ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Aarti Drugs Ltd.
Mar 31, 2023
CORPORATE INFORMATION:
Aarti Drugs Limited ("the Company") is a public limited company incorporated and domiciled in India. Its equity shares are listed on Bombay Stock Exchange and National Stock Exchange. The registered office of Company is located at Plot No N-198, M.I.D.C, Tarapur, Village-Pamtermbhi, Dist. Palghar , Maharashtra - 401506 and is incorporated under the provisions of the Companies Act applicable in India.
The Company is primarily involved in manufacturing and marketing of Active Pharmaceutical Ingredients (API), Pharma Intermediates and Specialty Chemicals.
The financial statements have been authorised for issue by the Board of Directors at their meeting held on April 29, 2023.
Note: 1 Significant Accounting Policies and Accounting Estimates and Judgements 1) Basis of preparation:
Statement of Compliance
These financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) to be read with Rule 3 of the Companies (Indian Accounting Standard) Rules, 2015 and Companies (Indian Accounting Standard ) Amendment Rules, 2016. The Company''s Financial Statements for the year ended March 31, 2023 comprises of the Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of Changes in Equity and the Notes to Financial Statements.
Classification of Assets and Liabilities:
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III of the Companies Act, 2013. Based on the nature of products and services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non - current classification of assets and liabilities.
The Statement of Cash flows have been prepared under Indirect Method.
The financial statements have been prepared on a historical cost convention on the accrual basis, except for certain financial instruments that are measured at fair value, viz employee benefit plan assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
Functional and presentation currency
The financial statements are presented in Indian Rupees which is the functional currency of the Company and all values are rounded to the nearest lakhs, except when otherwise indicated.
Use of estimates and Judgments:
The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, Judgment & Assumptions. These estimates, judgments & assumption affect the application of accounting policies and the reported amounts of assets & liabilities, the disclosures of contingent assets & liability at the date of the financial statement & reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which the changes are made and, if material, their effects are disclosed in the notes to the financial statements.
(2) Revenue recognition:
Revenue from contract with customer Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government
(i) Sale of goods: Revenue from contracts with customers is recognised on satisfaction of performance obligation, when control of the goods is passed to customer, at an amount that reflect the consideration the Company expects to receive. The point at which control passes is determined based on terms of agreement with customer or as per general industry / market practice. GST and other taxes on sales are excluded from revenue.
(ii) Interest Income: Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and
the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principle 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 asset''s net carrying amount on initial recognition.
(iii) Dividend income: Dividend income is recognised when the right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably.
(iv) Export benefits: 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.
3) Property, plant and equipment (PPE):
All items of property, plant and equipment other than Leasehold Land are stated at cost less accumulated depreciation and accumulated impairment loss, if any. Cost includes cost of acquisition, installation or construction, other direct expenses incurred to bring the assets to its working condition and finance costs incurred up to the date the asset is ready for its intended use and excludes Taxes eligible for credit / setoff.
When significant parts of plant and equipment are required to be replaced at intervals, the same is depreciated separately based on their specific useful lives. All other repair and maintenance costs are recognised in the statement of profit or loss as incurred.
Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost, comprising of direct costs, related incidental expenses and attributable interest.
Capital expenditure on property, plant and equipment for research and development is classified under property, plant and equipment and is depreciated on the same basis as other property, plant and equipment. Property, plant and equipment are eliminated from financial statements, either on disposal or when retired from active use. Losses arising in the case of the retirement of property, plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognised in the statement of profit and loss in the year of occurrence.
Intangible Assets:
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the assets can be measured reliably.
Intangible assets are stated at cost or acquisition less accumulated amortisation and accumulated impairment loss, if any.
Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.
Software is amortised over their estimated useful life on straight line basis from the date they are available for intended use, subject to impairment test.
The amortisation period and the amortisation method for an intangible assets with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.
Gains or losses arising from derecognition of an intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the assets is derecognised.
Research and Development:
Revenue expenditure on Research and Development is recognised as expense in the year in which it is incurred.
Capital expenditure on Research and Development is included as part of Property, Plant & Equipment and depreciation is provided on the same basis as for other fixed assets.
Depreciation:
Depreciable amount of all items of property, plant and equipment other than Land is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Property, plant and equipment are provided on straight line method, over the useful life of the assets, as specified in Schedule II to the Companies Act, 2013.
Property, plant and equipment which are added / disposed off during the year, depreciation is provided on pro-rata basis.
The asset''s residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively; if appropriate an asset''s
carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. Non-current assets held for sale Assets held for sale are measured at the lower of carrying amount or fair value less costs to sell. The determination of fair value less costs to sell includes use of management estimates and assumptions. The fair value of the assets held for sale has been estimated using valuation techniques (including income and market approach), which include unobservable inputs. Non-current assets and disposal group that ceases to be classified as "Held for Sale" shall be measured at the lower of carrying amount before the non-current asset and disposal group was classified as "Held for Sale" and its recoverable amount at the date of the subsequent decision not to sell. Recoverable amounts of assets reclassified from "Held for Sale" have been estimated using the Management''s assumptions.
Raw materials, packing materials, store & spares, Traded goods and Work in progress are valued at the lower of cost and net realisable value. The cost of Raw materials, packing materials, store & spares and traded goods includes all cost of purchase, duties and taxes (other than those subsequently recoverable from the tax authorities) and all other cost incurred in bringing the inventory to its present location and conditions. Cost is arrived on moving stock on FIFO basis.
