Accounting Policies of Bambino Agro Industries Ltd. Company

Mar 31, 2023

Corporate Information & Significant Accounting Policies:

1. Corporate Information

The Company is a public company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its shares are listed on BSE. The Company is engaged in manufacturing and selling vermicelli, macaroni and other pasta products under the brand name "Bambino". The Company also sells the products of its related companies engaged in the manufacture of pasta and instant mixes, spices, namkeens, sweet-meat masalas etc.

SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied by the Company in the preparation of its financial statements are listed below. Such accounting policies have been applied consistently to all the periods presented in these financial statements, unless otherwise indicated.

1.2 Basis of Preparation of Financial Statements:

a) Statement of compliance & Basis of Preparation

The financial statements which comprise the Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement, and the Statement of Changes in Equity (financial statements) have been prepared in accordance with Indian Accounting Standards (referred to as "Ind AS") notified under the Section 133 of the Companies Act, 2013 (''the Act'') Companies (Indian Accounting Standards) Rules, 2015, along with relevant amendment rules issued thereafterand other relevant provision of the Act, as applicable.

The Company has adopted Ind AS 115 ''Revenue from Contracts with Customers'' With the date of initial application being 1st April 2018. Ind AS 115 established a comprehensive framework on revenue recognition and replaces Ind As 18 - Revenue and Ind AS 11 - Construction Contracts. There are no material adjustments arising on transition.

On 28th March 2018, Ministry of Corporate Affairs (''MCA'') notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreigh currency transactions and advance consideration which clarified the date of the transaction forthe purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid consideration in a foreigh currency. The Company has evaluated the effect of this amendment on the financial statements and concluded that the impact is not material.

The financial statements have been prepared on accrual basis underthe historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

b) Functional and presentation currency

The standalone financial statements are presented in Indian rupees, which is the functional currency ofthe Company and the currency ofthe primary economic environment in which the entity operates.

1.3 Use of Estimates and Judgements

The preparation of standalone financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differfrom these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. The preparation of financial statements require certain 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 forthe reporting period. Difference between the actual and estimates are recognized in the period in which the actual are known/ materialized.

1.4 Property, Plant and Equipment:

a) Recognition and Measurement: All items of property and equipment are initially recorded at cost. Cost of property and equipment comprises purchase price, non-refundable taxes, levies, and any directly attributable cost of bringing the asset to its working condition for the intended use. The company has elected to apply the optional exemption to use this previous GAAP value as deemed cost at 1st April 2016, the date oftransition.

b) After initial recognition, property and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

c) The cost of an item of property and equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The cost includes the cost of replacing part of the property and equipment and borrowing costs that are directly attributable to the acquisition, construction or production ofa qualifying property and equipment.

d) In the case of imported machinary purchased out offoreign currency loan, the changes in liability due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian rupees have been adjusted in the cost machinary.

1.5 Intangible Assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the company and the cost of the asset can be measured reliably.

1.6 Depreciation, Amortization & Impairment

a) Depreciation has been provided on straight line method based on life assigned to each asset in accordance with schedule II of the companies act 2013.

b) Depreciation on additions to property, Plant & Equipment has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

d) An asset will be treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate ofthe recoverable amount.

1.7 Inventories:

a) Stores and spares are valued at cost and are charges to revenue on the basis of issues.

b) Raw material and packing material are valued at cost.

c) Finished goods are valued at cost or market value which ever is lower

d) Empties are valued at net realizable value

e) Provisions are made if required to cover slow-moving and obsolete items based on historical experience of utilisation on a product category basis, which involves individual businesses considering their product lines and market conditions.

1.8 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. Forthe purpose ofthe statement of cashflows, cash and cash equivalents consist of cash and short-term deposits, as defined above.

1.9 Employee Benefits:

i) Short-term employee benefits are recognized as an expense in the profit and loss account ofthe year in which the related service is rendered.

ii) Providend fund contributions, a defined contribution scheme, are charged to the profit and loss account

iii) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administrated by life insurance corporation of India. The contribution paid/payable underthe scheme is recognised during the period in which the employee renderthe services

1.10 Provisions, contingent liabilities, and contingent assets:

A provision is recognised when the company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are measured & recognized based on management''s best estimate ofthe expenditure required to settle the present obligation atthe end ofthe reporting period

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control ofthe Company. Or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; orthe amount ofthe obligation cannot be measured with sufficient reliability. Contingent assets are not recognised in the financial statements. However, it is disclosed only when an inflow of economic benefits is probable.

