A Oneindia Venture
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Balaxi Pharmaceuticals Ltd. कंपली की लेखा नीति
Mar 31, 2025
2 Significant accounting policies
2.1 Revenue recognition
The Company has applied Ind AS 115: Revenue
from Contracts with Customers which establishes a
comprehensive framework for determining whether,
how much and when revenue is to be recognised. Ind
AS 115 replaces Ind AS 18 Revenue. The impact of the
adoption of the standard on the financial statements of
the Company is insignificant.
Revenue is recognised upon transfer of promised
products or services to customer in an amount that
reflect the consideration which the Company expects
to receive in exchange of those products or services.
⢠Revenue is measured at the fair value of
consideration received or receivable taking into
account the amount of discounts, volume rebates
and VAT/ GST are recognised when all significant
risks and rewards of ownership of the goods sold
are transferred.
⢠Revenue from the sale of goods includes excise
duty.
⢠Export incentives are recognised as income
when the right to receive credit as per the terms
of the scheme is established in respect of the
exports made and where there is no significant
uncertainty regarding the ultimate collection of
the relevant export proceeds
⢠Dividend income is accounted for when the
right to receive the income is established, which
is generally when shareholders approve the
dividend.
⢠Difference between the sale price and carrying
value of investment is recognised as profit or loss
on sale / redemption on investment on trade date
of transaction.
⢠Interest income is accrued on, 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.
2.2 Leases
Company as a Lessee
The Company accounts for each lease component
within the contract as a lease separately from non¬
lease components of the contract and allocates the
consideration in the contract to each lease component
on the basis of the relative standalone price of the lease
component and the aggregate standalone price of the
non-lease components. The Company recognises right-
of-use asset representing its right to use the underlying
asset for the lease term at the lease commencement
date. The cost of the right-of-use asset measured at
inception 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 less any lease incentives received, plus any initial
direct costs incurred and an estimate of costs to be
incurred by the lessee in dismantling and removing
the underlying asset or restoring the underlying asset
or site on which it is located. The right-of-use asset 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 asset 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 estimated useful lives of right-of-use assets are
determined on the same basis as those of property,
plant and equipment. Right-of-use assets are tested for
impairment whenever there is any indication that their
carrying amounts may not be recoverable. Impairment
loss, if any, is recognised in the statement of profit and
loss. 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 leases with
reasonably similar characteristics, the Company, on a
lease-by-lease basis, may adopt either the incremental
borrowing rate specific to the lease or the incremental
borrowing rate for the portfolio as a whole. The lease
payments shall include fixed payments, variable lease
payments, residual value guarantees, exercise price of
a purchase option where the Company is reasonably
certain to exercise that option and payments of
penalties for terminating the lease, if the lease term
reflects the lessee exercising an option to terminate
the lease. The lease liability is subsequently remeasured
by increasing the carrying amount to reflect interest
on the lease liability, reducing the carrying amount
to reflect the lease payments made and remeasuring
the carrying amount to reflect any reassessment or
lease modifications or to reflect revised in-substance
fixed lease payments. The Company recognises the
amount of the re-measurement of lease liability due to
modification as an adjustment to the right-of-use asset
and statement of profit and loss depending upon the
nature of modification. Where the carrying amount of
the right-of-use asset is reduced to zero and there is
a further reduction in the measurement of the lease
liability, the Company recognises any remaining amount
of the re-measurement in statement of profit and loss.
The Company has elected not to apply the requirements
of Ind AS 116 Leases to short-term leases of all assets
that have a lease term of 12 months or less and
leases for which the underlying asset is of low value.
The lease payments associated with these leases are
recognised as an expense on a straight-line basis over
the lease term. The Company has elected to use the
incremental borrowing rate as the discout, the future
lease payments. The details of ROU assets held by the
company along with deprecition are given in schedule
3.
2.3 Foreign currencies
In preparing the financial statements of the Company,
transactions in currencies other than the companyâs
functional currency (foreign currencies) are recognised
at the rates of exchange prevailing at the dates of
the transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non¬
monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated. Exchange
differences on monetary items are recognised in profit
or loss in the period in which they arise.
2.4 Borrowing costs
Specific borrowing costs that are attributable to the
acquisition, construction or production of a qualifying
asset are capitalized as part of the cost of such asset
till such time the asset is ready for its intended use and
borrowing costs are being incurred. A qualifying asset
is an asset that necessarily takes 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.
Borrowing cost includes interest expense, amortization
of discounts, ancillary costs incurred in connection with
borrowing of funds and exchange difference arising
from foreign currency borrowings to the extent they
are regarded as an adjustment to the Interest cost.
2.5 Taxation
Income tax expense consists of current and deferred
tax. Income tax expense is recognized in the income
statement except to the extent that it relates to
items recognized directly in equity, in which case it is
recognized in equity.
Current tax
Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any
adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognized using the balance sheet
method, providing for temporary differences between
the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used
for taxation purposes. Deferred tax is not recognized
for the following temporary differences: the initial
recognition of assets or liabilities in a transaction
that is not a business combination and that affects
neither accounting nor taxable profit; differences
relating to investments in subsidiaries and jointly
controlled entities to the extent that it is probable that
they will not reverse in the foreseeable future; and
taxable temporary differences arising upon the initial
recognition of goodwill. Deferred tax is measured at
the tax rates that are expected to be applied to the
temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted
by the reporting date. Deferred tax assets and liabilities
are offset if there is a legally enforceable right to offset
current tax liabilities and assets, and they relate to
income taxes levied by the same tax authority on the
same taxable entity, or on different tax entities, but
they intend to settle current tax liabilities and assets
on a net basis or their tax assets and liabilities will be
realized simultaneously.
A deferred tax asset is recognized to the extent that it
is probable that future taxable profits will be available
against which the temporary difference can be utilized.
Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realized.
2.6 Earnings per share
The Company presents basic and diluted earnings per
share (âEPSâ) data for its ordinary shares. The basic
earnings per share is computed by dividing the net
profit attributable to equity shareholders for the period
by the weighted average number of equity shares
outstanding during the year.
