NOTE 1 - CORPORATE INFORMATION
Bhandari Hosiery Exports Limited (BHEL) is a public limited Company incorporated under the provisions of
Companies Act, 2013, The CIN of Company is L17115PB1993PLC013930 and Registered Office of company is
situated in Punjab at Bhandari House, Village Meharban, Rahon Road, Ludhiana. The Company is listed at BSE
Limited (BSE) and National Stock Exchange of India Limited (NSE). The Company does not have any subsidiary
company. The Company is into Textiles and is a garment manufacturing company having vertical production
facility to produce High Fashion Knitted Garments. With more than 30 years' experience and state of art
manufacturing facilities, BHEL manufactures garments of leading international and overseas brands and some
overseas retail chains in the international market. BHEL has presence in around many countries including
quality conscious markets like USA, European Union etc.
The company is engaged in manufacture of knitted fabrics Kora and dyed and is also in the manufacture and
export of knitted hosiery garments such as T-Shirts, Pullovers, Sweat Shirts, Bermudas, Polo Shirts, Track Suits,
Pajamas, Lowers, Ladies Knitted Tops with embroidery and prints etc. and manufacture, processing and
trading of dyed and non-dyed fabrics at domestic and international levels. The Company confirms to
International standards in Human Recourses Practices and adopts Eco-friendly standards in production.
NOTE 2 - ACCOUNTING POLICIES
ACCOUNTINGPOLICIES
Basis of Accounting:
The accounts of the Company are prepared on accrual basis under the historical cost convention in accordance
with the Generally Accepted Accounting Principles in India and the provisions of the Companies Act, 2013.
Basis of Preparation of Financial Statements:
The financial statements of the company have been prepared in accordance with the Indian Accounting
Standards in India (Ind AS). The Company has prepared these financial statements to comply in all material
respects with the Companies (Accounts) Rules 2014 and there relevant provisions of the Companies Act, 2013.
The financial statements have been prepared on an accrual basis and under the historical cost convention. The
accounting policies adopted in the preparation of financial statements are consistent with those of previous
year. The company has reclassified the previous year figures in accordance with the requirements applicable in
the current year wherever required.
Use of Estimates
The preparations of financial statements requires the management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of
the financial statements and the reported income and expenses during the reporting period. The estimates and
assumptions used in the financial statements are based upon the Management's evaluation of the relevant
facts and circumstances as on the date of financial statements. Management believes that the estimates used
in the preparation of the financial statements are prudent and reasonable. Future results may vary from these
estimates.
Revenue Recognition:
As per IND AS 115, the company recognises revenue when (or as) the entity satisfies a performance obligation
by transferring a promised good or service (ie an asset) to a customer. An asset is transferred when (or as) the
customer obtains control of that asset.
Claims and Benefits: Insurance and other claims are accounted for to the extent realized, as the ultimate
collection thereof is uncertain at the time of raising the claim.
Opening Stock, Purchases, Sales and Closing stock are stated at net value excluding VAT/Goods and Services
tax(GST). Any amount payable/receivable towards VAT/GST is shown in the Balance Sheet under the head
Current Liabilities/Current Assets.
Property/ Plant & Equipment's:
Property, plant and equipment are stated at cost, less accumulated depreciation. The Cost of an item of
Property, Plant and Equipment comprises:
Its purchase price including import duties and non-refundable purchase taxes after deducting trade discounts
and rebates.
Any attributable expenditure directly attributable for bringing an asset to the location and the working
condition for its intended use and
The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is
located the obligation for which an entity incurs either when the item is acquired or as a consequence of
having used the item during a particular period for purposes other than to produce inventories during that
period.
Depreciation is provided on Straight Line Method on the basis of useful lives of such assets specified in
Schedule II to the Companies Act, 2013 except the assets costing^Rs. 5000/-or below on which depreciation is
charged @ 100% per annum on proportionate basis.
Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet
date is classified as capital advances under other non-current assets and the cost of assets not put to use
before such date are disclosed under 'Capital work-in-progress'. Subsequent expenditures relating to property,
plant and equipment is capitalized only when it is probable that future economic benefits associated with
these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance
costs are recognized in net profit in the statement of profit and loss when incurred. The cost and related
accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset
and the resultant gains or losses are recognized in the statement of profit and loss. Assets to be disposed off
are reported at the lower of the carrying value or the fainvalueless cost to sell.
Depreciation: i j
Depreciation is provided on Straight Line Method on the basis of useful lives of such assets as specified in
Schedule II of Companies Act, 2013.
Inventories:
Stores and spares and raw material are valued at Cost. Semi-Finished Goods are valued at cost of materials and
labour together with relevant factory overheads or net realizable value, whichever is less. Finished goods are
valued at cost or net realizable value whichever is less. Cost includes materials, direct labour and allocable
overheads.
Borrowing Cost:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as
part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get
Foreign Currency Converslon/Translatlon:
The export sales are converted at the exchange rates prevailing on the date of custom clearance of export bills.
The fluctuations in the exchange rates are accounted for as and when the payment Is received and the amount
is credited/deblted to the respective Sale Account.
In respect of export bills remaining unrealized at the year end against which the payments received in the
subsequent years the difference arising there on is recognized as difference in exchange rates under the head
misc. Income/expenses.
2.3 (a) Sales taxes/VAT/GST liability has been provided for as per the return filed. According to our view there
is no other liability in addition to the liability provided but jn case any additional liability arises at the time of
assessment, the same shall be provided at that time.
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