Finished goods are valued at lower of cost and net realisable value. The cost of finished goods and Work in progress have been computed to include all cost of purchases, cost of conversion, appropriate share of fixed production overheads based on normal operating capacity and other related cost incurred in bringing the inventories to their present condition.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Slow and nonmoving material, obsolesces, defective inventory are fully provided for and valued at net realisable value. Goods and material in transits are valued at cost incurred upto to the date of balance sheet.
5) Retirement and other employee benefits:
Defined contribution plans
Payments to defined contribution plans are charged as an expense as they fall due. Payments made to state
managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Company''s obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.
Defined benefit plans
For defined benefit retirement schemes the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuation being carried out at each balance sheet date. Remeasurement gains and losses of the net defined benefit liability/ (asset) are recognised immediately in other comprehensive income. The service cost and net interest on the net defined benefit liability/ (asset) is treated as a net expense within employment costs. Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when any related restructuring costs or termination benefits are recognised, whichever is earlier. The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as reduced by the fair value plan assets. Compensated absences
Accumulated compensated absences which are expected to be availed or encashed within twelve months from the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlements as at the year end. Accumulated compensated absences which are expected to be availed or encashed beyond twelve months from the year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial loss/gains are recognised in the Statement of Profit and Loss in the year in which they arise. Short-term Employee Benefits (i.e. benefits payable within one year) are recognised in the period in which employee services are rendered.
6) Foreign Currency Transactions:
Transaction denominated in foreign currencies is recorded at the exchange rate that approximates the actual rate prevailing at the date of the transaction. Monetary item denominated in foreign currency remaining unsettled at the year end are translated at year end rates. Differences arising on settlement or conversion of monetary items are recognised in statement of profit and loss. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transactions. The premium in case of forward contracts is dealt with in the Profit and Loss Account proportionately over the period of contracts. The exchange differences arising on settlement/translation are dealt with in the Statement of Profit and Loss.
7) Leases (as a lessee):
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, company''s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following: -
⢠Fixed payments, including in-substance fixed payments;
⢠Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
⢠Amounts expected to be payable under a residual value guarantee; and
⢠The exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of -use asset has been reduced to zero.
The Company presents right-of-use assets that do not meet the definition of investment property in ''property, plant and equipment'' and lease liabilities in ''loans and borrowings'' in the statement of financial position.
8) Income Taxes:
Income tax expense comprises of current tax expense and deferred tax expenses.
Current and deferred taxes are recognised in Statement of Profit and Loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity, respectively.
Current Income Tax:
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act of the respective jurisdiction. The current tax is calculated using tax rates that have been enacted or substantively enacted, at the reporting date.
Deferred tax:
Deferred tax is recognised for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred tax liabilities are recognised for all taxable temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current
tax assets and liabilities and when the deferred tax balances related to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on net basis, or to realise the asset and settle the liability simultaneously.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled.
Borrowing costs include interest, other costs incurred in connection with borrowing and exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to the interest cost. General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Premium in the form of fees paid on refinancing of loans are accounted for as an expense over the life of the loan using effective interest rate method. All other borrowing costs are recognised in the Statement of profit and loss in the period in which they are incurred.
10) Provisions and Contingent Liabilities and Contingent AssetsProvisions:
Provisions for legal claims, chargeback and sales returns are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.
Contingent Liabilities:
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that
an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Contingent Assets
Contingent Assets are not recognised in the financial statements. Contingent Assets if any, are disclosed in the notes to the financial statements
Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 01, 2022, as below:
Ind AS 103 - Reference to Conceptual Framework
The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements. Ind AS 16 - Proceeds before intended use The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the Company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.
Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract
The amendments specify that that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.
Ind AS 109 - Annual Improvements to Ind AS (2021)
The amendment clarifies which fees an entity includes when it applies the ''10 %'' test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements. Ind AS 116 - Annual Improvements to Ind AS (2021) The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.
12) Financial assets, financial liabilities and equity instruments
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured 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 profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.
The Company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. The Company derecognises financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired.
Cash and cash equivalents
The Company considers all highly liquid investments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding and selling financial assets. The Company has made an irrevocable election to present subsequent changes in the fair value of equity investments not held for trading in other comprehensive income.
Financial assets at fair value through profit or loss Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in statement of profit and loss.
Investment in subsidiaries
Investment in subsidiaries are measured at cost less impairment loss, if any.
Financial liabilities
Financial liabilities are measured at amortised cost using the effective interest method.
Equity instruments
An equity instrument is a contract that evidences residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received net of direct issue cost.
Mar 31, 2018
Corporate Information:
Aarti Drugs Limted (âthe Companyâ) is a public limited Company incorporated and domiciled in India. Its equity shares are listed on BSE Limited and National Stock Exchange of India Limited. The registered office of Company is located at Plot No N-198, M.I.D.C, Tarapur, Village-Pamtermbhi, Dist. Palghar, Maharashtra - 401506 and is incorporated under the provisions of the Companies Act, 1956, applicable in India.
The Company is primarily involved in manufacturing and marketing of Active Pharmaceutical Ingredients (API), Pharma Intermediates and Specialty Chemicals.
Note: 1 Significant Accounting Policies and Key Accounting Estimates and Judgments 1) Basis of preparation:
These financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind-AS) notified under the Companies (Indian Accounting Standards) Rules, 2015. These financial statements for the year ended 31st March, 2018 are the first Ind-AS Financial Statements prepared in accordance with Ind-AS.
For periods up to and including the year ended 31st March,
2017, the Company prepared its financial statements in accordance with accounting standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAPâ).
The Accounts for the year ended 31st March, 2017 and quarter ended 30th June, 2017 were audited by previous auditor - M/s. Gokhale & Sathe, Chartered Accountants.
