Accounting Policies of BWL Ltd. Company

Mar 31, 2024

19.Significant accounting policies are as under:

a) Basis of preparation of Financial Statement:

The accounts have been prepared in accordance with Ind AS under historic cost
convention on the assumption of going concern, which enjoins adhere rices of mandatory
accounting standards notified under the Companies (India Accounting Standards) Rules,
20l5,as specified in section 133 of the Companies Act. 2013 reed with relevant Rules
issued there under, guide lines issued by SEBI and specific provisions of Companies
Act, 2013 on disclosure & accounting exigencies

To comply with (nd-AS, estimate and assumptions are made for factors affecting
balances of year end assets and liabilities and disclosure of contingent liabilities. Such
estimates change from time to lime according to situation and appropriate changes are
made with the knowledge of creumstances warranting such changes Male He I
changes are reported in notes to accounts including disclosures of financial impact
thereof.

To cater lo exigencies of schedule HI. assets & liabilities had to be classified under
current and non- current categories, identification of the former on the basis of assets 6.
liabilities realizable or payable within normal operating cycle of the company or vwilhin a
year. Remaining assets and liabilities have categorized as noncurrent.

Use of Estimates

lNO-AS enjoin*, management to make estimales and assumptions related to financial
statements, that affect reported amount of assets, liabilities, revenue, expenses and
contingent liabilities pertaining to the year. Actual result may differ from such estimate
Any revision in accounting estimates is recognized prospectively in theperiod of change
and material revision, including its impact on financial statements, is reported in the
notes to accounts in the year of incorporation of revision.

a. Financial Instruments

(i) Financial Assets

Initial Recognition and Measurement

Ail financial assets are recognized initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial assets.

Financial assets are classified, at initial recognition, as financial assets measured
at fair value or as financial assets measure at amortized cost.

Subsequent Measurement

For purpose of subsequent measurement financial assets are classified in two
broad categories

¦ Financial Assets at fairvalue

* Financial assets at amortized cost

Where assets are measured at fair value, gains and losses are either
recognized entirely in the statement of prohi and loss, or recognized in other
comprehensive income

A financial asset that meets the following two conditions is measured at
amortized cost.

- Busihess Model Test :The objective of the cortipany''3 business model is to
hold the financial asset to collect the contractual cash flows.

* Cash Flow Characteristics Test :Tha contractual lerms of the financial asset
give rise or specified dates to cash flows that are solely payment of principal
and interest on the principal amountoutstanding.

A financial asset that meets Ihe following (wo conditions is measured at fair
value through OCI:-

* Business Model Tast :The financial asset is held within a business model
whose objective is achieved by both collecting contractual cash flows and
selling financial assets.

* Cash Flow Characteristics Test:

The contractual terms of the financial asset give nse on specified dates to
cash flows that are solely payment of principal and interest on the principal
amount outstanding. All other financral assets are measured at fair value
through profit and loss.

Impairment of Financial Assets

The company assesses impairment based on Expected Credit Losses (ECL) model
at an amount equal to>

* 12 Months expected credit lessee, or

* Lifetime expected credit losses depending upon whether there has been a
significant increase in credit risk since initial recognition.

However, for trade receivables, the company does not track, the changes in credit
risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs al each
reporting date, right from its initial recognition.

Financial Liabilities

All financial liabilities are initially recognized at fair value and, in the case of loans
and borrowings and payables, net of directly attributable transaction costs.

Financial liabilities are classified as measured at amortized cost or fair value through
profil and loss (FVTPL) A financial liability is classified as FVTPL if il is classified as
held for trading, or it is a derivative or is designated as such on initial recognition.
Financial Liabilities at FVTPL are measured at fair value and net gain or losses,
including any interest expense, are recognized in statement of profil and loss. Other
financial liabilities are subsequently measured at amortized cost using Ihe effective
interest method. Interest expense and foreign exchange gains and losses are
recognized in state menl of profil and loss. Any gain or loss on de-recognition is also
recognized in statement of profit andloss.

Fair Value Measurement

The company measures financial instruments, such as, derivatives at fair value at
each balance sheet date.