Diluted earnings per share is computed by dividing the
net profit attributable to equity shareholders for the
year relating to the dilutive potential equity shares,
by the weighted average number of equity shares
considered for deriving basic earnings per share and
the weighted average number of equity shares which
could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are
deemed to be dilutive only if their conversion to equity
shares would decrease the net profit per share.
2.7 Property, plant and equipment
Freehold land and buildings (property) held for use
in the production or supply of goods or services,
or administrative purposes are stated at cost less
accumulated depreciation and accumulated impairment.
Freehold land is not depreciated.
The initial cost of PPE comprises its purchase price,
including import duties and non-refundable purchase
taxes, and any directly attributable costs of bringing an
asset to working condition and location for its intended
use, including relevant borrowing costs and any
expected costs of decommissioning, less accumulated
depreciation and accumulated impairment losses, if
any. Expenditure incurred after the PPE have been
put into operation, such as repairs and maintenance,
are charged to the Statement of Profit and Loss in the
period in which the costs are incurred.
If significant parts of an item of PPE have different
useful lives, then they are accounted for as separate
items (major components) of PPE.
Material items such as spare parts, stand-by equipment
and service equipment are classified as PPE when they
meet the definition of PPE as specified in Ind AS 16 -
Property, Plant and Equipment.
2.8 Expenditure during construction period
Expenditure during construction period (including
financing cost related to borrowed funds for
construction or acquisition of qualifying PPE) is
included under Capital Work-in-Progress, and the same
is allocated to the respective PPE on the completion of
their construction. Advances given towards acquisition
or construction of PPE outstanding at each reporting
date are disclosed as Capital Advances under âOther
non-current Assetsâ.
2.9 Depreciation
Depreciation is the systematic allocation of the
depreciable amount of PPE over its useful life and is
provided on a straight-line basis over the useful lives as
prescribed in Schedule II to the Act or as per technical
assessment.
Depreciable amount for PPE is the cost of PPE less its
estimated residual value. The useful life of PPE is the
period over which PPE is expected to be available for
use by the Company, or the number of production or
similar units expected to be obtained from the asset by
the Company.
The Company has componentised its PPE and has
separately assessed the life of major components. The
Company depreciates its fixed assets over the useful
lives as prescribed in Schedule II to the Act.
Depreciation on additions is provided on a pro-rata
basis from the month of installation or acquisition and
in case of Projects from the date of commencement of
commercial production. Depreciation on deductions/
disposals is provided on a pro-rata basis up to the date
of deduction/disposal.
2.10 Intangible assets and amortisation
Intangible assets are stated at cost less accumulated
amortization and impairment. Intangible assets are
amortized over their respective estimated useful lives
on a straight-line basis, from the date that they are
available for use.
Amortization
The estimated useful life of an identifiable intangible
asset is based on a number of factors including the
effects of obsolescence, demand, competition and
other economic factors (such as the stability of the
industry and known technological advances) and the
level of maintenance expenditures required to obtain
the expected future cash flows from the asset.
2.11 Inventories
Inventories are valued at lower of cost, determined
on âWeighted averageâ basis and net realisable value.
Costs incurred in bringing each product to its present
location and condition are accounted for as follows:
⢠Raw materials, fuel, stores & spare parts and
packing materials:
Valued at lower of cost and net realisable value
(NRV). However, these items are considered to
be realisable at cost, if the finished products, in
which they will be used, are expected to be sold
at or above cost. Cost is determined on FIFO
basis.
⢠Work-in- progress (WIP), finished goods and
stock-in-trade:
Valued at lower of cost and NRV. Cost of Finished
goods and WIP includes cost of raw materials,
cost of conversion and other costs incurred in
bringing the inventories to their present location
and condition.
2.12 Cash and cash equivalents
Cash and cash equivalents in the Balance Sheet
comprise cash at bank and in hand and short-term
deposits with banks that are readily convertible into
cash which are subject to insignificant risk of changes
in value and are held for the purpose of meeting short¬
term cash commitments.
2.13 Cash flow statement
Cash flows are reported using the indirect method,
whereby net profit before tax is adjusted for the
effects of transactions of a non-cash nature and any
deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing
and financing activities of the Company are segregated.
Bank overdrafts are classified as part of cash and cash
equivalent, as they form an integral part of an entityâs
cash management.
2.14 Government grants
Government grants are recognised where there is
reasonable assurance that the grant will be received
and all attached conditions will be complied with.
Where the Company receives non-monetary grants,
the asset and the grant are accounted at fair value and
recognised in the statement of profit and loss over the
expected useful life of the asset.
2.15 Impairment of non financial assets
The carrying amounts of the Companyâs non-financial
assets, inventories and deferred tax assets are reviewed
at each reporting date to determine whether there is
any indication of impairment. If any such indication
exists, then the assetâs recoverable amount is estimated.
The recoverable amount of an asset or cash-generating
unit (as defined below) is the greater of its value in use
and its fair value less costs to sell. In assessing value in
use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that
reflects current market assessments of the time value
of money and the risks specific to the asset or the cash¬
generating unit. For the purpose of impairment testing,
assets are grouped together into the smallest group
of assets that generates cash inflows from continuing
use that are largely independent of the cash inflows of
other assets or groups of assets (the âcash-generating
unitâ).
An impairment loss is recognized in the income
statement if the estimated recoverable amount of
an asset or its cash-generating unit is lower than its
carrying amount. Impairment losses recognized in prior
periods are assessed at each reporting date for any
indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has
been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed
only to the extent that the assetâs carrying amount does
not exceed the carrying amount that would have been
determined, net of depreciation or amortization, if no
impairment loss had been recognized. Goodwill that
forms part of the carrying amount of an investment in
an associate is not recognized separately, and therefore
is not tested for impairment separately. Instead, the
entire amount of the investment in an associate is
tested for impairment as a single asset when there is
objective evidence that the investment in an associate
may be impaired.
An impairment loss in respect of equity accounted
investee is measured by comparing the recoverable
amount of investment with its carrying amount. An
impairment loss is recognized in the income statement,
and reversed if there has been a favourable change
in the estimates used to determine the recoverable
amount.
