SIGNIFICANT ACCOUNTING POLICIES
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements of Bombay Wire Ropes Ltd are prepared in accordance with the Indian Accounting Standards
(Ind AS) under the Financial assumptions which are not applicable for Going concern basis, as the company has
discontinued its operations. The Ind AS are prescribed under section 133 of the Companies Act, 2013, read with
rule 7 of Companies (Account) Rules 2014, other pronouncements of Institute of Chartered Accountants of India, the
provisions of Companies Act, 2013 and guidelines issued by Securities and Exchange Board of India.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
The Company has prepared these financial statements as per the format prescribed in Schedule III to The Companies
Act, 2013.
1.2 USE OF ESTIMATES
The preparation of the financial statements in conformity with the Ind AS requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as on
the date of the financial statements and the reported amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in the period in which the results are known/
materialized.
1.3 PROPERTY PLANT AND EQUIPMENTS (PPE)
Property, Plant and Equipments are stated at cost of acquisition (net of Cenvat and GST wherever applicable) or
construction less accumulated depreciation and impairment loss, if any. Cost includes any directly attributable cost of
bringing each asset to its working condition for intended use.
Assets under installation or under construction as at balance sheet date are shown as Capital Work in Progress
together with project expenses.
Ind AS 16 “Property, Plant and Equipment” requires the cost of an item of property, plant and equipment to include the
initial estimate of the costs of dismantling/decommissioning and removing the asset and restoring the site on which it
is located. Ind AS requires the liability, both initially and subsequently, to be measured at the amount required to settle
the present obligation at the end of the reporting period, reflecting a current market-based discount rate.
Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion &
impairment, if any.
1.4 DEPRECIATION AND AMORTISATION
a) Depreciation on Fixed Assets is provided on Straight Line method in accordance with the rates as specified in
Schedule II to the Companies Act, 2013 (as amended).
b) Depreciation/Amortization on assets added, sold or discarded during the year has been provided on pro-rata
basis.
1.5 FINANCIAL ASSETS
The Company classifies its financial assets in the following measurement categories:
(1) Those to be measured subsequently at fair value (either through other comprehensive income, or through the
Statement of Profit and Loss), and
(2) Those measured at amortised cost.
The classification depends on the Company’s business model for managing the financial assets and the contractual
terms of the cash flows.
At initial recognition, the Company measures a financial asset at its fair value. Transaction costs of financial
assets carried at fair value through the Profit and Loss are expensed in the Statement of Profit and Loss.
The Company measures the expected credit loss associated with its assets based on historical trend, industry
practices and the business environment in which the entity operates or any other appropriate basis. The impairment
methodology applied depends on whether there has been a significant increase in credit risk.
1.6 INVENTORIES
a) Inventories (other than by-products) are valued at lower of cost and net realizable value after providing for
obsolescence, if any. Cost of inventory comprises of purchase price, cost of conversion and other cost that have
been incurred in bringing the inventories to their respective present location and condition. Interest costs are not
included in value of inventories. The cost of Inventories is computed on weighted average basis.
b) Assets identified and technically evaluated as obsolete and held for disposal are valued at their estimated net
realizable value.
c) By products are valued at net realizable value.
1.7 REVENUE RECOGNITION
a) Sale of Goods is recognised at the time of transfer of substantial risk and rewards of ownership to the buyer for a
consideration, net of discounts.
b) Gross Turnover includes excise duty but excludes sales tax / GST.
c) Dividend Income is recognised when the Company’s right to receive dividend is established.
d) Interest Income is recognised on time proportion basis taking into account the amount outstanding and rate
applicable.
e) All Other Income is accounted for on accrual basis.
1.8 EXPENSES
All expenses are accounted for on accrual basis.
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