Notes to Accounts of BWL Ltd.

Mar 31, 2024

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

•j Th e com pa ny has a present obi igation as a result of a past event

t) aprobableoutflowofresourcesisexpectedtosettlelheobligalionand

c) the amount of the obligation can ho reliably eslimatod, Reimbursement expected in
respect of expendrture required to settle a provision is recoyiized only when it is
virtually certain that the reimbursement will be received

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

Contingent assels nave been disclosed. Contingent liabilities and contingent assets
are review end at each Balance Sheet date

k) Accounlpng policies not specifically referred to otherwise are consistent and pn
accordance with generally accepted accounling principle read wi|h Accounting
Standards mandate under section133 of Companies Act, 2013 and in its absence by
IAS.

Financial Management objective £ Policies.

Company''s net worth has been fully eroded. Solvency base has been retained Ihrough
resources deployed by the Promoters Group byway interest free loans of the nature of
quasi capital. Future Policy lo operate the entity in viable prospective by way of

utilization of existing fixed capital outlet including broadening of same by way of
mobilization of further resources lo cater to the exigency of new products in larms of
survey or ma rket by the Promoters are at present under scruli ny of the m anagemert.

As the Company stands today, there is no interest liabilities, foreign currency
involvement Of major Credit risk (he company is exposed to In Ihe light of
aforesaid fact ary exercise of evaluation of fallout on account of market nsk.
Foreign Currency nsk, credit risk, liquidity nsh ere superfluous at the point of time

There is no possibilities of future outflow of funds considering merit of the cases as per
legal opinion obtained by the company.

Contingent Assets:

A i b iti ration A wards.''Court''s order on arbitration matters with customers issued in favour of tie
company pending before High Court.

- Amount involved Rs.7,26,857.00

- Out of which Rs 3,39,333.43 has been received from BSNL during March 2024 as full & final
settlement of the above dues according to iheir calculation which has been contested by the
company at Ihe Delhi High Court.

2 L Re lated pa rty d Isclos ure in term s of Ind AS- 24:

1 There is no enterprise Where control exists.

1 Other related parties in transaction with (he company.

9. Key management personnel

Shr> Sunil Khetawat - Whale lima Director.& CEO, Shri Sandeep Khetawat - Whole
time Director , Shn Shyam Niyogi - CFO and Shn Sufarata Kumar Ray - Company
Secretary & Compliance officer

s Relatives of Key management personal (KfvlP)''

Smt. Shanti devt Khetawat, SmL Shraddha Khetawat, Smt. Aekta Khetawat,
H.P. Khetawat (NLfF), Sandeep Khetawat (HUF), Miss Avani Khetawat.

Yeshvardhan Khetawat. Shregardhan Khetawat and Miss Stuti Khetawat.

c. List of enterprises where key management personnel or (heir relatives held the office
of KMP

M/S Kumi Agro Industries Ltd, BWL Industries (P} Ltd. Sulabh Sales Pvt. Ltd. and
Shubneswan Investment Pvt Ltd

Entities under significant influence of KMP''s H.P.Khetawat (HUF)

22. Ir absence of virtual certainty of future taxable profit to realize deferred tax assets accrued till
dale or account of urahsorbed lOSs & unabsorbed depreciation, no deferred tax aSSOt bas been
recognized as a measure of prudence as laid down under lndAS-22.

This also contributed lo ignoring Ind AS-22 in its totality

23. Impairment ofAsscts:*

Test of impairment Undertaken in recent past revealed recoverable value of Ihe CGW
under net selling price method significantly higher than carrying cost, of assets. As such
no impairment provision is called for.

24. The workforce of the Company is meagre five including two whole time directors. Gratuity

liability paid as per the advice of LIC for Annual Premium amounts to ml - only (previous
year Rs 241 00) Liability on account of Leave Salary amount to Rs.NIL (previous year
Rs.WlL) the year according to management estimate based on all employees retiring on
Balance Sheet date. Ascertainment of Liability as ad down under Ind AS-15 involves
considerable cost which is difficult for this company to withstand. In view of this the
company has accounted for these liabilities as per accounting policy No. 2A(g), It may
be mentioned here in that under any circumstances existing book liability towards leave
salary is bound to be higher than actuarial computation

Presently two permanent employees being whole time directors were covered under
gratuity with LIC, Group Gratuity Scheme through BWL Group Gratuity Trust However
during the financial ended 31^5t March 2024 Trust has withdrawn entire fund which was
lying with LIC for payment of Gratuity to this two employees and this amount has given
as interesi free loan to BWL Limited lo meet up a part of fixed expenses of the
company, no provision of gratuity has been made during I he financial year ended 31
March 2024.

