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Notes to Accounts of BMW Industries Ltd.
Mar 31, 2025
l. Provisions, Contingent Liabilities and
Contingent Assets
Provisions involving substantial degree of
estimation in measurement are recognized
when there is a legal or constructive obligation
as a result of past events and it is probable
that there will be an outflow of resources and
a reliable estimate can be made of the amount
of obligation. Provisions are not recognised
for future operating losses. The amount
recognized as a provision is the best estimate
of the consideration required to settle the
present obligation at the end of the reporting
period, taking into account the risks and
uncertainties surrounding the obligation.
Contingent liabilities are not recognized
and are disclosed by way of notes to the
Standalone financial statements when there is
a possible obligation arising from past events,
the existence of which will be confirmed only
by the occurrence or non-occurrence of one
or more uncertain future events not wholly
within the control of the Company or when
there is a present obligation that arises from
past events where it is either not probable
that an outflow of resources will be required
to settle the same or a reliable estimate of the
amount in this respect cannot be made.
When there is a possible obligation or
a present obligation and the likelihood of
outflow of resources is remote, no provision
or disclosure for contingent liability is made.
Contingent assets are not recognised
but disclosed in the standalone financial
statements by way of notes to accounts when
an inflow of economic benefits is probable.
Provisions, Contingent liabilities, and
Contingent assets are reviewed at each
balance sheet date.
m. Employee Benefits
Employee benefits are accrued in the year
in which services are rendered by the
employees. Short term employee benefits are
recognized as an expense in the statement of
profit and loss for the year in which the related
service is rendered.
Contribution to defined contribution plans
is in accordance with the provisions of the
Employee Provident Funds and Miscellaneous
Provisions Act, 1952, eligible employees of
the company are entitled to receive benefits
with respect to provident fund, Employee
Pension Scheme a defined contribution plan,
in which both the company and employee
contribute monthly to Provident Fund Scheme
the Central Government at a determined rate.
The Company''s contribution is charged off
to the Statement of Profit and Loss as and
when incurred..
Employees benefits using defined benefit
plans are recognised using actuarial
valuation techniques at the close of each year.
Remeasurements comprising of actuarial
gains and losses, are recognised immediately
in the Balance Sheet with a corresponding
debit or credit to retained earnings through
Other Comprehensive Income (âOCIâ) in the
period in which they occur. Remeasurements
are not reclassified to Profit or Loss in
subsequent periods. The Liability recognised
in the Balance Sheet in respect of gratuity
is the present value of the defined benefit
obligation as at the balance sheet date. The
defined benefit obligation is calculated by
external actuaries using the projected Unit
credit method. Bifurcation of liabilities into
Current and Non-current are done based on
actuarial valuation report.
Leave encashment is not allowed
to the employees.
n. Revenue Recognition
1. Revenue from Operations
Revenue from contracts with
customers is accounted for only when
it has commercial substance, and all the
following criteria are met:
(i) parties to the contract have
approved the contract and are
committed to performing their
respective obligations;
(ii) each party''s rights regarding the
goods or services to be transferred
and payment terms there against
can be identified;
(iii) consideration in exchange for the
goods or service to be transferred is
collectible and determinable.
The revenue is recognized on satisfaction
of performance obligation, when control
over the goods or services has been
transferred and/ or goods/ services are
delivered/ provided to the customers.
Delivery occurs when the goods have been
shipped or delivered to a specific location,
and the customer has either accepted the
goods under the contract or the Company
has sufficient evidence that all the criteria
for acceptance have been satisfied.
Revenue is measured at the amount of
transaction price (consideration specified
in the contract with the customers)
allocated to that performance obligation.
The transaction price of goods sold is net
of variable consideration on account of
rebates, claims and discounts, returns,
Goods and Service Tax (GST) and such
other taxes collected on behalf of third
party not being economic benefits flowing
to the company are excluded from revenue.
2. Other Income
Interest, Dividend and Claims:
Dividend income is recognized when the
right to receive payment is established.
Interest income from a financial asset
is recognized when it is probable that
the economic benefits will flow to the
Company and the amount of income can
be measured reliably. Interest income
is accrued on a time basis, by reference
to the principal outstanding and at the
effective interest rate applicable, which
is the rate that exactly discounts the
estimated future cash receipts through
the expected life of the financial asset
to that asset''s net carrying amount on
initial recognition.
Revenue in respect of claims of
insurance, etc. are recognized only when
there is reasonable certainty as to the
ultimate collection.
o. Borrowing Costs
Borrowing cost comprises of interest and
other costs incurred in connection with the
borrowing of the funds. All borrowing costs
are recognized in the Statement of Profit
and Loss using the effective interest method
except to the extent attributable to qualifying
Property Plant and Equipment (PPE) which are
capitalized to the cost of the related assets.
A qualifying PPE is an asset, that necessarily
takes a substantial period of time to get ready
for its intended use or sale. Borrowing cost
also includes exchange differences to the
extent considered as an adjustment to the
borrowing costs.
p. Government Grants
Government grants are recognized on
systematic basis when there is reasonable
certainty of realization of the same. Revenue
grants including subsidy/rebates are credited
to Statement of Profit and Loss Account under
"Other Incomeâ or deducted from the related
expenses for the period to which these are
related. Grants which are meant for purchase,
construction or otherwise to acquire non¬
current assets are recognized as Deferred
Income and disclosed under Non Current
Liabilities and transferred to Statement
of Profit and Loss on a systematic basis
over the useful life of the respective asset.
Grants relating to non-depreciable assets is
transferred to Statement of Profit and Loss
over the periods that bear the cost of meeting
the obligations related to such grants.
q. Taxes on Income
Income tax expense representing the sum of
current tax expenses and the net charge of the
deferred taxes is recognized in the statement
of profit and loss except to the extent that it
relates to items recognized directly in equity
or other comprehensive income.
Current Tax
Current income tax is provided on the
taxable income and recognized at the amount
expected to be paid to or recovered from the
tax authorities, using the tax rates and tax
laws that have been enacted or substantively
enacted by the end of the reporting period.
Advance tax and provisions are presented in
the balance sheet after setting off advance
tax paid and income tax provision for
the current year.
Deferred Tax
Deferred tax is accounted by using the balance
sheet liability method in respect of temporary
differences between the carrying amounts
of assets and liabilities in the Standalone
Financial Statements and the corresponding
tax bases used in the computation of taxable
profit as well as for unused tax losses or
credits. In principle deferred tax liabilities are
generally recognized for all taxable temporary
differences. Deferred tax assets are generally
recognized for all deductible temporary
differences to the extent that it is probable
that taxable profits will be available against
which those deductible temporary differences
can be utilized.
Deferred Tax Asset and Liabilities have
been offset wherever the company has a
legally enforceable right to set off current
tax assets against current tax liabilities and
where deferred tax assets and liabilities
relate to income tax levied by the same
taxation authority.