Fair value is the price that would be received to sell 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 either

* In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the
asset or liability

The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions lhat
market participants would use when pricing the asset or liability, assuming 1hat
market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market
participant''s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant lhat would use the asset
in its highest and best use

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.

AH 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 - Valualien techniques for which the lowest level inpul that is significant to
the fair value measurement is direclly or indirectly observable

Level 3 - Valuation techniques for which the lowest level inpul that is significant to
the fair value measurement is unobservable.

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

The Company''s Audit Committee determines the policies and procedures ter both
recurring fair value measurement, such as derivative instruments and unquoted
financial assets measured at fair value, and for non-recurring measurement, such
as assets held for distribution in discontinued operations.

b) Property, Plant & Equipment and Depreciation & Amortization:

Properties. Plant ^Equipments are stated at cost lass depreciation. Cost include
inward Freight, Dulies (Net of Cenvat and value added lax Presently GST). Taxes
and expenses incidental to Acquisition and Installation. All Expenditure incurred
for expansion, modernization and Development ol Plant, Machinery and
equipment are capitalized. Depreciation on Properties, Plant ^Equipments has
been provided for in terms of life span of assets prescribed in Schedule-11 of the
Companies Act, 2013.

Lease hold Land has been amortized in accordance with Ind AS-19 for accounting
of Lease

c) Impairment of Tangible Property, Plant & Equipment

1) Assets are tested for impairment on the basis of cash generating unrt (CGU)
concept. Said assets are held in lower of recoverable value and carrying cost.
Recoverable value is the higher of value in use and nel selling price.
Impairment loss be the excess of carrying cost over recoverable value.
Recoverable value is arrived at on balance sheet dates for-

ajMaking provision against impairment loss if any, or
hi Reversing existing provision against impairment loss:

2) Impairment loss, when arises, is apportioned pro- rale on the various heads of
tangible assets based on their WDV prior to providing for impairment loss

d) Inventories are valued at lower of cost and net realizable value.

Cost comprises inwand freight, duties (Net of cenvat and value added tax Presently
GST) taxes and are calculated in FIFO basis. Where necessary provision has been
made for obsolete, slow moving and defective stocks. Cost of Finished goods includes
cost of conversion and manufacturing overheads. The discarded assets, are held at
Scrap Value. Scraps are held at realizable value.

e) Trade Receivable ahdLoans:

Trade Receivable and Loans are stated after making adequate provision for doubtful

baton ob

t) Research and Development expenses

Research and development C*$t are charged a? expenses in the year in which they are
incurred.

g) Retirement Benefits:

Company Contributes To Provident And Other Funds, Which Are Administered By
Government And Such Contribution Are Charged Against Revenue Retirement
Graluity to Employees is covered by Group Gratuity Scheme with the Life Insurance
Corporation of India byway of payment against the scheme in terms of advice of LIC is
charged off to Revenue till a part of financial year 2022-23 Leave Salary ie accounted
for on ihe accrual basis or Ihe basis of methodical estimates under taken by the
management.

h) Recognition of Income And Expenditure:

i) Sales Are Recognized In the Accounts On Passing of Title To The Goods. I E. Delivery
As Per Terms of Sale. Sale Comprises Sale of Goods and Services, Net of Trade
Discount, Price Variation Bills have been accounted for in the year of receipt of
approval from the customers

ii). All olher Incomes and expenses are accounted for on accrual basis.

I). Lease Rental Lease Renlals in respect of Leased Assets under arrangement of
operational lease have bean charged in accordance with lndAS-19

---

Mar 31, 2014

A) Basis of preparation of Financial Statement:

The accounts have been prepared in accordance with Indian GAAP under historic cost convention on the assumption of going concern, GAAP enjoins adherences of mandatory accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006, guide lines issued by SEBI and specific provisions of Companies Act, 1956 on disclosure & accounting exigencies.

To comply with GAAP, estimate and assumptions are made for factors affecting balances of year end assets and liabilities and disclosure of contingent liabilities. Such estimates change from time to time according to situation and appropriate changes are made with the knowledge of circumstances warranting such changes. Material changes are reported in notes to accounts including disclosures of financial impact there of.

