Accounting Policies of Bansal Wire Industries Ltd. Company

Mar 31, 2025

2.2 MATERIAL ACCOUNTING POLICIES

A) Revenue Recognition

The Company derives revenues primarily from
sale of manufactured goods, traded goods and
related services.

Revenue is recognized on satisfaction of
performance obligation upon transfer of control
of promised products or services to customers
in an amount that reflects the consideration
the company expects to receive in exchange for
those products or services.

The Performance Obligations in our contracts
are fulfilled at the time of dispatch, delivery or
upon formal customer acceptance depending
on customer terms.

Revenue from the sale of goods is measured
on the basis of contracted price net of returns,
Liquidation damage, trade discount & volume
rebates and any taxes or duties collected on
behalf of the Government such as goods and
services tax, etc.

Revenue is recognised to the extent that it is
probable that the economic benefits will flow to
the Company and the revenue can be reliably
measured, regardless of when the payment is
being made.

Revenue is measured at the fair value of the
consideration received or receivable, taking into
account contractually defined terms of payment.

Revenue from a contract to provide services
is recognised based on terms of agreements/
arrangements with the customers as the service
is performed and there are no unfulfilled
performance obligations.

Sale of goods, Rendering of Services , Interest
Income and Dividends

i) Sale of goods

Revenue from sale of goods is measured at
the fair market value of the consideration
received or receivable, taking into account
contractually defined terms of payment
and excluding taxes or duties collected on
behalf of the government. Sales are net
of rebates and price concessions. Sales
in the domestic market are recognized at
the time of dispatch of materials to the
buyers including the cases where delivery
documents are endorsed in favour of the
buyers.

ii) Rendering of Services

Revenue from sale of services is recognised
upon the rendering of services and is
recognised net of GST.

B) Other Income

i) Interest income

Interest income is included in other income
in the statement of profit and loss. Interest
income is recognised on a time proportion
basis taking into account the amount
outstanding and the applicable interest
rate when there is a reasonable certainty
as to realisation.

ii) Dividends

Dividends are recognised in profit or
loss when the right to receive payment
is established, it is probable that the
economic benefits associated with the
dividend will flow to the Company, and the
amount of the dividend can be measured
reliably. This applies even if they are paid

out of pre-acquisition profits, unless the
dividend clearly represents a recovery of
part of the cost of the investment.

C) Property, plant and equipment

The initial cost of property, plant and equipment
comprises its purchase price, including import
duties and non refundable purchase taxes,
attributable borrowing cost and any other directly
attributable costs of bringing an asset to working
condition and location for its intended use.

Expenditure incurred after the property, plant
and equipment have been put into operation,
such as repairs and maintenance, are normally
charged to the statements of profit and loss in
the period in which the costs are incurred.

Major inspection and overhaul expenditure is
capitalized if the recognition criteria are met.

When significant parts of plant and equipment
are required to be replaced at intervals, the
Company depreciates them separately based
on their specific useful lives. Likewise, when a
major inspection is performed and overhaul
cost is incurred, its cost is recognised in the
carrying amount of the plant and equipment
as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs
are recognised in the statement of profit and
loss as incurred.

An item of property, plant and equipment
and any significant part initially recognised
is derecognised upon disposal or when no
future economic benefits are expected from
its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the
difference between the net disposal proceeds
and the carrying amount of the asset) is included
in the statement of profit and loss, when the
asset is derecognised.

The residual values, useful life and methods of
depreciation of property, plant and equipment
are reviewed at each financial year end and
adjusted prospectively, if appropriate.

The company has elected to continue with
the carrying amount of its Property, plant
and Equipment as recognised in the financial
statements on transition to Ind AS, measured
as per the previous GAAP and use that as its
deemed cost as at the date of transition.

i) Capital work in progress

Assets in the course of construction are
capitalized in capital work in progress
account. At the point when an asset
is capable of operating in the manner
intended by management, the cost
of construction is transferred to the
appropriate category of property, plant
and equipment. Costs associated with the
commissioning of an asset are capitalised
when the asset is available for use but
incapable of operating at normal levels
until the period of commissioning has
been completed. Revenue generated
from production during the trial period is
credited to capital work in progress.

ii) Depreciation

Assets in the course of development
or construction and freehold land are
not depreciated. Other property, plant
and equipment are stated at cost less
accumulated depreciation and any
provision for impairment. Depreciation
commences when the assets are ready for
their intended use.

Depreciation is calculated on the
depreciable amount, which is the cost of an
asset less its residual value.

Pursuantto theenactment oftheCompanies
Act,2013("the Act") and its applicability for
accounting periods commencing from April
1,2014 the company has, wherever required
reassessed the useful life of its fixed assets
and has computed depreciation with
reference to the useful life of the assets as
recommended in schedule II of the Act.

