Accounting Policies of Bloom Industries Ltd. Company

Mar 31, 2024

2 Significant Accounting Policies:

a) Basis of preparation

i. Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (“Ind AS”)
notified under Section 133 of the Companies Act, 2013 ("the Act”) [Companies (Indian Accounting
Standards) Rules, 2015] and other relevant provisions of the Act.

The accounting policies are applied consistently to all the periods presented in the financial statements.

ii. Historical cost convention

The financial statements have been prepared on a historical cost basis.

iii. 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 (twelve months) and other criteria set out in the Schedule III to the Act.

b) Property, plant and equipment

All items of property, plant and equipment are stated at historical cost less depreciation and impairment, if
any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as separate assets, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are
charged to profit or loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual value.

Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values,
over their estimated useful lives.

Useful life considered for calculation of depreciation for various assets class are as follows-

• Machinery 10 years

• Furniture, fittings and equipment 10 years

• Office and other equipments 5 Years

• Computers 3 Years

The residual values are not more than 5% of the original cost of the asset. The assets residual values and
useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

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.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
included in profit or loss within other gains/ (losses).

c) Investments and other financial assets:

i. Classification

The Company classifies its financial assets at amortised cost.

The Classification depends on the entity''s business model for managing the financial assets and the
contractual term of the cash flows.

ii. Measurement of financial assets

At initial recognition, the Company measures a financial asset at its fair value.

iii. Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets
carried at amortised cost. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.

For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109
Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition
of the receivables.

iv. Derecognition of financial assets

A financial asset is derecognised only when

• the company has transferred the rights to receive cash flows from the financial asset or

• retains the contractual rights to receive the cash flows of the financial asset, but assumes a
contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset
is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of
the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards
of ownership of the financial asset, the financial asset is derecognised if the company has not retained
control of the financial asset. Where the company retains control of the financial asset, the asset is
continued to be recognised to the extent of continuing involvement in the financial asset.

A financial liability is recognised when the obligation specified in the contract is discharged, completed
or expired.

d) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method, less provision for impairment.

e) Cash and Cash Equivalents

Cash and cash equivalents includes cash in hand, deposits with banks and short term highly liquid
investments, which are readily convertible into cash and have original maturities of three months or less
from the Balance Sheet date.

f) Revenue Recognition:

The Company derives revenues primarily from trading of Iron and Steel.

Ind AS 115 “Revenue from Contracts with Customers” provides a control-based revenue recognition model
and provides a five-step application approach to be followed for revenue recognition.

• Identify the contract(s) with a customer;

• Identify the performance obligations;

• Determine the transaction price;

• Allocate the transaction price to the performance obligations;

• Recognize revenue when or as an entity satisfies performance obligations;

Revenue from contracts with customers is recognized when control of the goods or services are transferred
to the customer, at an amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods or services. Revenue is recognized when no significant uncertainty exists as to its
realization or collection.

The amount recognized as revenue in its Statement of Profit and Loss is exclusive of Goods and Service
Tax and is net of discounts.

g) Employee Benefits:

Short term employee benefits

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related service are
recognised in respect of employees'' service up to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

h) Income Tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable income
based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at
the end of the reporting period in the countries where the company and its subsidiaries and associates
operate and generate taxable income. Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions
where appropriate on the basis of amounts expected to be paid to the tax authorities.

Current tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.

The amendment to Appendix C of Ind AS 12 specifies that the amendment is to be applied to the
determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates,
when there is uncertainty over income tax treatments under Ind AS 12. It outlines the following:

(1) the entity has to use judgement, to determine whether each tax treatment should be considered
separately or whether some can be considered together. The decision should be based on the approach
which provides better predictions of the resolution of the uncertainty Financial Statements.

(2) the entity is to assume that the taxation authority will have full knowledge of all relevant information
while examining any amount

(3) entity has to consider the probability of the relevant taxation authority accepting the tax treatment and
the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax
rates would depend upon the probability.

The effect on adoption of Ind AS 12 Appendix C is insignificant in the financial statements

i) Functional and presentation currency

Items included in the financial statements of the company are measured using the currency of the primary
economic environment in which the entity operates (the functional currency). The financial statements are
presented in Indian rupee (INR), which is Bloom Industries Limited''s functional and presentation currency.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at
year end exchange rates are generally recognised in profit or loss.

j) Inventories:

Inventories which comprise of finished stock are valued at lower of cost or net realizable value. Cost of
inventories comprises all costs of purchase and other costs incurred in bringing the inventories to their
present location and condition. Cost of purchased inventory is determined after deducting rebates and
discounts. Net realizable value is the estimated selling price in the ordinary course of business, less
estimated costs of completion and estimated costs necessary to make the sale.

k) Earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

l) Segment Reporting:

The Company is primarily engaged in the activity of mall management business and considers it to be a
single reportable business segment. The operations of the Company are within the geographical territory of
India which is considered as a single geographical segment. Operating segments are reported in a manner
consistent with the internal reporting provided to the chief operating decision maker.

