Accounting Policies of Bhagawati Oxygen Ltd. Company

Mar 31, 2024

2. Significant Accounting Policies

(a) Basis of Preparation

These accounts have been prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the
Companies Act 2013 ("Act”) read with relevant Rules. These financial statements are prepared in accordance with historical cost
convention on the accrual basis except for certain financial instruments which are measured at fair values.

The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101- First time adoption of
Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as
prescribed under Section 133 of the Act, read with relevant Rules which was the previous GAAP. Reconciliations and descriptions
of the effect of the transition has been summarized in note 42.

(b) Use of Accounting Estimates and Assumptions

The preparation of the financial statements, in conformity with the recognition and measurement principles of Ind AS. requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses
and disclosure of contingent liabilities at the date of the financial statements. Actual results could differ from those estimates.
Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Any
revision to the accounting estimates is recognized prospectively.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions that have the most
significant effect on the carrying amounts of assets and liabilities within the next financial year are included In the following notes:

a) Measurement of Defined Benefit Obligations

b) Measurement and likelihood of the occurrence of provisions and contigencies

c) Recognition of the Deferred Tax Assets/ Liabilities

d) Key assumptions used in Fair Valuation Methods of Financial Assets & Liabilities

(c) Revenue Recognition

Revenue from sale of goods in the course of ordinary activities is recognized when all significant risks and rewards of their
ownership are transferred to the customer as per the terms of the contract and no significant uncertainty exists regarding the
amount of the consideration that will be derived from the sale of the goods and regarding its collection. Revenue is measured at the
fair value of the consideration received or receivable and includes excise duty and are net of returns and allowances, trade
discounts, volume rebates and sales tax.

Dividend income is recognized when the company''s right to receive dividend is established. Interest income is recognized using
the effective interest method. Other claims (including claims of price escalation and minimum offtake guarantee) are recognized
when there is a certainty of realization and can be measured reliably.

(d) Property, Plant & Equipment

Property, Plant and Equipment are stated at cost, less accumulated depreciation and accumulated impairment loss, If any. The
cost of Property, Plant & Equipment comprises of its purchase price, including import duties and other non-refundable taxes or
levies and any directly attributable cost of bringing the asset to Its working condition for its intended use. Interest and other financial
charges on loans borrowed specifically for acquisition of capital assets are capitalized till the start of commercial production.
Depreciation is provided on the straight line method over the estimated useful lives of assets and are in line with the requirements of
Part C of Schedule 11 of the Companies Act, 2013. The estimated useful lives are as follows:

Building 30 Years

Plant & Machinery 8-25 Years

Furniture & Fixtures 10 Years

Office Equipment 5 Years

Vehicles 8 Years

Computer 3 Years

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''. 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 & Loss. The method of
depreciation, useful lives and residual values are reviewed at each financial year end.

(e) Intangible Assets

Intangible Assets acquired separately are measured on initial recognition at cost. Intangible Assets acquired in a business
combination is valued at their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost
less accumulated amortization and accumulated impairment losses, if any.

The useful lives of Intangible Assets are assessed as either finite or indefinite.

Intangible Assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an
indication that the intangible asset may be impaired. The amortization period and the amortization method for an Intangible Asset
with a finite useful life are reviewed at the end of each reporting period. The amortization expense on Intangible Assets with finite
lives is recognized in the Statement of Profit & Loss. The Company amortizes intangible assets over their estimated useful lives
using the straight line method.

Intangible Assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the
cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues
to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset 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 & Loss when the asset is
derecognized.

(F) Financial Instruments

Initial Recognition and Measurement

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the
Instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which
are Initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial
assets and financial liabilities, which are not at fair value through profit or loss, are added to the fair value on initial recognition.
Regular way purchase and sale of financial assets are accounted for at trade date.

Subsequent Measurement

a. Non Derivative Financial instruments

(I) Financial Assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the
asset In order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial Assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model
whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding. The Company has made an irrevocable election for its investments which are classified as equity instruments to
present the subsequent changes in fair value in other comprehensive income based on its business model.

(ill) Financial Assets at fair value through profit or loss

Afinancial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iv) Financial Liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent
consideration recognized in a business combination which is subsequently measured at fair value through profit and loss. For trade
and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the
short maturity of these instruments.

