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Accounting Policies of B C Power Controls Ltd. Company

Mar 31, 2018

Accounting Standards

The Company has complied with all the Accounting Standard as applicable to the company under Companies under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 20i 4, and made necessary disclosures wherever applicable.

Basis of Accounting and Preparation of Financial Statements

ITie financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been measured at fair value amount:

(i) Certain financial assets and liabilities.

(ii) Defined benefit plans - plan assets.

The financial statements of the Company have been prepared to comply with the Indian Accounting standards (Tnd AS’), including the rules notified under the relevant provisions of the Companies Act, 2013.

Upto the year ended March 31, 2017, the Company has prepared its financial statements in accordance with the requirement of Indian General Accepted Accounting Policies, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as “Previous GAAP”.

These financial statements are the Company’s first Ind AS standalone financial statements Company’s financial statements are presented in Indian Rupees (‘), which is also its functional currency

Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise

2.4 Inventories

As certified by the management, finished goods are valued at sale price , Raw Materials, Trading Goods and Scrap are valued at Cost or NRV which ever is lower (FIFO Depreciation and amortisation

Depreciation has been provided on the writted down value method as per the rates prescribed in Schedule II of the Companies Act, 2013.

Revenue Recognition

Revenue is recognised on accrued basis. Revenue from sale of goods is recognised on transfer of all significant risk and rewards of ownership to the buyer Vat is accounted on exclusive method. CST paid on the purchase of goods is included in the cost of purchases, sales are stated gross of Excise Duty as well as net of Excise Duty

Excise duty being the amount included m the amount of gross turnover. Merest income is recognised on accural basis Revenue is recognized only when it can be reliably

measured and it is reasonable to expect ultimate collection All expenses and income to the extent considered payable and receivable respectively unless specifically stated otherwise are accounted for on mercantile basis.

Tangilble fixed assets

1 angible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use Employee Benefits

The Company’s contributions to Employees State Insurance Fund and Provident Fund is considered a defined contribution plan and is charge as an expenses as it fall due based on the amount of contribution required to be made. Eligible employees receive benefits from a provident fund, which is a defined benefit plan Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee’s salary The Company contributes a portion to the Infosys Limited Employees’ Provident Fund Trust. The trust invests m specific designated instruments as permitted bv Indian law 1 he remaining portion is contributed to the government administered pension fund

The Company has not made any provision for gratuity,bonus leave encashment and leave travel allowance etc. during the year and these will be accounted fr on actuarial Foreign Currency Transactions and Translations

Afl transaction m foreign currency. arc recorded a, the rates ofexehnge preying on the dates when the relevant transactions take place Foreign-currcncy denoted is a e , nfi! e{tect al,he 0aiance Shecl da,e- Thc gains or losses resulting from such translations are mcluoem »ne n te n™l . u rh 7, h “TTT ““-* a”d “on-monctao’ liabilities denominated in a foreign currency and measured at fair value are translated «,«- *. nan-* j ate prevalent at the date when the tair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured tt * n^oncal cost are translated a. the exchange rate prevalent at the date of transact,on Revenue, expense and cash-flow hems denominated ,n ans ated using the exchange rate in effect on thc date of the transaction Transaction gains or losses realized upon settlement of foreign currency transactions arr iorludrd m determining net profit for thc penod in which die transaction is settled.

| Investment

j Investment include Long Term Investment only and are stated at cost | Earning Per Share

Impairment of assets

Provision and Contingencies


Mar 31, 2016

NOTE ''1'' ''

Corporate Information

BLC. Power Controls Limited( the Company") was a public limited listed Company. The company is engaged in manufacuring and selling of Insulated Cables ,Copper Wires as well as Copper scrap. The company caters to domestic market and sell goods to exporter as well, is having its registered office at 7A/39, WEA CHANNA MARKET, KAROL BAG H, NEW DELHI-110005 and manufacturing unit at Bhiwadi.

NOTE 7’

2.1 Accounting Standards

f he Company has complied with all the Accounting Standard as applicable to the company under Companies under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, and made necessary disclosures wherever applicable.

