Accounting Policies of BCL Enterprises Ltd. Company

Mar 31, 2024

2.10 Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably
requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. The Company also discloses present obligations
for which a reliable estimate cannot be made. When there is a possible obligation or a present obligation in
respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

2.11 Foreign currency translation

The Company''s financial statements are presented in Indian Rupee, which is also the Company''s functional
currency.

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency
amount the exchange rate between the reporting currency and the foreign currency at the date of the
transaction.

Conversion

Foreign currency monetary items are re-translated using the exchange rate prevailing at the reporting date.
Nonmonetary items, which are measured in terms of historical cost denominated in a foreign currency, are
reported using the exchange rate at the date of the transaction.

Exchange differences

All exchange differences are accounted in the Statement of Profit and Loss.

2.12 Fair value measurement

The Company measures its qualifying financial instruments at fair value on each Balance Sheet date.

Fair value is the price that would be received against sale of an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place in the
accessible principal market or the most advantageous accessible market as applicable.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data is available to measure fair value, maximising the use of relevant observable inputs and minimising the
use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy into Level I, Level II and Level III based on the lowest level input
that is significant to the fair value measurement as a whole. For a detailed information on the fair value
hierarchy, refer note no. 27.

For assets and liabilities that are fair valued in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of
each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy.

2.13 Unless specifically stated to be otherwise, these policies are consistently followed

All financial instruments for which fair value is recognised or disclosed are categorised within the fair
value hierarchy, described as follows, based on the lowest level input that is insignificant to the fair
value measurements as a whole.

Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : valuation techniques for which the lowest level inputs that has a significant effect on the fair
value measurement are observable, either directly or indirectly.

Level 3 : valuation techniques for which the lowest level input which has a significant effect on fair
value measurement is not based on observable market data.

The following table provides the fair value measurement hierarchy of the Company''s assets and
liabilities, other than those whose fair values are close approximations of their carrying values.

For cash and cash equivalents, trade receivables, other receivables, short term borrowing, trade
payables and other current financial liabilities the management assessed that their fair value is
approximate their carrying amounts largely due to the short-term maturities of these instruments.

1 Other Disclosure as per amendment in Schedule-III dated 24th March, 2021.

a) There are no proceedings has been initiated or pending against the entity under the Benami
Transactions (Prohibitions) Act, 1988.

b) Compliance with approved Scheme(s) of Arrangements

There are none Scheme of Arrangements has been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013.

c) Corporate Social Responsibility Expenditure

The provision of Corporate Social Responsibility under section 135 of the Act is applicable to the
company and the company has expended Rs. 17,00,000/- during the year.

d) Details of Crypto Currency or Virtual Currency

The company has not entered in any transaction relating to Crypto Currency or Virtual Currency
during the year.

e) Relationship with Struck off Companies:

The entity has not entered into any transaction with such entities whose name has been stuck off u/s
248 of the Act.

f) Utilization of Borrowings

No borrowings from banks and financial institutions were taken during the year other than OD Limit
on Fixed deposits held as Current Assets.

g) Willful Defaulter

The company has not declared as wilful defaulter.

h) Compliance with number of layers of companies

The company has been complied with the provision relating to layers of companies.

i) Registration of charges or satisfaction with Registrar of Companies:

The company has registered all the charges with Registrar of Companies within the statutory period.

j) Undisclosed income

There is no such income which has not been disclosed in the books of accounts. No such income is
surrendered or disclosed as income during the year in the tax assessments under Income Tax Act,
1961.

37. In the opinion of the Board, all Current Assets, Loans & Advances (Except where indicated otherwise)
collectively have a value on realisation in the ordinary course of business at least equal to the amount
at which they are stated.

38. Loans & Advances as appearing on the assets side of the balance sheet are subject to confirmation.
Any adjustments thereof shall be made on final reconciliation.

39. Provision regarding Provident fund and Gratuity Act, 1972 are not applicable to the company

during the year under reference.

40. The company is engaged in the business of non-banking financial activity. Since all the activities relate
to main activity, in the opinion of the management, there is only one business segment in terms of Ind
AS-108 on Operating Segment issued by ICAI.

41. Referring to Note No. 42 of the financial statements for the year ended March 31, 2022, the company
has received notice dated 02-06-2021 from Directorate of Enforcement, Hyderabad in which this
Central Investigating Agency had sought certain clarifications regarding business transactions during
the year 2020-21.

As per the management, the company had provided necessary details as required by the Central
Investigating Agency. No further communication ha been received from the Central Investigating
Agency.

The management is of an opinion that this is an informative investigation and does not have any
material financial obligation on the company

During the Year Directorate of Enforcement have taken a sum of Rs.19,053/- from one of the Bank
accounts of the company. No details / documents have been received by the company in this matter.
The same has been shown as recoverable. Necessary adjustments shall be made on final disposal of
the matter.

42. Certain Parties to whom Loans have been given are either not paying interest nor they have provided
interest on our account in their books of account as per confirmations received. Necessary efforts by
the company is being made to recover the principal amount along with interest. The total amount of
interest is not ascertained. Interest whenever received shall be adjusted in the books of account
accordingly.

