5 years |
|
ix) |
Vehicles |
8 Years |
|
x) |
Servers and Networks |
6 years |
II. Intangible Assets
Identifiable intangible assets are recognised when it is probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured.
The estimated useful life of amortisable intangibles is reviewed at the end of each reporting period and change in estimates if any are accounted for on a prospective basis.
All intangible assets are measured at cost and amortised to reflect the pattern in which the assets economic benefits are consumed. Software capitalised is amortised over useful life of three to five years equally commencing from the year in which, the software is put to use.
III. Investment Properties
Land or Building held to earn rentals or for capital appreciation or both rather than for use in the production or supply of goods or services or for administrative purposes; or sale in the ordinary course of business is recognised as Investment properties.
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
Though the Company measures investment properties using cost-based measurement, the fair value of investment property is disclosed in the notes. Fair value is determined based on the evaluation performed by an external independent valuer.
Investment properties are derecognised either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in statement of profit and loss in the period of derecognition.
Depreciation on investment property is provided on straightline method over the useful life of asset prescribed in Part C of Schedule II of the Companies Act, 2013 in order to reflect the actual usages of the assets. Useful life of Investment property is measured as 50 years.
IV. Leases
The Company, at the inception of a contract, assesses whether the contract is a lease or not lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange for a consideration.
Company as Lessee
The Companyâs lease asset classes primarily consist of lease for buildings. The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset. The contract conveys the right to control the use of an identified asset if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset.
The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the
Company uses incremental borrowing rate. For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term.
Company as Lessor
Rental income from operating leases is recognised on a straight- line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the Companyâs expected inflationary cost increase, such increases are recognised in the year in which such benefits accrue.
V. Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Classification
On initial recognition the Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
The Company classifies all financial liabilities as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss except for financial liabilities measured at fair value through profit or loss
Initial Recognition and Measurement
All financial assets (not measured subsequently at fair value through profit or loss) are recognised initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Financial Assets and Liability at Amortised Cost
A âfinancial asset'' is measured at the amortised cost if both the following conditions are met:
i) the asset is held within a business model whose objective is to hold assets/liability for collecting/paying contractual cash flows, and
ii) Contractual terms of the asset/liability give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
Financial liabilities are subsequently carried at amortised cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.
After initial measurement, such financial assets/liability are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income/expense in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss.
Financial Instruments at Fair Value through the Company''s Statement of Profit or Loss
A financial instrument which is not classified in any of the above categories are subsequently fair valued through profit or loss.
V. 1 Investments
Investments in subsidiaries and associates are accounted at cost in accordance with Ind AS 27 - Separate financial statements.
Investments that are readily realisable and intended to be held for not more than a year are classified as current investments.
The Company has made an irrevocable election to present subsequent changes in the fair value of equity investments, not held for trading, in other comprehensive income.
Any gain or loss on disposal of an investment is recognised in statement of profit and loss.
V.2 Cash and Cash Equivalents
Cash and cash equivalents for the purpose of Cash Flow Statement consist of cash on hand and cheques in hand, demand deposits with banks and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of change in value. Short term means investments with original maturities/ holding period of three months or less from the date of investments.
V.3 Trade Receivables
Trade receivables are amounts due from customers for sale of goods or services performed in the ordinary course of business. Trade receivables are initially recognised at its transaction price which is considered to be its fair value and are classified as current assets as it is expected to be received within the normal operating cycle of the business.
V.4 Trade Payables
Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary course of business and are classified as current liabilities to the extent it is expected to be paid within the normal operating cycle of the business.
V.5 Other Financial Assets and Liabilities
Other non-derivative financial instruments are initially recognised at fair value and subsequently measured at amortised costs using the effective interest method.
V.6 De-recognition of Financial Assets and Liabilities
The Company derecognises a financial asset when the contractual right to the cash flows from the asset expires or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction which has substantially all the risk and rewards of ownership of the financial asset are transferred. If the Company retains substantially all the risk and rewards of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.
The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expired; the difference between the carrying amount of derecognised financial liability and the consideration paid is recognised as profit or loss.
V. 7 Derivative Financial Instruments and Hedge Accounting
The Company enters into derivative financial instruments to manage its foreign exchange rate risk. Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in statement of profit and loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of profit and loss depends on the nature of the hedging relationship and nature of hedged items.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised or no longer qualifies for hedge accounting.
VI. Impairment of Assets Financial Assets
At each balance sheet date, the Company assesses whether a financial asset is to be impaired. Ind AS 109 requires expected credit losses to be measured through loss allowance. The Company measures the loss allowance for financial assets at an amount equal to lifetime expected credit losses if the credit risk on that financial asset has increased significantly
since initial recognition. If the credit risk on a financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for financial assets at an amount equal to 12-month expected credit losses.
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience with adjusted for forward-looking information.
The Company uses both forward-looking and historical information to determine whether a significant increase in credit risk has occurred.
Non-Financial Assets
Tangible and Intangible Assets
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e., higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognised in the statement of profit and loss to such extent. When an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU) is increased to the revised estimate of its recoverable amount, such that the increase in the carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an impairment loss is recognised immediately in statement of profit and loss.
The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor.
VII. Inventories
Inventories consist of raw materials, packing materials, consumables and spares, work-in-progress, stock-in-trade, and finished goods.
Raw material, packing material, consumables and spares are valued at cost. Cost of raw materials includes all costs of purchase, conversion, and other direct attributable costs (net of GST), incurred for bringing the items to their present
location and condition and is determined using the weighted average cost method. However, materials and other items held for use in the production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.
Inventories of finished goods and work-in-progress are valued at cost or net realisable value, whichever is lower. Cost is determined on the moving weighted average method. Finished goods and work-in-progress is computed based on respective moving weighted average price of procured material and appropriate share of labour and other manufacturing overheads. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
The factors that the Company considers in determining the allowance for slow moving, obsolete and other non-saleable inventory include estimated shelf life, price changes, ageing of inventory, to the extent each of these factors impact the Companyâs business and markets. The Company considers all these factors and adjusts the inventory provision to reflect its actual experience on periodic basis.
VIII. Investment in Subsidiaries, Associates and Joint Ventures
The Company accounts for its investments in subsidiaries at cost less accumulated impairment, if any.
IX. Foreign Currency Transactions
a) Transactions in currencies other than the Companyâs functional currency i.e. (foreign currencies) are recorded at the exchange rates prevailing on the date of transaction. At the end of each reporting period, foreign currency monetary assets and liabilities are retranslated at the rates prevailing at that date. Exchange difference arising on settlement of transactions and translation of monetary items are recognised as income or expense in the year in which they arise.
b) Non-monetary items that are measured in terms of historical cost in a foreign currency are not translated and are stated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
X. Revenue Recognition
The Company recognises revenue from the following major sources:
⢠Sale of goods
⢠Sale of services
Revenue is measured at the fair value of consideration received or receivable.
Revenue is recognised when the Company satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation.
Revenue is recognised only when it can be reliably measured, and it is probable that future economic benefits will flow to the company.
Revenue from operations includes sales of goods, services, scrap, commission, export incentives. Revenue excludes Goods and Service Tax amount collected on behalf of third parties.
1. Sales of Goods
Revenue from sale of manufactured and traded goods is recognised when a promise in a customer contract (performance obligation) has been satisfied by transferring control over the promised goods to the customer. The control of goods is usually transferred to customer depending upon the incoterms or as agreed with customer upon shipment, delivery to the customer, in accordance with the delivery and acceptance terms agreed with the customers. Control over a promised good refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, those goods.
Revenue is measured based on transaction price, which is the fair value of the consideration received or receivable, stated net of rebates, discounts, returns, indirect taxes or any other similar allowances. Transaction price is recognised based on the price specified in the contract, net of the sales discounts.
Incentives are accounted based on the assessment of whether the beneficiary (of the incentive) is acting as a principal or an agent. Where the beneficiary is a principal, the incentive is regarded as consideration paid to the customer and is reduced from revenue. However, where the beneficiary is an agent, the incentive payment is recognised as an expense as the same is in the nature of commission.
Advance received from customer before transfer of control of goods to the customer is recognised as contract liability.
2. Sales of Services
Revenue from services is recognised in accordance with the terms of the contract with customers when the related performance obligation is completed.
The company recognises revenue at the point of time on the basis of completion of milestones i.e., when the underlying services are performed as per the terms of the contract and when the control is transferred to the customer.
Upfront non-refundable payments received under these arrangements are deferred and recognised as revenue over the expected period over which the related services are expected to be performed.
Performance Obligation and Transaction Price (Fixed and Variable)
At inception of the contract, Company assesses the goods or services promised in a contract with a customer and identifies each promise to transfer to the customer as a performance obligation which is either:
(a) a good or service (or a bundle of goods or services) that is distinct; or
(b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.
Based on the terms of the contract and as per business practice, the Company determines the transaction price considering the amount it expects to be entitled in exchange of transferring promised goods or services to the customer. It excluded amount collected on behalf of third parties such as taxes.
For allocating the transaction price, the Company has measured the revenue in respect of each performance obligation of a contract at its relative standalone selling price. The price that is regularly charged for an item when sold separately is the best evidence of its standalone selling price.
3. Other Operating Income
Export entitlement under the Duty Drawback scheme, Merchandise Exports Incentive Scheme (âMEISâ), Rodtep scheme is recognised on accrual basis as an income when the right to receive the credit as per the terms of the scheme is established in respect of the export made, and when there is reasonable assurance that the Company will comply with the conditions attached to them and it is reasonably certain that the ultimate collection will be made. Revenue grants are recognised in the statement of profit and loss.
Revenue grants are recognised in the statement of profit and loss as and when Company becomes entitled to receive and balance grant receivable is recognised as deferred income receivable.