1.11 Revenue Recognition:

The Company manufactures and sells a range of Food products

Revenue from sale of products is recognised when control ofthe products has transferred, being when the products are delivered to the customers/dealers. Delivery occurs when the products have been shipped or delivered to the specific location as the case may be, the risks of loss has been transferred, and either the Customers/Dealers has accepted the products in accordance with the sales contract. Revenue is measured net of returns, trade discounts and volume rebates.

Export sales are accounted on the basis of Bill of Lading. Export sales are recorded atthe exchange rates prevailing as on the transaction date and adjusted forthe exchange difference, if any, upon realization.

Lease income on leased assets is recognized and included underthe otheroperating revenue.

1.12 Borrowing Costs

Borrowing costs includes interest, amortization of ancillary costs inurred in connection with the arrangements of borrowing and exchange differences fromforeign currency borrowings to the extent they are regarded as an adjustmentto the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarrilytakes a substantial period oftimeto get ready for its intended use orsale are capitalized as part ofthe cost ofthe respective asset. All other borrowing costs are expensed in the period they occur.

1.13 Taxes:

Provision for current tax is made on the basis of estimated taxable income forthe current accounting period and in accordance with the provisions ofthe Income tax Act, 1961.

Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future.

1.14 Earnings per Share

Basic earnings per share is computed by dividing profit or loss for the year attributable to equity holders by the weighted average number of shares outstanding during the year. Partly paid-up shares are included as fully paid equivalents according to the fraction paid-up.

Diluted earnings per share is computed using the weighted average number of shares and dilutive potential shares exceptwherethe result would be anti-dilutive.

1.15 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the period is adjusted forthe effects of transactions of a non-cash nature, any deferrals oraccruals of past orfuture operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.16 Government Subsidy

Subsidy from the Government is recognized when there is reasonable assurance that the company will comply with the conditions attached to them.

1.17 Deferred Revenue Expenditure

Expenditure incurred on advertisement and other expense for promotion of new products is amortised overa period od five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement is expensed off to profit & loss account in the year in which it is incurred.

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Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES

a) The company has regrouped/reclassified the previous year figures wherever necessary in accordance with the requirements applicable in the current year.

b) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

c) Sales include packing charges and commission to Selling Agents and discounts, and net of Central Excise duty paid.

d) Export sales are accounted on the basis of Bill of Lading.

e) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

f) Lease income on leased assets are recognized and included under the other operating revenues.

5. PROPERTY, PLANT AND EQUIPMENT

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) Recognition and measurement: Normally Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset. The Company has elected to apply the optional exemption to use this previous GAAP value as deemed cost at 1 April 2016, the date of transition.

c) In the case of imported machinery purchased out of foreign currency loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

d) Depreciation has been provided on straight line method based on life assigned to each asset in accordance with Schedule II of the Companies Act 2013.

e) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

f) No depreciation has been provided on the fully depreciated assets.

6. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs. Nil).

7. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortised over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

8. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India. The contribution paid/payable under the scheme is recognised during the period in which the employee render the services.

9. PRIOR PERIOD AND EXTRA-ORDINARY ITEMS

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

10. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

Material events occurring after the date of Balance Sheet are taken into cognizance.

11. TAXES ON INCOME

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable Income and accounting Income that originates in one period and are capable of reversal in one or more subsequent periods.

Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.

12. PROVISIONS AND CONTINGENT LIABILITES

A provision is recognized if, as a result of a past event, the Company has a present legal obligation which can be reasonably estimated, and it is probable that an outflow of economic benefits will be required to settle the obligation.

Contingent liabilities not provided in the books of accounts are disclosed in the notes to accounts note no IV.

13. FOREIGN CURRENCY TRANSACTIONS

Foreign-currency-denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of Profit and Loss. Non-monetary assets and non-monetary liabilities denominated in a foreign currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non monetary liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of the transaction. Transaction gains or losses realized upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

14. EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares

15. INVESTMENTS

Investments are valued at cost

16. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash and cash-on-deposit with banks and financial institutions. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

17. CASH FLOW STATEMENT

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated

18. REVENUE RECOGNITION

Revenue is recognized when the significant risks and rewards of ownership have been transferred to the customers. Revenue is measured net of returns, trade discounts and volume rebates. The timing of the transfer of risks and rewards varies depending on the individual terms of the sales agreement

19. GOVERNMENT SUBSIDY

Subsidy from the Government is recognized when there is reasonable assurance that the company will comply with the conditions attached to them.

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Mar 31, 2016

NOTE NO. 30 1. CORPORATE INFORMATION

The Company is a public company domiciled in India and incorporated under the provisions of the Companies Act 1956. Its shares are listed on BSE. The Company is engaged in manufacturing and selling vermicelli, macaroni and other pasta products under the brand name "Bambino". The Company also sells the products of its related companies (common Directors) engaged in the manufacture of pasta and instant mixes, spices, namkeens, sweet-meat masalas etc.

