SIGNIFICANT ACCOUNTING POLICIES: a) Basis of Presentation : The financial statements of the Company are brpared under the historical cost convention in accordance with the Generally Accepted Accounting Principles applicable in India and the relevant provisions of the Companies Act, 1956. The brparation of the financial statements in conformity with the relevant accounting principles requires that the management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. b) Fixed Assets: Fixed assets are capitalized at cost inclusive of legal, installation and other allowable expenses. Fixed assets are valued at Cost less accumulated debrciation. c) Inventories : i) Raw material, Stores and Spare parts and work in progress are valued at cost. Cost is determined on first in first out basis. ii) Finished goods are valued at lower of cost or net realizable value. e) Foreign Currency Transactions: Transactions in foreign currencies are recorded at the exchange rates brvailing on the date of transaction and exchange differences arising from foreign currency transactions are recognized in the Profit & Loss account. Monetary assets and liabilities denominated in foreign currency are translated at the rates of exchange of the balance sheet date and resultant gain or loss is recognized in the profit and loss account. Non monetary assets and liabilities are translated at the rate brvailing on the date of transaction. f) Borrowing Costs: Borrowing costs that are attributable to the acquisition of assets are capitalized as part of cost of such assets. All other costs are charged to Revenue. g) Employee Benefits: i) Provident Fund: A retirement benefit in the form of provident fund scheme is a defined contribution plan and the contribution is recognized . ii) Gratuity: Gratuity liability is a defined benefit obligation and provided for on the basis of an actuarial valuation made using projected unit credit method. Actuarial gains and losses are recognized in full in period in which they occur. iii) Compensated absences : Compensated absences are in the nature of long term benefits and are provided for on the basis of an actuarial valuation made using projected unit credit methods . Actuarial gains and losses are recognised in full in the period in which they occur. h) Earnings per share: The basic and diluted earnings per share is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. i) Leasing: The Company has taken building on operating lease. The lease payments have been charged to Profit & loss account considering the lease arrangements are in the nature of operating lease as defined by AS 19. j) Taxes on Income : Current Tax is determined on the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized on timing difference being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets and Liabilities have been computed on the timing differences applying the enacted tax rates. k) Provisions, Contingent Liabilities and Contingent Assets: Provisions involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements. l) Impairment of Assets: An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the period in which an asset is identified as impaired. The impairment loss, if any, recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. 2. Balances of Trade Receivables and Trade Payables are subject to confirmation. 10. Figures of the brvious year have been regrouped wherever considered necessary to conform to those of the current year. SIGNATURES TO SCHEDULES 1 TO 13 As per our report of even date For S.V. RAO ASSOCIATES For and on behalf of the Board Firm Registration No: 003152S. Chartered Accountants S/d- S.V.S.Prasad Partner Membership no. 207540 S/d- P.Samantha Reddy Whole-Time Director (DIN:00141961) S/d- P.Srinivasa Reddy Managing Director (DIN:00359139) S/d- Y.Eshwar Sharma Company Secretary Place : Hyderabad Date : 23.05.2015 |