4. Other Income
a) Dividend income is recognised when the right to receive the payment is established.
b) Interest income is recognised on an accrual basis when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.
c) Insurance and other claims are recognised as revenue on certainty of receipt on prudent basis.
d) Sale of Solar power is recognised when the power is delivered by the Company at the delivery point in conformity with the parameters and technical limits and fulfilment of other conditions specified in the Power Purchase Agreement. Sale of power is accounted for as per tariff specified in the Power Purchase Agreement.
e) Other non-operating income (net of cost) is recognised on an accrual basis when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.
X. Expenses
Expenses are accounted for on an accrual basis.
XI. Research and Development
Equipment purchased and cost of construction of assets used for research and development is capitalised when commissioned and included in the fixed assets. Revenue expenditure on research and development is charged in the period in which it is incurred.
XII. Employee Benefits
a) Short Term Employee Benefits
All employee benefits expected to be settled wholly within twelve months after the end of annual reporting period are classified as short-term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus/ ex-gratia are recognised in the period in which the employee renders the related service.
Liability for Compensated Absences and Leave Travel Allowance which are in the nature of short-term benefits is provided for as per Company policies based on the undiscounted amount of benefits expected to be paid in exchange of services rendered.
b) Defined Contribution Plans
The Company has Defined Contribution Plans for postemployment benefits charged to the statement of profit and loss on accrual basis, in the form of
- Provident fund for all employees which is administered by Regional Provident Fund Commissioner.
- State Defined Contribution Plans: Employerâs Contribution to Employeesâ State Insurance.
c) Defined Benefits Plans
The Companyâs liability towards gratuity to its employees is covered by a group gratuity policy with an insurance company. 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 employeeâs salary and the tenure of employment. Liability towards gratuity is provided on the basis of an actuarial valuation using the Projected Unit Credit method and the current service cost and interest on the net defined benefit liability/ (asset) is recognised in the statement of profit and loss. Past service cost is immediately recognised in the statement of profit and loss. Actuarial gains and losses net of deferred taxes arising from experience adjustment and changes in actuarial assumptions are recognised in other comprehensive income in the period in which they arise.
d) Termination Benefits
Termination benefits and long service awards in terms of Company policy are recognised as an expense as and when incurred.
e) Share Based Payment Transactions
The Company operates equity-settled share based remuneration plans for its employees. All services received in exchange for the grant of any share based payment are measured at their fair values on the grant date and is recognised as an employee expense, in the profit or loss with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The increase in equity recognised in connection with share-based payment transaction is presented as a separate component in equity under âShare Options Outstanding Accountâ. The amount
recognised as an expense is adjusted to reflect the actual number of stock options that vest. Grant date is the date when the Company and employees have shared an understanding of terms and conditions on the arrangement. Where employees are rewarded using share based payments, the fair value of employeesâ services is determined indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example profitability and sales growth). All share based remuneration is ultimately recognised as an expense in profit or loss. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period that are expected to become exercisable. Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated to share capital up to the nominal (or par) value of the shares issued with any excess being recorded as share premium.
XIII. Borrowing Costs
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time as the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost incurred on qualifying assets are capitalised and added to the cost of qualifying asset under work-in-progress. All other borrowing costs are recognised as an expense in the statement of profit and loss in the period in which they are incurred.
XIV. Taxation
Tax Expense comprises of current, deferred tax and dividend distribution tax.
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.
Deferred taxes arising from deductible and taxable temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The deferred tax arising from the initial recognition of goodwill or an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profit or loss at the time of the transaction are not recognised.
Deferred tax asset for all deductible temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilised.
Dividend distribution tax arising out of payment of dividends to shareholders under the Indian Income Tax Act regulation are recognised in statement of changes in equity as part of associated dividend payment.
Current and Deferred Tax for the year
Current and deferred tax are recognised in the statement of profit and loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.
XV. Provision, Contingencies and Commitments
As provisions are recognised when there is a present obligation (legal or constructive) 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 reviewed at each balance sheet date and are adjusted to reflect the current best estimate.
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 present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation, or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognised nor disclosed in the financial statements. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.
Capital commitments include the amount of purchase order (net of advances) issued to parties for completion of assets.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.
XVI. Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted earnings per share is computed using the net profit for the year attributable to the shareholderâ and weighted average number of equity and potential equity shares outstanding during the year including share options, convertible preference shares and debentures, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.
XVII. Off-setting Financial Assets and Liabilities
Financial assets and liabilities are offset, and the net amount is reported in the balance sheet where there is a legally enforceable rights to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable rights must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or counterparty.
XVIII. Recent Accounting Pronouncements
Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:
Ind AS 1 - Presentation of Financial Statements
- This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements.
Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of âaccounting estimatesâ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.
Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statement.
Mar 31, 2018
IA. Background:
The Company is a Public limited Company, incorporated under the Companies Act, 1956, having its registered office in Mumbai, Maharashtra and is listed on Bombay Stock Exchange Ltd and the National Stock Exchange of India Ltd. The Company is engaged in manufacturing, marketing, trading and export of pharmaceutical products. The Company has its own manufacturing facility at Palghar.
IB. Method of Accounting:
a) Basis of Preparation:
The separate financial statements have been prepared to comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with Rule 4 of the [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.
The financial statements up to year ended March 31, 2017 were prepared in accordance with the accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (hereinafter referred to as âIGAAPâ).
These financial statements are the first financial statements of the Company under Ind AS. As per the principal of Ind AS 101 the date of transition to Ind AS is April 1, 2016 and hence the comparatives for the previous year ended 31st March, 2017 and balance as on 1st April, 2016 have been restated as per principles of Ind AS Refer Note.44 for the details of significant exemptions availed by the Company on first-time adoption of Ind AS and for an explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows. Accounting policies have been applied consistently to all periods presented in these financial statements.
The financial statements are prepared and presented in the form set out in Schedule III of the Act, so far as they are applicable thereto. All assets and liabilities have been classified as current / noncurrent as per the Companyâs normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of services and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as twelve months for the purpose of current / noncurrent classification of assets and liabilities.
b) Basis of Measurement:
The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting except for certain financial assets and liabilities measured at fair value and assets held for sale- measured at fair value less cost to sell and defined benefit plan assets measured at fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if the market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value measurement and/or disclosure purposes in the financial statements is determined on such a basis except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
I) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
II) Level 2 inputs are inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly; and
III) Level 3 inputs are unobservable inputs for the asset or liability.
c) Use of Estimates:
The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon managementâs evaluation of the relevant facts and circumstances as of the date of financial statements, which in managementâs opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.
Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most significant effect to the carrying amounts of assets and liabilities within the next financial year, are included in the accounting policies:
- Measurement of defined benefit obligations
- Measurement and likelihood of occurrence of provisions and contingencies
- Recognition of deferred tax assets
- Useful lives of property, plant, equipment and Intangibles
- Impairment of Intangibles
- Impairment of financial assets
d) Functional and presentation currency:
The financial statements are presented in Indian Rupees, the currency of the primary economic environment in which the Company operates. All the amounts are stated as rupee in lakhs.
II. Property, plant and equipment:
Property, plant and equipment are stated at their original cost (net of CENVAT/ Value Added Tax/Goods and Service Tax wherever applicable) including freight, non- refundable taxes, duties, customs and other incidental expenses relating to acquisition and installation less accumulated depreciation and impairment loss. Interest and other finance charges paid on loans for the acquisition of tangible qualifying assets are apportioned to the cost of fixed assets till they are ready for use.
Expenditure incurred during the period of construction is carried as capital work-in-progress and on completion the costs are allocated to the respective fixed assets.
When major items of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment. The cost of replacement of any property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefit associated with the item will flow to the Company and its cost can be measured reliably.
Pre-operative expenditure comprising of revenue expenses incurred in connection with project implementation during the period up to commencement of commercial production are treated as part of the project costs and are capitalized. Such expenses are capitalized only if the project to which they relate, involve substantial expansion of capacity or upgradation.
When an asset is scrapped or otherwise disposed of, the cost and related depreciation are removed from the books of account and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.
Freehold land is carried at historical cost. Depreciation on tangible assets is provided on straight line method over the useful life of asset prescribed in Part C of schedule II of the Companies Act, 2013 in order to reflect the actual usages of the assets.
III. Intangible Assets:
Identifiable intangible assets are recognised when it is probable that future economic benefits attributed to the asset will flow to the Company and the cost of the asset can be reliably measured.
All Intangible Assets are measured at cost and amortized so as to reflect the pattern in which the assets economic benefits are consumed. Brands are amortized over the estimated period of benefit, not exceeding five years. Software capitalised is amortised over useful life of three to five years equally commencing from the year in which, the software is put to use.
The estimated useful life of amortizable intangibles is reviewed at the end of each reporting period and change in estimates if any are accounted for on a prospective basis.
IV. Investment Properties:
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
Though the Company measures investment properties using cost based measurement, the fair value of investment property is disclosed in the notes.
Investment properties are derecognised either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in statement of profit and loss in the period of derecognition.
V. Financial Instruments:
Classification
On initial recognition the Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities measured at fair value through profit or loss
Initial recognition and measurement
All financial assets (not measured subsequently at fair value through profit or loss) are recognised initially at fair value plus transaction costs that are attributable to the acquisition of the financial asset.
All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.
Financial assets and liability at amortised cost
A âfinancial assetâ is measured at the amortised cost if both the following conditions are met:
i) the asset is held within a business model whose objective is to hold assets/liability for collecting/paying contractual cash flows, and
ii) contractual terms of the asset/liability give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets/liability are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income/expense in the Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss.
V.1 Investments:
Investments that are readily realizable and intended to be held for not more than a year are classified as current investments.
Investments in subsidiaries and associates are accounted at cost in accordance with Ind AS 27 - Separate financial statements.
The Company has made an irrevocable election to present subsequent changes in the fair value of equity investments, not held for trading, in other comprehensive income.