The financial statements are presented in Indian Rupees which is the functional currency of the company and all values are rounded to the nearest lakhs, except when otherwise indicated.
2) Revenue recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
(i) Sale of goods: Revenue from sale of goods is recognized on dispatch (in respect of exports on the date of the bill of lading or airway bill) which coincides with transfer of significant risks and rewards to customer and is net of trade discounts, sales returns, where applicable and recognized based on the terms of the agreements entered into with the customers.
(ii) Interest Income: Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principle 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.
(iii) Dividend income: Revenue is recognized when the Companyâs right to receive the payment is established, which is generally when shareholders approve the dividend.
(iv) Export benefits: Export incentives are recognized 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.
3) Property, plant and equipment:
All items of property, plant and equipment other than Leasehold Land are stated at cost less accumulated depreciation and impairment loss, if any.
Cost includes cost of acquisition, installation or construction, other direct expenses incurred to bring the assets to its working condition and finance costs incurred up to the date the asset is ready for its intended use and excludes cenvat / value added tax / Goods and Services Tax (GST) eligible for credit / setoff.
When significant parts of plant and equipment are required to be replaced at intervals, the same are depreciated separately based on their specific useful lives. All other repair and maintenance costs are recognized in the statement of profit or loss as incurred.
Capital work-in-progress in respect of assets which are not ready for their intended use are carried at cost, comprising of direct costs, related incidental expenses and attributable interest.
Capital expenditure on property, plant and equipment for research and development is classified under property, plant and equipment and is depreciated on the same basis as other property, plant and equipment.
Property, plant and equipment are eliminated from financial statements, either on disposal or when retired from active use. Losses arising in the case of the retirement of property, plant and equipment and gains or losses arising from disposal of property, plant and equipment are recognized in the statement of profit and loss in the year of occurrence.
Intangible Assets:
Intangible assets are recognized when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the assets can be measured reliably.
Intangible assets are stated at cost or acquisition less accumulated amortisation and impairment loss, if any.
Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.
Software is amortized over their estimated useful life on straight line basis from the date they are available for intended use, subject to impairment test.
The amortisation period and the amortization method for an intangible assets with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate and are treated as changes in accounting estimates.
Gains or losses arising from derecognition of an intangible assets 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 assets is derecognized.
Research and Development:
Revenue expenditure on Research and Development is recognized as expense in the year in which it is incurred.
Capital expenditure on Research and Development is included as part of fixed assets and depreciation is provided on the same basis as for other fixed assets.
Depreciation:
Depreciable amount of all items of property, plant and equipment other than Land is the cost of an asset or other amount substituted for cost, less its estimated residual value. Property, plant and equipment is provided on straight line method, over the useful life of the assets, as specified in Schedule II to the Companies Act, 2013.
Property, plant and equipment which are added / disposed off during the year, depreciation is provided on pro-rata basis.
The assetâs residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively; if appropriate an assetâs carrying amount is written down immediately to its recoverable amount if the assetâs carrying amount is greater than its estimated recoverable amount. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.
4) Financial Instrument:
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial Assets:
Classification:
The Company classifies financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss, on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.
Initial recognition and measurement
All financial assets 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. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e. the date that the Company commits to purchase or sell the asset.
Subsequent measurement:
For the purpose of subsequent measurement financial assets are classified in two broad categories:
- Financial assets at fair value ( FVTPL /FVTOCI)
- Financial assets at amortized cost
When assets are measured at fair value, gains and losses are either recognized in the statement of profit and loss (i.e. fair value through profit or loss (FVTPL)) or recognized in other comprehensive income (i.e. fair value through other comprehensive income (FVOCI)).
Financial Assets measured at amortized cost (net of write down for impairment, if any):
Financial assets are measured at amortized cost when 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. Such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method less impairment, if any. The losses arising from impairment are recognized in the Statement of profit and loss.
Financial Assets measured at Fair Value Through Other Comprehensive Income (âFVTOCI"):
Financial assets under this category are measured initially as well as at each reporting date at fair value, when asset is held within a business model, whose objective is to hold assets for both collecting contractual cash flows and selling financial assets. Fair value movements are recognized in the other comprehensive income.
Financial Assets measured at Fair Value Through Profit or Loss (âFVTPL"):
Financial assets under this category are measured initially as well as at each reporting date at fair value with all changes recognized in profit or loss.
Investment in Subsidiary:
Investment in equity instruments of subsidiary is measured as cost as per Ind AS - 27. In the financial statements, investments in subsidiary is carried as cost. The carrying amount is reduced to recognize any impairment in the value of investment.
Investment in Equity Instruments:
Equity instruments which are held for trading are classified as at FVTPL. All other equity instruments are classified as FVTOCI. Fair value changes on the instrument, excluding dividends, are recognized in the other comprehensive income.
Impairment of Financial Assets:
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and recognition of impairment loss on the financial assets that are debt instruments and trade receivables.
5) Inventories:
Raw materials, packing materials, store & spares , Traded goods and Work in progress are valued at cost. The cost of Raw materials, packing materials, store & spares and traded goods includes all cost of purchase, duties and taxes (other than those subsequently recoverable from the tax authorities) and all other cost incurred in bringing the inventory to its present location and conditions. Cost is arrived on moving stock on FIFO basis.
Finished goods are valued at lower of cost and net realizable value. The cost of finished goods and Work in progress have been computed to include all cost of purchases, cost of conversion, appropriate share of fixed production overheads based on normal operating capacity and other related cost incurred in bringing the inventories to their present condition.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. Slow and non-moving material, obsolesces, defective inventory are fully provided for and valued at net realizable value.