2.16 Employee benefits
Short-term employee benefits
Short-term employee benefits comprise of employee
costs such as salaries, bonus etc. is recognized on the
basis of the amount paid or payable for the period
during which services are rendered by the employee.
Defined contribution plans
The Companyâs contribution to provident fund and
employee state insurance schemes is charged to
the statement of profit and loss. The Companyâs
contributions towards Provident Fund are deposited
with the Regional Provident Fund Commissioner under
a defined contribution plan.
Termination benefits
Termination benefits are recognized as an expense
when the Company is demonstrably committed,
without realistic possibility of withdrawal, to a formal
detailed plan to either terminate employment before
the normal retirement date, or to provide termination
benefits as a result of an offer made to encourage
voluntary redundancy. Termination benefits for
voluntary redundancies are recognized as an expense
if the Company has made an offer encouraging
voluntary redundancy, it is probable that the offer will
be accepted, and the number of acceptances can be
estimated reliably.
Defined Benefit Plans
The Company has an obligation towards gratuity,
a defined benefit retirement plan covering eligible
employees. The plan provides for a lump-sum payment
to vested employees at retirement, death while in
employment or on termination of employment of
an amount equivalent to 15 days salary payable for
each completed year of service. Vesting occurs upon
completion of five years of service. The measurement
date of retirement plans is March 31. The present
value of the defined benefit liability and the related
current service cost and past service cost are measured
using projected unit credit method The present value
of the post-employment benefit obligations depends
on a number of factors. The discounting rate used to
calculate the Present of the defined benefit obligations
is the incremental borrowing rate of the company. The
Company does not have any plan assets as on 31-03¬
2025.
Other long-term employee benefits
The Companyâs net obligation in respect of other
long term employee benefits is the amount of future
benefit that employees have earned in return for
their service in the current and previous periods. That
benefit is discounted to determine its present value.
Re-measurements are recognized in the statement of
profit and loss in the period in which they arise.
Mar 31, 2024
1.1 General Information
Balaxi Pharmaceuticals Limited (âthe Companyâ) is a public limited company incorporated and domiciled in India whose shares are publicly traded. The registered office is located at Plot no.409, H.No. 82-293, Maps Towers, 3rd Floor, Phase III, Road No: 81, Jubilee Hills, Hyderabad, Telangana, India. The Company was incorporated in September 1942. The Company Commenced the business of International Wholesale Trading of Pharmaceuticals, Builders Hardware and FMCG products during the Financial Year 201819.
1.2 Basis of preparation of financial statements1.2 Statement of Compliance
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules 2015 notified under Section 133 of Companies Act 2013 (the âActâ) and other relevant provisions of the Act.
These financial statements have been prepared for the Company as going concern on the basis of relevant Indian Accounting Standards (Ind AS) that are effective at the Companyâs annual reporting date, 31 March 2021. The financial statements were authorised for issue by the Companyâs Board of Directors on May 29, 2024.
1.3 Functional and presentation currency
The financial statements are presented in Indian rupees Lakhs (Rounded off to thousands), which is the functional currency of the Company. Functional currency of an entity is the currency of the primary economic environment in which the entity operates.
All amounts are in Indian Rupee Lakhs (Rounded off to thousands) except share data, unless otherwise stated.
These financial statements have been prepared on the historical cost convention and on an accrual basis, except for the following material items in the statement of financial position:
⢠certain financial assets and liabilities are measured at fair value;
⢠refer accounting policy regarding financial instrumentsâ
âAll the assets and liabilities have been classified as
current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
Assets:
An asset is classified as current when it satisfies any of the following criteria:
a) it is expected to be realized in, or is intended for sale or consumption in, the Companyâs normal operating cycle;
b) it is held primarily for the purpose of being traded;
c) it is expected to be realized within twelve months after the reporting date; or
d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
Liabilities:
A liability is classified as current when it satisfies any of the following criteria:
a) it is expected to be settled in the Companyâs normal operating cycle;
b) it is held primarily for the purpose of being traded;
c) it is due to be settled within twelve months after the reporting date; or
d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current assets/ liabilities respectively. All other assets/ liabilities are classified as non-current.
1.6 Critical accounting judgements and key sources of estimation uncertainty
In the application of the Companyâs accounting policies, which are described in note 2, the management of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the Companyâs accounting policies and that have the most significant effect on the amounts recognised in the financial statements:
Provision and contingent liability
On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.
Useful lives of depreciable assets
Management reviews the useful lives of depreciable assets at each reporting. As at March 31, 2021 management assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful lives as compared to previous year.
1.7 Measurement of fair values
A number of the Companyâs accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the
fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred. â
2 Significant accounting policies2.1 Revenue recognition
The Company has applied Ind AS 115: Revenue from Contracts with Customers which establishes a comprehensive framework for determining whether, how much and when revenue is to be recognised. Ind AS 115 replaces Ind AS 18 Revenue. The impact of the adoption of the standard on the financial statements of the Company is insignificant.
Revenue is recognised upon transfer of promised products or services to customer in an amount that reflect the consideration which the Company expects to receive in exchange of those products or services.
⢠Revenue is measured at the fair value of consideration received or receivable taking into account the amount of discounts, volume rebates and VAT/ GST are recognised when all significant risks and rewards of ownership of the goods sold are transferred.
⢠Revenue from the sale of goods includes excise duty.
⢠Export incentives are recognised as income when the right to receive credit as per the terms of the scheme is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds
⢠Dividend income is accounted for when the right to receive the income is established, which is generally when shareholders approve the dividend.
⢠Difference between the sale price and carrying value of investment is recognised as profit or loss on sale / redemption on investment on trade date of transaction.
⢠Interest income is accrued on, 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.
The Company accounts for each lease component within the contract as a lease separately from nonlease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative standalone price of the lease component and the aggregate standalone price of the non-lease components. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception 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 less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use asset 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 asset is depreciated using the straightline method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss. 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 leases with reasonably similar characteristics, the Company, on a lease-by-lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance
fixed lease payments. The Company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term. The Company has elected to use the incremental borrowing rate as the discout, the future lease payments. The details of ROU assets held by the company along with deprecition are given in schedule 3.