2.2 Basis of Accounting and Preparation of Financial Statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI), Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2.3 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.4 Inventories

As certified by the management, Finished goods are valued at sale price, Raw Materials, Trading Goods and Scrap are valued at Cost or NRV whichever is lower (FIFO Method).

2.5 Depreciation and amortization

Depreciation has been provided on the written down value method as per the rates prescribed in Schedule II of the Companies Act, 2013.

2.6 Revenue Recognition

Revenue is recognized on accrued basis. Revenue from sale of goods is recognized on transfer of all significant risk and rewards of ownership to the buyer. Vat is accounted on exclusive method. CST paid on the purchase of goods is included in the cost of purchases, sales are stated gross of Excise Duty as well as net of Excise Duty, Excise duty being the amount included in the amount of gross turnover. Interest income is recognized on accrual basis. Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection All expenses and income to the extent considered payable and receivable respectively unless specifically stated otherwise are accounted for on mercantile basis.

2.7 Tangible fixed assets

Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use

2.8 Employee Benefits

The Company s contributions to Employees State Insurance Fund and Provident Fund is considered a defined contribution plan and is charge as an expenses as it fall due based on the amount of contribution required to be made. Eligible employees receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''s salary. The Company contributes a portion to the Infosys Limited Employees'' Provident Fund Trust. The trust invests in specific designated instruments as permitted by Indian law.

The remaining portion is contributed to the government administered pension fund.

The Company has not made any provision for gratuity, bonus leave encashment and leave travel allowance etc. during the year and these will be accounted for on actuarial basis.

2.9 Foreign Currency Transactions and Translations

All transaction in Foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place. Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

2.10 Investment

Investment include Long Term Investment only and are stated at cost

2.11 Earning Per Share

Basic earnings per share is computed by dividing the profit / (loss) after-tax (including the post tax effect of extraordinary items, if any) by the number of equity shares outstanding during the year

2.12 Impairment of assets

The carrying value of assets/cash generating units at each Balance Sheet for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount recoverable amount. The recoverable amount is the greater of the net selling price and their value in use.

2.13 Provision and Contingencies

A provision is recognized when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefit) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. The company had given a corporate guarantee amounting Rs. 8.25 Crore in favour of Bank Of India on behalf of Bon Lon Steels Pvt Ltd.

2.14 Cash and cash equivalents

Cash and cash equivalents comprise cash and balance with banks .

2.15 Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal n one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of depreciation and provision on standard asset is recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability,_


Mar 31, 2015

2.2. Basis of Accounting and Preparation of financial Statements

The financial statements of the Company have been prepared in accordence with the generally, Accepted Accounting principlesmopies in India I Indian GAAP) to comply wrth the Accounting, Standards notified under Section 133 of the An. read with Rule 7 or the Companies accounts) "cues 2014 The financial statements have been prepared an accrual leasts under the historical colt convention The accounting policies adopted in the preparation of the financial statements are consistent, with three followed in the previous year for adjustments , required to complite financial account, in accordance with the. revised shcedule VI previous year except for adjustments

2.3. Use of Estimates

The preparation at tha financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amount! of assets and Uahdmrt inculding contingent liabilities) and tha reported income and exoenes During the year the Management believes that the estimate* used in preparation of the financial statements tem.no we prudent and reasonable future results counld differ due to those estlmeies and the differences between the actual result, and the estimates, are meowed in periods in which the multi are known / mataruhx

2.4. Inventories

At certified by tha management,furnished goods are valued at sale price , raw materials limited Malar lets trading Goods and Wrap are vetued at Cost at MRV which ever is lower (FIFO Method)

2.5. Depreciation and amortisantion

Depreciation hat been prodided on the written shown value method as pet the rates preacbed in Schedule of the Companies Act 2013.

2.6. Revenue Receginition

Revenue is recongiesed on accrued beus Revenue from trfe of (goods is reconited on transfer of all significant rosk and rewards of ownership to the buyer method CST paid on the purchase of goods included in the cost of purchases sales are stated gross of excise outy as well at net of Excise durty being the amount included in the amount of gross turnover interest incomes is recongiesed on accural basis. Revenues is reconglited only when mesured and it is resonables ti expect integral collection all expense and income to the extent considered payable and receivable respectively unless stated otherwise are accounted for on mercentle basis.