Goods and material in transits are valued at cost incurred up to to the date of balance sheet.
6) Retirement and other employee benefits: Provident Fund:
Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related service.
Gratuity Obligations:
The Company operates a defined benefit gratuity plan in India, which requires contributions to be made to a separately administered fund. The cost of providing benefits under the defined benefit plan is determined based on actuarial valuation.
The liability or asset recognized in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Other Benefit Plan:
Leave Encashment Liability in respect of leave encashment becoming due or expected to be availed within one year from the balance sheet date is recognized on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of leave encashment becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary.
7) Foreign Currency Transactions:
Transaction denominated in foreign currencies is recorded at the exchange rate that approximates the actual rate prevailing at the date of the transaction. Monetary item denominated in foreign currency at the yearend are translated at year end rates. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transactions. The premium in case of forward contracts is dealt with in the Profit and Loss Account proportionately over the period of contracts. The exchange differences arising on settlement/translation are dealt with in the Statement of Profit and Loss.
8) Operating Lease:
Operating Lease payments are recognized as an expense in the Profit & Loss Account of the year to which they relate.
9) Income Taxes:
Income tax expense comprises of current tax expense and deferred tax expenses.
Current and deferred taxes are recognized in Statement of Profit and Loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.
Current Income Tax:
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act of the respective jurisdiction. The current tax is calculated using tax rates that have been enacted or substantively enacted, at the reporting date.
Deferred Tax:
Deferred tax is recognized using the Balance Sheet approach on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts. Deferred tax liabilities are recognized for all taxable temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled.
Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent it is reasonably certain that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.
10) Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of cost of the asset. All other borrowing costs are expensed in the period in which they occur.
11) Provisions and Contingent Liabilities: Provisions:
Provisions for legal claims, chargeback and sales returns are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses.
Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the reporting period.
Contingencies:
Disclosure of contingent liabilities 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 possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Mar 31, 2017
a. Basis of Preparation
The financial statement have been prepared and presented under the historical cost convention on as accrual basis of accounting and in accordance with generally accepted accounting principles in India and comply in all material aspects with the applicable accounting standards notified under the relevant provisions of the Companies Act, 2013.
b. Fixed Assets and Depreciation
i) Fixed assets include all expenditure of capital nature and are stated at cost of acquisition, installation and commissioning and related borrowing cost less depreciation. Fixed asset values are stated at historical cost. Depreciation on fixed assets other than land is charged under the straight-line method in accordance with Schedule II of the Companies Act, 2013. Product/Process development costs arising out of R&D are carried forward when their future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortized over the period of expected future economic benefit, from the related project, not exceeding ten years.
ii) Impairment loss indicates the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of the net selling price of an asset or its value in use. Value in use is present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. The Company will recognize such losses whenever they arise.
c. Investments
Investments are classified into Current and Non-Current Investment. Current Investments are valued at lower of cost or fair value. Non- Current Investments are stated at cost. Provisions are made for diminution in value of investments, if any, other than those of temporary nature.
d. Valuation of Inventories
Inventories are stated at lower of cost or net realizable value, on the following basis:
i) Raw materials, packing materials, stores and spares - At cost on FIFO Method
ii) Work in process - At cost plus appropriate allocation of overheads
iii) Finished Goods - At cost plus appropriate allocation of Overheads or net realizable value whichever is lower
e. Retirement Benefits
I In respect of Gratuity and Superannuation fund, the Companyâs contribution to group insurance scheme of Life Insurance Corporation of India & Birla Sun life Insurance Company Ltd are charged against revenue.
II. Provision for incremental liability in respect of encashable privilege leave on separation benefit is made as per independent actuarial valuation at the year end.
f. Revenue Recognition
Revenue is recognized to the extent that probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
- Sales of Goods
Revenue from sale of goods is recognized when significant risks and rewards of ownership of the goods have been passed to the buyer and is stated net of excise duty, sales tax, returns and trade discounts.
- Export Benefits
Export Benefits available under prevalent schemes are accrued in the year in which the goods are exported and are accounted to the extent considered receivable.
- Interest income is recognized using the time proportionate method, based on rates implicit in the transaction.
- Dividend income is recognized when the right to receive is established.
g. Borrowing Cost
Borrowing costs that are directly attributable to acquisition construction, or production of qualifying assets are capitalized as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other borrowing costs are recognized as an expense in the period in which they are incurred.
h. Foreign Currency Transactions
Transaction denominated in foreign currencies is recorded at the exchange rate that approximates the actual rate prevailing at the date of the transaction. Monetary item denominated in foreign currency at the yearend are translated at year end rates. Non monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transactions. The premium in case of forward contracts is dealt with in the Profit and Loss Account proportionately over the period of contracts. The exchange differences arising on settlement/translation are dealt with in the Statement of Profit and Loss.
i. Research & Development Expenditure:
Revenue expenditure on Research and Development is recognized as expense in the year in which it is incurred.
Capital expenditure on Research and Development is included as part of fixed assets and depreciation is provided on the same basis as for other fixed assets.
j. Income Tax
Tax expenses comprise of current tax and deferred tax, current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act.
Deferred income taxes reflect the impact of timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted as at the Balance Sheet date.
k. Leases
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are recognized as operating lease. Operating Lease payments are recognized as an expense in the Profit and Loss Account of the year to which they relate.
