1. CORPORATE INFORMATION
Bombay Metrics Supply Chain Limited (The Company) is incorporated on 28th March 2015 and Company's equity share are listed on SME EMERGE platform of National Stock Exchange (NSE) with effect from 12th October 2021. It is primarily engaged in the business of trading of engineering tools and components and its supply chain management services. The Registered Office of the Company is located at 201/Quatum Tower, Ram Baug Lane, Near Chincholi Petrol Pump , S.V Road, Malad West, Mumbai - 400064, India.
2. Significant Accounting Policies:A. Basis of preparation of financial accounts:
The Company has prepared the financial statements to comply in all material respects with the accounting standards specified as per section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014, and other accounting principles generally accepted in India. The financial statements have been prepared under the historical cost convention and on accrual basis. The accounting policies have been consistently applied by the Company. The financial statements are presented in Indian rupees rounded off to the nearest Lakhs.
in Schedule II to the Companies Act, 2013 after considering estimated scrap value.
Depreciation on tools is charged on the basis of components produced to total estimated tools to be produced.
(ii) Intangible Assets are amortized based on Straight Line Method over a period of 5/10 years.
(iii) Depreciation / amortization is provided on a pro-rata basis from the date the assets are put to use during the financial year. In respect of assets sold or disposed off during the year, depreiciation / amortization is provided upto the date of sale or disposal of the assets.
D. Foreign Currency Transactions :
(i) Transactions denominated in foreign currency are recorded at the exchange rates prescribed by Customs department prevailing on the date of the transaction.
(ii) Monetary items denominated in foreign Currencies remaining outstanding at the year end are translated at the year end exchange rate.
(iii) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit & Loss Account.
E. Inventories :
Inventories are valued at cost or net realisable value whichever is lower. Cost of inventories comprises cost of purchase and includes expenses incurred for bringing the inventories to their present location and condition.
I nventories include Rodtep licenses which are valued at actual license price.
F. Taxation :
(i) Current tax is provided after taking into account various relief admissible under Income Tax Act, 1961.
(ii) Deferred Tax is recognised on timing difference, being the difference between taxable income and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.
G. Employee Benefits :
(i) Short term employee benefits are recognized as expenses at the undiscounted amount in the Statement Profit and Loss of the year in which the related services are rendered.
B. Revenue Recognition
(i) Revenue is recognized on accrual basis when it can be reliably measured and it is reasonable to expect ultimate collection.
(ii) Sales is recognized on transfer of risks and rewards of ownership in the goods to customers and is net of Goods and service tax.
(iii) Incomes from services rendered are accounted based on agreements / arrangements with the parties.
(iv) Export Incentives are recognized when the right to receive is established.
(v) Interest income is recognised on time proportionate basis
C. Property Plant & equipments and Depreciation :
(i) Property plant & Equipments are stated at Cost of acquisition including any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use,net of recoverable taxes and accumulated depreciation and impairment loss , if any.
Depreciation on fixed assets is provided on Written Down Method on the basis of useful life of assets as prescribed
(ii) Long term benefits are recognized as an expense in the Statement Profit and Loss of the year when related services are rendered ,based on actuarial valuation at the discounted present value of the amount payable.
H. Segment Reporting :
Business Segment is identified based on nature of products and services offered by the Company and risk and rewards associated with it. Geographical segment is identified on the basis of customer & Assets locations.
I. Earnings per Share and Diluted Earnings per Share :
Basic earnings/ (loss) per share are calculated by dividing the net profit/ (loss) for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings/(loss) per share, the net profit/(loss) for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares except where the results will be anti-dilutive. The dilutive potential equity shares are deemed converted as of the beginning of the period, unless they have been issued at a later date.
J. Provisions, Contingent Liabilities and Contingent Assets:
A provision is recognized if, as a result of a past event, the Company has a present legal obligation that is reasonably estimable, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
K. Impairment of Assets
The Company assesses at each reporting date as to whether there is any indication that an asset (tangible and intangible) may be impaired. An asset is treated as impaired, when the carrying cost of the asset exceeds its recoverable amount. Recoverable amount is higher of an asset's or cash generating unit's net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.
An impairment loss if any, is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
L. Borrowing Costs
Borrowing costs that are attributable to the acquisition and construction of qualifying assets are capitalized as part of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit & Loss.
M. Cash and Cash Equivalent
Cash and cash equivalents comprises cash and cheques in hand, bank balances, demand deposits with bank where original maturity is three months or less.
N. Investments
Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.
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