(v) Investment in subsidiaries

Investment In subsidiaries Is carried at cost in the separate financial statements.

b. Derivative Financial Instruments

The Company holds derivative financial instruments such as foreign exchange forward and option contracts to mitigate the risk of
changes in exchange rates on foreign currency exposures. Such derivative financial instruments are initially recognized at fair
value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value through profit or loss
and the resulting exchange gains or losses are included in other income.

Derecognition of Financial Instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it
transfers the financial asset and the transfer qualifies for derecognition under I nd AS 109. A financial liabil ity (or a part of a financial
liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or
cancelled or expires.

(g) Fair Value of Financial Instruments

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to
measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All methods
of assessing fair value result in general approximation of value, and such value may never actually be realized.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

(h) Impairment

Impairment Is recognized based on the following principles:

(i) Financial Assets: The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial
assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component
is measured at an amount equal to life time ECL. For all other financial assets, expected credit losses are measured at an amount
equal to the 12 month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are
measured at life time ECL. The amount of expected credit losses (or reversal)that is required to adjust the loss allowance at the
reporting date to the amount that is required to be recognized is recognized as an impairment gain or loss in profit or loss.

(ii) Non-Financial Assets: Goodwill and Intangible assets that have an indefinite useful life are not subject to amortization and are
tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired.
Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an assets fair value less costs of disposal and value in use. For the purpose of
assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash inflows which are
largely independent of the cash inflows from other assets or groups of assets (cash- generating unit) Non- financial assets other
than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of reporting period.

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Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the accounting standards prescribed by the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 2013 to the extent applicable.

1.2 FIXED ASSETS AND DEPRECIATION

i) Depreciation on fixed assets have been calculated as per Part C of Schedule II of the Companies Act, 2013

ii) Depreciation on the amount of revaluation of fixed assets is adjusted against fixed assets revaluation reserve created at the time of revaluation.

1.3 INVENTORIES

Inventories are valued as under:

Stores & Spares - At cost.

Finished Goods and Work in Progress -At cost or market value, whichever is less.

1.4 INVESTMENTS

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which investments are made, are classified as current investments. All other investments are classified as long term investments. Long term investments and Current investments are stated at cost, unless there is a permanent decline in value thereof.

1.5 RECOGNITION OF INCOME AND EXPENDITURE

Sales are accounted inclusive of Excise Duty but excluding Sales Tax.

Items of income and expenditure are accounted for on accrual basis. Due to uncertainly as regards to ultimate collection on account of claims for escalation and minimum off take guarantee, the revenue recognition is postponed as per AS-9 issued by the ICAI till bills are raised for such claims on settlement with the customers. Cenvat Credit on purchases is adjusted from the Excise Duty payable during the year.

Preliminary Expenses are written off over a number of years as deferred revenue expenditure.

1.6 EMPLOYEE BENEFITS

Retirement benefits are provided in the accounts on accrual basis.

Annual contribution towards Gratuity liability is funded with Life Insurance Corporation of India in accordance with the Gratuity scheme of LIC.

Short term employee benefits are recognized as expense as per company's scheme

1.7 TAXATION

Provision is made for Income Tax liability, which is likely to arise on the results of the year at the current rate of tax in accordance with the provisions of the Income Tax Act, 1961.

The difference that result between the profit offered for income taxes and the profit as per the financial statements are identified and thereafter a deferred tax asset or a deferred tax liability is recorded for timing difference namely that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing difference at the end of. the accounting period based on the prevailing enacted or subsequently enacted regulations. Deferred tax assets are recognized only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

1.8 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Revenue and expenses are identified to segments on the basis of their relationship to the operatinq activities of the company.

1.9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

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

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Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the accounting standards prescribed by the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 1956 to the extent applicable.

2. FIXED ASSETS AND DEPRECIATION

(i) Depreciation on fixed assets was provided on straight line method at the rates and in the manner prescribed in Schedule - XIV to the Companies Act (as amended), 1956 upto the year 31 st March 1996 and after that the depreciation on fixed assets is charged on written down value method at the rates prescribed in Schedule- XIV of the Companies Act, 1956 on residual value of the assets as on 1st April 1996.

(ii) Depreciation on the amount of revaluation of fixed assets is adjusted against fixed assets revaluation reserve created at the time of revaluation.

3. INVENTORIES

Inventories are valued as under :

Stores & Spares - At cost.

Finished Goods and Work in Progress - At cost or market value, whichever is less.