24.2 Contingent Liabilities:
a. In respect of bank guarantees issued and L/C opened by the Companyâs bankers Rs.1894.99/- Lakhs (As at 31st March, 2016 Rs.3785.03 Lakhs)
b. Demand in respect of additional income tax disputed in appeal Rs.293.25/- Lakhs (As at 31st March, 2016 Rs.351.41/- Lakhs) ,sales tax demand Rs.15.18/- Lakhs (As at 31st March, 2016 Rs.15.18/- Lakhs) and demand in respect of additional Excise, custom duty, service tax, fine & penalty in appeal Rs.66.73/- Lakhs ( As at 31st March, 2016 Rs.38.88/- Lakhs)
c. Liability for duty on raw material imported under advance license benefit scheme against which export obligation remained to be fulfilled Rs.260.52/- Lakhs (As at 31st March, 2016 Rs.259.45/- Lakhs)
d. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs.177.09/- Lakhs.( As at 31st March, 2016 Rs.303.49/- Lakhs)
e. The Company has given corporate guarantee for borrowing facilities of Rs.3565/- Lakhs from The Saraswat Co-Op. Bank Limited for its only subsidiary Pinnacle Life Science Private Ltd. ( As at 31st March, 2016 Rs.1854.00/- Lakhs)
Note:
1) Above term loan are secured by pari-passu first charge by way of mortgage of immovable properties and hypothecation of moveable fixed assets, both present and future situated at MIDC Boisar, viz Plot No N-198, G-60, E-1, E9/3, E9/4, E21, E22, E120, K-40, K-41 W-60(B), W61(B),W62(A),W71(B),W72(B)W73(B) & T-150 and MIDC Turbhe Plot No D-277 & D-278 in Maharashtra and at GIDC, Sarigam, Bhilad- Gujarat Viz. Plot No 2902, 2904, 211,13, 2601, 2602, 2603, 2520, 2522 and 3325. The working Directors of the Company have personally guaranteed corporate loan of Rs.416.00 Lakhs (Previous Year Rs.1,516.40) from State Bank of India.
2) Loan from Kotak Mahindra Bank, Standard Chartered Bank, The Shamrao Vithal Co-op Bank Ltd is also secured by second charge on current assets of the Company both present and future.
b. Loans from Scheduled Banks Payable on Demand of Rs.13,079.42 lakhs (Previous Year Rs.15,004.37) are secured by hypothecation of Companyâs raw materials stock, stock-in-process, finished goods, packing materials, stores & spares, book debts, and all other current assets including goods in transit governed by documents of title and also pari-passu second charge by way of mortgage of immovable properties and hypothecation of movable fixed assets. both present and future situated at MIDC Boisar, Maharashtra viz. Plot No N-198, G-60, E-1, E9/3, E9/4, E21, E22, E120, K-40, K-41 W-60(B), W61(B),W62(A),W71(B),W72(B)W73(B) & T-150 and MIDC Turbhe Plot No D-277 & D-278 in Maharashtra and at GIDC, Sarigam, Bhilad- Gujarat Viz. Plot No 2902, 2904, 211,13, 2601, 2602, 2603, 2520, 2522 and 3325.
24.4. The Company has foreign exchange exposure because of its trade related (export/import) fund related function. The Company uses forward contracts, Options and Swaps to hedge against its foreign exchange exposures relating to underlying transactions. The Company does not enter into any derivatives instruments for trading or speculation purposes. During the year ended 31.03.2017, the Company had hedge in aggregate an amount of Rs.34,800.84/-Lakhs (previous year Rs.28,728.66/-Lakhs) out of its annual trade related operations (export& import) aggregating to Rs.81,033.65/-Lakhs (previous year Rs.80,179.21/-Lakhs) after considering natural hedge.
24.5. There are no Micro and Small Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2017. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.
24.6. In the opinion of the Board, the Current Assets and Loans and Advances have a value on realization at least equal to the amounts at which they are stated in the Balance Sheet.
24.7 Segment-wise Disclosure as per Accounting Standard: 17.
I BUSINESS SEGMENTS AS PRIMARY SEGMENTS
The Company is considered to be a single segment Company engaged in pharmaceuticals business, hence the disclosure requirement as per AS-17 âBusiness Segments as Primary Segmentâ is not attracted.
Segmental capital employed:
Fixed assets used in the Companyâs business or liabilities contracted have not been identified to any of the reportable segments, as the fixed assets and services are used interchangeably between segments. The Company believes that currently it is not practicable to provide segment disclosures relating to total assets and liabilities.
24.8 Related party transactions:
Related party transactions disclosure as required by Accounting Standard - 18. âRelated Party Disclosuresâ issued by The Institute of Chartered Accountants of India are given below:
A. Name and Relationship of the Related Parties:
3(a) Subsidiary - Wholly owned
Pinnacle Life Science Private Ltd.
3(c) Individuals owning directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise and relatives of such individual.
3(e) Enterprise/firms over which controlling individuals have significant influence.
- Aarti Industries Ltd.
- Rupal Drugs LLP
- Alchemie Gases & Chemicals Pvt. Ltd.
- Alchemie Financial Services Ltd.
- Alchemie Laboratories
Note: Sr. 3(a), 3(c),3(d),3(e) refer to the relevant Paraâs of AS 18.
24.20. Proposed Dividend:
Board of Directors in its meeting held on 23rd May, 2017, recommended a final dividend of Rs.1 /- per equity share for the financial year ended 31st March, 2017. The recommendation is subject to the approval of the shareholders at forthcoming Annual General Meeting and if approved, would result in a cash outflow of approximately Rs.287.14 (in lakhs) including corporate dividend tax.