2.3 Foreign currencies
In preparing the financial statements of the Company, transactions in currencies other than the companyâs functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.
2.4 Borrowing costs
Specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of such asset till such time the asset is ready for its intended use and borrowing costs are being incurred. A qualifying asset is an asset that necessarily takes 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.
Borrowing cost includes interest expense, amortization of discounts, ancillary costs incurred in connection with borrowing of funds and exchange difference arising from foreign currency borrowings to the extent they are regarded as an adjustment to the Interest cost.
2.5 Taxation
Income tax expense consists of current and deferred tax. Income tax expense is recognized in the income statement except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and taxable temporary differences arising upon the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
The Company presents basic and diluted earnings per share (âEPSâ) data for its ordinary shares. The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share.
2.7 Property, plant and equipment
Freehold land and buildings (property) held for use in the production or supply of goods or services, or administrative purposes are stated at cost less accumulated depreciation and accumulated impairment. Freehold land is not depreciated.
The initial cost of PPE comprises its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use, including relevant borrowing costs and any expected costs of decommissioning, less accumulated depreciation and accumulated impairment losses, if any. Expenditure incurred after the PPE have been put into operation, such as repairs and maintenance, are charged to the Statement of Profit and Loss in the period in which the costs are incurred.
If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.
Material items such as spare parts, stand-by equipment and service equipment are classified as PPE when they meet the definition of PPE as specified in Ind AS 16 -Property, Plant and Equipment.
2.8 Expenditure during construction period
Expenditure during construction period (including financing cost related to borrowed funds for construction or acquisition of qualifying PPE) is included under Capital Work-in-Progress, and the same is allocated to the respective PPE on the completion of their construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under âOther non-current Assetsâ.
Depreciation is the systematic allocation of the depreciable amount of PPE over its useful life and is provided on a straight-line basis over the useful lives as prescribed in Schedule II to the Act or as per technical assessment.
Depreciable amount for PPE is the cost of PPE less its estimated residual value. The useful life of PPE is the period over which PPE is expected to be available for use by the Company, or the number of production or similar units expected to be obtained from the asset by the Company
The Company has componentised its PPE and has separately assessed the life of major components. The Company depreciates its fixed assets over the useful lives as prescribed in Schedule II to the Act. â
Depreciation on additions is provided on a pro-rata
basis from the month of installation or acquisition and in case of Projects from the date of commencement of commercial production. Depreciation on deductions/ disposals is provided on a pro-rata basis up to the date of deduction/disposal.
2.10 Intangible assets and amortisation
Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective estimated useful lives on a straight-line basis, from the date that they are available for use.
The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.
Inventories are valued at lower of cost, determined on âWeighted averageâ basis and net realisable value. Costs incurred in bringing each product to its present location and condition are accounted for as follows:
⢠Raw materials, fuel, stores & spare parts and packing materials:
Valued at lower of cost and net realisable value (NRV). However, these items are considered to be realisable at cost, if the finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on FIFO basis.
⢠Work-in- progress (WIP), finished goods and stock-in-trade:
Valued at lower of cost and NRV. Cost of Finished goods and WIP includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
2.12 Cash and cash equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand and short-term deposits with banks that are readily convertible into cash which are subject to insignificant risk of changes in value and are held for the purpose of meeting shortterm cash commitments.
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of the Company are segregated. Bank overdrafts are classified as part of cash and cash equivalent, as they form an integral part of an entityâs cash management.
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Where the Company receives non-monetary grants, the asset and the grant are accounted at fair value and recognised in the statement of profit and loss over the expected useful life of the asset.
2.15 Impairment of non financial assets
The carrying amounts of the Companyâs non-financial assets, inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assetâs recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cashgenerating unit. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the âcash-generating unitâ).
An impairment loss is recognized in the income statement if the estimated recoverable amount of an asset or its cash-generating unit is lower than its carrying amount. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assetâs carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in an associate is not recognized separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired.
An impairment loss in respect of equity accounted
investee is measured by comparing the recoverable amount of investment with its carrying amount. An impairment loss is recognized in the income statement, and reversed if there has been a favourable change in the estimates used to determine the recoverable amount.
2.16 Employee benefitsShort-term employee benefits
Short-term employee benefits comprise of employee costs such as salaries, bonus etc. is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee.
The Companyâs contribution to provident fund and employee state insurance schemes is charged to the statement of profit and loss. The Companyâs contributions towards Provident Fund are deposited with the Regional Provident Fund Commissioner under a defined contribution plan.
Termination benefits
Termination benefits are recognized as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.
Defined Benefit Plans
The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The measurement date of retirement plans is March 31. The present value of the defined benefit liability and the related current service cost and past service cost are measured using projected unit credit method The present value of the post-employment benefit obligations depends on a number of factors. The discounting rate used to calculate the Present of the defined benefit obligations is the incremental borrowing rate of the company. The Company does not have any plan assets as on 31-032024.
Other long-term employee benefits
The Companyâs net obligation in respect of other long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and previous periods. That benefit is discounted to determine its present value. Re-measurements are recognized in the statement of profit and loss in the period in which they arise.
2.17 Provisions (other than for employee benefits)
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
2.18 Contingent liabilities & contingent assets
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.
a. Recognition and Initial recognition
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issues of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.
A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through Profit and Loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.
b. Classification and Subsequent measurement Financial assets:
On initial recognition, a financial asset is classified as measured at
- amortised cost;
- FVTPL
Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
All financial assets not classified as measured at amortised cost as described above are measured at FVTPL. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial assets: Business model assessment
The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:
- the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether managementâs strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets;
- how the performance of the portfolio is evaluated and reported to the Companyâs management;
- the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;
- how managers of the business are compensated - e.g. whether compensation is based on the fair
value of the assets managed or the contractual cash flows collected; and
- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Companyâs continuing recognition of the assets.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.
Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, âprincipalâ is defined as the fair value of the financial asset on initial recognition. âInterestâ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:
- contingent events that would change the amount or timing of cash flows;
- terms that may adjust the contractual coupon rate, including variable interest rate features;
- prepayment and extension features; and
- terms that limit the Companyâs claim to cash flows from specified assets (e.g. non- recourse features).
A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a significant discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable
additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.
Financial assets: Subsequent measurement and gains and losses
Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss.
Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Financial liabilities: Classification, Subsequent measurement and gains and losses Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held- for- trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
c. Derecognition Financial assets
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit.
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
The Company recognises loss allowances for expected credit losses on financial assets measured at amortised cost;
At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt securities at fair value through other comprehensive income (FVOCI) are credit impaired. A financial asset is âcredit- impairedâ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit- impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- the restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;
- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
- the disappearance of an active market for a security because of financial difficulties.
The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the following, which are measured as 12 month expected credit losses:
- debt securities that are determined to have low credit risk at the reporting date; and
- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.
Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.
Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.
12-month expected credit losses are the portion of expected credit losses that result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
In all cases, the maximum period considered when estimating expected credit losses is the maximum contractual period over which the Company is exposed to credit risk.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Companyâs historical experience and informed credit assessment and including forward- looking information.
Measurement of expected credit losses
Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive).
Presentation of allowance for expected credit losses in the balance sheet
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.
Write-off
The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the trade receivable does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write- off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Companyâs procedures for recovery of amounts due.
Mar 31, 2023
1) Company Overview
Balaxi Pharmaceuticals Limited (''the Company'') is a public limited company incorporated and domiciled in India whose shares are publicly traded. The registered office is located at Plot no.409, H.No. 82-293, Maps Towers, 3rd Floor, Phase III, Road No: 81, Jubilee Hills, Hyderabad, Telangana, India. The Company was incorporated in September 1942. The Company Commenced the business of International Wholesale Trading of Pharmaceuticals, Builders Hardware and FMCG products from the Financial Year 2018-19.
2) Significant Accounting Policies and Key Accounting Estimates and Judgements
a) Basis of accounting and preparation of Financial Statements:
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per Rule 3 of the Companies (Indian Accounting Standards) Rules 2015 notified under Section 133 of Companies Act 2013 (the âActâ) and other relevant provisions of the Act and accounting principles generally accepted in India.
ii) Basis of Preparation
These financial statements have been prepared on accrual and going concern basis of relevant Indian Accounting Standards (Ind AS) that are effective at the Company''s annual reporting date, 31 March 2023. Accounting Policies have been applied consistently throughout the preparation of Financial Statements.
All the assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle as per paragraph 66 and 69 of Ind AS 1 and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013.
Assets:
An asset is classified as current when it satisfies any of the following criteria:
a) it is expected to be realized in, or is intended for sale or consumption in, the Companyâs normal operating cycle;
b) it is held primarily for the purpose of being traded;
c) it is expected to be realized within twelve months after the reporting date; or
d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
A liability is classified as current when it satisfies
any of the following criteria:
a) it is expected to be settled in the Companyâs normal operating cycle;
b) it is held primarily for the purpose of being traded;
c) it is due to be settled within twelve months after the reporting date; or
d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current assets/ liabilities respectively. All other assets/ liabilities are classified as non-current.
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. Cash and cash equivalents for the purpose of the statement of cash flows comprise cash and cash on deposit with banks and financial institutions.
These financial statements have been prepared on the historical cost convention and on an accrual basis, except for the following material items in the statement of financial position:
⢠certain financial assets and liabilities are measured at fair value;
⢠refer accounting policy regarding financial instruments
The Company has decided to round off the figures to the nearest Lakhs, except otherwise indicated.
The financial statements were authorised for issue by the Companyâs Board of Directors on May 29, 2023.
iii) Functional and presentation currency
These financial statements are presented in Indian rupees, which is the functional currency of the Company. Functional currency of an entity is the currency of the primary economic environment in which the entity operates.
All financial information presented in Indian Rupees (T) has been rounded off to the nearest Lakhs, except otherwise stated.
iv) Use of Estimates and Judgements
In the application of the Companyâs accounting policies, the management of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the Companyâs accounting policies and that have the most significant effect on the amounts recognised in the financial statements:
Provision and contingent liability
On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote
are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.
Useful lives of depreciable assets
Management reviews the useful lives of depreciable assets at each reporting. As at March 31, 2023 management assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful lives as compared to previous year.
b) Property Plant and Equipment
i) Recognition and measurement
Freehold land and buildings (property) held for use in the production or supply of goods or services, or administrative purposes are stated at cost less accumulated depreciation and accumulated impairment. Freehold land is not depreciated.
The initial cost of PPE comprises its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use, including relevant borrowing costs and any expected costs of decommissioning, less accumulated depreciation and accumulated impairment losses, if any. Expenditure incurred after the PPE have been put into operation, such as repairs and maintenance, are charged to the Statement of Profit and Loss in the period in which the costs are incurred.
If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.
Material items such as spare parts, stand-by equipment and service equipment are classified as PPE when they meet the definition of PPE as specified in Ind AS 16 - Property, Plant and Equipment.
An item of property, plant and equipment and any significant part thereof is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss in âother income / (expenses)â when the asset is derecognized.
ii) Expenditure during construction period
Expenditure during construction period (including
financing cost related to borrowed funds for construction or acquisition of qualifying PPE) is included under Capital Work-in-Progress, and the same is allocated to the respective PPE on the completion of their construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under âOther non-current Assetsâ.
Depreciation is the systematic allocation of the depreciable amount of PPE over its useful life and is provided on a straight-line basis over the useful lives as prescribed in Schedule II to the Act or as per technical assessment.
Depreciable amount for PPE is the cost of PPE less its estimated residual value. The useful life of PPE is the period over which PPE is expected to be available for use by the Company, or the number of production or similar units expected to be obtained from the asset by the Company.
The Company has componentised its PPE and has separately assessed the life of major components. The Company depreciates its fixed assets over the useful lives as prescribed in Schedule II to the Act.