4. INVESTMENTS

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which investments are made, are classified as current investments. All other investments are classified as long term investments. Long term investments and Current investments are stated at cost, unless there is a permanent decline in value thereof.

5. RECOGNITION OF INCOME AND EXPENDITURE

Sales are accounted inclusive of Excise Duty but excluding Sales Tax,

Items of income and expenditure are accounted for on accrual basis. Due to uncertainity as regards to ultimate collection on account of claims for escalation and minimum offtake guarantee, the revenue recognition is postponed as per AS-9 issued by the ICAI til! bills are raised for such claims on settlement with the customers Cenvat Credit on purchases is adjusted from the Excise Duty payable during the year.

Preliminary Expenses are written off over a number of years as deferred revenue expenditure.

6. EMPLOYEE BENEFITS

Retirement benefits are provided in the accounts on accrual basis.

Annual contribution towards Gratuity liability is funded with Life Insurance Corporation of India in accordance with the Gratuity scheme of LIC.

Short term employee benefits are recognized as expense as per company''s scheme.

7. TAXATION

Provision is made for Income Tax liability, which is likely to arise on the results of the year at the current rate of tax in accordance with the provisions of the Income Tax Act, 1961

The difference that result between the profit offered for income taxes and the profit as per the financial statements are identified and thereafter a deferred tax asset or a deferred tax liability is recorded for timing difference namely that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing difference at the end of the accounting period based on the prevailing enacted or subsequently enacted regulations. Deferred tax assets are recognized only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

8. SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the company.

9. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree 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 outflow of resources. Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

1.1 BASIS OF ACCOUNTING

Financial statements are prepared as per accepted accounting principles and in accordance with the Companies Act, 1956.

1.2 FIXED ASSETS AND DEPRECIATION

i) Depreciation on fixed assets was provided on straight line method at the rates and in the manner prescribed in Schedule - XIV to the Companies Act (as amended), 1956 upto the year 31st March 1996 and after that the depreciation on fixed assets is charged on written down value method at the rates prescribed in Schedule- XIV of the Companies Act, 1956 on residual value of the assets as on 1st April 1996

ii) Depreciation on the amount of revaluation of fixed assets is adjusted against fixed assets revaluation reserve created at the time of revaluation.

1.3 INVENTORIES

Inventories are valued as under :

Stores & Spares - At cost.

Finished Goods and Work in Progress - At cost or market value, whichever is less.

1.4 INVESTMENTS

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which investments are made, are classified as current investments. All other investments are classified as long term investments. Long term investments and Current investments are stated at cost, unless there is a permanent decline in value thereof.

1.5 RECOGNITION OF INCOME AND EXPENDITURE

Sales are accounted inclusive of Excise Duty but excluding Sales Tax.

Items of income and expenditure are accounted for on accrual basis. Due to uncertainly as regards to ultimate

collection on account of claims for escalation and minimum offtake guarantee, the revenue recognition is postponed

as per AS-9 issued by the ICAI till bills are raised for such claims on settlement with the customers.

Cenvat Credit on purchases is adjusted from the Excise Duty payable during the year.

Preliminary Expenses are written off over a number of years as deferred revenue expenditure.

1.6 EMPLOYEE BENEFITS

Retirement benefits are provided in the accounts on accrual basis.

Annual contribution towards Gratuity liability is funded with Life Insurance Corporation of India in accordance with the Gratuity scheme of LIC.

Short term employee benefits are recognized as expense as per company''s scheme of LIC

1.7 TAXATION

Provision is made for Income Tax liability, which is likely to arise on the results of the year at the current rate of tax in accordance with the provisions of the Income Tax Act, 1961.

The difference that result between the profit offered for income taxes and the profit as per the fianacial statements are identified and thereafter a deferred tax asset or a deferred tax liability is recorded for timing difference namely that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing difference at the end of the accounting period based on the prevailing enacted or subsequently enacted regulations. Deferred tax assets are recognized only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

1.8 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the company.

1.9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree 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 outflow of resources. Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

1.1 BASIS OF ACCOUNTING

Financial statements are prepared as per accepted accounting principles and in accordance with the Companies Act, 1956.