24.21. Figures of the previous year have been regrouped and rearranged wherever necessary.
Mar 31, 2014
A. recognition of Income and expenditure
These accounts are prepared under the historical cost convention on
accrual basis and under the going concern assumption in accordance with
the accounting principles generally accepted in India and the relevant
provisions of the Companies Act, 1956.
b. Fixed assets and depreciation
i) Fixed assets include all expenditure of capital nature and are
stated at cost of acquisition, installation and commissioning and
related borrowing cost less depreciation. Fixed asset values are stated
at historical cost. Depreciation on fixed assets other than land is
charged under the straight-line method in accordance with Schedule XIv
of the Companies Act, 1956. Product/Process development costs arising
out of R&D are carried forward when their future recoverability can
reasonably be regarded as assured. Any expenditure carried forward is
amortized over the period of expected future economic benefit, from the
related project, not exceeding ten years.
ii) Impairment loss indicates the carrying amount of assets exceeds
their recoverable amount. Recoverable amount is higher of the net
selling price of an asset or its value in use. value in use is present
value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its
useful life. The Company will recognize such losses whenever they
arise.
c. Investments
Long Term Investments are stated at cost. Provisions are made for
diminution in value of investments, if any, other than those of a
temporary nature.
d. Valuation of Inventories
Inventories are stated at lower of cost or net realisable value, on the
following basis:
i) Raw materials, packing
materials, stores and spares  At cost on FIFO Method
ii) Work in process  At cost plus appropriate allocation
of overheads
iii) Finished Goods  At cost plus appropriate allocation
of overheads or net
realizable value whichever is lower
e. Retirement Benefits
I. In respect of Gratuity and Superannuation fund, the Company''s
contribution to group insurance scheme of Life Insurance Corporation of
India are charged against revenue.
II. Provision for incremental liability in respect of encashable
privilege leave on separation benefit is made as per independent
actuarial valuation at the year end.
f. revenue recognition
Revenue is recognized to the extent that it can be reliably measured
and is probable that the economic benefit will flow to the Company
- Sale of Goods :
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership of the goods are transferred to the customer and
is stated net of excise duty, sale returns and VAT.
- Export Benefits :
Export benefits available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
g. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a Qualifying asset are capitalized as
part of the cost of that asset. The amounts of borrowing cost eligible
for capitalization are determined in accordance with Accounting
Standard-16. Other borrowing cost are recognized as an expense in the
period in which they are incurred.
h. Foreign Currency Transactions
All exchange differences arising from foreign currency transactions are
dealt with in the Company''s profit and loss account.
i. research & Development Expenditure
Revenue Expenses are accounted under the head "Research & Development"
and Capital Expenses are Accounted under the head Fixed Assets.
j. Deferred Taxation
Deferred tax is recognised on timing difference between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted on the Balance Sheet
date.
Mar 31, 2013
A. Recognition of Income and expenditure
These accounts are prepared under the historical cost convention on
accrual basis and under the going concern assumption in accordance with
the accounting principles generally accepted in India and the relevant
provisions of the Companies Act, 1956.
b. Fixed assets and depreciation
i) Fixed assets include all expenditure of capital nature and are
stated at cost of acquisition, installation and commissioning and
related borrowing cost less depreciation. Fixed asset values are stated
at historical cost. Depreciation on fixed assets other than land is
charged under the straight-line method in accordance with Schedule XIV
of the Companies Act, 1956. Product/Process development costs arising
out of R&D are carried forward when their future recoverability can
reasonably be regarded as assured. Any expenditure carried forward is
amortized over the period of expected future economic benefit, from the
related project, not exceeding ten years.
ii) Impairment loss indicates the carrying amount of assets exceeds
their recoverable amount. Recoverable amount is higher of the net
selling price of an asset or its value in use. Value in use is present
value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its
useful life. The Company will recognize such losses whenever they
arise.
c. Investments
Long Term Investments are stated at cost. Provisions are made for
diminution in value of investments, if any, other than those of a
temporary nature.
d. Valuation of Inventories
Inventories are stated at lower of cost or net realisable value, on the
following basis: i) Raw materials, packing materials, stores and spares
- At cost on FIFO Method
ii) Work in process - At cost plus appropriate allocation of overheads
iii) Finished Goods -At cost plus appropriate allocation of Overheads
or net realizable value Whichever is lower
e. Retirement Benefits
I In respect of Gratuity and Superannuation fund, the Company''s
contribution to group insurance scheme of Life Insurance Corporation of
India are charged against revenue.
II. Provision for incremental liability in respect of encashable
privilege leave on separation benefit is made as per independent
actuarial valuation at the year end.
f. Revenue Recognition
Revenue is recognized to the extent that it can be reliably measured
and is probable that the economic benefit will flow to the Company
- Sale of Goods :
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership of the goods are transferred to the customer and
is stated net of excise duty, sale returns and VAT.
- Export Benefits :
Export benefits available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
g. Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a Qualifying asset are capitalized as
part of the cost of that asset. The amounts of borrowing cost eligible
for capitalization are determined in accordance with Accounting
Standard-16. Other borrowing cost are recognized as an expense in the
period in which they are incurred
h. Foreign Currency Transactions
All exchange differences arising from foreign currency transactions are
dealt with in the Company''s profit and loss account.
i. Research & Development Expenditure:
Revenue Expenses are accounted under the head "Research & Development"
and Capital Expenses are Accounted under the head Fixed Assets.
j. Deferred Taxation
Deferred tax is recognised on timing difference between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted on the Balance Sheet
date.