Estimated useful lives of the assets, are as follows:
|
Asset Category |
Estimated useful |
|
life (years) |
|
|
Furniture & Fixtures |
10 |
|
Computers |
3 |
|
Office Equipment |
5 |
|
Vehicles |
8 |
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed during each financial year and adjusted prospectively, if appropriate.
Depreciation on additions is provided on a prorata basis from the month of installation or acquisition and in case of Projects from the date of commencement of commercial production. Depreciation on deductions/disposals is provided on a pro-rata basis up to the date of deduction/ disposal.
c) Intangible Assets
i) Recognition and Measurement
Intangible assets acquired are measured on cost basis on initial recognition. Subsequently, intangible assets are stated at cost less accumulated amortization and impairment.
Intangible assets are amortized over their respective estimated useful lives on a straightline basis, from the date that they are available for use.
An intangible asset is derecognized on disposal, or when no future economic benefits are expected from its use or disposal. Gains or losses arising from derecognition of an intangible asset, if any, are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the company.
ii) Amortization
The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.
d) Leases
i) Company as a Lessee
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative standalone price of the lease component and the aggregate standalone price of the non-lease components. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception 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 less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use asset 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 asset 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 estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss. 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 leases with reasonably similar characteristics, the Company, on a lease-bylease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The Company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 Leases to shortterm leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term. The Company has elected to use the incremental borrowing rate as the discount, the future lease payments. The details of ROU assets held by the company along with depreciation are given in schedule 3.
Leases for which the Company is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
In respect of assets provided on finance leases, amounts due from lessees are recorded as receivables at the amount of the Companyâs net investment in the leases. Finance lease income is allocated to accounting periods to reflect a constant periodic rate of return on the Companyâs net investment outstanding in respect of the leases. In respect of assets given on operating lease, lease rentals are accounted in the Statement of Profit and Loss, on accrual basis in accordance with the respective lease agreements.
The carrying amounts of the Companyâs non-financial assets, inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assetâs recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cashgenerating unit. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the âcash-generating unitâ).
An impairment loss is recognized in the income statement if the estimated recoverable amount of an asset or its cash-generating unit is lower than its carrying amount. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assetâs carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in
is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired.
An impairment loss in respect of equity accounted investee is measured by comparing the recoverable amount of investment with its carrying amount. An impairment loss is recognized in the income statement, and reversed if there has been a favourable change in the estimates used to determine the recoverable amount.
Inventories are valued at lower of cost, determined on âWeighted averageâ basis and net realisable value. Costs incurred in bringing each product to its present location and condition are accounted for as follows:
⢠Raw materials, fuel, stores & spare parts and packing materials:
Valued at lower of cost and net realisable value (NRV). However, these items are considered to be realisable at cost, if the finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on FIFO basis.
⢠Work-in- progress (WIP), finished goods and stock-in-trade:
Valued at lower of cost and NRV. Cost of Finished goods and WIP includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
g) Cash and cash equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand and short-term deposits with banks that are readily convertible into cash which are subject to insignificant risk of changes in value and are held for the purpose of meeting shortterm cash commitments.
h) Government Grants and Assistance
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.
Where the Company receives non-monetary grants, the asset and the grant are accounted at fair value and recognised in the statement of profit and loss over the expected useful life of the asset.
i) Borrowing Costs
Specific borrowing costs that are attributable to the acquisition, construction or production of a qualifying
asset are capitalized as part of the cost of such asset till such time the asset is ready for its intended use and borrowing costs are being incurred. A qualifying asset is an asset that necessarily takes 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.
Borrowing cost includes interest expense, amortization of discounts, ancillary costs incurred in connection with borrowing of funds and exchange difference arising from foreign currency borrowings to the extent they are regarded as an adjustment to the Interest cost.
j) Fair value Measurement
A number of the Companyâs accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
k) Financial Instruments
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. Financial assets and financial liabilities are initially measured at transaction values and where such values are different from the fair value, at fair value.
Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through the statement of profit and loss) are added to or deducted from the fair value of
the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through the statement of profit and loss are recognized immediately in the statement of profit and loss.
The Companyâs Financial Assets mainly comprise of;
⢠Current financial assets mainly consist of trade receivables, investments in liquid mutual funds, cash and bank balances, fixed deposits with banks and financial institutions, incentive receivable from Government and other current receivables.
⢠Non-current financial assets mainly consist of financial investments in equity, fixed deposits and non-current deposits.
i) Initial Recognition and Measurement
The Company recognizes a financial asset when it becomes party to the contractual provisions of the instrument. All financial assets other than trade receivables are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables are initially recognised at transaction price. All regular purchases or sales of financial assets are recognized and derecognized on a trade date basis, i.e., the date that the Company commits to purchase or sell the asset.
For purposes of subsequent measurement, financial assets are classified in the following categories:
> Financial Assets at Amortized Cost;
A Financial asset is measured at the amortised cost if both the following conditions are met:
- The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
- Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
Financial assets at amortized cost category is the most relevant to the Company. It comprises of current financial assets such as
trade receivables, cash and bank balances, fixed deposits with bank and financial institutions, other current receivables and non-current financial assets such as noncurrent receivables and deposits.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. The EIR amortization is included in other income in the statement of profit and loss. The losses arising from impairment, if any are recognized in the statement of profit and loss.
> Financial Assets at Fair Value through Profit and loss;
All equity investments in scope of Ind AS 109 âFinancial Instrumentsâ are measured at FVTPL with all changes in fair value recognized in the statement of profit and loss. The Company has designated its investments in equity instruments as FVTPL category.
> Financial Assets at Fair Value through Other Comprehensive income
The Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company has not designated investments in any equity instruments as FVTOCI.
iii) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Companyâs balance sheet) when:
- The rights to receive cash flows from the asset have expired, or
- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a âpass-throughâ arrangement; and either:
⢠the Company has transferred substantially all the risks and rewards of the asset, or
⢠the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the following financial assets:
⢠Trade Receivables
⢠Other financial assets that are measured at amortized cost.