Deferred taxes are calculated at the enacted
or substantially enacted tax rates that are
expected to apply when the asset or liability is
settled. Deferred tax is charged or credited to
the income statement, except when it relates
to items credited or charged directly to other
comprehensive income in equity, in which
case the corresponding deferred tax is also
recognized directly in equity.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
and reduced to the extent that it is no longer
probable that sufficient taxable profits will be
available to allow all or part of the deferred tax
asset to be utilized.
r. Earnings Per Share
Basic earnings per share are computed by
dividing the net profit/loss attributable to the
equity holders of the company by the weighted
average number of equity shares outstanding
during the period.
Diluted earnings per share is computed by
dividing the net profit/loss attributable to the
equity holders of the company by the weighted
average number of equity shares considered
for deriving basic earnings per share and also
the weighted average number of equity shares
that could have been issued upon conversion
of all dilutive potential equity shares.
s. Segment Reporting
Operating segments are identified and reported
taking into account the different risk and
return, organisation structure and in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker (CODM).
CODM is responsible for allocating resources
and assessing performance of the operating
segments, financial results, forecasts or plan
for the segment and accordingly is identified
as the chief operating decision maker.
The Company has one operating business
segment viz, manufacturing, processing
and selling of steel and steel products
comprising of engineering and other products
and services and all other activities are
incidental to the same.
t. Statement of Cash Flows
Cash flows are reported using the indirect
method, whereby profit before tax is adjusted
for the effects of transactions of a non¬
cash nature, any deferrals, or accruals of
past or future operating cash receipts or
payments and items of income or expenses
associated with investing or financing flows.
Accordingly, the Company''s cash flows from
operating, investing, and financing activities
are segregated. For reporting Standalone
Statement of Cash Flows, cash and cash
equivalents consist of cash on hand, cheques
on hand, balance with banks, and short term
highly liquid investments, as stated above, net
of outstanding book overdrafts, as they are
considered an integral part of the Company''s
cash management.
D. Critical accounting judgments, assumptions
and key sources of estimation and uncertainty
The preparation of the Standalone financial
statements in conformity with the measurement
principle of Ind AS requires management to make
estimates, judgments and assumptions. These
estimates, judgments and assumptions affect
the application of accounting policies and the
reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at
the date of the Standalone financial statements
and reported amounts of revenues and expenses
during the period. Accounting estimates could
change from period to period. Actual results could
differ from those estimates. Appropriate changes
in estimates are made as management becomes
aware of changes in circumstances surrounding
the estimates. Differences between the actual
results and estimates are recognized in the year in
which the results are known / materialized and, if
material, their effects are disclosed in the notes to
the Standalone financial statements.
Application of accounting policies that require
significant areas of estimation, uncertainty and
critical judgments and the use of assumptions in
the standalone financial statements that have a
significant risk of causing a material adjustment
to the carrying amount of assets and liabilities
within the next financial year are discussed below.
The notes dealt with in (a) to (f) below provide an
overview of the areas that involved a high degree
of judgement or complexity and of items which are
likely to be materially adjusted due to estimates and
assumptions turning out to be different than those
originally assessed. Detailed information about each
of these estimates and judgements are included in
the relevant notes together with information about
basis of calculation of each affected line item in the
standalone financial statements.
a. Arrangements containing leases
Ind AS 116 requires lessees to determine the
lease term as the non-cancellable period of
a lease adjusted with any option to extend or
terminate the lease, if the use of such option
is reasonably certain. The Company makes an
assessment on the expected lease term on a
lease-by-lease basis and thereby assesses
whether it is reasonably certain that any
options to extend or terminate the contract
will be exercised. In evaluating the lease
term, the Company considers factors such
as any significant leasehold improvements
undertaken over the lease term, costs
relating to the termination of the lease and
the importance of the underlying asset to the
company''s operations taking into account
the location of the underlying asset and
the availability of suitable alternatives. The
lease term in future periods is reassessed to
ensure that the lease term reflects the current
economic circumstances.
b. Depreciation / amortization and impairment
on Property, Plant and Equipment / Intangible
assets.
Property, plant and equipment, ROU Assets and
intangible assets are depreciated/amortized
on Straight-Line Basis over the estimated useful
lives (or lease term if shorter) in accordance
with Internal assessment and Independent
evaluation carried out by technical expert/
Schedule II of the Companies Act, 2013, taking
into account the estimated useful life and
residual value, wherever applicable.
The company reviews its carrying value of
its Tangible and Intangible Assets whenever
there is objective evidence that the assets
are impaired. In such situation assets
recoverable amount is estimated which is
higher of asset''s or cash generating units
(CGU) fair value less cost of disposal and its
value in use. In assessing value in use the
estimated future cash flows are discounted
using pre-tax discount rate which reflect the
current assessment of time value of money.
In determining fair value less cost of disposal,
recent market realisations are considered or
otherwise in absence of such transactions
appropriate valuations are adopted.
c. Impairment loss on trade receivables
The Company evaluates whether there is any
objective evidence that trade receivables
are impaired and determines the amount
of impairment allowance as a result of the
inability of the customers to make required
payments. The Company bases the estimates
on the ageing of the trade receivables balance,
credit-worthiness of the trade receivables and
historical write-off experience. If the financial
conditions of the trade receivable were to
deteriorate, actual write-offs would be higher
than estimated.
d. Current Tax and Deferred Tax
Significant judgment is required in
determination of taxability of certain income
and deductibility of certain expenses during the
estimation of the provision for income taxes.
Significant management judgement is required
to determine the amount of deferred tax
assets/liability that can be recognised, based
upon the likely timing and the level of future
taxable profit together with future tax planning
strategies. The management has reviewed
the rationale for recognition of Deferred Tax
Liability and based on the likely timing and
level of profitability in future and expected
utilisation of deferred tax there against.
e. Defined benefit obligation (DBO)
Critical estimate of the DBO involves a
number of critical underlying assumptions
such as standard rates of inflation, mortality,
discount rate, anticipation of future salary
increases etc. as estimated by Independent
Actuary appointed for this purpose by the
Management. Variation in these assumptions
may significantly impact the DBO amount and
the annual defined benefit expenses.
f. Provisions and Contingencies
Provisions and liabilities are recognized in the
period when it becomes probable that there
will be a future outflow of funds resulting from
past operations or events and the amount of
cash outflow can be reliably estimated. The
timing of recognition and quantification of the
liability requires the application of judgement
to existing facts and circumstances, which can
be subject to change.
Management judgment is required for
estimating the possible outflow of resources,
if any, in respect of contingencies/claim/
litigations against the Company as it is not
possible to predict the outcome of pending
matters with accuracy.