Depreciation on tangible fixed assets has
been provided on the straight-line method
as per the useful life prescribed in Schedule
II to the Companies Act,2013, except for
Tangible Assets for which certificate of the
useful life is taken from the competent
person in that field

Individual items of assets costing upto ''
5,000 are fully depreciated in the year of
acquisition except certain class of assets.

Leasehold improvements are depreciated
over the unexpired period of respective
leases or useful life whichever is shorter.

The company acquired three Industrial
Plots as part of Leasehold Land from the UP
State Industrial Development Corporation,
with upfront fees paid. These plots have
been capitalized at their acquisition cost
and are being amortized using the straight¬
line method.

The management believes that these
estimated useful lives are realistic and
reflect fair approximation of the period
over which the assets are likely to be used.

Major inspection and overhaul costs are
depreciated over the estimated life of the
economic benefit derived from such cost.
The carrying amount of the remaining
previous overhaul cost is charged to the
statement of profit and loss if the next
overhaul is undertaken earlier than the
previously estimated life of the economic
benefit.

When significant spare parts of an item
of property, plant and equipment have
different useful lives, they are accounted
for as separate items (major components)
of property, plant and equipment.

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Mar 31, 2024

2.2 MATERIAL ACCOUNTING POLICIES Revenue Recognition

The Company derives revenues primarily from sale of manufactured goods, traded goods and related services.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those products or services.

The Performance Obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

Revenue from the sale of goods is measured on the basis of contracted price net of returns, Liquidation damage, trade discount & volume rebates and any taxes or duties collected on behalf of the Government such as goods and services tax, etc.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made.

Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment

Revenue from a contract to provide services is recognised based on terms of agreements/arrangements with the customers as the service is performed and there are no unfulfilled performance obligations.

Sale of goods, Rendering of Services, Interest Income and Dividends Sale of goods

Revenue from sale of goods is measured at the fair market value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government Sales are net of rebates and price concessions. Sales in the domestic market are recognized at the time of dispatch of materials to the buyers including the cases where delivery documents are endorsed in favour of the buyers.

Rendering of Services

Revenue from sale of services is recognised upon the rendering of services and is recognised net of GST.

Other Income Interest income

Interest income is included in other income in the statement of profit and loss. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable interest rate when there is a reasonable certainty as to realisation.

Dividends

Dividends are recognised in profit or loss when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of the dividend can be measured reliably. This applies even if they are paid out of pre-acquisition profits, unless the dividend clearly represents a recovery of part of the cost of the investment

Property, plant and equipment

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non refundable purchase taxes, attributable borrowing cost and any other directly attributable costs of bringing an asset to working condition and location for its intended use.

Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance, are normally charged to the statements of profit and loss in the period in which the costs are incurred.

Major inspection and overhaul expenditure is capitalized if the recognition criteria are met

When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed and overhaul cost is incurred, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset] is included in the statement of profit and loss, when the asset is derecognised.

The residual values, useful life and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

The company has elected to continue with the carrying amount of its Property, plant and Equipment as recognised in the financial statements on transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Capital work in progress

Assets in the course of construction are capitalized in capital work in progress account. At the point when an asset is capable of operating in the manner intended by management, the cost of construction is transferred to the appropriate category of property, plant and equipment Costs associated with the commissioning of an asset are capitalised when the asset is available for use but incapable of operating at normal levels until the period of commissioning has been completed. Revenue generated from production during the trial period is credited to capital work in progress.

Depreciation

Assets in the course of development or construction and freehold land are not depreciated. Other property, plant and equipment are stated at cost less accumulated depreciation and any provision for impairment Depreciation commences when the assets are ready for their intended use.

Depreciation is calculated on the depreciable amount, which is the cost of an asset less its residual value.

Pursuant to the enactment of the Companies Act,2013("the Act") and its applicability for accounting periods commencing from April 1, 2014 the company has, wherever required reassessed the useful life of its fixed assets and has computed depreciation with reference to the useful life of the assets as recommended in schedule II of the Act.

Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act,2013, except for Tangible Assets for which certificate of the useful life is taken from the competent person in that field

Individual items of assets costing upto Rs. 5,000 are fully depreciated in the year of acquisition.

Leasehold improvements are depreciated over the unexpired period of respective leases or useful life whichever is shorter.

The company acquired three Industrial Plots as part of Leasehold Land from the UP State Industrial Development Corporation, with upfront fees paid. These plots have been capitalized at their acquisition cost and are being amortized using the straightline method.

The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Major inspection and overhaul costs are depreciated over the estimated life of the economic benefit derived from such cost The carrying amount of the remaining previous overhaul cost is charged to the statement of profit and loss if the next overhaul is undertaken earlier than the previously estimated life of the economic benefit.

When significant spare parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment