Bengal Steel Industries Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1 A. COMPANY OVERVIEW

The Company is presently engaged in the business of Steel Manufacturing and Fabrication, Real Estate and Other Allied Services. Arrangements are in hand to diversify its line of business for the future growth and prosperity.

B. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) Basis of preparation and compliance with Ind AS -

(i) These Standalone Financial Statements are prepared in accordance with Indian Accounting Standard (Ind-AS) under the historical cost convention on the accrual basis, the provisions of the Companies Act, 2013 (''the Act'') (to the extent notified) and guidelines issued by the Securities Exchange Board of India (SEBI). The lnd-A5 are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued there under.

(ii) Use of estimates & judgments -

The preparation of the Standalone Financial Statements in conformity with Ind-AS requires the management to make estimates, judgments and assumptions. These estimates, judgments and assumptions effect the application of accounting policies and the reported amounts of Assets and Liabilities, the disclosure of Contingent Assets and Liabilities at the date of the Financial Statements and reported amounts of revenue and expenses during the period. Changes in estimates are reflected in the Financial Statements in the period in which changes are made and, if material, these effects are disclosed in the notes to the Financial Statements.

b) Basis of measurement -

The standalone Ind AS financial statements has been prepared on a going concern basis using historical cost convention and on an accrual method of accounting.

c) Fair Value measurement -

Fair value of Financial Assets and Liabiiities has been arrived at on the basis of reasonable estimation made by the Company,

d) Functional and presentation currency -

These Standalone Ind AS Financial Statements are prepared in Indian Rupees (In Lakhs) which is the Company''s functional currency,

2. MATERIAL ACCOUNTING POLICIES

a) Revenue Recognition -

Revenue from Sales is recognised when all significant risks and rewards of ownership of the commodity sold are transferred to the customer which generally coincides with delivery.

Revenue from Rent Receipts has been accounted for on accrual basis.

b) Property, Plant and Equipment -

The property, plant and equipment is stated at cost of acquisition including related expenses of transportation or installation and interest on loans utilised for acquisition of assets till such assets are used for production or bringing an asset to working condition and iocation for its intended use but excluding credit available for excise duty paid on such acquisition,

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.

Gains and losses on disposal of an item or property, plant and equipment are recognised net within other income / other expenses in statement of profit and loss.

The residual value, useful lives and method of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

c) Depredation -

Assets in the course of development or construction and freehold land are not depredated.

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.

Individual item of assets value up to Rs 5000/- are fully depreciated in the year of acquisition.

Depreciation has been provided for on reducing balance method.

d) Investments-

Investments are in the nature of Non-Current Asset and is stated at cost.

e) inventories -

inventories are valued at lower of cost or net realisable value.

f) Financiailnstruments -

The Company recognises Financial Assets and Financial Liabilities when it becomes a party to the contractual provisions of the instrument.

A Financial Asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A Financial Asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flow and selling financial assets and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A Financial Asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

Financial Liabilities are subsequently measured at amotised cost except for Financial Liabilities at fair value through Profit or Loss.

g) Taxation -

Current Income Tax

Current Income Tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or subsequently enacted, at the reporting date.

Deferred Tax .

Deferred Tax Assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the unused tax credits and unused tax losses can be utilised.

h) Impairment of Assets -

The Company assesses, at each reporting date, whether there is any indication that an asset may be impaired. If any indication exists, on an annual impairment testing, for an asset is required, the Company estimates the asset''s recoverable amount. Impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognised as an expense in the Statement of Profit & Loss and ca rrying amount of the asset is red uced to its recoverable amount

i} Cash Flow Statement -

Cash flows are reported using Indirect method as set out in Ind AS -7 ''''Statement of Cash Flows". The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

j) Earnings Per Share-

The Company presents basic and diluted Earnings Per Share ("EPS") data for its equity shares. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all diluted potential equity shares.

k) Provision for liabilities and charges, contingent liabilities and contingent assets -

Provisions are recognised when the Company has a present obligation as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate,

Contingent Liabilities may arise from litigation and other claims against the Company. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment and are very difficult to quantify reliably, as such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements,

Contingent Assets are not recognised but disclosed in the Financial Statements when the inflow of economic benefits is probable.

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Mar 31, 2024

2. SIGNIFICANT ACCOUNTING POLICIES

a) Revenue Recognition -

Revenue from Sates is recognised when all significant risks and rewards of ownership of the comrr
sold are transferred to the customer which generally coincides with delivery.

Revenue from Rent Receipts has been accounted for on accrual basis.

b) Property, Plant and Equipment -

The property, plant and equipment is stated at cost of acquisition including related expens
transportation or installation and interest on loans utilised for acquisition of assets till such asset
used for production or bringing an asset to working condition and location for its intended usi
excluding credit available for excise duty paid on such acquisition.

Expenditure incurred after the property, plant and equipment have been put into operation su
repairs and maintenance are normally charged to the Statements of Profit and Loss in the peri
which the costs are incurred.