43. Related Party Disclosures:

In accordance with the Accounting Standards (Ind AS-24) on Related Party Disclosure, where control
exists and where key management personnel are able to exercise significant influence and, where
transactions have taken place during the year, along with description of relationship as identified, are
given below:-

vii. Disclosure of complaints : The company has not received any complaints from customers and from

the office of ombudsman during the current year.

In terms of our report of even date annexed For and on behalf of the Board

For Krishan Rakesh & Co. BCL Enterprises Limited

Chartered Accountants
Firm Regn No. 009088N

Sd/- Sd/- Sd/-

KK. Gupta Mahendra Kumar Sharda Umesh Kumar Bajaj

Place: Delhi (Partner) Managing Director Director

Date: 29/05/2024 (m. No. 087891) (DIN: 00053042) (DIN: 02968410)

Sd/- Sd/-

Kishore Kargeti Shyam Lal

Chief Financial Officer Company Secretary

(PAN: AQZPK6943M) & Compliance

Officer

(M. No. A29993)

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Mar 31, 2015

Basis of preparation of financial statements

The financial statements of the Company are prepared and presented under the historical cost convention on the accrual basis of accounting, as a going concern and in accordance with the Companies (Accounting Standards) Rules, 2006 notified by the Central Government, which as per clarification issued by the Ministry of Corporate Affairs continue to apply under Section 133 of the Companies Act ,2013 (which has superseded section 211 (3C) of the Companies Act 1956, w.e.f 12 September 2013),the other provisions of the Companies Act 1956 ( including the new notified sections under Companies Act, 2013, to the extent applicable).The financial statements are presented in Indian rupees rounded off to the nearest thousand. The financial statements are presented as per Revised Schedule III to the Companies Act, 2013. 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 Revised Schedule III to the Companies Act, 2013.

a. Current and non- current classification

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 Revised Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current & non-current classification of assets and liabilities.

Assets

An asset is classified in to current when it satisfies any of the following criteria:

It is expected to be realized in, or is intended for sale or consumption in, the Company's normal operating cycle.

* It is held primarily for the purpose of being traded.

* It is expected to be realized within 12 months after the reporting date; or

* It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non- current financial assets.

All other assets are classified as non - current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

* It is expected to be settled in the Company's normal operating cycle.

* It is held primarily for the purpose of being traded.

* It is expected to be realized within 12 months after the reporting date; or

* The Company does not have unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non- current financial liabilities.

All other liabilities are classified as non - current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

b. Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. The management believes that the estimates made in the preparation of the financial statements are prudent and reasonable.

c. Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost of acquisition is inclusive of freight inward, duties, taxes and other directly attributable expenses incurred to bring the assets to their working condition for intended use.

Intangible fixed assets purchased comprising computer software, are stated at acquisition cost less accumulated amortization and impairment loss, if any. Intangible fixed assets are capitalized where it is expected to provide future enduring economic benefits. Capitalization costs include license fees and cost of implementation/system integration services. The costs are capitalized in the year in which the software is fully implemented for use.

d. Depreciation and amortization

Depreciation on tangible fixed assets is provided on written down value method, at rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation is calculated on pro-rata basis from the date of additions, except in case of assets costing Rs. 5,000 or less, where each such asset is fully depreciated in the year of purchase. Depreciation on assets sold / discarded during the year is provided till the date of such sale / disposal.

e. Revenue recognition

Interest on loans is recognized in the Statement of Profit and Loss on an accrual basis, except in the case of non-performing assets where it is recognized upon realization in accordance with the prudential norms of the RBI

f. Income-tax expense

Income-tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income-tax laws) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year). The deferred tax charge or credit and the corresponding deferred tax liabilities and / or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainly of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and are written down or written- up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realized.

g. Transactions in foreign currency

Transactions in foreign currency are recorded at the exchange rates prevailing at the date of the transaction. Exchange differences arising on settlement of foreign currency transactions are recognized in the Statement of Profit and Loss.

Monetary assets and liabilities denominated in foreign currencies and remaining unsettled as at the balance sheet date is translated using the closing exchange rates on that date and the resultant net exchange difference is recognized in the Statement of Profit and Loss.

h. Earnings/ (loss) per share

Basic earnings/ (loss) per share is computed by dividing the net profit/ (loss) for the year attributable to equity shareholders by using the weighted average number of equity shares outstanding during the year.

i. Provisions, contingent liabilities and contingent assets

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.

j. Provision for Non-Performing Assets

Provision for standard and non-performing assets

* In accordance with Prudential Norms, contingent provision at 0.25% has been created on outstanding standard assets

* In accordance with Para 10 of Prudential Norms, the Company has shown provision for loans under 'Provisions' forming part of 'Current liabilities and provisions'

Provision for non-performing assets is recorded at rates which are equal to or higher than the rates specified by Reserve Bank of India in their guidelines on prudential norms. The rates used by the Company are as follows:

Period of Rates as per Asset Classification Arrears Company (in Months) percentage of Portfolio

Standard 0 - 1 0.25

Substandard 1 - 2 10

Substandard 2 - 3 25

Doubtful 3 - 4 50

Loss Above 4 100

1. As per regulation 6 of NBFC Prudential Norms (Reserve Bank) Directions, 1998 regarding accounting for investment:

a. The company value its current investments in unquoted equity shares at cost or breakup value, whichever is less

b. The Company values its long-term investment in unquoted equity shares in accordance with the accounting standard issued by ICAI. The Institute of Chartered Accountant of India has issued Accounting Standard " AS-13" pertaining to Accounting for investment.