To cater to exigencies of revised schedule VI, assets & liabilities had to be classified under current and non-current categories, identification of the former on the basis of assets & liabilities realizable or payable within normal operating cycle of the company or within a year. Remaining assets and liabilities have categorized as non current.

b) Fixed Assets and Depreciation:

Tangible Assets are stated at cost less depreciation. Cost include inward Freight, Duties (Net of Cenvat and value added tax), Taxes and expenses incidental to Acquisition and Installation. All Expenditure incurred for expansion, modernization and Development of Plant, Machinery and equipment are capitalised. Depreciation on Tangible assets have been provided for on straight line method at the rates specified in Schedule- XIV of the Companies Act, 1956.

No depreciation is provided on Lease- hold Land. Lease hold Land will be amortised in the year of expiry of lease period.

Depreciation on impaired assets is provided by adjusting the depreciation charge in the remaining periods so as to allocate the revised carrying amount of the assets over its remaining useful life.

c) Impairment of Tangible Assets:

1) Assets are tested for impairment on the basis of cash generating unit (CGU) concept. Said assets are held in lower of recoverable value and carrying cost. Recoverable value is the higher of value in use and net selling price. Impairment loss be the excess of carrying cost over recoverable value. Recoverable value is arrived at on balance sheet dates for:-

a) making provision against impairment loss, if any, or

b) Reversing existing provision against impairment loss:

2) Impairment loss, when arises, is apportioned pro- rata on the various heads of tangible assets based on their WDV prior to providing for impairment loss.

d) Inventories are valued at lower of cost and net realizable value. Cost comprises inward freight, duties (Net of cenvat and value added tax) taxes and are calculated in FIFO basis. Where necessary provision has been made for obsolete, slow moving and defective stocks. Cost of Finished goods includes cost of conversion and manufacturing overheads. The discarded assets are held at Scrap Value. Scraps are held at realizable value.

e) Trade Receivable and Loans and advances:

Trade Receivable and Loans and Advances are stated after making adequate provision for doubtful balance.

f) Research and Development expenses

Research and development cost are charged as expenses in the year in which they are incurred.

g) Retirement Benefits:

Company Contributes To Provident And Other Funds, Which Are Administered By Government And Such Contribution Are Charged Against Revenue Retirement Gratuity to Employees is Covered by Group Gratuity Scheme with the Life Insurance Corporation of India by way of payment against the scheme in terms of advice of LIC is charged off to Revenue. Leave Salary is accounted for on the accrual basis on the basis of methodical estimates under taken by the management.

h) Recognition of Income And Expenditure:

i) Sales Are Recognised In The Accounts On Passing Of Title To The Goods, I.E. Delivery As Per Terms of Sale. Sale Comprises Sale Of Goods And Services, Net of Trade Discount, Price Variation Bills have been accounted for in the year of receipt of approval from the customers.

ii). All other Incomes and expenses are accounted for on accrual basis.

I). Lease Rental: Lease Rentals in respect of Leased Assets (excluding land) under arrangement of operational lease have been charged as expenses in Profit & Loss accounts.

j) Provisions, contingent Liabilities & commitment and contingent Assets: Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event,

b) a probable outflow of resources is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated, Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent Liability & commitment is disclosed in the case of a present obligation arising from a past event, when the probable outflow of resources to settle the obligation cannot be determine with reasonable certainty.

Contingent assets are neither recognized nor disclosed. Contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

k) Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principle read with Accounting Standards mandatorised under section 211 (3c) of Company''s Act 1956 and in its absence by IAS.

---

Mar 31, 2010

A) Accounting Convention :

The Accounts have been prepared as a going concern under historical cost convention on accrual basis in due compliances of accounting standards referred to in section 211 (3c) of the Companies Act, 1956. However OFCD Division has been accounted for as per provision of AS-24 on discontinued operation.

b) Fixed Assets and Depreciation :

Fixed assets are stated at cost less depreciation and cumulative impairement.

