1.. Significant Accounting Policies 1 Accounting Convention The financial statements are brpared under historical cost convention and on an accrual basis in accordance with the generally accepted accounting principles. 2 Fixed Assets Fixed Assets are stated at cost net of debrciation provided in the statements. Cost of acquisition of Fixed Assets is inclusive of all direct and indirect expenditure up to the date of commercial use. Debrciation is provided on straight line method in accordance with the use ful lives brscribed in Schedule-II to the companies Act, 20I3. 3 Inventories Raw material and Stores and Spares valued at cost on weighted average basis. Stock-in-process and Finished Goods are valued at lower of cost or net realisable value. 4 Borrowing Cost Borrowing costs that are directly attributable to the acquisition of fixed assets are capitalised as part of cost of the asset till the date the asset is ready for commercial use. All other borrowing cost are charge to revenue. 5 Investments Investments are stated at cost and diminution in the value, which is permanent in nature, is provided for. 6 Contingent Liabilities And Provisions All Contingent liabilities are indicated by way of a note and will be paid / provided on crystalisation. 7 Retirement Benefits Provident fund contributions is charged to the Statement of Profit and Loss as and when the contributions are due. Gratuity and leave encashment provision is made as per actuarial valuation on the basis of projected unit credit method. 8 Foreign Exchange Transactions Foreign currency transactions are recorded at the rates brvailing on the date of the transaction. Assets and liabilites arising out of foreign exchange transactions are translated at the rate of exchange ruling on the date of balance sheet and are suitably adjusted to the appropriate revenue/ capital account. 9 Impairment Of Assets An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to statement of profit and loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods, is reversed if there has been a change in the estimate of recoverable amount. 10 Provision For Taxation Provision for taxation for the year is based on tax liability computed in accordance with relevant tax rates and tax laws as at the Balance Sheet date. Provision for deferred tax is made for all timing differences arising between taxable income and accounting income at rates that have been enacted or substantively enacted as at the Balance Sheet date. Deferred tax assets are recognised only if there is a reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each Balance Sheet date. 11 Revenue recognition Sales rebrsents the amount receivable for goods sold. Incentives on export sales are recognised as income on accrual basis 12 Earning Per Share Earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. 13 Use Of Estimates Preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known/materialised per our report of even date For and on behalf of Board of Directors For Brahmayya & Co. Chartered Accountants Firms' Registration Number: 0005I3S D.K. Agarwal Managing Director & CFO B.N. Agarwal Chairman K.S.Rao Partner Membership Number: 0I5850 Shilpa Agarwal Company Secretary Surender kumar Agarwal Director Place : Hyderabad Date : I6th May, 20I5 |