The carrying amounts of provisions and
liabilities and estimation for contingencies
are reviewed regularly and revised to take
account of changing facts and circumstances.
15.lThe Company entered into a Share Purchase Agreement (SPA) on 04th April, 2017 inter-alia with M/S Anand
Itta Bhata Udyog Private Limited for sale of its entire shareholding in Bansal Nepal Private Limited, subsidiary
of the company consisting of 508693 equity shares of H 60/- each subject to compliance and completion of the
formalities under the Foreign Exchange Management Act and the conditions precedent in terms of the Sale
Purchase Agreement. Consequently, the said investments has been classified as held for sale at its realisable
value.
16.lPursuant to the scheme of arrangement for amalgamation of eight wholly owned subsidiaries namely Confident
Financial Consultancy Private Limited(CFCPL), Fairplan Vintrade Private Limited(FVPL), Nageshwar Trade-Link Private
Limited(NTLPL), Narayan Dealcom Private Limited(NDPL), Perfect Investment Consultancy Private Limited(PICPL),
Shri Hari Vincom Private Limited(SHVPL), Siddhi Vinayak Commosales Private Limited(SVCPL) and Sidhant Investment
Advisory Private Limited(SIAPL), the authorised share capital of the subsidiaries amounting to H 294.00 Lakhs consisting
of 29,40,000 number of Equity shares of H 10 each, has been added to the authorised share capital of the company
16.2The company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible
for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion
to their shareholding.
16.3There has been no changes/movements in number of shares outstanding at the beginning and at the end of the
reporting period.
17.3Capital Reserve on Amalgamation
The reserve was created on amalgamation of eight wholly owned subsidiaries.
17.4Securities Premium
Securities Premium represents the amount received in excess of par value of securities and is available for
utilisation as specified under Section 52 of Companies Act, 2013.
17.5General Reserve
The general reserve is created from time to time by appropriating profits from retained earnings. The general
reserve is created by a transfer from one component of equity to another and accordingly it is not reclassified
to the Statement of profit and loss.
17.6Retained Earnings
Retained earnings generally represent the undistributed profit/amount of accumulated earnings of the
company.This includes Other Comprehensive Income/(Loss) of (H 26.61 Lakhs) (March 31, 2024: (H 25.55 lakhs))
relating to remeasurement of defined benefit plans (net of tax) which cannot be reclassified to Statement of
Profit and Loss.
17.7Other Comprehensive Income Other Comprehensive Income represents gain/losses on defined benefit
obligations which is transferred to retained earnings as stated in Note 17.6 above.
17.8Dividend
Subsequent to the Balance Sheet date, the Board of directors has recommended a final dividend of Re. 0.43(43%)
per share to be paid on fully paid equity shares of Face Value of Re. 1 each in respect of the financial year ended
March 31, 2025. This equity dividend is subject to approval by the shareholders at the ensuing Annual General
Meeting and has not been included as a liability in the Standalone financial statements. The estimated amount of
final dividend to be paid thereof amounts to H 967.87 lakhs.
18.1Nature of Security
18.1.1Secured by 1st charge on the moveable and immovable property of Howrah GT road and extension of 2nd charge
on the assets provided for working capital loan . It has further been secured by personal guarantee of the three
promoter directors of the Company. Rate of interest being 0.85% to 2.75% above Bank Rate and is repayable at
unamortised cost as follows:
39.1 Pursuant to the search conducted under section 132 of the Income Tax Act, 1961, during the financial year 2023-2024,
the Company has received Assessment Orders for the financials years 2015-2016 to 2021-2022 and demand notices
aggregating to Rs 377.41 lakhs have been issued to the Company. Rs 83.88 Lakhs pertaining to the financial years 2015¬
2016, 2017-2018 and 2018-2019 to the extent agreed upon by the company, has been paid and recognized under current
tax for the year ended 31st March,2024. Necessary appeals for remaining amount of demand of Rs. 293.53 Lakhs have
been filed before the Commissioner of Income Tax (Appeals) and are pending as on this date and impact with respect to
this are presently not ascertainable. In view of the management, the allegations and contentions made by Income Tax
Authorities as such are not tenable and adjustments if any required will be given effect to on determination.
39.2Reconciliation of Income Tax Expenses for the year with accounting profit as follows:
Taxable Income differs from âprofit before tax'' as reported in the statement of profit and loss because of items of
income or expense that are taxable or deductible in other years and items that are never taxable or deductible.
Details in this respect are as follows :
40 (i)A (1) The Company''s pending litigation comprises of claim against the Company and proceeding pending tax/
statutory/Government authorities. The Company has reviewed all its pending litigations and proceedings
and has made adequate provisions, and disclosed the contingent liabilities, where applicable, in its
standalone Financial Statements. The Company does not expects the outcome of these proceedings to have
a material impact on its financial position. Future cash outflows in respect of above claim are dependent
upon the outcome of judgments / decisions.
Rupees in Lakhs
40 (ii) Contingent Assets
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed
only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the
control of the entity. During the normal course of business, unresolved claims remains outstanding. The
inflow of economic benefits, in respect of such claims cannot be measured due to uncertainities that
surround the related events and circumstances.
41 Trade Receivables,Trade payables and advances recoverable are subject to confirmation/reconciliation
and consequential adjustments,if any arising thereof.In the opinion of the management,current assets,loans and
advances will have value on realisation in the ordinary course of business atleast equal to the amount at which they
are stated in the Standalone Balance Sheet.
43 Segment Reporting
(i) The Company has one operating business segment viz, manufacturing, selling and processing of steel and all
other activities are incidental to the same.
(ii) Information about Major Customer
Revenue from Conversion Income of steel and steel products include sale of service to one Public Company
pertaining to the Steel sector which account for more than 10% and amounting to H 42,501.98 lakhs (March
31,2024- 42,311.38 lakhs) in the aggregate total revenue of the Company.
44 Disclosure as per Ind AS 116 "Leases"
Treatment of Leases as per Ind AS 116 :
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company
recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it
is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low
value assets . For these leases, the Company recognises the lease payments as an operating expense on a straight¬
line basis over the term of the lease unless another systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses
its incremental borrowing rate.
The weighted average incremental borrowing rate applied to leases recognised during the FY 2024-2025 is 8.85% p.aâ
44.1 (i) Nature of lease: The Company''s significant leasing arrangements is in respect of Land and Premises for
offices on lease which are not non-cancellable and are usually renewable on mutually agreeable terms
44.2 (ii) The Company has incurred H307.04 Lakhs and 365.67 Lakhs for the year ended March 31, 2025 and March
31, 2024 respectively towards rental expenses relating to short term leases and leases of low value assets.
The total cash outflow for leases is H 307.04 Lakhs and 365.67 Lakhs for the year ended March 31, 2025 and
March 31, 2024 respectively.
45 Employee Benefits
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service
is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972.This is
an unfunded plan.