V.2 Derivative financial instruments and hedge accounting:
The Company enters into derivative financial instruments to manage its foreign exchange rate risk. Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in statement of profit and loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of profit and loss depends on the nature of the hedging relationship and nature of hedged items.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised or no longer qualifies for hedge accounting.
V.3. Cash and cash equivalents:
Cash and cash equivalents consists of cash on hand, short demand deposits and highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of change in value. Short term means investments with original maturities / holding period of three months or less from the date of investments. Bank overdrafts that are repayable on demand and form an integral part of the Companyâs cash management are included as a component of cash and cash equivalent for the purpose of statement of cash flow and are shown within borrowing in current liabilities in the balance sheet.
V.4. Trade receivables:
Trade receivables are amounts due from customers for sale of goods or services performed in the ordinary course of business. Trade receivables are initially recognized at its transaction price which is considered to be its fair value and are classified as current assets as it is expected to be received within the normal operating cycle of the business.
V.5. Borrowings:
Borrowings are initially recorded at fair value and subsequently measured at amortized costs using effective interest method. Transaction costs are charged to statement of profit and loss as financial expenses over the term of borrowing.
V.6. Trade payables:
Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary course of business and are classifiedas currentliabilities to the extent it is expected to be paid within the normal operating cycle of the business.
V.7. Other financial assets and liabilities:
Other non-derivative financial instruments are initially recognized at fair value and subsequently measured at amortized costs using the effective interest method.
V.8. De-recognition of financial assets and liabilities:
The Company derecognizes a financial asset when the contractual right to the cash flows from the asset expires or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction which has substantially all the risk and rewards of ownership of the financial asset are transferred. If the Company retains substantially all the risk and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.
The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expired; the difference between the carrying amount of derecognized financial liability and the consideration paid is recognized as profit or loss.
VI. Inventories:
Raw material and packing material inventory is valued at cost.
Inventories of finished goods and work in progress are valued at cost or net realizable value, whichever is lower. Cost of raw materials includes all costs of purchase, conversion and other direct attributable costs (net of CENVAT and VAT,GST set-off), incurred for bringing the items to their present location and condition and is determined using the weighted average cost method. However, materials and other items held for use in the production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.
Cost is determined on the moving weighted average method. Finished goods and Work in Progress is computed based on respective moving weighted average price of procured material and appropriate share of labour and other manufacturing overheads. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
VII. Impairment of assets:
Financial assets:
At each balance sheet date, the Company assesses whether a financial asset is to be impaired. Ind AS 109 requires expected credit losses to be measured through loss allowance. The Company measures the loss allowance for financial assets at an amount equal to lifetime expected credit losses if the credit risk on that financial asset has increased significantly since initial recognition. If the credit risk on a financial asset has not increased significantly since initial recognition, the Company measures the loss allowance for financial assets at an amount equal to 12-month expected credit losses. The Company uses both forward-looking and historical information to determine whether a significant increase in credit risk has occurred.
Non-financial assets:
Tangible and intangible assets
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs.
If the recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the statement of profit and loss to such extent. When an impairment loss subsequently reverses, the carrying amount of the asset (or a CGU) is increased to the revised estimate of its recoverable amount, such that the increase in the carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or CGU) in prior years. A reversal of an impairment loss is recognised immediately in statement of profit and loss.
The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor.
VIII. Foreign Currency Transactions:
a) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are translated at year-end exchange rates. Exchange difference arising on settlement of transactions and translation of monetary items are recognised as income or expense in the year in which they arise.
b) Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively).
IX. Revenue Recognition:
Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised only when it can be reliably measured and it is probable that future economic benefits will flow to the company.
Revenue from operations includes sales of goods, services, scrap, commission, export incentives. Revenue includes excise duty wherever charged from the customer but excludes service tax and sales tax / value added taxes, Goods and Service Tax amounts collected on behalf of third parties.
Sales of Goods:
1. Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer as per the terms of sale.
Sales of Services:
2. Income from job work is recognised in accordance with terms of contract on completion and is included in sales.
Other Operating Income:
3. Income in respect of export benefits is recognized to the extent the company is reasonably certain of its ultimate realization.
Other Income:
4. Income in respect of insurance claims is recognized to the extent the company is reasonably certain of its ultimate realization.
5. Dividend income is recognized when the right to receive the payment is established.
6. Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assetâs net carrying amount on initial recognition.
X. Expenses:
Expenses are accounted for on accrual basis.
XI. Research & Development:
Equipment purchased and cost of construction of assets used for research and development is capitalised when commissioned and included in the fixed assets. Revenue expenditure on research and development is charged in the period in which it is incurred.
XII. Leases:
1. Leases where the lessor effectively retains substantially all the risk and benefits of ownership of the leased terms are classified as operating lease.
2. Lease income of operating leases is recognized in the statement of profit and loss on a straight-line basis over the lease period unless the payments are structured to increase in line with the expected general inflation so as to compensate for the lessorâs expected inflationary cost increases.
XIII. Employee Benefits:
a) Short Term Employee benefits:
All employee benefits expected to be settled wholly within twelve months after the end of annual reporting period are classified as short-term employee benefits.. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus / ex-gratia are recognized in the period in which the employee renders the related service.
Compensated absences are accounted similar to the short term employee benefits as it is expected to be settled wholly within twelve months after the end of annual reporting period.
b) Defined contribution plan :
The Company has a statutory scheme of Provident Fund with the Regional Provident Fund Commissioner and contributions of the company are charged to the Statement of Profit and Loss on accrual basis.
c) Defined benefit Plan:
1. Gratuity:
The Companyâs liability towards gratuity to its employees is covered by a group gratuity policy with an insurance company. 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 employeeâs salary and the tenure of employment. Liability towards gratuity is provided on the basis of an actuarial valuation using the Projected Unit Credit method and the current service cost and interest on the net defined benefit liability / (asset) is recognized in the statement of profit and loss. Past service cost are immediately recognized in the statement of profit and loss. Actuarial gains and losses net of deferred taxes arising from experience adjustment and changes in actuarial assumptions are recognized in other comprehensive income in the period in which they arise.
2. Termination Benefits:-
Termination benefits are recognized in the statement of profit and loss as and when incurred.
XIV Borrowing Costs:-
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time as the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred. Arrangement Fees in respect of long Term Borrowings are amortised over the period of loan.
XV Taxes on Income: -
Tax Expense comprises of current and deferred tax.
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.
Deferred taxes arising from deductible and taxable temporary differences between the tax base of assets and liabilities and their carrying amount in the financial statements are recognized using substantively enacted tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled. The deferred tax arising from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction are not recognized.
Deferred tax asset for all deductible temporary differences and unused tax loses are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilized.
Deferred tax is measured based on the tax rates andthe tax laws enacted or substantively enacted at the balance sheet date.
Dividend distribution tax arising out of payment of dividends to shareholders under the Indian Income Tax Act regulation are recognized in statement of changes in equity as part of associated dividend payment.
XVI. Provision & Contingencies:
As provisions are recognised when there is a present 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. If the effect of the time value of money is material, provisions are discounted using equivalent period government securities interest rate. Unwinding of the discount is recognised in the statement of profit and loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.
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 present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognized nor disclosed in the financial statements. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.
XVII. Earnings per share:
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed using the net profit for the year attributable to the shareholderâ and weighted average number of equity and potential equity shares outstanding during the year including share options, convertible preference shares and debentures, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.
XVIII. Off-setting Financial Assets and Liabilities:
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable rights to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable rights must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or counterparty.
Mar 31, 2017
A. Statement of Significant Accounting Policies:
1. Background:
The Company is a Public limited Company, incorporated under the Companies Act, 1956, having its registered office in Mumbai, Maharashtra and is listed on BSE Ltd and the National Stock Exchange of India Ltd. The Company is engaged in manufacturing, marketing, trading and export of pharmaceutical products. The Company has its own manufacturing facility at Palghar.
2. Accounting Policies:
1. Method of Accounting:
a) Basis of Preparation :
The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting and in accordance with generally accepted accounting principles in India to comply with the accounting standards specified under Section 133 of the Companies Act, 2013. ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) and other relevant provisions of the Act. ("Indian GAAP")
The financial statements are prepared and presented in the form set out in Schedule III of the Act, so far as they are applicable thereto. All assets and liabilities have been classified as current / noncurrent as per the Company''s normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of services and their realization in cash and cash equivalents, the company has ascertained its operating cycle as twelve months for the purpose of current / noncurrent classification of assets and liabilities.
The accounting policies adopted in preparation of these financial statements are consistent with those of the previous year.
b) Use of Estimates:-
The preparation of financial statements in conformity with generally accepted accounting principles in India (Indian GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements, which in management''s opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.
2. Fixed Assets and Depreciation/ Amortization:
a) Tangible Assets: -
Tangible Assets are stated at their original cost (net of CENVAT where applicable) including freight, duties, customs and other incidental expenses relating to acquisition and installation. Interest and other finance charges paid on loans for the acquisition of tangible qualifying assets are apportioned to the cost of fixed assets till they are ready for use.
When an asset is scrapped or otherwise disposed of, the cost and related depreciation are removed from the books of account and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.
Depreciation on tangible assets is provided on straight line method over the useful life of asset prescribed in Part C of schedule II of the Companies Act, 2013 in order to reflect the actual usages of the assets.
Individual assets acquired for less than '' 5,000 are entirely depreciated in the year of acquisition. Depreciation is charged on pro-rata basis for the assets purchased/sold during the year.
b) Intangible Assets :-
All Intangible Assets are measured at cost and amortized so as to reflect the pattern in which the assets economic benefits are consumed. Brands are amortized over the estimated period of benefit, not exceeding five years. Software capitalized is amortized over useful life of three to five years equally commencing from the year in which, the software is put to use.
c) Impairment:-
The carrying value of assets/ cash generating units at each balance sheet date, are reviewed for impairment. If any indication of such impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount.