Mar 31, 2012
A) Recognition of Income and expenditure
These accounts are prepared under the historical cost convention on
accrual basis and under the going concern assumption in accordance with
the accounting principles generally accepted in India and the relevant
provisions of the Companies Act, 1956.
b) Fixed assets and depreciation
i) Fixed assets include all expenditure of capital nature and are
stated at cost of acquisition, installation and commissioning and
related borrowing cost less depreciation. Fixed asset values are stated
at historical cost. Depreciation on fixed assets other than land is
charged under the straight-line method in accordance with Schedule XIV
of the Companies Act, 1956. Product/Process development costs arising
out of R&D are carried forward when their future recoverability can
reasonably be regarded as assured. Any expenditure carried forward is
amortized over the period of expected future economic benefit, from the
related project, not exceeding ten years.
ii) Impairment loss indicates the carrying amount of assets exceeds
their recoverable amount. Recoverable amount is higher of the net
selling price of an asset or its value in use. Value in use is present
value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its
useful life. The Company will recognize such losses whenever they
arise.
c) Investments
Long Term Investments are stated at cost. Provisions are made for
diminution in value of investments, if any, other than those of a
temporary nature.
d) Valuation of Inventories
Inventories are stated at lower of cost or net realisable value, on the
following basis:
i) Raw materials, packing materials, stores and spares - At cost on
FIFO Method
ii) Work in process - At cost plus appropriate allocation of Overheads
iii) Finished Goods - At cost plus appropriate allocation of Overheads
or net realizable value, Whichever is lower
e) Retirement Benefits
1 In respect of Gratuity and Superannuation fund, the Company's
contribution to group insurance scheme of Life Insurance Corporation of
India are charged against revenue.
II. Provision for incremental liability in respect of encashable
privilege leave on separation benefit is made as per independent
actuarial valuation at the year end.
f) Revenue Recognition
Revenue is recognized to the extent that it can be reliably measured
and is probable that the economic benefit will flow to the Company
1. Sale of Goods :
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership of the goods are transferred to the customer and
is stated net of excise duty, sale returns and VAT.
2 Export Benefits :
Export benefits available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
g) Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a Qualifying asset are capitalized as
part of the cost of that asset. The amount of borrowing cost eligible
for capitalization are determined in accordance with Accounting
Standard -16. Other borrowing cost are recognized as an expense in the
period in which they are incurred
h) Foreign Currency Transactions
All exchange differences arising from foreign currency transactions are
dealt with in the Company's statement of profit and loss.
i) Research & Development Expenditure:
Revenue Expenditure are accounted under the head "Research &
Development" and Capital Expenditure are Accounted under the head Fixed
Assets.
j) Deferred Taxation
Deferred tax is recognised on timing difference between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted on the Balance Sheet
date.
Mar 31, 2011
A) Recognition of Income and expenditure
These accounts are prepared under the historical cost convention on
accrual basis and under the going concern assumption in accordance with
the accounting principles generally accepted in India and the relevant
provisions of the Companies Act, 1956.
b) Fixed assets and depreciation
i) Fixed assets include all expenditure of capital nature and are
stated at cost of acquisition, installation and commissioning and
related borrowing cost less depreciation. Fixed asset values are stated
at historical cost. Depreciation on fixed assets other than land is
charged under the straight-line method in accordance with Schedule XIV
of the Companies Act, 1956. Product/Process development costs arising
out of R&D are carried forward when their future recoverability can
reasonably be regarded as assured. Any expenditure carried forward is
amortised over the period of expected future economic benefit, from the
related project, not exceeding ten years.
ii) Impairment loss, indicates the carrying amount of assets exceeds
their recoverable amount. Recoverable amount is higher of the net
selling price of an asset or its value in use. Value in use is present
value of estimated future cash flows expected to arise from the
continuing use of an asset and from its disposal at the end of its
useful life. The Company will recognize such losses whenever they
arise.
c) Investments
Long Term Investments are stated at cost. Provisions are made for
diminution in value of investments, if any, other than those of a
temporary nature.
d) Valuation of Inventories
Inventories are stated at lower of cost or net realisable value, on the
following basis:
i) Raw materials, packing materials,
stores and spares - At cost on FIFO Method
ii) Work-in-process - At cost plus appropr
iate allocation of
overheads
iii) Finished Goods - At cost plus appropr
iate allocation of
overheads or net
realizable value,
whichever is lower
e) Retirement Benefits
1 In respect of Gratuity and Superannuation fund, the Company's
contribution to group insurance scheme of Life Insurance Corporation of
India are charged against revenue.
II. Provision for incremental liability in respect of encashable
privilege leave on separation benefit is made as per independent
actuarial valuation at the year end.
f) Revenue Recognition
Revenue is recognized to the extent that it can be reliably measured
and is probable that the economic benefit will flow to the Company.
1. Sale of Goods :
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership of the goods are transferred to the customer and
is stated net of excise duty, sale returns and VAT.
2 Export Benefits :
Export benefits available under prevalent schemes are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
g) Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. The amount of borrowing cost eligible
for capitalization are determined in accordance with Accounting
Standard -16. Other borrowing cost are recognized as an expense in the
period in which they are incurred.
h) Foreign Currency Transactions
All exchange differences arising from foreign currency transactions are
dealt with in the Company's profit and loss account.
i) Research & Development Expenditure
Revenue Expenses are accounted under the head ÃResearch & DevelopmentÃ
and Capital Expenses are Accounted under the head Fixed Assets.
j) Deferred Taxation
Deferred tax is recognised on timing difference between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted on the Balance Sheet
date.