1.2 FIXED ASSETS AND DEPRECIATION

i) Depreciation on fixed assets was provided on straight line method at the rates and in the manner prescribed in Schedule - XIV to the Companies Act (as amended), 1956 upto the year 31 st March 1996 and after that the depreciation on fixed assets is charged on written down value method at the rates prescribed in Schedule- XIV of the Companies Act, 1956 on residual value of the assets as on 1st April 1996.

ii) Depreciation on the amount of revaluation of fixed assets is adjusted against fixed assets revaluation reserve created at the time of revaluation.

1.3 INVENTORIES

Inventories are valued as under .

Stores & Spares - At cost.

Finished Goods and Work in Progress - At cost or market value, whichever is less.

1.4 INVESTMENTS

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which investments are made, are classified as current investments. All other investments are classified as long term investments. Long term investments and Current investments are stated at cost, unless there is a permanent decline in value thereof.

1.5 RECOGNITION OF INCOME AND EXPENDITURE

Sales are accounted inclusive of Excise Duty but excluding Sales Tax.

Items of income and expenditure are accounted for on accrual basis. Due to uncertainity as regards to ultimate collection on account of claims for escalation and minimum offtake guarantee, the revenue recognition is postponed as per AS-9 issued by the ICAI till bills are raised for such claims on settlement with the customers.

Cenvat Credit on purchases is adjusted from the Excise Duty payable during the year.

Preliminary Expenses are written off over a number of years as deferred revenue expenditure.

1.6 EMPLOYEE BENEFITS

Retirement benefits are provided in the accounts on accrual basis.

Annual contribution towards Gratuity liability is funded with Life Insurance Corporation of India in accordance with the Gratuity scheme of LIC.

Short term employee benefits are recognized as expense as per company's scheme.

1.7 TAXATION

Provision is made for Income Tax liability, which is likely to arise on the results of the year at the current rate of tax in accordance with the provisions of the Income Tax Act, 1961.

The difference that result between the profit offered for income taxes and the profit as per the fianacial statements are identified and thereafter a deferred tax asset or a deferred tax liability is recorded for timing difference namely that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing difference at the end of the accounting period based on the prevailing enacted or subsequently enacted regulations. Deferred tax assets are recognized only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

1.8 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the company.

1.9. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree 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 outflow of resources. Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

1.1 METHOD OF ACCOUNTING

Financial Statements are prepared as per accepted accounting principles and in accordance with the Companies Act, 1956.

1.2 FIXED ASSETS AND DEPRECIA TION

i) Depreciation on fixed assets was provided on straight line method at the rates and in the manner prescribed in Schedule-XIV to the Companies Act (as amended) 1956 up to the year ended 31-03-96 and after that the depreciation on fixed assets is charged on written down value method at the rates prescribed in Schedule-XIV of the Companies Act, 1956 on residual value of the assets as on 01-04-1996.

ii) Depreciation on the amount of revaluation of fixed assets is adjusted against fixed assets revaluation reserve created at the time of revaluation.

1.3 INVENTORIES

Inventories are valued as under:

Stores & Spares - At cost

Finished Goods - At cost or market value whichever is less.

1.4 INVESTMENTS

Investments are stated at cost, unless there is a permanent decline in value thereof.

1.5 RECOGNITION OF INCOME & EXPENDITURE.

Items of Income and Expenditure are accounted for on accrual basis. Due to uncertainty as regards to ultimate collection on account of claims for escalation and minimum off take guarantee, the revenue recognition is postponed as per Accounting Standard-9 issued by the Institute of Chartered Accountants of India till bills are raised for such claims on settlement with the customers.

1.6 SALES

Sales is inclusive of Excise duty but excluding Sales Tax.

1.7 CENVATCREDIT

Cenvat credit on purchases is adjusted from the excise duty payable during the year.

1.8 RETIREMENT BENEFITS

Retirement benefits are provided in the accounts on accrual basis.

1.9 PRELIMINARY EXPENSES

Preliminary Expenses are written off over a number of years as deferred revenue expenditure.

1.10 INCOME TAXES

a) Provision is made for Income Tax liability, which is likely to arise on the results for the year at the current rate of tax in accordance with the provisions of the Income Tax Act, 1961.

b) The difference that result between the profit offered for income taxes and the profit as per the financial statements are identified and thereafter a deferred tax asset or a deferred tax liability is recorded for timing difference namely that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing difference at the end of the accounting period based on the prevailing enacted or subsequently enacted regulations. Deferred tax assets are recognised only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying value at each Balance Sheet date.