25. Depending on disclosure mandated for entities under M5MED Act,2005 to reveal their
identity in correspondences, bills & challan etc. no transaction is observed to have been
entered into by the company during the year with any party belonging to micro and
small category under MSMED Act.2006.

20. The Company has no Bank or Institutional borrowings. Lion''s share of borrowing relates
to sou roes of promoters which are of the nature of quasi capital. This is raison d''etre of
going concern assumption guiding accounting policies.

27. Information (Pursuant to lndAS-37):

Brief particulars of provision on disputed liabilities (Provided for):

Mature of liabilities; Income Tax Particulars of Dispute:

Interpretation of Section SO within the meaning of contemporary Income Tax
Act, 1961 for Assessment year 1983-84

Opening provision: Rs.1352Q.O0/- Provision made during the year: Mil Provision
adjusted during the year: MIL Closing prcvision:Rsl3520.00/

Mote:

There will be no outflow of fund against crystallization of above liability (expected to mature
in succeeding year) pending before High Court, as payment has already been made and
appearing in loans and advances

29. Since the factory is under suspension of work devoid of technical personnel it is
practically not possible to indentify components relevant to different items of fined assets
and identify their residual life span based on technical evaluation except for deputing
outside agency for the purpose at prohibitive cost in the context of existing financial base
of the company.

e. Contingent rentsrecognized

as an expense in the period Nil Nil Nil

d. THe total of future minimum sublease payments expEtted to bE received under non-
cancellable subleases atthe

end of the reporting period Nil Nil NfE

e. General description of lease arrangement
(i) the basis on which contingent

rent payable determine: N.A. N.A, N.A,

(iij the existence and terms of renewal or purchase options and escalation clauses;

Lease was takEn From Die. Durg on 13/03/1972 for 99 years at a premium oF Re. 124.SO,
with a lease rent of Rs 12,46 annually to be paid on or before 10 '' April every year with a
2.5% escalation after every 30 years

Restrictions imposed by lease arrangement concerning dividends, additional debt. Further
leasing. Excepting subleasing there are no such restrictions

32. Financial Instruments-Accounting classifications and fair value measurements;

The fair value of the assets and liabilities are Included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other
than in forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values :

Fair Value of cash and short-term deposits, trade and other short term receivables, trade
payables, other current liabilities short term loans from banks and other financial
instruments approximate their carrying amounts largely due to the short term maturities
of these instruments.

35. Figures, for previous Year have been regrouped and rearranged wherever necessary
As per our report given date

attached For and on behalf of the Board

For G. BASU & CO. Sunil Khetawat Sandeep Khetawat

Chartered Accountants

R. No. 301174E Managing Director

A CEO Whole lime Director

G. GUHA

p_armer DIN0Q391QSQ DIN 00391131

M. No. 0547D2
Place Kcdkata

Date: 29th May, 2024 Subrata Kumar Ray Shyam Niyogi

Company Secretary Chief Financial Officer
Place Kolkala PAN AFNPR0717D PAN ADLPN 5433K

date 2Hm May, 2C24

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Mar 31, 2014

1. SHARE CAPITAL :

Note:

A. Voting Right :

(i) Each equity share holders is entitled to voting right proportionate to his holding.

(ii) Preference share holders are not ordinerily entitled to voting right unles any part of their dividend remain unpaid or agenda of voting relates to issues effecting their right.

B. Other Right :

Preference share holders are entitled to priority over equity share holders against the proceeds of realisation of assets under circumstances of liquidation of the company.

C. Transferability :

Shares of the company are ordinerily transferable provided :

i) Instrument of transfer submitted to the company is as per format prescribed under the Act.

ii) Company does not have any lien on shares under transfer.

iii) Transferee conveys his consent within stipulated period of issuance of notice under section 110 (2) of Companies Act by the company pertaing to application of transfer of partly paid shares made by transferer.

2. LONG TERM BORROWINGS :

Note: The above loans are subordinated and shall not be withdrawn during the rehabilitation period

3. TANGIBLE FIXED ASSETS

NOTE : i) Entire Building has been constructed on Leasehold Land.

ii) Leasehold Land relates to 31.15 Acres of Land at plot No.6,7, & 8 of Industrial Area village Chhawni Bhilai Dist: Durg in the State of Chattisgarh taken as operating lease for a period of 99 years in the year of 1972.

iii) There are no other Fixed Assets in the company other than tangible fixed assets.

