Dear Sejal,
The provisions are to be created at the end of the year. This is so, because, the balance sheet is prepared as on that date.
Thus, you create a provision to book everything to get the balance sheet position correct. Eg: you provide for expenses for the year ending in March, but for which the payments are expected to be made in the next year.
The same concept applies for Provision for Bad Debts, i.t. those debts which are expected to be defaulted upon and the company may suffer a loss on the same.
if you have any queries, please feel free to ask..Thanks