2.7. Tanaittdeftaed assets

Fixed assets, are canted at cost less accumatlted deprication and impairment sense, if any , sbsequanteled expenditure relating to fixed is capitalised only if such expenditures result in an increase in the future benefit,from such assets beyond Its previously assessed it undent performance

2.8. Employee benefit.

The Company contribution to exployees state insurance fund and privodent fund is considered a defined contribution plan and is has not made wry prowiion for gratuity,bonus leave encashment and leave t-auel allowance etc dump the yew and thaw will be acrounred for on actuarial basis

2.9. foreign Currency Transactions and Translations

All transaction In foreign currency, are recorded at the rates of eechnge prevailing on the da3es when the relevant trwnacbons tale place

2.10. Investment

Investment include Long Term shortem term joniy and ate stated at coat

2.11.Earning Par Share

Basic earnings per share is computed by divideing the profit/ (loss) after tax (Induding the post tax effect of extraordinary items,if any) by the number of equity shares outstanding

2.12. Impairment of assets

The carriying value of assets/cash (generatmg units at each Balance Sheet date we renewed tor Impairmant. if any indicate of Impairmant exist . the recoverable amount of such assets its estimated and the net selling price and their use

2.13. Provision and Contingencles

A provision is recognised when the comply hat * present obligation at a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefit! are not discounted to their present value and we determined based on the best estimate required to settle the obligation at the Balance Sheet data Those are renewed at each Balance sheet date and adjusted to reflect the current ben estimate, The company had giee a corporate guantee amounting Rs. 8.25 Crate in favour of Bans ofIndia on behalf of 9on Ion Steels Pvt ltd

2.14. Taxer an income

Current tea Is the amount of tea payable on the taxable income for the year at determined in accordance with the provisions of the Income Tea Act. 1961


Mar 31, 2014

1.1 Basis of preparation of financial statements

(a) Basis of Accounting:

The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.

(b) Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Differences between actual results and estimates are recognized in the period in which the results are known/ materialized.

1.2 Inventories

As certified by the management, Finished Goods are valued at Sales Price, Raw Materials and Traded Goods are valued at cost, WIP is valued at cost (including Cost upto the stage of Completion). Scrap is valued at net realizable value.

1.3 Depreciation and Amortization

Depreciation on fixed assets is provided to the extent of depreciable amount on written down value method (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their useful life

1.4 Revenue Recognition

Revenues/Incomes are generally accounted on accrual, as they are earned. Revenue from sale of goods is recognized on transfer of all significant risks and rewards of ownership to the buyer. VAT is accounted on exclusive method. CST and VAT Payable are not included in the sales price. However, CST paid on the purchase of goods is included in the cost of purchases. Sales are stated gross of Excise Duty as well as net of Excise Duty, Excise Duty being the amount included in the amount of gross turnover.Interest income is recognized on accrual basis.

1.5 Fixed Assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

1.6 Foreign currency transactions and translations

All transactions in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.

1.7 Investments

Investments include Long-Term Investments only and are stated at cost.

1.8 Employees Benefit

The Company''s contribution to Employees State Insurance Fund and Provident Fund is considered as defined contribution plan and is charged as an expense as it fall due based on the amount of contribution required to be made. No provision of Gratuity, Bonus, Leave Encashment, Leave Travel Allowance etc. has been made in the accounts and these will be accounted for on Actuarial Basis.

1.9 Borrowing Costs

Borrowing costs include interest and amortization of ancillary costs. Costs in connection with th e borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilized for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset is added to the cost of the assets. Capitalization of borrowing costs is suspended and charged to the Stat ement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.10 Earnings per share

The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

1.11 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12 Impairment of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognized, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognized for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognized in the Statement of Profit and Loss, except in case of revalued assets.

1.13 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities, if any are disclosed in the Notes.

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