The recoverable amount is the greater of the net selling price and their value in use. Value in use arrived at by discounting the future cash flow to their present value based on an appropriate discount factor.
3. Investments:-
Investments that are readily realizable and intended to be held for not more than a year are classified as current investments.
''Non-current Investments'' are carried at acquisition / amortized cost. A provision is made for diminution, other than temporary, in the value of investment.
''Current Investments'' are carried at the lower of cost or fair value on an individual basis.
4. Inventories: -
Raw Material inventory is valued at cost.
Inventories of finished goods and work in progress are valued at cost or net realizable value, whichever is lower. Cost of raw materials includes all costs of purchase, conversion and other direct attributable costs (net of CENVAT and VAT setoff), incurred for bringing the items to their present location and condition and is determined using the weighted average cost method. However, materials and other items held for use in the production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.
Cost is determined on the moving weighted average method. Finished goods and Work in Progress is computed based on respective moving weighted average price of procured material and appropriate share of labor and other manufacturing overheads. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
5. Foreign Currency Transactions: -
a) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are translated at year-end exchange rates. Exchange difference arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise.
b) Exchange Differences arising on monetary item that, in substance, forms part of the Company''s net investment in non-integral foreign operations is accumulated in the foreign currency translation reserve until the disposal of the investment. On disposal, the cumulative amount of the exchange differences which have been deferred and which relate to that investment are recognized as income or expenses.
6. Revenue Recognition: -
Revenue is recognized to the extent that it is probable that economic benefits will flow to the Company and the revenue can be reliably measured.
Sales of Goods:-
a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer as per the terms of sale. Revenue are recorded at net of duties and sales tax and trade discounts.
Sales of Services:-
b) Income from job work is recognized on completion and is included in sales.
Other Income:-
c) Income in respect of export benefits is recognized to the extent the Company is reasonably certain of its ultimate realization.
d) Income in respect of insurance claims is recognized to the extent the Company is reasonably certain of its ultimate realization.
e) Dividend income is recognized when the right to receive the payment is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.
7. Expenses:-
Expenses are accounted for on accrual basis.
8. Research & Development:-
Equipment purchased and cost of construction of assets used for research and development is capitalized when commissioned and included in the fixed assets. Revenue expenditure on research and development is charged in the period in which it is incurred.
9. Leases:-
a) Leases where the lessor effectively retains substantially all the risk and benefits of ownership of the leased terms are classified as operating lease.
b) Lease income of operating leases is recognized in the statement of profit and loss on a straight-line basis over the lease period.
10. Employee Benefits: -
a) Short Term Employee benefits:-
All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus / ex-gratia are recognized in the period in which the employee renders the related service.
b) Defined contribution plan:-
The Company has a statutory scheme of Provident Fund with the Regional Provident Fund Commissioner and contributions of the company are charged to the Statement of Profit and Loss on accrual basis.
c) Defined benefit Plan:-
1. Gratuity:-
The Company''s liability towards gratuity to its employees is covered by a group gratuity policy with an insurance company. 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 salary and the tenure of employment. The contribution paid /payable to insurance company is debited to the Statement of Profit and Loss on accrual basis. Liability towards gratuity is provided on the basis of an actuarial valuation using the Projected Unit Credit method and debited to the Statement of Profit and Loss on accrual basis. Charge to the statement of Profit and Loss includes premium paid, current service cost, interest cost, expected return on plan assets and gain/loss in actuarial valuation during the year net of fund value of plan asset as on the balance sheet date.
2. Compensated Absences:-
Accumulated Compensated absences which are expected to be availed or encased beyond 12 months from the end of the year 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 the year. Acturial losses or gains are recognized in the statement of profit and loss account in the year in which they arise.
3. Termination Benefits:-
Termination benefits are recognized in the statement of profit and loss as and when incurred.
11. Borrowing Costs :-
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred. Arrangement Fees in respect of long Term Borrowings are amortized over the period of loan.
12. Taxes on Income :-
Tax Expense comprises of current and deferred tax.
Current tax is determined as the amount of tax payable in respect of taxable income for the year.
Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets arising on account of unabsorbed depreciation or carry forward of tax losses are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.
13. Provision & Contingencies:-
As provisions are recognized when there is a present 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.
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 present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognized nor disclosed in the financial statements.
14. Cash and Cash Equivalents:-
Cash and cash equivalents for the purpose of Cash Flow Statements include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.
15. Earnings per share:-
Basic and diluted earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
5 The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital
The Company has only one class of Equity Shares having a par value of Rs, 1/- per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, in proportion to the number of equity shares held by them.
6 There are no shares reserved for issue under options and contracts/ arrangements/ commitments.
7 The Board of Directors in their meeting held on May 16, 2017 proposed a dividend of Rs, 0.60/- per share. ( Previous Year- Rs, 0.50/- per share)
1 The current maturities of Term Loan in Foreign Currency of Rs, Nil (Previous Year- Rs, 1,665.50 Lakhs) is disclosed in other current liabilities (Note 10) The loan is secured against 51% shares of Bliss GVS Healthcare Ltd and 100% shares of Bliss GVS Clinic Healthcare Pte Ltd, pari passu charge on current and fixed assets of the Company and the Company''s fixed deposits with First Rand Bank. The loan is repayable from December 2013 in 12 Quarterly installments.
2 Term Loans from bank
a) Includes loan of Rs, Nil for Plot no 12 (Previous Year Rs, 612.53 Lakhs) including current maturities of Rs, Nil (Previous Year -Rs, 128.64 Lakhs) for Company''s Palghar Land and is secured by the said Land and building thereon, along with the Property of Company''s Research and Development Centre and Plant and Machinery at R&D Centre which is repayable from December 2013 in 75 equal monthly installments.
b) Includes Loan of Rs, 690.18 Lakhs for Plot no 1,2,3 (Previous Year - Rs, 846.52 Lakhs) including current maturities of Rs, 146.34 Lakhs (Previous Year - Rs, 146.34 Lakhs) and adjacent open space for new plant is secured by Land and Building at Plot 1,2,3 which is repayable in 82 equal installments.
c) Includes Loan of Rs, 703.62 Lakhs for R&D Lab (Previous Year - Nil) is secured by all the assets of the Company which is repayable in 48 equal installments.
Mar 31, 2016
1. Background :
The Company is a Public limited Company, incorporated under the Companies Act, 1956, having its registered office in Mumbai, Maharashtra and is listed on Bombay Stock Exchange Ltd and the National Stock Exchange of India Ltd. The Company is engaged in manufacturing, marketing, trading and export of pharmaceutical products. The Company has its own manufacturing facility at Palghar.
2. Statement of Significant accounting policies :
1. METHOD OF ACCOUNTING:
a) Basis of Preparation:-
The financial statements have been prepared under the historical cost convention, on the accrual basis of accounting and in accordance with generally accepted accounting principles in India to comply with the accounting standards specified under Section 133 of the Companies Act, 2013. ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended) and other relevant provisions of the Act. ("Indian GAAP")
The financial statements are prepared and presented in the form set out in Schedule III of the Act, so far as they are applicable thereto. All assets and liabilities have been classified as current / noncurrent as per the Company''s normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of services and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current / noncurrent classification of assets and liabilities.
The accounting policies adopted in preparation of these financial statements are consistent with those of the previous year.
b) Use of Estimates:-
The preparation of financial statements in conformity with generally accepted accounting principles in India (Indian GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities at the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements, which in management''s opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.
2. FIXED ASSETS AND DEPRECIATION/ AMORTISATION:
i) TANGIBLE ASSETS: -
Tangible Assets are stated at their original cost (net of CENVAT where applicable) including freight, duties, customs and other incidental expenses relating to acquisition and installation. Interest and other finance charges paid on loans for the acquisition of tangible qualifying assets are apportioned to the cost of fixed assets till they are ready for use.
Expenditure incurred during the period of construction is carried as capital work-in-progress and on completion the costs are allocated to the respective fixed assets.
When an asset is scrapped or otherwise disposed of, the cost and related depreciation are removed from the books of account and resultant profit (including capital profit) or loss, if any, is reflected in the Statement of Profit and Loss.
Depreciation on tangible assets is provided on straight line method over the useful life of asset prescribed in Part C of Schedule II of the Companies Act, 2013 in order to reflect the actual usages of the assets.
Individual assets acquired for less than '' 5,000 are entirely depreciated in the year of acquisition. Depreciation is charged on pro-rata basis for the assets purchased/sold during the year.
ii) INTANGIBLE ASSETS: -
All Intangible Assets are measured at cost and amortized so as to reflect the pattern in which the assets economic benefits are consumed. Brands are amortized over the estimated period of benefit, not exceeding five years. Software capitalized is mortised over useful life of three to five years equally commencing from the year in which, the software is put to use.
iii) IMPAIRMENT:-
The carrying value of assets/ cash generating units at each balance sheet date, are reviewed for impairment. If any indication of such impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount.
The recoverable amount is the greater of the net selling price and their value in use. Value in used arrived at by discounting the future cash flow to their present value based on an appropriate discount factor.
3. INVESTMENTS:-
Investments that are readily realizable and intended to be held for not more than a year are classified as current investments.
''Non-current Investments'' are carried at acquisition / amortized cost. A provision is made for diminution, other than temporary, in the value of investment.
''Current Investments'' are carried at the lower of cost or fair value on an individual basis.
4. INVENTORIES: -
Raw Material inventory is valued at cost.
Inventories of finished goods and work in progress are valued at cost or net realizable value, whichever is lower. Cost of raw materials includes all costs of purchase, conversion and other direct attributable costs (net of CENVAT and VAT setoff), incurred for bringing the items to their present location and condition and is determined using the weighted average cost method. However, materials and other items held for use in the production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.
