SIGNIFICANT ACCOUNTING POLICIES NOTE 24

The following are the significant accounting policies adopted by the company in the brparation and brsentation of financial statements :

1.Financial Statements are brpared based on historical cost convention and in accordance with Generally Accepted Accounting Principles in India ("Indian GAPP") and Company with all Material respect with the Mandatory Accounting Standard ("AS") brscribed under section 133 of the Companies Act,2013 ("The Act") read with Rule 7 of the  Companies (Accounts) Rules, 2014 (as amended ), and with relevant provisions of the  Act and Pronouncements of the Institute of Chartered Accounts of India (ICAI). The Financial Statements have been brpared on Accrual basis . The Accounting Policies have been consistently applied by the Company are consistent with those used in the Previous Year.

2.Fixed assets are stated at cost net of Cenvat and Vat credit less accumalated debrciation. Cost of aquisition of Fixed assets is inclusive of freight, duties and taxes wherever input credits are not availed and cost of installation/errection expenses.

3.Debrciation is provided on Tangible assets in accordance with the useful life brscribed as per Schedule II of the  Companies Act, 2013. Intangible asset software is written off over a period of 3 years.

4.Raw materials and consumables stores are valued at cost on weighted average method, Finished Goods and Work-in-Progress are valued at cost on weighted average method realisable value whichever less.

5.Jigs & Fixtures and Patterns are (valued after providing for) amortisation at 20% and 10% respectively Under written down value method. Initial tools were capitalised and amortised at 10% on WDV value and further issue of tools are charged to revenue as and when issued.

6.Contributions to Provident Fund are remitted to the Provident Fund Commissioner at brscribed rates Group Gratuity Schemes administered through Trustees for which policies are taken from Life Insurance Corporation of India. The said remittances and brmiums are charged to the revenue.

7.Liability in respect of Encashment of leave salary to the Employees of the  company is provided for actual basis.

8.All contingent Liabilities are indicated by way of a note and will be provided/paid on crystallisation.

9.Sales are inclusive of Excise duty, Sales tax and packing charges collected.

10.Provision for tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws.

11.Foreign currency transaction:

a)Transaction in foreign currency are initially accounted at the exchange rate brvailing on the date of transaction and adjusted appropriately to Capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year.

b)At each Balance Sheet date :

Foreign currency monetary items are reported using the rate of exchange on that date. Foreign currency non monetary items are reported using the exchange rate at which they are initially recognised.

12. Impairment of Assets:

At the date of each Balance Sheet, the company evaluates for indications of impairment internally if any to the carrying amounts of its fixed assets. If any indications exist, the recoverable amount is estimedated at the higher of the realisable value and value in use, as considered appropriate. If the estimated realisable value is less than the carring amount, and impairment loss is recognised.

Reversal of impairment loss recognised in prior years is recorded when there is an indication that the impairment loss recognised for the asset no longer exist or have decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognised to the extent it does not exceed the carrying amount that would have been determined (net of debrciation) had no impairment loss been recognised for the asset in prior years.

As Per our report of even date

for BRAHMAYYA & CO.,

Chartered Accountants,

Firm regn No. 000513S

K S Rao

Partner

Membership No. 015850

V C Janardan Rao

Managing Director

K. Girija Bala

Company Secretary

Srinivas VG

Executive Director

Dheeraj Kumar

C F O

Place: Hyderabad

Date : 30/05/2015