In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime ECL is measured and recognized as loss allowance.
In case of other assets (listed as ii above), the Company determines if there has been a significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However, if credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss allowance.
II) Financial Liabilities and Equity Instrumentsa) Financial Liabilities
The Companyâs Financial Liabilities mainly comprise of;
⢠Current financial liabilities mainly consist of trade payables and liability for capital expenditure.
⢠Non-current financial liabilities mainly consist of Borrowings.
i) Initial Recognition and measurement of Financial Liabilities
The Company recognizes a financial liability in its balance sheet when it becomes party to the contractual provisions of the instrument. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. Financial liabilities are initially recognized and measured at amortized cost
ii) Subsequent Measurement of Financial Liabilities at Amortized Cost
The carrying amounts of financial liabilities that are subsequently measured at amortized cost are determined based on the effective interest rate method. Interest expense that is not capitalized as part of cost of an asset is included in the âFinance costsâ line item. The effective interest rate method is a method of calculating the amortized cost
of a financial liability and of allocating interest expense over the relevant period.
iii) Derecognition of Financial Liability
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the company are recognised at the proceeds received, net of direct issue costs. Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
III) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.
l) Foreign Currency Transactions
In preparing the financial statements of the Company, transactions in currencies other than the companyâs functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.
m) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.
n) Revenue Recognition
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue is only recognized to the extent that it is highly probable a significant reversal will not occur.
Revenue from the sale of goods is recognized when delivery has taken place and control of the goods has been transferred to the customer, and when there are no longer any unfulfilled obligations. The customer obtains control of the goods when the significant risks and reward of products sold are transferred according to the specific delivery term that have been agreed with the customer. Revenue is measured at fair value of the consideration received or receivable, after deduction of any discounts, price concessions, volume rebates and any taxes or duties collected on behalf of the government such as goods and services tax, etc. Accumulated experience is used to estimate the provision for such discounts, price concessions and rebates. In determining the transaction price, the Group considers the effects of variable consideration, the existence of significant financing components, noncash consideration, and consideration payable to the customer (if any). The Group estimates variable consideration at contract inception until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized
will not occur when the associated uncertainty with the variable consideration is subsequently resolved.
Revenue from services rendered is recognized in the profit or loss as the underlying services are performed. Upfront nonrefundable payments received under these arrangements are recognized as revenue upon satisfaction of performance obligations.
iii) Interest and Dividend Income
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group 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. Dividend income is recognized when right to receive is established (provided that it is probable that the economic benefits will flow to the Parent company and the amount of income can be measured reliably).
iv) Export Incentive
Export incentives comprise of Duty draw back and MEIS (Merchandise Exports from India scheme) scrips. Duty drawback is recognised as income when the right to receive credit as per the terms of the scheme is established in respect of the exports entitled for this benefit made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds. MEIS scrips are freely transferable and can be utilised for the payment of customs duty. MEIS scrips are recognised either on transfer/ sale of such scrips or when it is reasonably certain that such scrips can be utilised against import duties
o) Employee Benefits
Short-term employee benefits
Short-term employee benefits comprise of employee costs such as salaries, bonus etc. is recognized on the basis of the amount paid or payable for the period during which services are rendered by the employee.
The Companyâs contribution to provident fund and employee state insurance schemes is charged to the statement of profit and loss. The Companyâs
contributions towards Provident Fund are deposited with the Regional Provident Fund Commissioner under a defined contribution plan.
Termination benefits are recognized as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.
Other long-term employee benefits
The Companyâs net obligation in respect of other long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and previous periods. That benefit is discounted to determine its present value. Re-measurements are recognized in the statement of profit and loss in the period in which they arise.
Income tax expense consists of current and deferred tax. Income tax expense is recognized in the income statement except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.
i) Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
ii) Deferred tax
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and taxable temporary differences arising upon the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
q) Earnings per share
The Company presents basic and diluted earnings per share (âEPSâ) data for its ordinary shares. The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the period by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share.
Mar 31, 2015
A) Basis of Accounting
The financial statements are prepared in accordance with the Generally
Accepted Accounting principles in India ( Indian GAAP) under the
historical cost convention on the accrua basis.. GAAP comprises
mandatory accounting standards as prescribed under Section 133 of the
Companies Act, 2013 ('Act') read with Rule7of the Companies (Accounts)
Rules, 2014,the provisions of the Act (to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI)
Accounting policies not specifically referred to otherwise be
consistent to and in accordance with those of previous year.
b) Fixed assets and depreciation
Fixed assets are stated at cost less accumulated depreciation.
Depreciation is provided from the date of acquisition on the reducing
balance method at the rates specified in Schedule II of the Company's
Act, 2013.
c) Investment
Long-term investments are carried at cost, after providing for any
diminution in value, if such diminution is of other than temporary
nature..
d) Retirement benefits
The Company does not have regular employees at present. The dues of all
regular employees who were retrenched at the time of the sale of the
estate have been settled.
e) Taxation
Tax expense comprising of both current tax and deferred tax is included
in determining the net results for the year. Provision for current tax
is made after taking into consideration benefit admissible under the
provisions of the Income Tax Act, 1961. Accounting Standard 22 has
considered and since the value of timing difference was negligible, the
provision has not been made for the same. The deferred tax asset is
recognized and carried forward only to the extent there is a reasonable
certainty that the assets will be realized in future.
f) Revenue Recognition
Income from sale of investments and jobbing activities are recognized
as operational income. Income from investing surplus funds and
dividends are recognized as other income.
Mar 31, 2014
A) BACKGROUND
The company sold its loss making plantation in 1989, the proceeds in
respect of which have been deployed in banks and investments. The
directors are considering various business proposals to strengthen the
financial base of the company.
b) PRINCIPAL ACCOUNTING POLICY
a) Basis of Accounting
The financial statements are prepared on accrual basis, under
historical cost convention and in accordance with the Accounting
Standards notified under the Companies Act, as applicable to the
Company. The disclosure requirement of Schedule VI of The Companies
Act, 1956 have been complied with to the extent applicable. Accounting
policies not specifically referred to otherwise be consistent to and in
accordance with generally accepted accounting policies.
b) Fixed assets and depreciation
Fixed assets are statesd at cost less accumulated depreciation.