Cost is determined on the moving weighted average method. Finished goods and Work in Progress is computed based on respective moving weighted average price of procured material and appropriate share of labour and other manufacturing overheads. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.
5. FOREIGN CURRENCY TRANSACTIONS: -
a) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are translated at year-end exchange rates. Exchange difference arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise.
b) The Company uses foreign currency forward contracts to hedge its risk associated with the foreign currency fluctuations relating to firm commitments. Pursuant to the announcement made by the Institute of Chartered Accountants of India (ICAI) regarding "Accounting for Derivatives", forward exchange contracts classified as derivatives are marked to market on a portfolio basis at the balance sheet date. The resultant net losses after considering the offsetting effect on the underlying hedge items are recognized in the Statement of Profit and Loss on the principle of prudence. The resultant net gains, if any, on such derivatives are not recognized in financial statements.
c) In respect of forward exchange contracts covered under AS 11, "The effect of changes in foreign exchange rates", any premium or discount rising at the inception of a forward exchange contract is recognized as income or expense over the life of the contract. Gains or losses on cancellation / settlement of forward exchange contracts are recognized as income or expense.
d) Exchange Differences arising on monetary item that, in substance, forms part of the Company''s net investment in a non-integral foreign operations is accumulated in the foreign currency translation reserve until the disposal of the investment. On disposal, the cumulative amount of the exchange differences which have been deferred and which relate to that investment are recognized as income or expenses.
6. REVENUE RECOGNITION: -
Revenue is recognized to the extent that it is probable that economic benefits will flow to the Company and the revenue can be reliably measured.
Sales of Goods:-
a) Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer as per the terms of sale. Revenue are recorded at net of duties and sales tax and trade discounts.
Sales of Services:-
b) Income from job work is recognized on completion and is included in sales.
Other Income:-
c) Income in respect of export benefits is recognized to the extent the Company is reasonably certain of its ultimate realization.
d) Income in respect of insurance claims is recognized to the extent the Company is reasonably certain of its ultimate realization.
e) Dividend income is recognized when the right to receive the payment is established. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.
7. EXPENSES:-
Expenses are accounted for on accrual basis.
8. RESEARCH & DEVELOPMENT:-
Equipment purchased and cost of construction of assets used for research and development is capitalized when commissioned and included in the fixed assets. Revenue expenditure on research and development is charged in the period in which it is incurred.
9. LEASES:-
a) Leases where the less or effectively retains substantially all the risk and benefits of ownership of the leased terms are classified as operating lease.
b) Lease income of operating leases is recognized in the statement of profit and loss on a straight-line basis over the lease period.
10. EMPLOYEE BENEFITS: -
a) Short Term Employee benefits:-
All employee benefits payable wholly within twelve months of rendering the service are classified as short- term employee benefits. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognized as an expense during the period. Benefits such as salaries and wages, etc. and the expected cost of the bonus / ex-gratia are recognized in the period in which the employee renders the related service.
b) Defined contribution plan:-
The Company has a statutory scheme of Provident Fund with the Regional Provident Fund Commissioner and contributions of the Company are charged to the Statement of Profit and Loss on accrual basis.
c) Defined benefit Plan:-Gratuity:-
The Company''s liability towards gratuity to its employees is covered by a group gratuity policy with an insurance company. 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 salary and the tenure of employment. The contribution paid / payable to insurance company is debited to the Statement of Profit and Loss on accrual basis. Liability towards gratuity is provided on the basis of an actuarial valuation using the Projected Unit Credit method and debited to the Statement of Profit and Loss on accrual basis. Charge to the statement of Profit and Loss includes premium paid, current service cost, interest cost, expected return on plan assets and gain/loss in actuarial valuation during the year net of fund value of plan asset as on the balance sheet date.
Compensated Absences:-
Accumulated Compensated absences which are expected to be availed or encased beyond 12 months from the end of the year 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 the year. Actuarial losses or gains are recognized in the statement of profit and loss account in the year in which they arise.
Termination Benefits:-
Termination benefits are recognized in the statement of profit and loss as and when incurred.
11. BORROWING COSTS :-
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time as the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred. Arrangement Fees in respect of Long Term Borrowings are mortised over the period of loan.
12. TAXES ON INCOME: -
Tax Expense comprises of current and deferred tax.
Current tax is determined as the amount of tax payable in respect of taxable income for the year.
Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets arising on account of unabsorbed depreciation or carry forward of tax losses are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.
At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.
13. PROVISION & CONTINGENCIES:-
As provisions are recognized when there is a present 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.
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 nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.
Contingent assets are neither recognized nor disclosed in the financial statements.
14. CASH AND CASH EQUIVALENTS:-
Cash and cash equivalents for the purpose of Cash Flow Statements include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.
15. EARNINGS PER SHARE:-
Basic and diluted earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
E) The rights, preferences and restrictions attaching to each class of shares including restrictions on the distribution of dividends and the repayment of capital
The Company has only one class of Equity Shares having a par value of Rs, 1/- per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, in proportion to the number of equity shares held by them. The Board of Directors in their meeting held on May 24, 2016 proposed a dividend of Rs, 0.50/- per share. (Previous Year- Rs, 0.50/- per share)
F) There are no shares reserved for issue under options and contracts/ arrangements/ commitments.
Note :- Exchange differences relating to long term loans to subsidiaries which are in substance net investments in subsidiaries/ step down subsidiaries which are in the nature of net investments in non- integral foreign operations.
1 The current maturities of Term Loan in Foreign Currency of Rs, 1,665.50 Lakhs is disclosed in other current liabilities (Note 10) (Previous Year Rs, 4,403 Lakhs including current maturities of Rs, 2,830.50 Lakhs). The loan carries interest rate of 335 basis points above LIBOR, is secured against 51% shares of Bliss GVS Healthcare Ltd and 100% shares of Bliss GVS Clinic Healthcare Pte Ltd, pari passu charge on current and fixed assets of the Company and the Company''s fixed deposits with First Rand Bank. The loan is repayable from December 2013 in 12 Quarterly installments.
2 Term Loans from bank
a) Includes loan of Rs, 612.53 Lakhs for Plot no 12 (Previous Year Rs, 736.74 Lakhs) including current maturities of Rs, 128.64 Lakhs (Previous Year- Rs, 128.64 Lakhs) for Company''s Palghar Land bearing interest of Base rate 2.55%p.a.and is secured by the said Land and building thereon, along with the Property of Company''s Research and Development Centre and Plant and Machinery at R&D Centre which is repayable from December 2013 in 75 equal monthly installments.
b) Includes loan of Rs, 846.52 Lakhs for Plot no 1,2,3 (Previous Year - Rs, 986.69 Lakhs) including current maturities of Rs, 146.34 Lakhs (Previous Year - Rs, 146.34 Lakhs) and adjacent open space for new plant bearing interest of Base rate 2.80% and is secured by Land and Building at Plot 1,2,3 which is repayable from November 2014 in 82 equal installments
Mar 31, 2015
1. BASIS OF ACCOUNTING:
a) The financial statements have been prepared and presented under the
historical cost convention and on the accrual basis of accounting in
accordance with generally accepted accounting principles in India.
These financial statements have been prepared to comply in all material
aspects with the accounting standards specified under section 133 of
the Companies Act, read with Rule 7 of the Companies (Accounts) Rules,
2014 as amended and other relevant provisions of the Companies Act
2013.
b) All assets and liabilities have been classified as current /
noncurrent as per the Company''s normal operating cycle and other
criteria set out in the Schedule III of the Companies Act, 2013. Based
on the nature of products and services and their realisation in cash
and cash equivalents, the company has ascertained its operating cycle
as twelve months for the purpose of current / noncurrent classification
of assets and liabilities.
c) The accounting policies adopted in preparation of these financial
statements are consistent with those of the previous year.
2. USE OF ESTIMATES: The preparation of financial statements in
conformity with generally accepted accounting principles in India
(Indian GAAP) requires management to make estimates and assumptions
that affect the reported amount of assets, liabilities, revenues and
expenses and disclosure of contingent liabilities on the date of the
financial statements. The estimates and assumptions used in the
accompanying financial statements are based upon management''s
evaluation of the relevant facts and circumstances as of the date of
financial statements, which in management''s opinion are prudent and
reasonable. Actual results may differ from these estimates.
3. FIXED TANGIBLE AND INTANGIBLE ASSETS:
i) TANGIBLE ASSETS: -
Tangible assets are stated at their original cost (net of CENVAT where
applicable) including freight, duties, customs and other incidental
expenses relating to acquisition and installation. Interest and other
finance charges paid on loans for the acquisition of tangible
qualifying assets are apportioned to the cost of fixed assets till they
are ready for use.
Expenditure incurred during the period of construction is carried as
capital work-in-progress and on completion the costs are allocated to
the respective fixed assets.
When an asset is scrapped or otherwise disposed of, the cost and
related depreciation are removed from the books of account and
resultant profit (including capital profit) or loss, if any, is
reflected in the Statement of Profit and Loss.
Depreciation on tangible assets is provided on straight line method
over the useful life of asset prescribed in Part C of schedule II of
the Companies Act, 2013 in order to reflect the actual usages of the
assets.
Individual assets acquired for less than Rs. 5,000 are entirely
depreciated in the year of acquisition. Depreciation is charged on
pro-rata basis for the assets purchased/sold during the year
ii) INTANGIBLE ASSETS: -
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets'' economic benefits are
consumed. Brands are amortized over the estimated period of benefit,
not exceeding five years. Software capitalised is amortised over useful
life of three to five years equally commencing from the year in which,
the software is put to use.
iii) IMPAIRMENT:-
The carrying amount of cash generating units/assets is reviewed at
balance sheet date to determine whether there is any impairment. If any
such indication exists the recoverable amount is estimated as the higher
of net realisable price and value in use. An impairment loss, is
recognised wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the asset''s
net selling price and value in use.