3. Notes to accounts :

4. (i) Contingent Liabilities :

As at 31st March 2014 As at 31st March 2013 RS RS RS RS

i). Claim against the company not acknowledge as debt.

a) Demand for sales tax and entry tax which are contested by the company. 68,445,750 68,327,610

b) Demand for Income tax under appeal 635,439 635,439

c) Demand for Excise/ Custom duty under appeal 1,453,723 1,453,723

d) Demand from ESI Authorities which has protested by the company. 13,242,753 13,242,753

e) Awards issued by the Hon''ble High Court of Chhattisgarh/ Labour Court under industrial dispute act which are contested by the company 2,960,000 2,960,000

f) Compensation Claim by one service provider contested by the company) 23,900 23,900

g) Guarantee Furnished - -

ii) Commitment : - -

5. Following BIFR direction to Operating Agency (OA) to ensure conversion of unsecured loans (full or in part) in to equity shares and derating of share capital, the company obtained share holder''s approval by way of special resolution through postal ballot to the effect of derating of equity and preference shares by 60% of corresponding face vale and issuance of equity shares face value in Rs.1/- per share against reduced value of relevant shares apart from converting unsecured loans of Rs.3,40,61,000/- in to equity shares of Rs.1/- each at per, application of both the resolutions being contingent upon BIFR''S approval of company''s scheme of rehabilitation. Pursuant to obtention of approval of members, the scheme has been revised in limited context of above by the OA who has forwarded the same to BIFR for approval. Subsequently BIFR has issued deficiency letter on scrutiny of DRS to IDBI (OA) with a copy to the company which has been replied by the company to OA with a copy to BIFR and the same is under examination with the former.

6. Information pursuant to AS-17

The company at present operate in one segment only (I,e, SWD) This rules out the cause of furnishing segment report under AS-17.

7. Related party disclosure in terms of AS-18:

1 There is no enterprise where control exists.

2 Other related parties in transaction with the company.

a) Key management personnel :

Shri Sunil Khetawat - Whole time Director, Shri Sandeep Khetawat - Wholetime Director

b) Relatives of Key management personal (KMP):

Shri H.P Khetawat, Smt. Shanti devi Khetawat, Smt. Shraddha Khetawat, Smt. Aekta Khetawat and Shri H.P.Khetawat (HUF), Sunil Khetawat (HUF), Sandeep Khetawat (HUF)

c) List of enterprises where key management personnel or their relatives hold the office of KMP:

M/S Kumi Agro Industries Ltd, BWL Industries (P) Ltd, Sulabh Sales Pvt. Ltd, Bhavin Polyplast Pvt. Ltd and Bhubneswari Investment Pvt. Ltd,

d) Entities under significant influence of KMP''s H.P.Khetawat (HUF)

8. Information Pursuant to AS-22

In absence of virtual certainty of future taxable profit to realize deferred tax assets accrued till date on account of unabsorbed loss & unabsorbed depreciation, no deferred tax asset has been recognized as a measure of prudence as laid down under para 19 of AS-22. This also contributed to ignoring AS-22 in its totality.

9. Impairment of Fixed Assets:-

Test of impairment undertaken in recent past revealed recoverable value of the CGW under net selling price method significantly higher than it''s carrying cost, as such no impairment provision is called for.

10. The workforce of the Company is meager six including two whole time directors who are waiving their substantial remuneration. Gratuity liability paid as per the advice of LIC for Annual Premium amounts to Rs.4,950/- only (previous year Rs.75,000/-) Liability on account of Leave Salary amount to mere Rs.5,630/- (previous year Rs.27,614/-) for the year according to management estimate based on all employees retiring on Balance Sheet date. Ascertainment of Liability as laid down under AS-15 (revised) involves considerable cost which is difficult for this company to withstand. In view of this the company has accounted for these liabilities as per accounting policy No. 2A(g), It may be mentioned here in that under any circumstances existing book liability towards leave salary is bound to be higher than actuarial computation.

11. Depending on disclosure mandated for entities under MSMED Act,2006 to reveal their identity in correspondences, bills & challan etc, no transaction is observed to have been entered into by the company during the year with any party belonging to micro and small category under MSMED Act,2006.

12. The Company has no Bank or Institutional borrowings. Lion''s share of borrowing relates to sources of Promoters which are of the nature of quasi capital. It has been already stated in appropriate note that major part of quasi capital is poised for conversion in to equity shares so as to render net worth positive. Beside the management aspires to revertilise the unit by implementation of package under consideration of BIFR. These are raison de''etre of going concern assumption guiding accounting policies.

13. Draft scheme for Rehabilitation of the Company is lying with the appropriate authority for circulation to the Stake holders & approval. At this strenuous point of time it is difficult to find an eligible independent director for which remuneration committee is unable to conform to required composition under LA - 49 and Companies Act''1956 for which company is helpless.