Depreciation is provided from the date of acquisition on the reducing
balance method at the rates specified in Schedule XIV of the Company's
Act, 1956.
c) Investment
Long-term investments are carried at cost, after providing for any
diminution in value, if such diminution is of other than temporary
nature..
d) Retirement benefits
The Company does not have regular employees at present. The dues of all
regular employees who were retrenched at the time of the sale of the
estate have been settled.
e) Taxation
Tax expense comprising of both current tax and deferred tax is included
in determining the net results for the year. Provision for current tax
is made after taking into consideration benefit admissible under the
provisions of the Income Tax Act, 1961. Accounting Standard 22 has
considered and since the value of timing difference was negligible
(below Rs.1000), the provision has not been made for the same. The
deferred tax asset is recognized and carried forward only to the extent
there is a reasonable certainty that the assets will be realized in
future.
f) Revenue Recognition
Income from sale of current investments and jobbing activities are
recognized as operational income. Income from sale of long term
investments and dividends are recognized as other income.
Mar 31, 2013
A) BACKGROUND
The company sold its loss making plantation in 1989, the proceeds in
respect of which have been deployed in banks and
investments. The directors are considering various business proposals
to strengthen the financial base of the company.
b) PRINCIPAL ACCOUNTING POLICY
a) Basis of Accounting : The financial statements are prepared on
accrual basis, under historical cost convention and in accordance with
the Accounting Standards notified under the Companies Act, as
applicable to the Company. The disclosure requirement of Schedule VI of
The Companies Act, 1956 have been complied with to the extent
applicable. Accounting policies not specifically referred to otherwise
be consistent to and in accordance with generally accepted accounting
policies.
b) Fixed assets and depreciation : Fixed assets are states at cost less
accumulated depreciation. Depreciation is provided from the date of
acquisition on the reducing balance method at the rates specified in
Schedule XIV of the Company's Act, 1956.
c) Investment : Long-term investments are carried at cost, after
providing for any diminution in value, if such diminution is of other
than temporary nature.
d) Retirement benefits : The Company does not have regular employees at
present. The dues of all regular employees who were retrenched at the
time of the sale of the state have been settled.
e) Taxation : Tax expense comprising of both current tax and deferred
tax is included in determining the net results for the year. Provision
for current tax is made after taking into consideration benefit
admissible under the provisions of the Income Tax Act, 1961. Deferred
tax is recognized on timing differences between the accounting income
and the taxable income for the year, and quantified using tax rates and
laws enacted or substantially enacted as on the Balance Sheet date. The
deferred tax asset is recognized and carried forward only to the extent
there is a reasonable certainty that the assets will be realized in
future.
f) Revenue Recognition : Income from sale of current investments and
jobbing activities are recognized as operational income. Income from
sale of long term investments and dividends are recognized as other
income.
Mar 31, 2012
A) BACKGROUND
The company sold its loss making plantation in 1989, the proceeds in
respect of which have been deployed in banks and investments. The
directors are considering various business proposals to strengthen the
financial base of the company.
b) PRINCIPAL ACCOUNTING POLICY
a) Basis of Accounting
The financial statements are prepared on accrual basis, under
historical cost convention and in accordance with the Accounting
Standards notified under the Companies Act, as applicable to the
Company. The disclosure requirement of Schedule VI of The Companies
Act, 1956 have been complied with to the extent applicable. Accounting
policies not specifically referred to otherwise be consistent to and in
accordance with generally accepted accounting policies.
b) Fixed assets and depreciation
Fixed assets are states at cost less accumulated depreciation.
Depreciation is provided from the date of acquisition on the reducing
balance method at the rates specified in Schedule XIV of the Company's
Act, 1956.
c) Investment
Long-term investments are carried at cost, after providing for any
diminution in value, if such diminution is of other than temporary
nature..
d) Retirement benefits
The Company does not have regular employees at present. The dues of all
regular employees who were retrenched at the time of the sale of the
state have been settled.
e) Taxation
Tax expense comprising of both current tax and deferred tax is included
in determining the net results for the year. Provision for current tax
is made after taking into consideration benefit admissible under the
provisions of the Income Tax Act, 1961. Deferred tax is recognized on
timing differences between the accounting income and the taxable income
for the year, and quantified using tax rates and laws enacted or
substantially enacted as on the Balance Sheet date. The deferred tax
asset is recognized and carried forward only to the extent there is a
reasonable certainty that the assets will be realized in future.
f) Revenue Recognition
Income from sale of current investments and jobbing activities are
recognized as operational income. Income from sale of long term
investments and dividends are recognized as other income.
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Balaxi Pharmaceuticals Ltd. पर और जानकारी
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Balaxi Pharmaceuticals Ltd. टूल
- बल्क डील
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Balaxi Pharmaceuticals Ltd. कंपनी का विवरण
- कंपनी का प्रोफाइल
- कंपनी का इतिहास
- मैनेजमेंट टीम
- पूंजी ढांचा
- प्रॉडक्ट मिक्स
- बैंकर/ऑडीटर/रजिस्ट्रार
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कंपनी का इतिहास
- एनएसई मूल्य इतिहास
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Balaxi Pharmaceuticals Ltd. मुख्य वित्तीय अनुपात
- अनुपात
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Balaxi Pharmaceuticals Ltd. परिणाम
- तिमाही परिणाम
- छहमाही परिणाम
- नौ महीने के परिणम
- वार्षिक परिणाम
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Balaxi Pharmaceuticals Ltd. Financial Data
- ऑडिट के परिणाम
- नकदी प्रवाह
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Balaxi Pharmaceuticals Ltd. की रिपोर्ट
- लेखा नीति
- ऑडीटर की रिपोर्ट
- निदेशक की रिपोर्ट
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Balaxi Pharmaceuticals Ltd. कॉर्पोरेट घोषणाएं
- बुक क्लोज़र
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