1. Corporate information
B. P. Capital Limited is a Limited Company incorporated under the provisions of the Companies Act, 1956.
2. Basis of preparation of Financial Statements
(i) Statement of compliance:
The financial statements of the Company for the year ended 31 March 2025 are prepared in all material
aspects in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the
Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and Companies
(Indian Accounting Standards) Amendment Rules, 2016 and relevant provisions of the Companies Act, 2013.
(ii) Basis of Preparation:
Effective April1, 2017, the Company has adopted all the Ind AS standards and the adoption was carried out in
accordance with Ind AS 101 First time adoption of Indian Accounting Standards, with April1, 2016 as the
transition date. The transition was carried out from Indian Accounting Principles generally accepted in India as
prescribed under Section133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP),
which was the previous GAAP.
(iii) Basis of Measurement
The IND AS financial statements have been prepared under the historical cost convention except for the
following which have been measured at fair value:
• Financial assets and liabilities except borrowings carried at amortised cost
The company had recorded the cost of the investment at the face value of the equity shares issued and had
not determined the fair value as required by IND AS 109.
3. Significant accounting policies:
i) Property, plant and equipment:
The Company does not have any fixed assets and accordingly, there is no depreciation/impairment.
ii) Cash and cash equivalents:
Cash and cash equivalents comprise cash on hand and demand deposits with banks which are short-term,
highly liquid investments that are ready convertible into known amounts of cash and which are subject to
insignificant risk of change in value.
iii) Employees Benefits:
a) Short term employee benefits
All employees’ benefits payable wholly within twelve months rendering services are classified as short term
employee benefits. Benefits such as salaries, wages, short-term compensated absences, performance
incentives etc., and the expected cost of bonus, ex-gratia are recognizedduring the period in which the
employee renders related service.
iv) Foreign currency transactions:
(a) Functional and presentation Currency
The Company’s IND AS financial statements are presented in INR, which is also the Company’s functional and
presentation currency as per IND AS 21.
(b) Transaction and Balance
Exchange differences arising on foreign exchange transactions settled during the year are recognizedin the
Statement of profit and loss of the year.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at
the closing exchange rates on that date. The resultant exchange differences are recognizedin the Statement of
profit and loss.
Non-Monetary items which are carried in terms of historical cost denominated in a foreign currency are
reported using the exchange rate at the date of the transactions.
v) Revenue recognition:
Revenue is recognizedto the extent that it is possible that the economic benefits will flow to the company and
the revenue can be reliably measured as per IND AS 115.
vi) Leases
The Company, as a lessee, recognizes a right of-use asset and a lease liability for its leasing arrangements, if
the contract conveys the right to control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the use of an identified
asset and the Company has substantially all of the economic benefits from use of the asset and has right to
direct the use of the identified asset. The cost of the right-of-use asset shall comprise of the amount of the
initial measurement of the lease liability adjusted for any lease payments made at or before the
commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at
cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any
remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from
the commencement date over the shorter of lease term or useful life of right-of-use asset.
The Company measures the lease liability at the present value of the lease payments that are not paid at the
commencement date of the lease. The lease payments are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses
incremental borrowing rate.
For short-term and low value leases, the Company recognizes the lease payments as an operating expense
on a straight-line basis over the lease term.
|