The Company also has certain Defined Contribution plans.Contributions are made to provident fund in India at the
rate of 12% of salary of the employees covered as per the regulations. The contributions are made to registered
provident fund administered by the Government. The obligation of the Company is limited to the amount contributed
and it has no further contractual nor any constructive obligation.
As per Indian Accounting Standard 19 "Employee Benefits" (Ind AS - 19), the disclosures of Employee Benefits
are given below:
The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the
ability to observe inputs employed for such measurement:
(a) Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
(b) Level 2: Inputs other than quoted prices included within level 1 that are observable either directly or indirectly
for the asset or liability.
(c) Level 3: Inputs for the asset or liability which are not based on observable market data.
During the year ended March 31, 2025 , there were no transfers between Level 1, Level 2 and Level 3.
Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values :
The fair value of cash and cash equivalents,trade receivables and payables, current financial liabilities and assets
and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The
management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal
cost/amortised cost in the Standalone Financial Statements approximate their fair values.
Fair Value of Long term debt approximates their carrying value subject to adjustments made for transaction cost.
The non current financial assets represent security deposits given to government authorities and for the purpose of
day-to-day utilities of the Company and therefore the need of fair valuation does not arise in such a case.
A substantial portion of the company''s long-term debt has been contracted at floating rates of interest, which are
reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to
adjustments made for transaction cost.
Fair value of Security deposits and Unsecured Loans from Bodies Corporate have been determined on Effective
interest Rate method(EIR) and differential thereof has been recognised as deferred loss/gain and to be recognised
to profit and loss over the tenure of the instrument .
FINANCIAL RISK FACTORS
The Company''s financial liabilities comprise mainly of borrowings, trade and other payables. The Company''s financial
assets comprise mainly of cash and cash equivalents, other balances with banks including Fixed Deposits with Banks,
trade receivables and other receivables, Deposits and Investments.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Company''s senior management oversees
the management of these risks. The Board of Director reviews and agrees policies for managing each of these risks,
which are summarised below:
MARKET RISK
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risks: interest rate risk and other price risk
such as equity price risk and commodity risk. Financial instruments affected by market risk includes borrowings,
investments, trade payables and trade receivables.
Interest Rate Risk
The company''s exposure in market risk relating to change in interest rate primarily arises from floating rate
borrowing with banks and others. Interest rate risks is measured by using the cash flow sensitivity for changes
in variable interest rates. Any movement in the reference rates could have an impact on the company''s cash flows
as well as costs. There are certain borrowings at fixed interest rate which exposes the company to the fair value
interest rate risk, however exposure in such borrowings is not significant.
A decrease in 0.50 basis point in Rupee Loan would have an equal and opposite effect on the Company''s Standalone
Financial Statements
CREDIT RISK
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily
trade receivables and other financial assets including deposits with Bank. Exposure to credit risk is monitored on
an ongoing basis.The Company periodically assesses the financial reliability of customers, taking into account the
financial condition, current economic trends and ageing of accounts receivable.
The Company''s exposure of its counterparties are continuously monitored and the aggregate value of transactions
is reasonably spread amongst the counterparties.
The carrying amount of respective financial assets recognised in the Standalone Financial Statements,represents
the Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base
being well established, large and unrelated.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of
trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management
and appropriate impairment allowances for doubtful debts are made to the extent recovery there against has been
considered to be remote.
Financial assets that are neither past due nor impaired
Cash and cash equivalents and deposits are neither past due nor impaired. Cash and cash equivalents with banks
are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired
Trade receivables amounts that are past due at the end of the reporting period against which no credit losses has
been expected to arise.
LIQUIDITY RISK
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company has obtained fund and non-fund based working capital loans from banks.The company relies on borrowings
and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its
short to medium term fund requirement.
49 Disclosure for Stuck off companies
Based on the information to the extent available with the company, there were no transactions with the companies
struck off under section 248 of the Companies Act, 2013
50 Disclosure regarding borrowed funds have been considered part of other disclosures :
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other
sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
("Intermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall
lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not
received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly
or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate
Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
51 Other disclosures required under schedule III of Companies Act, 2013 :
a. The company does not hold any Benami Properties and there is no proceedings initiated or pending against the
Company for holding any Benami Property under the Benami Transition (prohibition) Act, 1988 and rules made
thereunder.
b. The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
c. The Company has not traded or invested in Crypto currency or virtual currency during the financial year.
d. The Company has no any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
e. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
stautory period.
52 The Board of Directors of the company in it''s meeting held on 14th August, 2024 has proposed to amalgamate
the wholly owned subsidiaries BMW Iron & Steel Industries Limited (BMWISIL) and Nippon Cryo Private Limited
(NCPL) with the company. This is subject to necessary approval as per the provisions of the Companies Act 2013.
53 Previous year figures have been recasted/restated to conform with current year presentation wherever
considered necessary.
54 These Standalone financial statements have been approved by the Board of Directors of the Company on May
16,2025 for issue to the shareholders for their adoption.
As per our report of even date For and on behalf of the Board of Directors
Sd/- Sd/-
For Lodha & Co LLP Ram Gopal Bansal Harsh Kumar Bansal
Chartered Accountants Chairman Director
Firm''s ICAI Registration Number : 301051E/E300284 DIN: 00144159 DIN : 00137014
Sd/- Sd/-
Vikram Matta Vikram Kapur
Partner Chief Financial Officer & Company Secretary
Membership No. 054087
Place: Kolkata
Date: 16.05.2025
Mar 31, 2024
The fair value of property as estimated was H 1,550.50 lakhs(P.Y. 1,384.10 Lakhs) . The Company estimates the fair value of its investment properties based on current prices in market for similar properties and not on the basis of a report issued by a registered valuer as defined under Rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
3.2 Investment in premises has been considered as investment property- Refer Note no. 5.3
3.3 The title deed of the immovable property in respect of the following property which have been acquired pursuant to Scheme of merger with effect from April 1, 2021 are held in the name of transferor company and is pending registration in favour of the Company :
5.3 Based on Management review in terms of resolution dated 15th May, 2023 investment in property carried in the books of one of the subsidiary prior to merger has been categorised and classified as investment property by the company.
5.4 Particulars of Investments as required in terms of Section 186(4) of the Companies Act, 2013, have been disclosed under Note No. 5 above.
7.1 Capital Advance includes H 1366.77 lakhs (March 31, 2023 H 1366.77 lakhs) given to a foreign supplier against purchase of certain Equipments for which the order have been cancelled and the amount shall therefore be adjusted against future supplies of Equipments to be procured by the Company from the said supplier.
7.2 Advance Tax including Tax deducted at Source as on 31st March, 2024 is net of provision for Income tax of H 1,982.63 Lakhs (P. Y H2170.80 Lakhs).