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Mar 31, 2012

A. Basis of preparation of financial statements

The financial statements of the Company are prepared and presented under the historical cost convention on the accrual basis of accounting, as a going concern and in accordance with the Companies (Accounting Standards) Rules, 2006 notified by the Central Government, generally accepted accounting principles in India ('GAAP') and the provisions of the Companies Act, 1956, as applicable to the Company and applied consistently.

This is the first year of application of the revised schedule VI to the Companies act, 1956 for the preparation of the financial statements of the Company. The revised schedule VI introduces some significant conceptual changes as well as new disclosures. These include classification of all assets and liabilities into current and non- current. The previous year figures have also undergone a major reclassification to comply with the requirements of revised schedule VI.

b. Current and non- current classification

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 Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current & non-current classification of assets and liabilities.

Assets

An asset is classified in to current when it satisfies any of the following criteria:

* It is expected to be realized in, or is intended for sale or consumption in, the Company's normal operating cycle.

* It is held primarily for the purpose of being traded,

* It is expected to be realized within 12 months after the reporting date; or

* it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non- current financial assets.

All other assets are classified as non — current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

* It is expected to be settled in the Company's normal operating cycle.

* It is held primarily for the purpose of being traded.

* It is expected to be realized within 12 months after the reporting date; or

* The Company does not have unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non- current financial liabilities.

All other liabilities are classified as non - current.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

c. Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities as at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. The management believes that the estimates made in the preparation of the financial statements are prudent and reasonable.

d. Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and impairment loss, if any. Cost of acquisition is inclusive of freight inward, duties, taxes and other directly attributable expenses incurred to bring the assets to their working condition for intended use.

Intangible fixed assets purchased comprising computer softwares, are stated at acquisition cost less accumulated amortization and impairment loss, if any. Intangible fixed assets are capitalized where it is expected to provide future enduring economic benefits. Capitalization costs include license fees and cost of implementation/system integration services. The costs are capitalised in the year in which the software is fully implemented for use.

e. Depreciation and amortisation

Depreciation on tangible fixed assets is provided on written down value method, at rates specified in Schedule XIV to the Companies Act, 1956.

Depreciation is calculated on pro-rata basis from the date of additions, except in case of assets costing Rs. 5,000 or less, where each such asset is fully depreciated in the year of purchase. Depreciation on assets sold / discarded during the year is provided till the date of such sale / disposal.

f. Revenue recognition

Interest on loans is recognised in the Statement of Profit and Loss on an accrual basis, except in the case of non-performing assets where it is recognized upon realization in accordance with the prudential norms of the RBI

g. Income-tax expense

Income-tax expense comprises current tax (i.e. amount of tax for the year determined in accordance with the income-tax laws) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the year). The deferred tax charge or credit and the corresponding deferred tax liabilities and / or assets are recognized using the tax rates that have been enacted or substantively enacted' by the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainly of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and are written down or written-up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realized.

h. Transactions in foreign currency

Transactions in foreign currency are recorded at the exchange rates prevailing at the date of the transaction. Exchange differences, arising on settlement of foreign currency transactions are recognized in the Statement of Profit and Loss.

Monetary assets and liabilities denominated in foreign currencies and remaining unsettled as at the balance sheet date is translated using the closing exchange rates on that date and the resultant net exchange difference is recognized in the Statement of Profit and Loss.

i. Earnings/ (loss) per share

Basic earnings/ (loss) per share is computed by dividing the net profit/ (loss) for the year attributable to equity shareholders by using the weighted average number of equity shares outstanding during the year.

j. Provisions, contingent liabilities and contingent assets

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.

k. Provision for Non-Performing Assets

Provision for standard and non-performing assets

* In accordance with Prudential Norms, contingent provision at 0.25% has been created on outstanding standard assets

* In accordance with Para 10 of Prudential Norms, the Company has shown provision for loans under 'Provisions' forming part of Current liabilities and provisions'

Provision for non-performing assets is recorded at rates which are equal to or higher than the rates specified by Reserve Bank of India in their guidelines on prudential norms. The rates used by the Company are as follows:

Asset Classification Period of Rates as per Arrears Company (in Months) percentage of Portfolio

Standard 0-1 0.25



Substandard 1-2 10

Substandard 2-3 25



Doubtful 3-4 50

Loss Above 4 100

L. As per regulation 6 of NBFC Prudential Norms (Reserve Bank) Directions, 1998 regarding accounting for investment:

a. The company value its current investments in unquoted equity shares at cost or breakup value, whichever is less

b. The Company values its long-term investment in unquoted equity shares in accordance with the accounting standard issued by ICAI. The Institute of Chartered .Accountant of India has issued Accounting Standard " AS-13" pertaining to Accounting for investment