Accounting Policies of Bala Techno Industries Ltd. Company

Mar 31, 2014

I. The accounts are prepared on the historical cost basis and on the accounting principles of going concern.

ii. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

iii. All the items of expenses and income are accounted on accrual basis except dividend income.

iv. The Fixed Assets of the company are valued at cost including related pre-operational expenses and interest up to the date these are put to use. In case of revaluation of fixed assets, the original cost as written up by the approved valuer is considered in the accounts and the differential amount is credited to revaluation reserve.

v. Depreciation on fixed assets has been provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on Pro-rata basis.

vi. The inventories are valued at lower of cost or net realisable value.

vii. The transactions in relation to Foreign Currency remaining unsettled at the end of the year are translated at year end rates and the Profit/Loss arising therefrom is taken to profit & loss account. Transactions in Foreign Currency are recorded in the books of account in rupees at the rate of exchange prevailing on the date of transaction.

viii. Contingent liabilities are not provided in the accounts but are disclosed by way of a note in ''Notes on Accounts''

ix. Deferred revenue expenses are written off over a year of 10 years commencing subsequent to the year these are incurred.

x. Investments are accounted for at cost. Dividends are accounted for as and when received.

xi. State Capital investment subsidy is credited to capital reserve.

xii. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated in terms of the Accounting Standard - 22 "Accounting for taxes on income" issued by the Institute of Chartered Accountants of India. Deferred tax Assets are recognised only if there is virtual certainty of its realisation, supported by convincing evidences.

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Mar 31, 2013

I. The accounts are prepared on the historical cost basis and on the accounting principles of going concern.

ii. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

iii. All the items of expenses and income are accounted on accrual basis except dividend income.

iv. The Fixed Assets of the company are valued at cost including related pre-operational expenses and interest up to the date these are put to use. In case of revaluation of fixed assets, the original cost as written up by the approved valuer is considered in the accounts and the differential amount is credited to revaluation reserve.

v. Depreciation on fixed assets has been provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on Pro-rata basis.

vi. The inventories are valued at lower of cost or net realisable value.

vii. The transactions in relation to Foreign Currency remaining unsettled at the end of the year are translated at year end rates and the Profit/Loss arising therefrom is taken to profit & loss account. Transactions in Foreign Currency are recorded in the books of account in rupees at the rate of exchange prevailing on the date of transaction.

viii. Contingent liabilities are not provided in the accounts but are disclosed by way of a note in ''Notes on Accounts''

ix. Deferred revenue expenses are written off over a year of 10 years commencing subsequent to the year these are incurred.

x. Investments are accounted for at cost. Dividends are accounted for as and when received.

xi. State Capital investment subsidy is credited to capital reserve.

xii. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated in terms of the Accounting Standard - 22 "Accounting for taxes on income" issued by the Institute of Chartered Accountants of India. Deferred tax Assets are recognised only if there is virtual certainty of its realisation, supported by convincing evidences.

Terms/Rights attached to Equity Shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company,after distribution of all preferential amounts.

The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms/Rights attached to Non-Cumulative Redeemable Preference Shares

The company has only one class of Non-Cumulative Redeemable Preference Shares, having a par value of Rs.100 per share.

Redemption of fully paid Non-Cumulative Redeemable Preference shares shall be made within 20 years from the date of issue. Such reedemption shall be made out of profits of the company which would otherwise be available for dividend i.e. out of general reserve created by ploughing back of distributable profits or may be made out of the proceeds of a fresh issue of shares made for the purpose of redemption.

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Mar 31, 2012

I. The accounts are prepared on the historical cost basis and on the accounting principles of going concern.

ii. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

iii. All the items of expenses and income are accounted on accrual basis except dividend income.

iv. The Fixed Assets of the company are valued at cost including related pre-operational expenses and interest up to the date these are put to use. In case of revaluation of fixed assets, the original cost as written up by the approved valuer is considered in the accounts and the differential amount is credited to revaluation reserve.

v. Depreciation on fixed assets has been provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on Pro-rata basis.

vi. The inventories are valued at lower of cost or net realisable value.

vii. The transactions in relation to Foreign Currency remaining unsettled at the end of the year are translated at year end rates and the Profit/Loss arising therefrom is taken to profit & loss account. Transactions in Foreign Currency are recorded in the books of account in rupees at the rate of exchange prevailing on the date of transaction.

viii.Contingent liabilities are not provided in the accounts but are disclosed by way of a note in ''Notes on Accounts''

ix. Deferred revenue expenses are written off over a year of 10 years commencing subsequent to the year these are incurred.

x. Investments are accounted for at cost. Dividends are accounted for as and when received.

xi. State Capital investment subsidy is credited to capital reserve.

xii. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated in terms of the Accounting Standard - 22 "Accounting for taxes on income" issued by the Institute of Chartered Accountants of India. Deferred tax Assets are recognised only if there is virtual certainty of its realisation, supported by convincing evidences.

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Mar 31, 2011

I. The accounts are prepared on the historical cost basis and on the accounting principles of going concern.

ii. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

iii All the items of expenses and income are accounted on accrual basis except dividend income.

iv. The Fixed Assets of the company are valued at cost including related pre-operational expenses and interest up to the date these are put to use. In case of revaluation of fixed assets, the original cost as written up by the approved valuer is considered in the accounts and the differential amount is credited to revaluation reserve.

v. Depreciation on fixed assets has been provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on Pro-rata basis.

vi. The inventories are valued at lower of cost or net realisable value.

vii.The transactions in relation to Foreign Currency remaining unsettled at the end of the year are translated at year end rates and the Profit/Loss arising therefrom is taken to profit & loss account. Transactions in Foreign Currency are recorded in the books of account in rupees at the rate of exchange prevailing on the date of transaction.

viii.Cbntingent liabilities are not provided in the accounts but are disclosed by way of a note in 'Notes on Accounts'

ix. Deferred revenue expenses are written off over a year of 10 years commencing subsequent to the year these are incurred.

x. Investments are accounted for at cost. Dividends are accounted for as and whenreceived.

xi. State Capital investment subsidy is credited to capital reserve.

xii. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. The Deferred tax Asset and Deferred tax Liability is calculated in terms of the Accounting Standard - 22 "Accounting for taxes on income" issued by the Institute of Chartered Accountants of India. Deferred tax Assets are recognised only if there is virtual certainty of its realisation, supported by convincing evidences.