7.3 Represents the differential arising on the fair valuation of financial assets at amortised cost and are amortised over the tenure of said financial assets.
9.1 Trade Receivables are non interest bearing and are generally on credit terms of 30 to 90 days. The ageing of Trade Receivables are as follows:
9.2 Refer Note No. 18.1 and 24.1 in respect of charge created on Trade Receivable against borrowings.
9.3 The concentration of credit risks in respect of manufactured goods sold is limited due to large volume of customer base being from prominent credit worthy unrelated company belonging to the steel sector. In respect of services provided, the Company''s significant revenues are derived from one customer which is a well established public limited company listed on stock exchange in India.
9.4 There are no outstanding receivables due from directors or other officers of the Company.
11.1 Kept as lien against Bank Guarantee.
11.2 Balance with banks on unpaid dividend account represents monies that can be utilised only to pay dividend to equity shareholders against dividend warrants issued to them.
14.1 Represent amount receivable from subsidiary which is repayable on demand.However considering that the amount so given is strategic in nature to provide Support to the subsidiary, Interest there against has been waived and has not been accrued.
14.3 There are no outstanding loans/advances in nature of loan to promoters,key management personnel or other officers of the Company
14.4 Surplus Assets / Obsolete Assets held for disposal are shown at lower of book value and net realizable value.
14.5 Includes H 151.90 Lakhs (P.Y. H Nil Lakhs) in respect of advances against Corporate Social Responsibility (CSR) being expenditure in excess of the limit specified under section 135 of the Companies Act, 2013
15.1 The Company entered into a Share Purchase Agreement (SPA) on 04th April, 2017 inter-alia with M/S Anand Itta Bhata Udyog Private Limited for sale of its entire shareholding in Bansal Nepal Private Limited, subsidiary of the company consisting of 508693 equity shares of H 60/- each subject to compliance and completion of the formalities under the Foreign Exchange Management Act and the conditions precedent in terms of the Sale Purchase Agreement. Consequently, the said investments has been classified as held for sale at its realisable value.
16.1 The company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, in proportion to their shareholding.
16.2 There has been no changes/movements in number of shares outstanding at the beginning and at the end of the reporting period.
17.3 Capital Reserve on Amalgamation
The reserve was created on amalgamation of eight wholly owned subsidiaries.
17.4 Securities Premium
Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013.
17.5 General Reserve
The general reserve is created from time to time by appropriating profits from retained earnings. The general reserve is created by a transfer from one component of equity to another and accordingly it is not reclassified to the Statement of profit and loss.
17.6 Retained Earnings
Retained earnings generally represent the undistributed profit/amount of accumulated earnings of the company.
This includes Other Comprehensive Income/(Loss) of (H 25.55 Lakhs) (March 31, 2023: (H 13.05 lakhs)) relating to
remeasurement of defined benefit plans (net of tax) which cannot be reclassified to Statement of Profit and Loss.
17.7 Other Comprehensive Income
Other Comprehensive Income represents gain/losses on defined benefit obligations which is transferred to
retained earnings as stated in Note 17.6 above.
17.8 Dividend
(a) Subsequent to the Balance Sheet date, the Board of directors has recommended a final dividend of Re. 0.21 (21%) per share to be paid on fully paid equity shares of Face Value of Re. 1 each in respect of the financial year ended March 31, 2024. This equity dividend is subject to approval by the shareholders at the ensuing Annual General Meeting and has not been included as a liability in the Standalone financial statements. The estimated amount of final dividend to be paid thereof amounts to H 472.68 lakhs. This is over and above the Interim Dividend of Re 0.22 (22%) per equity share of face value Re. 1 each for the financial year 2023-2024 declared by the Board of Directors in their meeting held on 9th November, 2023 resulting in the outflow of H 495.18 lakhs in this respect.
(b) The Interim Dividend apporved by the Board of Directors of the Company on 15th February, 2023, at a rate of H 0.20 per equity share (20 %) of Re. 1 each and paid thereafter has been confirmed at the Board Meeting held on 15th May, 2023, as the final dividend for the year ended 31st March , 2023 resulting in the outflow of H 450.17 lakhs in this respect in previous year.
18.1.5 As available from web page of Ministry of Corporate Affairs, charges against assets in respect of secured loans taken have been registered with ROC.
The Company has a system of filing the charge satisfaction e-form with MCA wherever applicable, within the timelines, as and when it receives NOCs from the respective charge holders.
18.1.7 The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were taken. In respect of the term loans which were taken in the previous year, these were applied in the respective year for the purpose for which the loans were obtained.
26.1 Operational Suppliers'' Credit is availed from bank at interest rate ranging from 7.50% to 7.75 % per annum. These trade credits are largely repayable within 90 days from the date of draw down. Operational Buyer''s credit availed is backed by Standby Letter of Credit issued under working capital facilities sanctioned by domestic banks.
28.1 There are no dues to Micro and Small enterprises with regard to the supplier of capital goods as at 31st march, 2024. This information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.
29.1 Contract Balances
Advance from customers is recognised when payment is received before the related performance obligation is satisfied. This includes advances received from the customer towards products or services to be provided in future periods. Revenue is recognised once the performance obligation is met i.e. once the control over a product or service has been transferred to the customer.
38.2 Corporate Social Responsibility (CSR)
The Company was required to spend an amount of HNIL (Previous Year HNil ) on CSR as per the provisions of section 135 of the Companies Act , 2013. The Company has during the year spent H 151.90 Lakhs (Previous Year H 79.71 lakhs) Also Refer Note . 38.2.1
38.2.2 Details of Excess Amount Spent
The Company has during the year spent H151.90 Lakhs towards CSR expenses which is in excess of the amount required to be spent during the year and accordingly, H151.90 Lakhs has been carried forward to be set off from future obligation and shown as other advances. (Refer Note No. 14)
39.1 Pursuant to the search conducted under section 132 of the Income Tax Act, 1961, during the current year, the Company has received Assessment Orders for the financials years 2015-2016 to 2021-2022 and demand notices aggregating to H 377.41 lakhs have been issued to the Company. H83.88 Lakhs pertaining to the financial years 2015-2016, 2017-2018 and 2018-2019 to the extent agreed upon by the company, has been paid and recognized under current tax for the year ended 31st March,2024. Necessary appeals for remaining amount of demand of H 293.53 Lakhs have been filed before the Commissioner of Income Tax (Appeals) and are pending as on this date and impact with respect to this are presently not ascertainable. In view of the management, the allegations and contentions made by Income Tax Authorities as such are not tenable and adjustments if any required will be given effect to on determination.
|
(i) Contingent Liabilities and Commitments (to the extent not provided for) Rupees in Lakhs |
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Note Particulars No. |
As at March 31, 2024 |
As at March 31, 2023 |
|
A Contingent Liabilities Claims against the Company not acknowledged as Debt Income tax demands under appeal- Disallowances contested by Company |
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402.41 |
178.34 |
|
|
402.41 |
178.34 |
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40 (i) A (1) The Company''s pending litigation comprises of claim against the Company and proceeding pending tax/statutory/ Government authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, and disclosed the contingent liabilities, where applicable, in its standalone Financial Statements. The Company does not expects the outcome of these proceedings to have a material impact on its financial position. Future cash outflows in respect of above claim are dependent upon the outcome of judgments / decisions.
