1. SIGNIFICANT ACCOUNTING POLICIES a) Accounting Concepts The financial statements are brsented on going concern concept and in accordance with Indian Generally Accepted Accounting Principles (GAAP). b) Fixed Assets and Debrciation Fixed Assets are stated at the cost of acquisition or construction and putting it to working condition Debrciation on Buildings and Plant & Machinery is charged on straight line method and other assets on Written Down Value method based on the useful lives of the assets, as per Schedule II of the Companies Act 2013 and debrciation on Assets of Energy Division is charged as per Part B of the Schedule II. Debrciation on fixed assets of Energy Division is provided on straight line method at the rates and in the manner brscribed as per notification no.151 dated 29.03.1994 issued by Ministry of Power (Department of Power). Consequent to the change, for the year ended 31st March, 2015 debrciation is lower by Rs. 442.47 lakhs. Further, an amount of Rs. 65.80 lakhs (Net of deferred Tax Liability) has been adjusted with the General Reserve in respect of the assets whose balance life is Nil as per transitional provisions of Scedule II. c) Inventories i) Raw Materials and other Materials are valued at weighted average cost. ii) Stores and Spares at Cost iii) Work - in - Process at cost of material plus labour and other overheads and iv) Finished Goods at Cost or net realisable value whichever is lower. d) Employee Benefits Employee Retirement Benefits being Gratuity and Privilege Leave Encashment are provided on actuarial valuation as envisaged in Accounting Standard 15. e) Income Tax Expense Deferred (Income Tax) is provided as envisaged in Accounting Standard 22 f) Foreign Currency Transactions Loss or gain due to fluctuations in foreign currency exchange rates is recognized as envisaged in Accounting Statndard 11. For Venugopal & Chenoy, Chartered Accountants Firm Registration No. 004671S P.V. SRI HARI Partner Membership No.: 21961 K. Ravi Managing Director N.Krishnan President & CFO R. Anand Chairman T. Arun Kumar Company Secretary Place : Hyderabad Dated: 30th May 2015 |