14. Figures for the previous reporting period have been regrouped and rearranged wherever necessary.

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Mar 31, 2010

As At 31st March, 2010 As At 31st March 2009 (Rs) (Rs)

1 Contingent Liabilities Not Provided For:

A) Counter Guarantee Given By The Company

To Banks For Guarantees Given By them. 311,985 654,585

B) Demand For Sales Tax And Entry Tax

Which Are Contested By The Company. 68.334.83 58,573,919

C) Demand For Income Tax Under Appeal. 635,439 635.439

D) Demand for Excise/Custom Duty under appeal 3,140,167 3,539,191

E) Demand from ESI authorities which has been protested by the company. 13,242,753 13,242,753

F) Award issued by the Honble High Court of ChhatSsgarti/Labour court under Industrial dispute Act which has contested by the company. 2,960,000 2,960.000

H) Compensation Claim by one service provider contested by the company. 23,900 23,900

2 Honble BIFR directed IDBI Bank the operating Agency (OA) to conduct Techno Economic Viability Study (TEVS) of Steel Wire Division and value fixed assets of two divisions of the company through reputed agencies apart from directing company to submit Draft Rehabilitation Scheme (DRS).

Pursuant to companys submission of DRS to OA, the latter submitted it to Honble BIFR. The same has been directed for revision by the company which is pending fordisposal of Land & Building of OFC Division.

3 Information pursuant to AS-17.

Pursuant to the decision of the management (duly approved in the extra ordinary general meeting held on 07.05.2007) to dispose of OFC Division and discontinuing if s operation, the particulars of the division appear under discontinued operation warranting disclosure under AS-24. Consequently, the company at present operate in one segment only (i.e. SWD). This rules out the cause of furnishing segment report under section AS-17.

4 Related party disclosure in terms of AS-18 issued by ICAI:

1 There is no enterprise where control exists for the purpose of disclosure under above standard.

2 Other related parties in transaction with the company.

a) Key management personnel:

Shri Sunil Khetawat - Whole time Director, Shri Sandeep Khetawat: Whotetime Director

b) Relatives of each key management personnel:

Shri H.P. Khetawat Smt Shanti Devi Khetawat, Smt Shraddha Khetawat, Smt. Aekta Khetawat and Shri H.P. Khetawat (HUF). H.P. Khetawat & Sons, Sunil Khetawat & sons, Sunil Khetawat (HUF), Sandeep Khetawat (HUF).

c) List of enterprises where key mangement personnel or their relatives hold the office of a Key Management personnel:

M/s. Kumi Agro Industries Limited, BWL Industries (P) Limited, Sulabh Sales (P) Ltd., Integrated Teleacc (P) Ltd., Bhavin Polyplast (P) Ltd.

5 Information pursuant to AS-22:

In absence of virtual certainty of future profit to realise deferred tax assets accrued ttl date on account of unabsorbed toss & depreciation, no deferred tax asset has been recognised as a measure of prudence as laid down under 19 of AS-22. This also contributed to ignoring AS-22 in its totality.

6 Impairment of Fixed Assets :

The company has undertaken test of impairment of Fixed Assets close to the balance sheet date in respect of SWD, the lone cash generating (CGU) unit based on net selling price method as recoverable value. Recoverable value proving higher then caning cost, no provision has been made in this regard.

7 Information pursuant to AS-19 :

The lease rental charged to revenue amounted to Rs.60000/-, (previous period Rs.90000/-) for the year ended 31st March, 2010 against vehicle taken on operational lease.

8 Debts recovabte includes Rs.72340/-, (previous period Rs.515636/-) being due from BWL Industries (P) Ltd., a company sharing Directors are common with the company.

9 AddWonal Information As Required Under Part-ll Of The Schedule-Vi of The Companies Act 1956 A) Quantitative And Other Information At Required To Be Furnished As Under:

1) Licensed Capacity : a) 24,460 Mt Of Various Types Of Steel Wires (Various Sizes Of Mild Steel Wires. Low Carbon Wires,

High Carbon Wires, Stainless Steel Wires, Coated And Uncoated, Plain And Strand As Per Letter Of Intent Issued By The Central Government - Previous Year 24,460 Mt).

b) 50000 Nos. Tension Set Galvanised Tension Bar (previous year Rs.50000 Nos.) 50000 Sets suspension set demountable pully Article of Aluminium (Previous year Rs.50000 Nos.) 1200 Nos. Parts of Tower and mast structures for transmission (previous year Rs.12000 Nos.)

2) Installed Capacity: a) 24,000 Mt (Previous Year 24,000 Mt)

b) 20000 Nos. Tension SetGarvanisedTension Bar (previous year Rs.20000 Nos.) 20000 Sets Suspension Set Demountable Pully Article of Aluminium (Previous year Rs.20000 Nos.) SIA Registration No.2018/SIA/INO/2008 dtd.03.07,2008 issued by ministry of comerce of Industry.

10 Figure for The Previous Period Have Been Regrouped And Rearranged Wherever Necessary. Figures of Current Year are not comparable with those of previous period due to previous period relates to 18 months as against current figures relate to financial year 2009-10.