40 (ii) Contingent Assets
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the entity. During the normal course of business, unresolved claims remains outstanding. The inflow of economic benefits, in respect of such claims cannot be measured due to uncertainities that surround the related events and circumstances.
41 Trade Receivables,Trade payables and advances recoverable are subject to confirmation/reconciliation and consequential adjustments,if any arising thereof.In the opinion of the management,current assets,loans and advances will have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated in the Standalone Balance Sheet.
(i) The Company has one operating business segment viz, manufacturing, selling and processing of steel and all other activities are incidental to the same.
(ii) Information about Major Customer
Revenue from Conversion Income of steel and steel products include sale of service to one Public Company pertaining to the Steel sector which account for more than 10% and amounting to H 42,311.38 lakhs (March 31,2023- H43,236.23 lakhs) in the aggregate total revenue of the Company.
44 Disclosure as per Ind AS 116 "Leases"
Treatment of Leases as per Ind AS 116 :
The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.
The Company has applied the following practical expedients on initial application of Ind AS 116:
a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar end date.
b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application.
c) Excluded the initial direct costs, if any from the measurement of the right-of-use asset at the date of recognition of right-of-use asset.
d) Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
e) The weighted average incremental borrowing rate applied to leases recognised during the FY 2023-24 is 8.85%
44.1 (i) Nature of lease: The Company''s significant leasing arrangements is in respect of Land and Premises for
offices on lease which are not non-cancellable and are usually renewable on mutually agreeable terms
44.2 (ii) The Company has incurred H365.67 Lakhs and 143.31 Lakhs for the year ended March 31, 2024 and March
31, 2023 respectively towards rental expenses relating to short term leases and leases of low value assets. The total cash outflow for leases is H 365.67 Lakhs and 143.31 Lakhs for the year ended March 31, 2024 and March 31, 2023 respectively.
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. This is an unfunded plan.
The Company also has certain Defined Contribution plans.Contributions are made to provident fund in India at the rate of 12% of salary of the employees covered as per the regulations. The contributions are made to registered provident fund administered by the Government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.
ii) Defined Benefit Scheme
The Company has defined benefit plan comprising of gratuity. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit (PUC) actuarial Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet.
E) Terms and conditions of transactions with related parties
The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs in cash. The above related parties information is as identified by the management and relied upon by the auditor.The Company has not provided any guarantee to related parties towards their borrowing facilities. For the year ended March 31, 2024, the Company has not recorded any impairment allowances in respect of receivables relating to amounts owed by related parties (March 31, 2023 H NIL). This assessment is undertaken each financial year by examining the financial position of the related party and the market in which the related party operates.
A) Pursuant to Order dated March 23, 2023 of Hon''ble National Company Law Tribunal, Kolkata Bench (NCLT) approved the scheme of Arrangement for Amalgamation (the Scheme) of eight wholly owned subsidiaries ("the subsidiariesâ) namely Confident Financial Consultancy Private Limited(CFCPL), Fairplan Vintrade Private Limited(FVPL), Nageshwar Trade-Link Private Limited(NTLPL), Narayan Dealcom Private Limited(NDPL), Perfect Investment Consultancy Private Limited(PICPL), Shri Hari Vincom Private Limited(SHVPL), Siddhi Vinayak Commosales Private Limited(SVCPL) and Sidhant Investment Advisory Private Limited(SIAPL) (herein after collectively referred to as Transferor companies) with its holding company BMW Industries Limited (BMWIL).
B) The appointed date of amalgamation being 1.04.2021, these transferor companies stands amalgamated with BMWIL with effect from the said appointed date. The said Amalgamation was given effect to in the financial statements of the previous year .
C) Pursuant to the scheme of arrangement, the Company recorded all assets and liabilities of the transferor companies amalgamated, at their respective book values thereof as appearing in the books of transferor companies at the close of business day immediately preceding the appointed date. The Securities Premium and other reserves standing in the books of these transferor companies have been included in the books of the company in the same form as appearing in the financial statements of these transferor companies and the Share capital of the subsidiaries issued to the company was cancelled and differential of Rs. 104.79 lakhs with respect to the cost of investment in the books of BMWIL and face value thereof was adjusted to Capital Reserve on amalgamation.
Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount 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 following methods and assumptions were used to estimate the fair values :
The fair value of cash and cash equivalents,trade receivables and payables, current financial liabilities and assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/amortised cost in the Standalone Financial Statements approximate their fair values.
Fair Value of Long term debt approximates their carrying value subject to adjustments made for transaction cost. The non current financial assets represent security deposits given to government authorities and for the purpose of day-to-day utilities of the Company and therefore the need of fair valuation does not arise in such a case.
A substantial portion of the company''s long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost.
Fair value of Security deposits and Unsecured Loans from Bodies Corporate have been determined on Effective interest Rate method(EIR) and differential thereof has been recognised as deferred loss/gain and to be recognised to profit and loss over the tenure of the instrument.
Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the market place. The inputs used for
forward contracts are Forward foreign currency exchange rates.
FINANCIAL RISK FACTORS
The Company''s financial liabilities comprise mainly of borrowings, trade and other payables. The Company''s financial assets comprise mainly of cash and cash equivalents, other balances with banks including Fixed Deposits with Banks, trade receivables and other receivables, Deposits and Investments.
The Company is exposed to Market risk, Credit risk and Liquidity risk. The Company''s senior management oversees the management of these risks. The Board of Director reviews and agrees policies for managing each of these risks, which are summarised below:
MARKET RISK
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk includes borrowings, investments, trade payables and trade receivables.
Interest Rate Risk
The company''s exposure in market risk relating to change in interest rate primarily arises from floating rate borrowing with banks and others. Interest rate risks is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the company''s cash flows as well as costs. There are certain borrowings at fixed interest rate which exposes the company to the fair value interest rate risk, however exposure in such borrowings is not significant.
Further there are deposits with banks which are for short term period and are exposed to interest rate risk, falling due for renewal.
With all other variables held constant, the following table demonstrates the impact of the borrowing cost on the Profit or Loss with respect to floating rate portion of loans and borrowings
A decrease in 0.50 basis point in Rupee Loan would have an equal and opposite effect on the Company''s Standalone Financial Statements
CREDIT RISK
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily trade receivables and other financial assets including deposits with Bank. Exposure to credit risk is monitored on an ongoing basis.The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable.