Gains and losses on disposal of an item or property, plant and equipment are recognised net v
other income / other expenses in statement of profit and loss,

The residual value, useful lives and method of depreciation of property, plant and equipmen
reviewed at each financial year end and adjusted prospectively, if appropriate.

c) 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 prov
for impairment. Depreciation commences when the assets are ready for their intended use.

Individual item of assets value up to Rs 5000/- are fully depreciated in the year of acquisition.

Depreciation has been provided for on reducing balance method.

d) Investments -

Investments are in the nature of Non-Current Asset and is stated at cost.

e) Inventories-

f) Financial Instruments-

The company recognises Financial Assets and Financial Liabilities when it becomes a party to the
contractual provisions of the instrument.

A Financial Asset is measured at amortised cost if it is held within a business model whose objective is to
hold the asset in order to collect contractual cash flows and the contractual terms of the Financial Asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

A Financial Asset is subsequently measured at fair value through other comprehensive income if it is
held within a business model whose objective is achieved by both collecting contractual cash flow and
selling financial assets and the contractual terms of the financial assets give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset which is not classified in any of the above categories is subsequently fair valued through
profit or loss.

Financial liabilities are subsequently measured at amotised cost except for financial liabilities at fair
value through Profit or Loss.

g) Taxation-

Current Income Tax

Current Income Tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or subsequently enacted, at the reporting date.

Deferred Tax

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences and the unused tax credits and unused tax losses
can be utilised.

h) impairment of Assets -

The company assesses, at each reporting date, whether there is any indication that an asset may be
impaired. If any indication exists, on an annual impairment testing, for an asset is required, the company
estimates the asset''s recoverable amount. Impairment loss is recognised wherever the carrying amount
of an asset is in excess of its recoverable amount and the same is recognised as an expense in the
Statement of Profit & Loss and carrying amount of the asset is reduced to its recoverable amount.

i) Cash Flow Statement -

Cash flows are reported using Indirect method as set out in Ind AS -7 "Statement of cash flows". The
cash flows from operating, investing and financing activities of the company are segregated based on
the available information.

The company presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS
is calculated by dividing the profit and loss attributable to equity shareholders of the company by the
weighted average number of equity shares outstanding during the period. Diluted EPS is determined by
adjusting the profit and loss attributable to equity shareholders and the weighted average number of
equity shares outstanding for the effects of all diluted potential equity shares.

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Mar 31, 2014

1.1. FIXED ASSETS : Fixed Assets are stated at cost of acquisition including related expenses of transportation or installation and interest on loans utilised for acquisition of assets till such assets are used for production but excluding credit available for excise duty paid on such acquisition.

1.2. INVESTMENTS : Investments are stated at cost.

1.3. INVENTORIES : Raw materials, Stores & Spare Parts, Tools & Implements are valued at lower of cost or net realisable value.

1.4. REVENUE RECOGNITION : Rent receivable from occupiers against whom ejectment suits are pending in court has not been accounted for.All other revenues are recognised on accrual basis.

1.5. DEPRECIATION : Depreciation on all items of depreciable assets has been charged on diminishing balance method at rates as prescribed in Schedule XIV to the Companies Act, 1956. Land & Building include value of Land on which Depreciation has been charged and the value of such land could not be segregated.

1.6. BASIS OF ACCOUNTING : The accounts are prepared on historical cost convention and on generally accepted accounting practices.

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Mar 31, 2011

1. FIXED ASSETS Fixed Assets are stated at cost of acquisition including related expenses of transportation or installation and interest on loans utilised for acquisition of assets till such assets are used for production but excluding credit available for excise duty paid on such acquisition.

2. INVESTMENTS

Investments are stated at cost.

3. INVENTORIES

Raw materials, Stores & Spare Parts, Tools & Implements are valued at lower of cost or net realisable value.

4. REVENUE RECOGNITION

Rent receivable from occupiers against whom ejectment suits are pending in court has not been accounted for. All other revenues are recognised on accrual basis.

5. DEPRECIATION

Depreciation on all items of depreciable assets has been charged on diminishing balance method at rates as prescribed in Schedule XIV to the Companies Act, 1956. Land & Building include value of Land on which depreciation has been charged and the value of such land could not be segregated.

6. BASIS OF ACCOUNTING

The accounts are prepared on historical cost convention and on generally attended accounting practices.

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Mar 31, 2010

1. FIXED ASSETS

Fixed Assets are stated at cost of acquisition including related expenses of transportation or installation and interest on loans utilised for acquisition of assets till such assets are used for production but excluding credit available for excise duty paid on such acquisition.

2. INVESTMENTS

Investments are stated at cost.

3. INVENTORIES

Raw materials, Stores & Spare Parts, Tools & Implements are valued at lower of cost or net realisable value.

4. REVENUE RECOGNITION

Rent receivable from occupiers against whom ejectment suits are pending in court has not been accounted for. All other revenues are recognised on accrual basis.

5. DEPRECIATION

Depreciation on alt items of depreciable assets has been charged on diminishing balance method at rates as prescribed in Schedule XIV to the Companies Act, 1956. Land & Building include value of Land on which depreciation has been charged and the value of such land couid not be segregated.

6. BASIS OF ACCOUNTING

The accounts are prepared on historical cost convention and on generally accepted accounting practices.