BHARAT RASAYAN Accounting Policy


The Management has followed appropriate accounting policies consistently. Judgments and estimates are prudently and reasonably used so as to give a true and fair view of the state of affairs of the Company as at 31.03.2017 and of the profit of the Company for the year ended on that date.

1.1 Basis of Preparation of Financial Statements

The financial statements are prepared on accrual basis and under the historical cost convention in accordance with the generally accepted accounting principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The previous year figures have been reworked, regrouped, rearranged and reclassified wherever necessary and also to comply with the requirements of Schedule III and Section 129 of the Companies Act, 2013.

1.2 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements, disclosure of contingent liabilities as on date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

1.3 Fixed Assets - Property, Plant & Equipment (both Tangible and Intangible)

Fixed Assets are stated at cost net of recoverable taxes, less accumulated depreciation and impairment loss, if any. Net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized. Assets which are not ready, their intended use are disclosed under capital working progress.

1.4 Depreciation and Amortization

Depreciation on fixed assets is provided to the extent of depreciable amount on Written Down Value(WDV) method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013.

1.5 Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value and the Management periodically assess using, external and internal sources, whether there is an indication of impairment of any assets. The company foresees no such impairment indication as on the balance sheet date.

1.6 Foreign Currency Transactions

Export/Import Invoices in foreign currencies are recorded at the rate of exchange in force at the time of transactions. Provisions have been made as per Accounting Standard AS-11 issued by the Institute of Chartered Accountants of India for overseas debtors/creditors and other foreign currency commitments / foreign currency in hand for exchange rate difference at the end of the year.

1.7 Investments

Long term investments are valued at their cost including brokerage fees and duty however, if there is decline in the value of investment, other than temporary, the carrying amount of investment is reduced recognizing the decline in the value of each investment. Current investment is valued at Cost or Market price, whichever is lower.

1.8 Inventories

As per practice consistently followed, the consumption of raw materials is net of Cenvat Credit availed.

Items of inventories are measured after providing for obsolescence, if any. Inventory has been valued at lower of cost or net realizable value. All Materials are valued on the basis of FIFO. In the case of finished goods cost comprises material, labour and factory overheads. Goods in process have been valued at raw material cost incurred up to the stage of production plus conversion cost apportioned. All stocks have been certified by the management.

The Company''''s manufacturing units are continuous processing units and are located at remote areas i.e far away from local markets. It needs uninterrupted 24 hours operations of its plants and hence all major spare parts, accessories, components for its huge plants has to be kept in reserve/stock to ensure the uninterrupted 24 hours operation of the plant. With the passage of time and due to fast changing technology, some very old/obsolete Engineering stores and other spares out of it has rare possibility of its use and has a market price at almost scrap value. Keeping in view the above, Engineering stores and other spares are valued at cost or market price whichever is less. This practice is consistently being followed from year after year.

1.9 Revenue Recognition

Sales have been accounted for exclusive of sales tax and are net of returns and discounts. Exports benefits have been accounted for separately. The Export benefits are accrued on the date of export.

The Company follows the Accrual System of Accounting and on assumptions of an ongoing concern. Revenue is recognized only when it can be reliably measured.

Sales does not include captive consumption and stock transfer.

1.10 Employee Benefits

(i) Short-term employee benefits are recognized as an expense in the Statement of Profit and Loss of the year based on report of Actuarial Valuation.

(ii) Long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year based on report of Actuarial Valuation. The expenses are recognized at the present value of the amounts payable determined using actuarial valuation techniques.

1.11 Borrowing Costs

The Company incurred No Borrowing cost attributable to the acquisition or construction of any qualifying asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

1.12 Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.

1.13 Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.14 Operating Cycle

The Normal Operating cycle cannot be identified. It is assumed to have a duration of twelve months as operating cycle.

1.15 Segment Reporting

Based on the guiding principles given in Accounting Standard AS-17 "Segment Reporting" notified in Companies (Accounting Standards) Rules 2006, the Company''''s business segments includes only manufacturing of pesticides-technical, formulations and its Intermediates, hence constitutes one single segment.

b) Rights, preferences and restrictions attached to Equity shares

The Company has one class of equity shares having a par value of ''''10/- per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

*Note: R&D Expenses: The Company is registered as Research & Development Unit (R&D) with Ministry of Science & Technology, Govt. of India, Department of Scientific & Industrial Research, New Delhi, hence eligible for weighted deduction U/S 35(2AB) of the Income Tax Act on expenditure incurred for the purpose. Total expenditure of ''''74,09,111/- (Revenue Expense of ''''73,15,311 (net of depreciation of ''''7,39,590) and Capital Expenditure of ''''93,800/-) are eligible for weighted deduction U/S 35(2AB) of the Income Tax Act, 1961.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at

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