The Company''s exposure of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties.
The carrying amount of respective financial assets recognised in the Standalone Financial Statements,represents the Company''s maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being well established, large and unrelated.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate impairment allowances for doubtful debts are made to the extent recovery there against has been considered to be remote.
Financial assets that are neither past due nor impaired
Cash and cash equivalents and deposits are neither past due nor impaired. Cash and cash equivalents
with banks are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired
Trade receivables amounts that are past due at the end of the reporting period against which no credit losses has been expected to arise.
LIQUIDITY RISK
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital loans from banks.The company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement.
Liquidity and interest risk tables
The following tables detail the Company''s contractual maturity for its non derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as at balance sheet date:
Interest rate and currency of borrowings As at March 31,2024
The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses.
The company relies on mix of borrowings and operating cash flows to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender.
(a) Capital Management
The primary objective of the Company''s capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Company''s objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as high financial flexibility for potential future borrowings.
49 Disclosure for Stuck off companies
Based on the information to the extent available with the company, there were no transactions with the companies struck off under section 248 of the Companies Act, 2013
50 Disclosure regarding borrowed funds have been considered part of other disclosures :
No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediariesâ) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Funding Party ("Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
51 Other disclosures required under schedule III of Companies Act, 2013 :
a. The company does not hold any Benami Properties and there is no proceedings initiated or pending against the Company for holding any Benami Property under the Benami Transition (prohibition) Act, 1988 and rules made thereunder.
b. The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
c. The Company has not traded or invested in Crypto currency or virtual currency during the financial year.
d. The Company has no any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
e. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the stautory period.
52 The Board of Directors of the company in it''s meeting held on 15th May, 2024 has proposed to amalgamate the wholly owned subsidiaries BMW Iron & Steel Industries Limited (BISIL) and Nippon Cryo Private Limited (NCPL) with the company. This is subject to necessary approval as per the provisions of the Companies Act 2013.
53 Previous year figures have been recasted/restated to conform with current year presentation wherever considered necessary.
54 These Standalone financial statements have been approved by the Board of Directors of the Company on May 15, 2024 for issue to the shareholders for their adoption.
Mar 31, 2023
Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of
estimation in measurement are recognized
when there is a legal or constructive obligation
as a result of past events and it is probable
that there will be an outflow of resources and
a reliable estimate can be made of the amount
of obligation. Provisions are not recognised for
future operating losses. The amount recognized
as a provision is the best estimate of the
consideration required to settle the present
obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation.
Contingent liabilities are not recognized and
are disclosed by way of notes to the Standalone
financial statements when there is a possible
obligation arising from past events, the existence
of which will be confirmed only by the occurrence
or non-occurrence of one or more uncertain
future events not wholly within the control of the
Company or when there is a present obligation
that arises from past events where it is either
not probable that an outflow of resources will be
required to settle the same or a reliable estimate
of the amount in this respect cannot be made.
Contingent assets are disclosed in the
Standalone Financial Statements by way of notes
to accounts when an inflow of economic benefits
is probable.
o. Employee Benefits
Employee benefits are accrued in the year in
which services are rendered by the employees.
Short term employee benefits are recognized as
an expense in the statement of profit and loss for
the year in which the related service is rendered.
Contribution to defined contribution plans such
as Provident Fund, Employee Pension Scheme
etc, is being made in accordance with statute
and are recognised as and when incurred.
Employees benefits using defined benefit plans are
recognised using actuarial valuation techniques
at the close of each year. Remeasurements
comprising of actuarial gains and losses, are
recognised immediately in the Balance Sheet
with a corresponding debit or credit to retained
earnings through Other Comprehensive
Income (âOCIâ) in the period in which they occur.
Remeasurements are not reclassified to Profit
or Loss in subsequent periods. The Liability
recognised in the Balance Sheet in respect of
gratuity is the present value of the defined benefit
obligation as at the balance sheet date. The
defined benefit obligation is calculated by external
actuaries using the projected Unit credit method.
p. Revenue Recognition
1. Revenue from Operations
Revenue from contracts with customers is
accounted for only when it has commercial
substance, and all the following criteria are met:
(i) parties to the contract have approved
the contract and are committed to
performing their respective obligations;
(ii) each party''s rights regarding the goods
or services to be transferred and
payment terms there against can be
identified;
(iii) consideration in exchange for the goods
or service to be transferred is collectible
and determinable.
The revenue is recognized on satisfaction of
performance obligation, when control over
the goods or services has been transferred
and/ or goods/ services are delivered/
provided to the customers. Delivery occurs
when the goods have been shipped or
delivered to a specific location, and the
customer has either accepted the goods
under the contract or the Company has
sutficient evidence that all the criteria for
acceptance have been satisfied.
Revenue is measured at the amount of
transaction price (consideration specified in
the contract with the customers) allocated to
that performance obligation. The transaction
price of goods sold is net of variable
consideration on account of discounts
offered by the company and excludes
amounts collected on behalf of third parties.
2. Other Income
Interest, Dividend and Claims:
Dividend income is recognized when the
right to receive payment is established.
Interest income from a financial asset is
recognized when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a
time basis, by reference to the principal
outstanding and at the effective interest rate
applicable, which is the rate that exactly
discounts the estimated future cash receipts
through the expected life of the financial
asset to that asset''s net carrying amount on
initial recognition.
Revenue in respect of claims of insurance,
etc. are recognized only when there is
reasonable certainty as to the ultimate
collection.
q. Borrowing Costs
Borrowing cost comprises of interest and other
costs incurred in connection with the borrowing
of the funds. All borrowing costs are recognized
in the Statement of Profit and Loss using the
effective interest method except to the extent
attributable to qualifying Property Plant and
Equipment (PPE) which are capitalized to the
cost of the related assets. A qualifying PPE is
an asset, that necessarily takes a substantial
period of time to get ready for its intended use
or sale. Borrowing cost also includes exchange
differences to the extent considered as an
adjustment to the borrowing costs.
r. Government Grants
Government grants are recognized on systematic
basis when there is reasonable certainty of
realization of the same. Revenue grants including
subsidy/rebates are credited to Statement of
Profit and Loss Account under "Other Incomeâ
or deducted from the related expenses for
the period to which these are related. Grants
which are meant for purchase, construction or
otherwise to acquire non current assets are
recognized as Deferred Income and disclosed
under Non Current Liabilities and transferred
to Statement of Profit and Loss on a systematic
basis over the useful life of the respective asset.
Grants relating to non-depreciable assets is
transferred to Statement of Profit and Loss over
the periods that bear the cost of meeting the
obligations related to such grants.
s. Taxes on Income
Income tax expense representing the sum of
current tax expenses and the net charge of the
deferred taxes is recognized in the statement of
profit and loss except to the extent that it relates
to items recognized directly in equity or other
comprehensive income.