Mar 31, 2010
A) Recognition of Income and expenditure
These accounts are prepared under the historical cost convention on
accrual basis and under the going concern assumption in accordance with
the accounting principles generally accepted in India and the relevant
provisions of the Companies Act, 19S6.
b) Fixed assets and depreciation
i) Fixed assets include all expenditure of capital nature and are
stated at cost of acquisition, installation and commissioning and
related borrowing cost less depreciation. Fixed asset values are stated
at historical cost. Depreciation on fixed assets other than land is
charged under the straight-line method in accordance with Schedule XIV
of the Companies Act, 1 956. Product/Process development costs arising
out of R&D are carried forward when their future recoverability can
reasonably be regarded as assured. Any expenditure carried forward is
amortised over the period of expected future economic benefit, from the
related project, not exceeding ten years.
ii) Impairment loss, if any, is provided to the extent, the carrying
amount of assets exceeds their recoverable amount. Recoverable amount
is higher of the net selling price of an asset or its value in use.
Value in use is present value of estimated future cash flows expected
to arise from the continuing use of an asset and from its disposal at
the end of its useful life.
c) Investments
Long Term Investments are stated at cost. Provisions are made for
diminution in value of investments, if any, other than those of a
temporary nature.
d) Valuation of Inventories
Inventories are stated at lower of cost or net realisable value, on the
following basis:
i) Raw materials, packing materials, stores and spares
- At cost on FIFO Method
ii) Work in process - At cost plus appropriate allocation of overheads
iii) Finished Goods . - At cost plus appropriate allocation of
overheads
or net realizable value, whichever is lower
e) Retirement Benefits
I. In respect of Gratuity and Superannuation fund, the Companys
contribution to group insurance scheme of Life Insurance Corporation of
India are charged against revenue.
II. Provision for incremental liability in respect of encashable
privilege leave on separation benefit is made as per independent
actuarial valuation at the year end.
f) Revenue Recognition
Revenue is recognized to the extent that it can be reliably measured
and is probable that the economic benefit will flow to the Company.
1. Sale of Goods
Revenue from sale of goods is recognized when the significant risks and
rewards of ownership of the goods are transferred to the customer and
is stated net of excise duty, sale returns and VAT.
2. Export Benefits
Export benefits available under prevalent schemes, are accrued in the
year in which the goods are exported and are accounted to the extent
considered receivable.
g) Borrowing Cost
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying asset are capitalized as
part of the cost of that asset. The amount of borrowing cost eligible
for capitalization are determined in accordance with Accounting
Standard -16. Other borrowing cost are recognized as an expense in the
period in which they are incurred.
h) Foreign Currency Transactions
All exchange differences arising from foreign currency transactions are
dealt with in the Companys profit and loss account.
i) Research & Development Expenditure
Revenue Expenses are accounted under the head "Research & Development"
and Capital Expenses are Accounted under the head Fixed Assets.
j) Deferred Taxation
Deferred tax is recognised on timing difference between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantially enacted on the Balance Sheet
date.
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Aarti Drugs Ltd. ಹೆಚ್ಚಿನ ಮಾಹಿತಿ
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Aarti Drugs Ltd. ಟೂಲ್ಸ್
- ಬಲ್ಕ್ ಡೀಲ್ಸ್
-
Aarti Drugs Ltd. ಕಂಪನಿಯ ವಿವರಗಳು
- ಕಂಪನಿ ಪ್ರೋಫೈಲ್
- ಕಂಪನಿ ಇತಿಹಾಸ
- ಆಡಳಿತ ಮಂಡಳಿ
- ಬಂಡವಾಳದ ಬಗೆ
- ಉತ್ಪನ್ನ
- ಬ್ಯಾಂಕರ್ಸ್/ಅಡಿಟರ್ಸ್/ರೆಜಿಸ್ಟರ್ಸ್
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ಕಂಪನಿ ಇತಿಹಾಸ
- ಬೋನಸ್
- ಬಿಎಸ್ಇ ಧಾರಣೆ ಇತಿಹಾಸ
- ಎನ್ಎಸ್ಇ ಧಾರಣೆ ಇತಿಹಾಸ
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Aarti Drugs Ltd. ಹಣಕಾಸು ಅನುಪಾತದ ಲೆಕ್ಕ
- ಅನುಪಾತ
-
Aarti Drugs Ltd. ಫಲಿತಾಂಶ
- ತ್ರೈಮಾಸಿಕ ಫಲಿತಾಂಶ
- ಅರ್ಧವಾರ್ಷಿಕ ಫಲಿತಾಂಶ
- ಒಂಭತ್ತು ತಿಂಗಳ ಫಲಿತಾಂಶ
- ವಾರ್ಷಿಕ ವರದಿ
-
Aarti Drugs Ltd. ಹಣಕಾಸು ಡಾಟಾ
- ಅಡಿಟ್ ಫಲಿತಾಂಶ
- ಹಣದ ಹರಿವು
- ಬ್ಯಾಲೆನ್ಸ್ ಶೀಟ್
-
Aarti Drugs Ltd. ವರದಿಗಳು
- ಅಕೌಂಟಿಂಗ್ ಪಾಲಿಸಿ
- ಅಡಿಟರ್ಸ್ ವರದಿ
- ನಿರ್ದೇಶಕರ ವರದಿ
- ಖಾತೆಗೆ ಮುಖ್ಯ ವಿಚಾರ
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Aarti Drugs Ltd. ಕಾರ್ಪೋರೇಟ್ ವರದಿಗಳು
- ಬುಕ್ ಕ್ಲೋಸರ್
- ಡಿವಿಡೆಂಡ್
- ಬೋರ್ಡ್ ಮೀಟಿಂಗ್
