Corporate Information
M/s Bonlon Industries Limited( the Company") is a public limited Company listed on BSE Ltd. The company is engaged in manufacturing of
Plastic Insulated Cables, and trading Ferrous/Non-Ferrous Metals mainly: Copper, Aluminium, Zinc, Lead, etc. The company caters to both
domestic as well as international market. Its registered office is situated at 7A/39 (12-Ist Floor), WEA CHANNA MARKET, KAROL
BAGH, NEW DELHI-110005 and manufacturing Unit-1 at E-424, RIICO Industrial Area, Chopanki, Bhiwadi, Rajasthan-301019 (Own
Plant) and Unit-2 E-50(A), RIICO Industrial Area, Bhiwadi, Rajasthan-301019.
NOTE '2'
2.1 Accounting Standards
'The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under the Section 133 of the
Companies Act, 2013, Companies (Indian Accounting Standards) Amendment Rules, 2020 and other relevant provisions of the Act
The company has migrated from BSE SME platform to BSE MainBoard on 23rd September 2022. Accordingly,the company is required to
prepare the financial statement on the basis of IND AS from the financial year beginning on 1st April 2022.
2.2 Basis of Accounting and Preparation of Financial Statements
The financial statements have been prepared on the historical cost basis except for following assets and liabilities which have been measured
at fair value amount:
(i) Certain financial assets and liabilities.
(ii) Defined benefit plans - plan assets.
The financial statements of the Company have been prepared to comply with the Indian Accounting standards (‘Ind AS’), including the rules
notified under the relevant provisions of the Companies Act, 2013.
Company’s financial statements are presented in Indian Lakh (’), which is also its functional currency
2.3 Use of Estimates
Preparation of the financial statements requires the Management to make estimates and assumptions considered in the reported amounts of
assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that
the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and
the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.
2.4 Inventories
Finished goods, and Scrap are valued at Cost or NRV which ever is lower. Net realisable value is estimated selling price in ordinary course of
business less estimated cost for completion/ making sale.
Raw Materials, Trading Goods are determined on First in First Out (FIFO) Basis.
2.5 Depreciation and amortisation
Pursuant to Companies Act, 2013, the company depreciates its assets by the estimated useful life of the fixed assets on written down value as
prescribed under Schedule II of the Companies Act, 2013.
2.6 Revenue Recognition
Sale of Goods
Revenue is recognised on accrual basis. Revenue from sale of goods is recognised on transfer of all significant risk and rewards of ownership
to the buyer. GST is accounted on exclusive method. Interest income is recognised on accural basis. Revenue is recognized only when it can
be reliably measured and it is reasonable to expect ultimate collection All expenses and income to the extent considered payable and
receivable respectively unless specifically stated otherwise are accounted for on mercantile basis.
2.7 Property Plant and Equipments
Property, Plant and Equipment are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated
depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price and any cost directly attributable to
bringing the asset to its working condition for its intended use.
All costs, attributable to the fixed assets are capitalized. Subsequent expenditures related to an item of Tangible Asset are added to its book
value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. The Title Deeds
of all the properties are in the name of the company except property held at sungurpur delhi 110036 ( in the name of M/s Harshit Promoters
Private Limited (Transferor Company) which was amalgamated with the company in pursuance of section 230-232. of the companies Act.
2013 (and the order of the Hon"ble National company Law Tribunal, Principal Bench, New Delhi dated June company is also
on process of getting the change of land use from appropriate authority.
2.8 Employee Benefits
Defined Benefit Plans
The Company s contributions to Employees State Insurance Fund and Provident Fund is considered a defined contribution plan and is charge
as an expenses as it fall due based on the amount of contribution required to be made. Eligible employees receive benefits from a provident
fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan
equal to a specified percentage of the covered employee’s salary. The Company contributes a portion to the Employees’ Provident Fund
Account.
The Company has not made any provision for gratuity .bonus, leave encashment and leave travel allowance etc. during the year. The
management had decided to pay gratuity at the time of retirement as per provisions applicable.
2.9 Investment
Investments intended to be held for more than a year are classified as long-term investments. All other investments are classified as current
investments. Long term investments are stated at cost. However provision (if any) for diminution is made to recognize any decline, other than
temporary, in the value of investments. Current investments are stated at lower of cost or market value on an individual investment basis.
2.10 Earning Per Share
Basic earnings per share are calculated by dividing the net profit or loss after tax (including the post tax effect of extraordinary items, if any)
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 per share, the net profit or loss after tax (including the post tax effect of extraordinary items, if
any) for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted
for the effects of all dilutive potential equity shares, if any.
2.11 Taxes on Income
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income
Tax Act, 1961.
Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate
in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets
in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient
future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the
extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax
assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally
enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realizability.
2.12 Foreign Currency Transactions and Translations
All transaction in Foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.
Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or
losses resulting from such translations are included in the Statement of profit and loss. Non-monetary assets and non-monetary liabilities
denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was
determined. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at historical cost are
translated at the exchange rate prevalent at the date of transaction. Revenue, expense and cash-flow items denominated in foreign currencies
are translated using the exchange rate in effect on the date of the transaction. Transaction gains or losses realized upon settlement of foreign
currency transactions are included in determining net profit for the period in which the transaction is settled.
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