Cost Include Inward Freight, Duties (net of Cenvat and Value Added Tax), Taxes And Expenses Incidental To Acquisition And Installation.

All Expenditure Incurred For Expansion, modernisation And Development Of Plant, Machinery And Equipment Are Capitalised.

Depreciation On Fixed Assets Has Been Provided for On Straight Line Method at Rates Specified In Schedule-XIV Of The Companies Act, 1956 except for all plant & machinery of Optical Fiber Cable Division for which depreciation has been provided for on written down value basis (WDV) at the rates and in the manner prescribed in Schedule-XIV of the companies Act 1956.

No Depreciation Is Provided On Lease-Hold Land will be amortised in the year of expiry of Lease Period. Depreciation on impaired assets is provided by adjusting the depreciation charge in the remaining periods so as to allocate the revised carrying amount of the assets over its remaining useful life.

c) Impairment of Fixed Assets :

1) Assets are tested for impairment on the basis of cash generating unit (CGU) concept, assuming OFCD and SWD representing two comprehensive CGUs. Said assets are held in lower of recoverable value and caning cost. Recoverable value is the higher of value in use and net selling price, the latter being deducted on the basis of valuation of realisable values of individual assets. Impairment loss being the excess of carrying cost over recoverable value is arrived at for:

a) making provision against impairment loss if any, or

b) Reversing existing provision against impairment loss.

2) Impairment loss, when arises, is apportioned pro-rata on the various heads of fixed assets based on their WDV prior to providing for impairment loss.

d) Inventories are valued at lower of cost and net realisable value. Cost Comprises Inward Freight, Duties (net of Cenvat and Value Added Tax), Taxes And are Calculated On Fifo Basis. Where Necessary Provisions are Made For Obsolete, Slow Moving And Defective Stocks. Cost of Finished Goods include cost of conversion and manufacturing overheads. Discarded Assets are held at Scrap Value.

e) Sundry Debtors and Loans & Advances :

Sundry Debtors and Loans & Advances are stated after making adequate provision for doubtful balances.

f) Research And Development Expenses :

Research And Development Cost are charged as expenses In The Year In Which they are incurred.

g) Retirement Benefits :

Company Contributes To Provident And Other Funds, Which Are Administrated By Government And Such Contribution Are Charged Against Revenue. Leave salary is accounted for on the accrual basis on the basis of methodical estimates, under taken by the management. Retirement gratuity payable to employees is covered by group gratuity scheme with Life Insurance Corporation of India and companys contribution by way of payment against the scheme in terms of advice of LIC is charged off to revenue.

h) Recognition Of Income & Expenditure :

i) Sales Are Recognised In The Accounts On Passing Of Title To The Goods, I.E., Delivery As Per Terms Of Sale. Sale Comprises Sale Of Goods And Services, Net Of Trade Discount both divisions.

Price Variation Bills Have Been Accounted For In The Year Of Receipt Of Approval From The Customers in case of Steel Wire Division.

ii) All items of Income & Expenses Are Accounted For On Accrual Basis, in AS-9.

i) Foreign Currency Transactions :

Purchase and sales from/to overseas sources are accounted for in reporting currency on the date of transaction. The impact of loss/gain arising on account of difference between the date of transaction and the date of payment are seperately accounted for in revenue account as exchange loss/gain.

j) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if

(a) the Company has a present obligation as a result of a past event,

(b) a probable outflow of resources is expected to settle the obligation and

(c) the amount of the obligation can be reliably estimated. For reimbursement expected in respect of expenditure required to settled, provision is recognised only when it is virtually certain that the reimbursement will be received. -

Contingent Liabilities not provided for but disclosed in the case of a present obligation arising from a past event, when the probable outflow of resources to settle the obligation cannot be determined with reasonable certainty.

Contingent assets are neither recognised nor disclosed. Contingent liabilities and contingent assets are reviewed at each balance sheet date.

k) Accounting Policies, Not Specifically Referred To berein, Are Consistent with Generally Accepted Accounting Principles read with accounting standards mandatorised under section 211 (3c) of companies act, 1956 and in its absence IAS.