The Executive Director, who has been identified as being the chief operating decision maker, assesses the
financial performance and position of the company, and makes strategic decisions for segment information
presented.

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Mar 31, 2014

1.01 FIXED ASSETS AND DEPRECIATION:

(i) Fixed Assets are stated at cost inclusive of other identifiable direct expenses and errection expenses up to the date of the assets put to use and on commencement of production.

(ii) The company is charging depreciation under the straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956.

2.02 INVESTMENTS:

Investments are stated at cost and valued on FIFO basis. In the management''s opinion the decline in the value of shares on the concerned stock exchange is of short-term nature and no provision for the decline in the value of investment is considered necessary as on the date of the balance sheet.

2.03 INVENTORIES :

The Company had followed the value of inventories as cost or market value whichever is lower. However Raw Materials, Material-in-Process, Stores and spare parts during the year are Nil.

2.04 SALES:

Sales, Labour Job charges, Warehousing charges, Sale of goods & Services given net of trade discounts.

2.05 PURCHASE:

Purchases shown in the books of account are purchase cost and other direct expenses incurred.

2.06 EXCISE DUTY:

The company has not liable to pay or charge excise duty as there is no any exciseable goods manufacturing activities during the year.

2.07 CENVAT

Benefit of Cenvat credit in respect of Service Tax is directly reduce from the respective expenses /Fixed Assets.

2.08 TAXATION

Current Income tax are measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act 1961 Tax paid under MAT if any is to be charge to profit & loss a/c.

2.09 TREATMENT OF RETIREMENT BENEFITS:

Retirement benefits are recorded only on the Crystalisation of liability.

2.10 CONTINGENT LIABILITY :

Contingent liabilities are determined on the basis of available information and are disclosed byway of a note to the accounts.

2.11 FORIEGN CURRENCY TRANSCATION :

Foreign Currency transaction are recorded in the books of the Company at the rates prevailing on the date of payment.

18. FORFEITURE OF EQUITY SHARES

Out of the forfeited equity shares of Rs.32.03 Lacs which were forfeited in financial year 1994-95. Some allotees filed case against forfeiture in respect of 10400 Equity Shares of Rs.10A each which are pending before various courts. In this respect company has not made any provisions.

19. MANAGERIAL REMUNERATION :

(a) Director''s Remuneration: Rs. 1,80,000/- (previous year Rs.1,80,000/-)

(b) The remuneration stated above is in accordance with the provisions of and Schedule XIII to the Companies Act, 1956.

Since the remuneration stated above is the within the limit of remuneration paid to the managerial personnel, calculation of managerial remuneration under Section 198 of the Companies Act, 1956 is not applicable.

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Mar 31, 2013

1.01 FIXED ASSETS AND DEPRECIATION :

(i) Fixed Assets are stated at cost inclusive of other identifiable direct expenses and erection expenses up to the date of the assets put to use and on commencement of production.

(ii) The company is charging depreciation under the straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956.

1.02 INVESTMENTS:

Investments are stated at cost and valued on FIFO basis. In the management''s opinion the decline in the value of shares on the concerned stock exchange is of short-term nature and no provision for the decline in the value of investment is considered necessary as on the date of the balance sheet.

1.03 INVENTORIES:

The Company had followed the value of inventories as cost or market value whichever is lower However Raw Materials, Material-in-Process, Stores and spare parts during the yearare Nil

1.04 SALES:

Sales, Labour Job, Warehousing charges, comprise sale of goods, Services given net of trade discounts.

1.05 PURCHASE:

Purchases shown in the books of account are purchase cost and other direct expenses incurred.

1.06 EXCISE DUTY:

The company has not liable to pay or charge excise duty as there is no any exciseable goods manufacturing activities during the year.

1.07 CENVAT

Benefit of Cenvat credit in respect of Service Tax is directly reduce from the respective expenses /Fixed Assets.

1.08 TAXATION

Current Income tax are measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act 1961. Tax paid under MAT if any is to be charge to profits loss a/c.

1.09 TREATMENTOF RETIREMENT BENEFITS .

Retirement benefits are recorded only on the Crystalisation of liability.

1.10 CONTINGENT LIABILITY :

Contingent liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

1.11 FORIEGN CURRENCY TRANSCATION .

Foreign Currency transaction are recorded in the books of the Company at the rates prevailing on the date of payment.

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Mar 31, 2012

1.01 FIXEDASSETSANO DE PRECIATION:

(i) Fixed Assets a reslaled at cost inclusive of olher identifiable dfr ect expenses and erreetion expenses up lo the date of the asseis put to use and on commencement of production.