4. INVESTMENTS:-
''Non-current Investments'' are carried at acquisition /amortized cost. A
provision if any is made for diminution, other than temporary, in the
value of investment.
''Current Investments'' are carried at the lower of cost or fair value on
an individual basis.
5. INVENTORIES: -
Cost of materials includes all costs of purchase, conversion and other
direct attributable costs (net of CENVAT and VAT set-off), incurred for
bringing the items to their present location and condition and is
determined using the weighted average cost method.
Work in process and finished goods are valued at lower of cost and net
realisable value.
Cost is determined on the basis of direct cost comprising raw and
packing material, direct labour and an appropriate portion of direct
production overheads.
6. FOREIGN CURRENCY TRANSACTION: -
a) Transactions in foreign currencies are recorded at the exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at year-end exchange rates.
Exchange difference arising on settlement of transactions and
translation of monetary items are recognised as income or expense in
the year in which they arise.
b) The Company uses foreign currency forward contracts to hedge its
risk associated with the foreign currency fluctuations relating to firm
commitments. Pursuant to the announcement made by the Institute of
Chartered Accountants of India (ICAI) regarding "Accounting for
Derivatives", forward exchange contracts classified as derivatives are
marked to market on a portfolio basis at the balance sheet date. The
resultant net losses after considering the offsetting effect on the
underlying hedge items are recognised in the Statement of Profit and
Loss on the principle of prudence. The resultant net gains, if any, on
such derivatives are not recognised in financial statements.
c) In respect of forward exchange contracts covered under AS 11, "The
effect of changes in foreign exchange rates", any premium or discount
rising at the inception of a forward exchange contract is recognized as
income or expense over the life of the contract. Gains or losses on
cancellation / settlement of forward exchange contracts are recognised
as income or expense.
7. REVENUE RECOGNITION: -
a) Revenue from sale of goods is recognized on transfer of all
significant risks and rewards of ownership to the buyer as per the
terms of sale. Sales are stated net of duties and sales tax.
b) Income from job work is recognised on completion and is included in
sales.
c) Income in respect of interest, insurance claims, export benefits etc
is recognised to the extent the company is reasonably certain of its
ultimate realisation.
d) Dividend income is recognized when the right to receive dividend is
established.
8. EXPENSES:-
a) Expenses are accounted for on accrual basis.
b) Provisions are recognised when there is a present obligation as a
result of a past event, and 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.
9. RESEARCH & DEVELOPMENT:-
Equipment purchased and cost of construction of assets used for
research and development is capitalised when commissioned and included
in the fixed assets. Revenue expenditure on research and development is
charged in the period in which it is incurred under the natural heads
of expenditure.
10. LEASES:-
a) Leases where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased term, are classified as
operating lease.
b) Lease income of operating leases is recognized in the statement of
profit and loss on a straight-line basis over the lease period.
11. EMPLOYEE BENEFITS: -
a) Short Term Employee benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. These
benefits include short term compensated absences such as paid annual
leave. The undiscounted amount of short-term employee benefits expected
to be paid in exchange for the services rendered by employees is
recognized as an expense during the period. Benefits such as salaries
and wages, etc. and the expected cost of the bonus / ex-gratia are
recognized in the period in which the employee renders the related
service.
b) Defined contribution Plan:
The Company has a statutory scheme of Provident Fund with the Regional
Provident Fund Commissioner and contributions of the company are
charged to the Statement of Profit and Loss on accrual basis.
c) Defined benefit Plan:
The Company''s liability towards gratuity to its employees is covered by
a group gratuity policy with an insurance company. 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 salary and the tenure of employment. The
contribution paid /payable to insurance company is debited to the
Statement of Profit and Loss on accrual basis. Liability towards
gratuity is provided on the basis of an actuarial valuation using the
Projected Unit Credit method and debited to the Statement of Profit and
Loss on accrual basis. Charge to the statement of Profit and Loss
includes premium paid, current service cost, interest cost, expected
return on plan assets and gain/ loss in actuarial valuation during the
year net of fund value of plan asset as on the balance sheet date.
12. BORROWING COSTS :-
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalised as part of cost of
such asset till such time as the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred.
Arrangement Fees in respect of long Term Borrowings are amortised over
the period of loan.
13. TAXES ON INCOME: -
Current tax is determined as the amount of tax payable in respect of
taxable income for the year under the Income Tax Act 1961.
Deferred tax is recognised, subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax is measured
based on the tax rates and the tax laws enacted or substantively
enacted at the balance sheet date. Deferred tax assets arising on
account of unabsorbed depreciation or carry forward of tax losses are
recognised only to the extent that there is virtual certainty supported
by convincing evidence that sufficient future taxable income will be
available against which such deferred tax assets can be realized. Other
Deferred tax assets are recognized only when there is reasonable
certainty of their realization.
14. CONTINGENCIES:-
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 present
obligation that arises from past events where it is either not probable
that an outflow of resources will be required to settle the obligation
or a reliable estimate of the amount cannot be made.
The company does not recognize a contingent Liability but discloses its
existence in the financial statements.
15. CASH AND CASH EQUIVALENTS:-
Cash and cash equivalents for the purpose of Cash Flow Statements
include cash in hand, demand deposits with banks, other short- term
highly liquid investments with original maturities of three months or
less.
16. EARNINGS PER SHARE:-
Basic and diluted earnings per share is calculated by dividing the net
profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the
period.
Mar 31, 2014
1. METHOD OF ACCOUNTING:
a) The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and in
accordance with the provisions of the Companies Act, 1956 (''the Act''),
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 the accounting principles generally accepted in India
(Indian GAAP) and comply with the accounting standards prescribed in
the Companies (Accounting Standards) Rules, 2006, to the extent
applicable.
b) The financial statements are prepared and presented in the form set
out in Revised Schedule VI of the Act, so far as they are applicable
thereto. All assets and liabilities have been classified as current /
noncurrent as per the Company''s normal operating cycle and other
criteria set out in the Revised Schedule VI of the Companies Act, 1956.
Based on the nature of services and their realisation in cash and cash
equivalents, the company has ascertained its operating cycle as twelve
months for the purpose of current / noncurrent classification of assets
and liabilities.
c) USE OF ESTIMATES: The preparation of financial statements in
conformity with generally accepted accounting principles in India
(Indian GAAP) requires management to make estimates and assumptions
that affect the reported amount of assets, liabilities, revenues and
expenses and disclosure of contingent liabilities on the date of the
financial statements. The estimates and assumptions used in the
accompanying financial statements are based upon management''s evaluation
of the relevant facts and circumstances as of the date of financial
statements, which in management''s opinion are prudent and reasonable.
Actual results may differ from the estimates used in preparing the
accompanying financial statements. Any revision to accounting estimates
is recognised prospectively in current and future periods.
2. FIXED TANGIBLE AND INTANGIBLE ASSETS:
i) TANGIBLE ASSETS:
a) Tangible fixed assets are carried at cost of acquisition less
accumulated depreciation. Cost includes all incidental expenses related
to acquisition and installation. Borrowing costs relating to
acquisition of fixed asset, which takes substantial period of time to
get ready for its intended use are also included to the extent they
relate to the period till such assets are ready to be put to use.
When an asset is scrapped or otherwise disposed of, the cost and
related depreciation are removed from the books of account and
resultant profit (including capital profit) or loss, if any, is reflected
in the Statement of Profit and Loss.
b) Depreciation on the assets is calculated on straight-line method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
c) Individual assets acquired for less than Rs. 5,000 are entirely
depreciated in the year of acquisition. Depreciation is charged on pro-
rata basis for the assets purchased/sold during the year
ii) INTANGIBLE ASSETS:
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
Brands are amortized over the estimated period of benefit, not exceeding
five years. Software capitalised is amortised over useful life of three
to five years equally commencing from the year in which, the software is
put to use.
iii) IMPAIRMENT:
The carrying amount of cash generating units/assets is reviewed at
balance sheet date to determine whether there is any impairment. If any
such indication exists the recoverable amount is estimated as the
higher of net realisable price and value in use. An impairment loss,
if any is recognised wherever the carrying amount of an asset exceeds
its recoverable amount. The recoverable amount is the greater of the
asset''s net selling price and value in use.
3. INVESTMENTS:
Investments are classified under Non-current and Current categories.
Non-current Investments'' are carried at acquisition /amortized cost. A
provision is made for diminution, other than temporary, in the value of
investment. Current Investments'' are carried at the lower of cost or
fair value on an individual basis.
4. INVENTORIES:
Cost of raw materials includes all costs of purchase, conversion and
other direct attributable costs (net of CENVAT and VAT set-of),
incurred for bringing the items to their present location and condition
and is determined using the weighted average cost method.
Work in process and finished goods are valued at lower of cost and net
realisable value.
Cost is determined on the basis of direct cost comprising raw material,
direct labour and an appropriate portion of direct production
overheads.
Net realisable value is the estimated selling price in the ordinary
course of business, less the estimated costs of completion and the
estimated costs necessary to make the sale.
5. FOREIGN CURRENCY TRANSACTION:
a) Transactions in foreign currencies are recorded at the exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at year-end exchange rates.
Exchange difference arising on settlement of transactions and
translation of monetary items are recognised as income or expense in
the year in which they arise.
b) The Company uses foreign currency forward contracts to hedge its
risk associated with the foreign currency fluctuations relating to firm
commitments. Pursuant to the announcement made by the Institute of
Chartered Accountants of India (ICAI) regarding "Accounting for
Derivatives", forward exchange contracts classified as derivatives are
marked to market on a portfolio basis at the balance sheet date. The
resultant net losses after considering the offsetting effect on the
underlying hedge items are recognised in the Statement of Profit and
Loss on the principle of prudence. The resultant net gains, if any, on
such derivatives are not recognised in financial statements.
c) In respect of forward exchange contracts covered under AS 11, "The
effect of changes in foreign exchange rates", any premium or discount
rising at the inception of a forward exchange contract is recognized as
income or expense over the life of the contract. Gains or losses on
cancellation / settlement of forward exchange contracts are recognised
as income or expense.