Current Tax
Current income tax is provided on the taxable
income and recognized at the amount expected to
be paid to or recovered from the tax authorities,
using the tax rates and tax laws that have been
enacted or substantively enacted by the end of
the reporting period. Advance tax and provisions
are presented in the balance sheet after setting
off advance tax paid and income tax provision for
the current year.
Deferred Tax
Deferred tax is accounted by using the balance
sheet liability method in respect of temporary
differences between the carrying amounts of
assets and liabilities in the Standalone Financial
Statements and the corresponding tax bases
used in the computation of taxable profit as well
as for unused tax losses or credits. In principle
deferred tax liabilities are generally recognized
for all taxable temporary differences. Deferred
tax assets are generally recognized for all
deductible temporary differences to the extent
that it is probable that taxable profits will
be available against which those deductible
temporary differences can be utilized.
Deferred Tax Asset & Liabilities have been offset
wherever the company has a legally enforceable
right to set off current tax assets against current
tax liabilities & where deferred tax assets &
liabilities relate to income tax levied by the same
taxation authority.
Deferred taxes are calculated at the enacted
or substantially enacted tax rates that are
expected to apply when the asset or liability is
settled. Deferred tax is charged or credited to
the income statement, except when it relates
to items credited or charged directly to other
comprehensive income in equity, in which
case the corresponding deferred tax is also
recognized directly in equity.
The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all
or part of the deferred tax asset to be utilized.
t. Earnings Per Share
Basic earnings per share are computed by
dividing the net profit/loss attributable to the
equity holders of the company by the weighted
average number of equity shares outstanding
during the period.
Diluted earnings per share is computed by
dividing the net profit/loss attributable to the
equity holders of the company by the weighted
average number of equity shares considered for
deriving basic earnings per share and also the
weighted average number of equity shares that
could have been issued upon conversion of all
dilutive potential equity shares.
u. Segment Reporting
The Company has one operating business
segment viz, manufacturing, processing and
selling of steel and steel products comprising
of engineering and other products and services
and all other activities are incidental to the same.
D. Critical accounting judgments, assumptions
and key sources of estimation and uncertainty
The preparation of the Standalone financial statements
in conformity with the measurement principle of
Ind AS requires management to make estimates,
judgments and assumptions. These estimates,
judgments and assumptions affect the application
of accounting policies and the reported amounts of
assets and liabilities, the disclosures of contingent
assets and liabilities at the date of the Standalone
financial statements and reported amounts of
revenues and expenses during the period. Accounting
estimates could change from period to period. Actual
results could differ from those estimates. Appropriate
changes in estimates are made as management
becomes aware of changes in circumstances
surrounding the estimates. Differences between the
actual results and estimates are recognized in the
year in which the results are known / materialized
and, if material, their effects are disclosed in the notes
to the Standalone financial statements.
Application of accounting policies that require
significant areas of estimation, uncertainty and
critical judgments and the use of assumptions in the
Standalone financial statements have been disclosed
below. The key assumptions concerning the future
and other key sources of estimation uncertainty at
the Balance Sheet date, that have a significant risk
of causing a material adjustment to the carrying
amount of assets and liabilities within the next
financial year are discussed below:
a. Arrangements containing leases
Ind AS 116 requires lessees to determine the
lease term as the non-cancellable period of
a lease adjusted with any option to extend or
terminate the lease, if the use of such option
is reasonably certain. The Company makes
an assessment on the expected lease term on
a lease-by-lease basis and thereby assesses
whether it is reasonably certain that any
options to extend or terminate the contract
will be exercised. In evaluating the lease term,
the Company considers factors such as any
significant leasehold improvements undertaken
over the lease term, costs relating to the
termination of the lease and the importance of
the underlying asset to the company''s operations
taking into account the location of the underlying
asset and the availability of suitable alternatives.
The lease term in future periods is reassessed to
ensure that the lease term reflects the current
economic circumstances.
b. Depreciation / amortization and impairment on
Property, Plant and Equipment / Intangible assets.
Property, plant and equipment, ROU Assets and
intangible assets are depreciated/amortized on
Straight-Line Basis over the estimated useful
lives (or lease term if shorter) in accordance with
Internal assessment and Independent evaluation
carried out by technical expert/ Schedule II of
the Companies Act, 2013, taking into account
the estimated useful life and residual value,
wherever applicable.
The company reviews its carrying value of
its Tangible and Intangible Assets whenever
there is objective evidence that the assets are
impaired. In such situation assets recoverable
amount is estimated which is higher of asset''s
or cash generating units (CGU) fair value less
cost of disposal and its value in use. In assessing
value in use the estimated future cash flows
are discounted using pre-tax discount rate
which reflect the current assessment of time
value of money. In determining fair value less
cost of disposal, recent market realisations are
considered or otherwise in absence of such
transactions appropriate valuations are adopted.
c. Impairment loss on trade receivables
The Company evaluates whether there is any
objective evidence that trade receivables
are impaired and determines the amount of
impairment allowance as a result of the inability
of the customers to make required payments. The
Company bases the estimates on the ageing of
the trade receivables balance, credit-worthiness
of the trade receivables and historical write¬
off experience. If the financial conditions of the
trade receivable were to deteriorate, actual
write-offs would be higher than estimated.
d. Current Tax and Deferred Tax
Significant judgment is required in determination
of taxability of certain income and deductibility
of certain expenses during the estimation of the
provision for income taxes.
Significant management judgement is required
to determine the amount of deferred tax assets/
liability that can be recognised, based upon the
likely timing and the level of future taxable profit
together with future tax planning strategies. The
management has reviewed the rationale for
recognition of Deferred Tax Liability and based on
the likely timing and level of profitability in future and
expected utilisation of deferred tax there against.
e. Defined benefit obligation (DBO)
Critical estimate of the DBO involves a number
of critical underlying assumptions such as
standard rates of inflation, mortality, discount
rate, anticipation of future salary increases etc.
as estimated by Independent Actuary appointed
for this purpose by the Management. Variation in
these assumptions may significantly impact the DBO
amount and the annual defined benefit expenses.
f. Provisions and Contingencies
Provisions and liabilities are recognized in the
period when it becomes probable that there will
be a future outflow of funds resulting from past
operations or events and the amount of cash
outflow can be reliably estimated. The timing
of recognition and quantification of the liability
requires the application of judgement to existing
facts and circumstances, which can be subject
to change.
Management judgment is required for estimating
the possible outflow of resources, if any, in respect
of contingencies/claim/litigations against the
Company as it is not possible to predict the
outcome of pending matters with accuracy.
The carrying amounts of provisions and
liabilities and estimation for contingencies are
reviewed regularly and revised to take account
of changing facts and circumstances.
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