2. SIGNIFICANT ACCOUNTING POLICIES

a) The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the accounting standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless otherwise stated.

b) The company has regrouped/reclassified the figures of the period of six months ended on 31.03.2015 wherever necessary in accordance with the requirements applicable in the current year.

c) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

d) Sales include packing charges and commission to Selling Agents and discounts, and net of Central Excise duty paid.

e) Export sales are accounted on the basis of Bill of Lading.

f) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

3. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

4. DEPRECIATION

a) Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act 2013.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

5. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year '' Nil).

6. DEFERRED REVENUE EXPENDITURE

Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortized over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

7. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account.

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India. The contribution paid/ payable under the scheme is recognized during the period in which the employee render the services.

8. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

9. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

10. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable Income and accounting Income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.

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Mar 31, 2015

A) The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP) to comply with the accounting standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless otherwise stated.

b) The company has regrouped/reclassified the previous year figures wherever necessary in accordance with the requirements applicable in the current year.

c) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

d) Sales include packing charges and are gross of commission to Selling Agents, discounts and net of Central Excise duty paid.

e) Export sales are accounted on the basis of Bill of Lading.

f) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

3. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

4. DEPRECIATION

a) Depreciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act 2013.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

5. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs. Nil).

6. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortised over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

b) 1/10th of expenditure incurred on the issue of equity shares is written off. The balance is carried forward as deferred revenue expenditure subject to future write off.

7. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account.

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India.

c) Leave encashment benefit is provided on the un-utilized leave balances of the employees as at the end of the accounting year.

8. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

9. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

10. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable Income and accounting Income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.

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Sep 30, 2014

A) The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAPP) to comply with the accounting standards notified under the Companies(Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrua basis under the historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless otherwise stated.

b) The company has regrouped/reclassified the previous yearfigures wherever necessary in accordance with the requirements applicable in the current year.

c) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

d) Sales include packing charges and are gross of commission to Selling Agents, discounts and net of Central Excise duty paid.

e) Export sales are accounted on the basis of Bill of Lading.

f) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

3. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

4. DEPRECIATION

a) Depreciation on fixed assets is charged on Straight Line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

5. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs. Nil).

6. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortised over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

b) 1/1 Oth of expenditure incurred on the issue of equity shares is written off. The balance is carried forward as deferred revenue expenditure subject to future write off

7. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India.

c) Leave encashment benefit is provided on the un-utilized leave balances of the employees as at the end of the accounting year.

8. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

9. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

10. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable Income and accounting Income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.

11. NOTES TO ACCOUNTS

I. Share Capital

For non-payment of call-moneys, 82,200 equity shares of Rs. 10/- each were forfeited by the Board after due compliance of legal formalities and such shares have not been reissued so far.

II. Secured Loans

a) All the term loans are secured by exclusive first charge by way of hypothecation of all movable assets both present & future and mortgage of immovable properties acquired from out of the respective loans.

b) Working Capital loans from Banks viz., State Bank of India, Commercial Branch, Hyderabad & Indian Overseas Bank Adarshnagar Branch, Hyderabad, IDBI Bank Chapel Road branch, Hyderabad are secured on pari passu basis by a first charge by way of hypothecation of all stocks of raw materials, packing materials, finished goods, stores & spares and book debts.

c) Working Capital loans from State Bank of India, Indian Overseas Bank and IDBI Bank are further secured by a second charge on the movable and immovable assets at Bibinagar and on plant and machinery at Gurgaon. Working Capital loans from State Bank of India, Indian Overseas Bank and IDBI Bank are further secured by a second charge on the movable & immovable assets of the Company on pari passu basis.

d) Sri M.Kishan Rao, Sri M.Raghuveer and Sri M.Subramanyam have guaranteed all the above loans in their personal capacities.

III. Sundry Creditors

Based on the information available with the Company, there are no dues / Interest outstanding to Micro, Small and Medium Enterprises, as defined under the Micro, Small and Medium Enterprises Development Act 2006, as at September 30,2014. (Previous Year: Nil)

IV. PLANT AT INDORE

The Company has completed the setting up Pasta plant at Indore in Madhya Pradesh. The cost of refurbishing the Plant and construction cost of building and other direct costs which were shown in Fixed Assets Schedule under Capital Work in Progress (cwp) last year have been capitalized. Other Indirect expenses relatable to the new plant like interest on term loan, salaries & wages etc, have been capitalized.