6. REVENUE RECOGNITION:
a) Revenue from sale of goods is recognized on transfer of all
significant risks and rewards of ownership to the buyer as per the terms
of sale. Sales are stated net of duties and sales tax.
b) Income from job work is recognised on completion and is included in
sales.
c) Income in respect of interest, insurance claims, export benefits etc
is recognised to the extent the company is reasonably certain of its
ultimate realisation.
d) Dividend income is recognized when the right to receive dividend is
established.
7. LEASES
a) Lease income of operating leases is recognized in the statement of
profit and loss on a straight-line basis over the lease period.
8. EMPLOYEE BENEFITS:
a) Short Term Employee benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. These
benefits include short term compensated absences such as paid annual
leave. The undiscounted amount of short-term employee benefits expected
to be paid in exchange for the services rendered by employees is
recognized as an expense during the period. Benefits such as salaries
and wages, etc. and the expected cost of the bonus / ex-gratia are
recognized in the period in which the employee renders the related
service.
b) Defined contribution Plan:
The Company has a statutory scheme of Provident Fund with the Regional
Provident Fund Commissioner and contributions of the company are
charged to the Statement of Proft and Loss on accrual basis.
c) Defined benefit Plan:
The Company''s liability towards gratuity to its employees is covered by
a group gratuity policy with an insurance company. 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 salary and the tenure of employment. The
contribution paid /payable to insurance company is debited to the
Statement of Profit and Loss on accrual basis. Liability towards
gratuity is provided on the basis of an actuarial valuation using the
Projected Unit Credit method and debited to the Statement of Profit and
Loss on accrual basis. Charge to the statement of Profit and Loss
includes premium paid, current service cost, interest cost, expected
return on plan assets and gain/loss in actuarial valuation during the
year net of fund value of plan asset as on the balance sheet date.
9. BORROWING COSTS :
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalised as part of cost of
such asset till such time as the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred. Arrangement Fees in respect of long Term Borrowings are
amortised over the period of loan.
10. TAXES ON INCOME:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognised, subject to
consideration of prudence, on timing diferences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realised. Deferred tax assets
arising on account of unabsorbed depreciation or carry forward of tax
losses are recognised only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future taxable
income will be available against which such deferred tax assets can be
realized.
At each balance sheet date the Company re-assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
11. CONTINGENT LIABILITES:
Contingent liabilities are disclosed by way of note to the financial
statements, after careful evaluation by the management of the facts and
legal aspects of the matter involved.
Contingent liabilities with probable present obligation are provided
based on the current estimates.
12. CASH AND CASH EQUIVALENTS:
Cash and cash equivalents for the purpose of Cash Flow Statements
include cash in hand, demand deposits with banks, other short- term
highly liquid investments with original maturities of three months or
less.
13. EARNINGS PER SHARE:
Basic and diluted earnings per share is calculated by dividing the net
profit or loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period.
Mar 31, 2013
1. METHOD OF ACCOUNTING:
a) The financial statements are prepared under the historical cost
convention as a going concern and on accrual basis in accordance with
Generally Accepted Accounting Principles in India, the Accounting
Standards notified under the Companies Act, 1956 and the relevant
provisions of the said Act.
b) All assets & liabilities have been classified as current & non -
current as per the Company''s normal operating cycle and other
criteria set out in the Schedule VI of the Companies Act, 1956. Based
on the nature of activities undertaken by the Company and their
realization 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 & liabilities.
c) USE OF ESTIMATES :
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognised in the period in which the results
are known/materialised.
2. TANGIBLE ASSETS: -
a) All Fixed assets are carried at cost less depreciation. The cost
comprises of acquisition cost and any attributable cost of bringing the
asset to the condition for its intended use.
b) Depreciation on the assets is calculated on straight-line method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
c) Individual assets acquired for less than Rs. 5,000 are entirely
depreciated in the year of acquisition. Depreciation is charged on
pro-rata basis for the assets purchased during the year.
d) Carrying amount of cash generating units/assets are reviewed at
balance sheet date to determine whether there is any impairment. If any
such indication exists the recoverable amount is estimated as the
higher of net realisable price and value in use. Impairment loss, if
any, is recognised whenever carrying amount exceeds the recoverable
amount.
3. INTANGIBLE ASSETS: -
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
Brands are amortized over the estimated period of benefit, not
exceeding five years. Software capitalised is amortised over useful
life of three to five years equally commencing from the year in which,
the software is installed.
4. INVESTMENTS:-
Long term investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of investments. Current
investments are stated at cost or fair value whichever is lower.
5. INVENTORIES: -
Raw materials, stores and spares are valued at cost (net of CENVAT and
VAT set-off), determined on Weighted Average Basis.
Work in process and finished goods are valued at lower of cost and net
realisable value. Cost is determined on the basis of direct cost
comprising raw material, direct labour and an appropriate portion of
direct production overheads.
6. FOREIGN CURRENCY TRANSACTION: -
a) Transactions in foreign currencies are recorded at the exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at year-end exchange rates.
Exchange difference arising on settlement of transactions and
translation of monetary items are recognised as income or expense in
the year in which they arise.
b) In respect of forward exchange contracts the difference between the
forward rate and the exchange rate at the inception of the contract is
recognised as income or expense over the period of the contract.
c) Gains or losses on cancellation / settlement of forward exchange
contracts are recognised as income or expense.
7. REVENUE RECOGNITION: -
a) Sale of products and services are recognised when the significant
risk and rewards are transferred as per the terms of sale. Income from
job work is recognised on completion and is included in sales.
b) Income in respect of interest, insurance claims, export benefits etc
is recognised to the extent the company is reasonably certain of its
ultimate realisation.
8. LEASES: -
a) Lease income of operating leases is recognized in the statement of
profit and loss on a straight-line basis over the lease period.
9. EMPLOYEE BENEFITS: -
a) Short Term Employee benefits:
All short term employee benefit plans such as salaries, wages, bonus,
special awards and medical benefits which fall due within 12 months of
the period in which the employee renders the related services which
entitles him to avail such benefits are recognised on an undiscounted
basis and charged to the profit & loss account.
b) Defined contribution Plan:
The Company has a statutory scheme of Provident Fund with the Regional
Provident Fund Commissioner and contributions of the company are
charged to the profit & loss account on accrual basis.
c) Defined benefit Plan:
The Company''s liability towards gratuity to its employees is covered
by a group gratuity policy with an insurance company. The contribution
paid /payable to insurance company is debited to Profit & Loss Account
on accrual basis. Liability towards gratuity is provided on the basis
of an actuarial valuation using the Projected Unit Credit method and
debited to Profit & Loss Account on accrual basis. Charge to the Profit
and Loss Account includes premium paid, current service cost, interest
cost, expected return on plan assets and gain/loss in actuarial
valuation during the year net of fund value of plan asset as on the
balance sheet date.
10. BORROWING COSTS:-
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalised as part of cost of
such asset till such time as the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred. Arrangement Fees in respect of long Term Borrowings are
amortised over the period of loan.
11. TAXES ON INCOME: -
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognised, subject to
consideration of prudence, on timing difference, being the difference
between taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more year. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses are recognized only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future tax
income will be available against which such deferred tax assets can be
realised.
12. CONTINGENT LIABILITES: -
Contingent liabilities with possible present obligation are disclosed
under Notes to Accounts. Contingent liabilities with probable present
obligation are provided based on the current estimates.
Mar 31, 2012
1. Method of Accounting:
a) The financial statements are prepared under the historical cost
convention as a going concern and on accrual basis in accordance with
Generally Accepted Accounting Principles in India, the Accounting
Standards notified under the Companies Act, 1956 and the relevant
provisions of the said Act.
b) All assets & liabilities have been classified as current &
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule VI of the Companies Act, 1956. Based
on the nature of activities undertaken by the Company and their
realization 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& liabilities.
2. FIXED ASSETS: -
a) All Fixed assets are carried at cost less depreciation. The cost
comprises of acquisition cost and any attributable cost of bringing the
asset to the condition for its intended use.
b) Depreciation on the assets is calculated on straight- line method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
c) Individual assets acquired for less than Rs.5,000 are entirely
depreciated in the year of acquisition. Depreciation is charged on
pro-rata basis for the assets purchased during the year
d) Carrying amount of cash generating units/assets are reviewed at
balance sheet date to determine whether there is any impairment. If any
such indication exists the recoverable amount is estimated as the
higher of net realisable price and value in use. Impairment loss, if
any, is recognised whenever carrying amount exceeds the recoverable
amount
3. INTANGIBLE ASSETS: -
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
Brands are amortized over the estimated period of benefit, not
exceeding five years. Software capitalised is amortised over useful
life of three to five years equally commencing from the year in which,
the software is installed.
4. INVESTMENTS:-
Long term investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of investments. Current
investments are stated at cost or fair value whichever is lower.
5. INVENTORIES:-
Raw materials, stores and spares are valued at cost (net of CENVAT and
VAT set-off), determined on FIFO basis.
Work in process and finished goods are valued at lower of cost and net
realisable value. Cost is determined on the basis of direct cost
comprising raw material, direct labour and an appropriate portion of
direct production overheads.
6. FOREIGN CURRENCYTRANSACTION: -
a) Transactions in foreign currencies are recorded at the exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at year-end exchange rates.
Exchange difference arising on settlement of transactions and
translation of monetary items are recognised as income or expense in
the year in which they arise.
b) In respect of forward exchange contracts the difference between the
forward rate and the exchange rate at the inception of the contract is
recognised as income or expense over the period of the contract.
c) Gains or losses on cancellation / settlement of forward exchange
contracts are recognised as income or expense.