(ii) The company is charging depredation under the straight line met hod at the rates prescribed under scheduleX lV of the Companies Act, avisos

1.02 INVESTMENTS:

investments are staled at cost and valued on FIFO basis. In (he management's opinion the dedine in the value of shares on ihe concerned stock exchange is of shod-term nature and no provision for the decline in Ihe value of investment is considered necessary as on Ihe dale of the balance sheet

1.03 INVENTORIES:

The Company had followed the value of inventories as cost or market value whichever is lower However Raw Materials. Male rial-in-F recess. Stores and spa re parts during Ihe yea rare Nit.

1.04 SALES:

Sales, Labour Job, Warehousing charges, comprisesele of goods. Services given net Df trade discounts.

1.05 PURCHASE:

Purchases shown in the books of account are purchase cost and other direct expenses incurred.

1.06 EXCISE DUTY:

The company has not liable to pay or charge excise duty as there Is no any exdseaWe goods manufacturing activities during the year.

1.07 CENVAT

Benefit of Cenvat credit In respect of Service Tax is directly reduce from (he respective expenses /Fixed Assets.

1.08 TAXATION

Current I ncame [a x a re measured a t the a mo u ni expected to be paid to Tax authorities in accordance with the Income Tax Act 1561. Tax paid under MAT if any is to be charge to profit & lossa/c.

1.08 TREA'TMENTOF RETIREMENT BENEFITS:

Retirement benefits are recorded only on the Crystalisatian of liability.

1.10 CONTINGENT LIABILITY :

Contingent liabilities are determined on the basis of available Information and are disclosed by way of a rule to the accounts.

1.11 FORIEG IMCURRENCY TRANSCAT10N :

Foreign Currency transaction are recorded in the books of the Company at the rales prevailing on the date of payment

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Mar 31, 2010

A] FIXED ASSETS AND DEPRECIATION:

(i) Fixed Assets are stated at cost inclusive of other identifiable direct expenses and errection expenses up to the date of the assets put to use and on commencement of production.

(ii) The company is charging depreciation underthe straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956.

B] INVESTMENTS:

Investments are stated at cost and valued on FIFO basis. In the managements opinion the decline in the value of shares on the concerned stock exchange is of short-term nature and no provision for the decline in the value of investment is considered necessary as on the date of the balance sheet.

C] INVENTORIES:

The Company had followed the value of inventories as cost or market value whichever is lower. However Raw Materials, Material-in-Process, Stores and spare parts during the year are Nil.

D] SALES:

Sales comprise sale of goods net of trade discounts.

E] PURCHASE.

Purchases shown in the books of account are purchase cost and other direct expenses incurred.

F] EXCISE DUTY:

The company has not liable to pay or charge excise duty as there is no any exciseable goods manufacturing activities during the year.

G] CENVAT

Benefit of Cenvat credit in respect of Service Tax is directly reduce from the respective expenses /Fixed Assets A/C.

H] TAXATION

Current Income tax and Fringe Benefit tax are measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act 1961. Tax paid under MAT if any is to be charge to profit & loss a/c.

I] TREATMENT OF RETIREMENT BENEFITS:

Retirement benefits are recorded only on the Crystalisation of liability.

J] CONTINGENT LIABILITY :

Contingent liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

K] FORIEGN CURRENCY TRANSCATION :

Foreign Currency transaction are recorded in the books of the Company at the rates prevailing on the date of payment.

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Mar 31, 2009

A] FIXED ASSETS AND DEPRECIATION:

(i) Fixed Assets are stated at cost inclusive of other identifiable direct expenses and errection expenses up to the date of the assets put to use and on commencement of production.

(ii) The company is charging depreciation under the straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956.

B] INVESTMENTS:

Investments are stated at cost and valued on FIFO basis. In the managements opinion the decline in the value of shares on the concerned stock exchange is of short-term nature and no provision for the decline in the value of investment is considered necessary as on the date of the balance sheet

C] INVENTORIES:

The Company had followed the value of inventories as cost or market value whichever is lower. However Raw Materials, Material-in-Process, Stores and spare parts during the year are Nil.

D] SALES:

Sales comprise sale of goods net of trade discounts.

E] PURCHASE:

Purchases shown in the books of account are purchase cost and other direct expenses incurred.

F] EXCISE DUTY:

The company has not liable to pay or charge excise duty as there is no any exciseable goods manufacturing activities during the year.

G] CENVAT

Benefit of Cenvat credit in respect of Service Tax is directly reduce from the respective expenses /Fixed Assets A/C.

H] TAXATION

Current Income tax and Fringe Benefit tax are measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act 1961. Tax paid under MAT if any is to be charge to profit & loss a/c.

I] TREATMENTOF RETIREMENT BENEFITS:

Retirement benefits are recorded only on the Crystalisation of liability

J] CONTINGENT LIABILITY :

Contingent liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

K] FORIEGN CURRENCY TRANSCATION :

Foreign Currency transaction are recorded in the books of the Company at the rates prevailing on the date of payment.