30th SEP, 2014 30th SEP, 2013

V. Expenditure in Foreign Currency

Travelling Expenses Rs. 13.39 lacs Rs. 4.18 lacs

VI. CIF Value of Imports

Capital equipment including Rs. 63.64lacs Rs.50.42 lacs

Spares and components

VII. Earnings in Foreign Currency

F O B Value of Exports Rs. 596.95 lacs Rs. 548.16 lacs

VIM. Taxes

Provision for Income tax Rs. 73,17,498/- Previous year Rs. 2,30,70,479/- (including extraordinary items).

III. Director''s Sitting Fees

Other expenses includes Directors Sitting Fee ofRs. 1,95,000 /- (Previous yearRs. 1,72,222/-)

IV. Deferred Tax

a. The Company has adopted Accounting Standard 22 "Accounting for Taxes on Income" issued by the ICAI, with effect from 1st April 2001. The accumulated deferred tax liability amounting to Rs. 3,56,65,778/- on account of timing differences between book and tax profits as of 1st April, 2001 has been adjusted against General Reserve and subsequent year''s deferred tax adjustments were carried out in the respective Profit and Loss Accounts.

b. During the current year the tax effect of the timing differences resulted in deferred tax liability of Rs. 3,06,074/- and the same has been shown in P&L Account.

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Sep 30, 2013

1. a) The financial statements of the company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAPP) to comply with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless otherwise stated.

b) As notified under the Companies Act, 1956, the financial statements for the year ended 30th September, 2013 are prepared as prescribed under the Revised Schedule VI. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. The company has regrouped/reclassified the previous year figures wherever necessary in accordance with the requirements applicable in the current year.

c) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

d) Sales include, packing charges and are gross of commission to Selling Agents and discounts.

e) Export sales are accounted on the basis of Bill of Lading.

f) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

2. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency 2loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

3. DEPRECIATION

a) Depreciation on fixed assets is charged on Straight Line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

c) No depreciation has been provided on the fully depreciated assets.

4. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs. Nil).

5. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortised over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

b) 1/10* of expenditure incurred on the issue of equity shares is written off. The balance is carried forward as deferred revenue expenditure subject to future write off.

6. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account.

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India.

c) Leave encashment benefit is provided on the un-utilized leave balances of the employees as at the end of the accounting year.

7. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

8. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

9. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.

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Sep 30, 2010

A) The accounts have been prepared to comply in all material aspects with applicable accounting principles, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956.

b) Lease Rentals and other expenses in respect of leased assets are treated as revenue expenditure.

c) Sales include packing charges and are gross of commission to Selling Agents and discounts.

d) Export sales are accounted on the basis of Bill of Lading.

e) Export sales are recorded at the exchange rates prevailing as on the transaction date and adjusted for the exchange difference, if any, upon realization.

2. FIXED ASSETS

a) All fixed assets are stated at cost of acquisition or construction less accumulated depreciation.

b) In the case of imported machinery purchased out of foreign currency loan, the changes in liability arising due to exchange rate at the time of repayment of loan installment and due to realignment of loan in Indian Rupee have been adjusted in the cost of machinery.

3. DEPRECIATION

a) Depreciation on fixed assets is charged on Straight Line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

b) Depreciation on additions to fixed assets has been calculated on pro-rata basis from the date of addition.

4. INVENTORIES

a) Stores and Spares are valued at cost and are charged to revenue on the basis of issues.

b) Raw material and packing materials are valued at cost.

c) Finished goods are valued at Cost or Market price whichever is lower.

d) Empties are valued at net realizable value.

e) Obsolete/damaged and unserviceable stores & spares are Nil during the year (previous year Rs.Nil).

5. DEFERRED REVENUE EXPENDITURE

a) Expenditure incurred on advertisement and other expenses for promotion of new products and recruitment of key personnel is amortized over a period of five years, having due regard to the nature of expenses and the benefit that may be derived there from. Expenditure on routine product advertisement and personnel recruitment is expensed off to profit & loss account in the year in which it is incurred.

b) 1/10th of expenditure incurred on the issue of equity shares is written off. The balance is carried forward as deferred revenue expenditure subject to future write off.

6. RETIREMENT BENEFITS

a) Provident fund contributions, a defined contribution scheme, are charged to the profit and loss account.

b) Gratuity liability, a defined benefit scheme, is provided based on actuarial valuation and funded through the scheme administered by Life Insurance Corporation of India.

c) Leave encashment benefit is provided on the un-utilized leave balances of the employees as at the end of the accounting year.

7. Prior period and extra-ordinary items

Prior period and extra-ordinary items and changes in accounting policies having material impact on the financial affairs of the company are disclosed.

8. Events occurring after the Balance Sheet date

Material events occurring after the date of Balance Sheet are taken into cognizance.

9. Taxes on Income

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are recognized subject to the consideration of prudence. The tax rates and laws that have been enacted or substantively enacted as of the balance sheet date are applied.