7. REVENUE RECOGNITION: -
a) Sale of products and services are recognized when the products are
shipped or services rendered. Income from job work is recognised on
completion and is included in sales.
b) Income in respect of overdue interest, insurance claims, export
benefits etc is recognised to the extent the company is reasonably
certain of its ultimate realisation.
8. LEASES
a) Lease income on an operating lease is recognized in the statement of
profit and loss on a straight-line basis over the lease period.
9. EMPLOYEE BENEFITS: -
a) Short Term Employee benefits:
All short term employee benefit plans such as salaries, wages, bonus,
special awards and medical benefits which fall due within 12 months of
the period in which the employee renders the related services which
entitles him to avail such benefits are recognised on an undiscounted
basis and charged to the profit & loss account.
b) Defined contribution Plan:
The Company has a statutory scheme of Provident Fund with the Regional
Provident Fund Commissioner and contributions of the company are
charged to the profit & loss account on accrual basis.
c) Defined benefit Plan:
The Company's liability towards gratuity to its employees is covered by
a group gratuity policy with an insurance company. The contribution
paid /payable to insurance company is debited to Profit & Loss Account
on accrual basis. Liability towards gratuity is provided on the basis
of an actuarial valuation using the Projected Unit Credit method and
debited to Profit & Loss Account on accrual basis. Charge to the Profit
and Loss Account includes premium paid, current service cost, interest
cost, expected return on plan assets and gain/loss in actuarial
valuation during the year net of fund value of plan asset as on the
balance sheet date.
10. BORROWING COSTS :-
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalised as part of cost of
such asset till such time as the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred.
11. TAXES ON INCOME:-
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognised, subject to
consideration of prudence, on timing difference, being the difference
between taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more year. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses are recognized only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future tax
income will be available against which such deferred tax assets can be
realised.
12. CONTINGENT LIABILITIES:-
Contingent liabilities with possible present obligation are disclosed
under Notes to Accounts. Contingent liabilities with probable present
obligation are provided based on the current estimates.
Mar 31, 2011
1. ACCOUNTING CONVENTION: -
The accompanying financial statements are prepared in accordance with
Generally Accepted Accounting Principles in India ("GAAP") and the
Accounting Standard notified under the Companies Act, 1956. The Company
follows the accrual method of accounting, except where otherwise
stated, and the historical cost convention.
2. FIXED ASSETS: -
a) All Fixed assets are carried at cost less depreciation.
b) Depreciation on the assets is calculated on straight-line method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
c) Carrying amount of cash generating units/assets are reviewed at
balance sheet date to determine whether there is any impairment. If
any such indication exists the recoverable amount is estimated as the
higher of net realisable price and value in use. Impairment loss, if
any, is recognised whenever carrying amount exceeds the recoverable
amount
3. INTANGIBLE ASSETS: -
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
Brands are amortized over the estimated period of benefit, not
exceeding five years.
4. INVESTMENTS:-
Long term investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of investments. Current
investments are stated at cost or fair value whichever is lower.
5. INVENTORIES: -
Raw materials, stores and spares are valued at cost (net of CENVAT and
VAT set-off), determined on FIFO basis.
Work in process and finished goods are valued at lower of cost and net
realisable value. Cost is determined on the basis of direct cost
comprising raw material, direct labour and an appropriate portion of
direct production overheads.
6. FOREIGN CURRENCY TRANSACTION: -
a) Transactions in foreign currencies are recorded at the exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at year-end exchange rates.
Exchange difference arising on settlement of transactions and
translation of monetary items are recognised as income or expense in
the year in which they arise.
b) In respect of forward exchange contracts the difference between the
forward rate and the exchange rate at the inception of the contract is
recognised as income or expense over the period of the contract.
c) Gains or losses on cancellation / settlement of forward exchange
contracts are recognised as income or expense.
7. REVENUE RECOGNITION: -
d) Sale of products and services are recognized when the products are
shipped or services rendered. Income from job work is recognised on
completion and is included in sales.
e) Income in respect of overdue interest, insurance claims, export
benefits etc is recognised to the extent the company is reasonably
certain of its ultimate realisation.
8. EMPLOYEE BENEFITS: -
a) Short Term Employee benefits:
All short term employee benefit plans such as salaries, wages, bonus,
special awards and medical benefits which fall due within 12 months of
the period in which the employee renders the related services which
entitles him to avail such benefits are recognised on an undiscounted
basis and charged to the profit & loss account.
b) Defined contribution Plan:
The Company has a statutory scheme of Provident Fund with the Regional
Provident Fund Commissioner and contributions of the company are
charged to the profit & loss account on accrual basis.
c) Defined benefit Plan:
The Companys liability towards gratuity to its employees is covered by
a group gratuity policy with an insurance company. The contribution
paid/payable to insurance company is debited to Profit & Loss Account
on accrual basis. Liability towards gratuity is provided on the basis
of an actuarial valuation using the Projected Unit Credit method and
debited to Profit & Loss Account on accrual basis. Charge to the Profit
and Loss Account includes premium paid, current service cost, interest
cost, expected return on plan assets and gain/loss in actuarial
valuation during the year net of fund value of plan asset as on the
balance sheet date.
9. BORROWING COSTS :- Borrowing costs that are attributable to the
acquisition, construction or production of a qualifying asset are
capitalised as part of cost of such asset till such time as the asset
is ready for its intended use. A qualifying asset is an asset that
necessarily requires a substantial period of time to get ready for its
intended use. All other borrowing costs are recognised as an expense in
the period in which they are incurred.
10. TAXES ON INCOME: -
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognised, subject to
consideration of prudence, on timing difference, being the difference
between taxable incomes and accounting income that originate in one
period and are capable of reversal in one or more year. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses are recognized only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future tax
income will be available against which such deferred tax assets can be
realised.
11. CONTINGENT LIABILITES: -
Contingent liabilities with possible present obligation are disclosed
under Notes to Accounts. Contingent liabilities with probable present
obligation are provided based on the current estimates.
Mar 31, 2010
1. ACCOUNTING CONVENTION: -
The accompanying financial statements are prepared in accordance with
Generally Accepted Accounting Principles in India ("GAAP"). The
Company follows the accrual method of accounting, except where
otherwise stated, and the historical cost convention.
2. FIXED ASSETS: -
a) All Fixed assets are carried at cost less depreciation.
b) Depreciation on the assets is calculated on straight-line method at
the rates and in the manner prescribed in schedule XIV to the
CompaniesAct, 1956.
c) Carrying amount of cash generating units/assets are reviewed at
balance sheet date to determine whether there is any impairment. If
any such indication exists the recoverable amount is estimated as the
higher of net realisable price and value in use. Impairment loss, if
any, is recognised whenever carrying amount exceeds the recoverable
amount.
3. INTANGIBLE ASSETS: -
All Intangible Assets are measured at cost and amortized so as to
reflect the pattern in which the assets economic benefits are consumed.
Brands are amortized overthe estimated period of benefit, not exceeding
five years.
4. INVESTMENTS:-
Long term investments are stated at cost. Provision, if any, is made
for permanent diminution in the value of investments. Current
investments are stated at cost or fair value whichever is lower.
5. INVENTORIES: -
Raw materials, stores and spares are valued at cost (net of CENVAT and
sales tax set-off), determined on FIFO basis.
Work in process and finished goods are valued at lower of cost and net
realisable value. Cost is determined on the basis of direct cost
comprising raw material, direct labour and an appropriate portion of
direct production overheads.
6. FOREIGN CURRENCY TRANSACTION: -
a) Transactions in foreign currencies are recorded at the exchange
rates prevailing on the date of transaction. Foreign currency monetary
assets and liabilities are translated at year-end exchange rates.
Exchange difference arising on settlement of transactions and
translation of monetary items are recognised as income or expense in
the year in which they arise.
b) In respect of forward exchange contracts the difference between the
forward rate and the exchange rate at the inception of the contract is
recognised as income or expense over the period of the contract.
c) Gains or losses on cancellation / settlement of forward exchange
contracts are recognised as income or expense.
7. REVENUE RECOGNITION. -
d) Sale of products and services are recognized when the products are
shipped or services rendered. Income from job work is included in
sales.
e) Income in respect of overdue interest, insurance claims, export
benefits etc is recognised to the extent the company is reasonably
certain of its ultimate realisation.
8. EMPLOYEE BENEFITS: -
a) Short Term Employee benefits:
All short term employee benefit plans such as salaries, wages, bonus,
special awards and medical benefits which fall due within 12 months of
the period in which the employee renders the related services which
entitles him to avail such benefits are recognised on an undiscounted
basis and charged to the profit & loss account.
b) Defined contribution Plan:
The Company has a statutory scheme of Provident Fund with the Regional
Provident Fund Commissioner and contribution of the company is charged
to the profit & loss account on accrual basis.
c) Defined benefit Plan:
The Companys liability towards gratuity to its employees is covered by
a group gratuity policy with an insurance company. The contribution
paid /payable to insurance company is debited to Profit & Loss Account
on accrual basis. Liability towards gratuity is provided on the basis
of an actuarial valuation using the Projected Unit Credit method and
debited to Profit & Loss Account on accrual basis. Charge to the Profit
and Loss Account includes premium paid, current service cost, interest
cost, expected return on plan assets and gain/loss in actuarial
valuation during the year net of fund value of plan asset as on the
balance sheet date.
9. BORROWING COSTS :-
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalised as part of cost of
such asset till such time as the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use. All other borrowing
costs are recognised as an expense in the period in which they are
incurred.
10. TAXES ON INCOME: -
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognised, subject to
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more year. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses are recognized only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future tax
income will be available against which such deferred tax assets can be
realised.
11. CONTINGENT LIABILITES:-
Contingent liabilities with possible present obligation are disclosed
under Notes to Accounts. Contingent liabilities with probable present
obligation are provided based on the current estimates.
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