Accounting Policies of Geekay Wires Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting policies adopted in the preparation of
these financial statements. These policies have been consistently applied to all the years
presented, unless otherwise stated

(a) Basis of preparation

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 Indian
Accounting Standards specified under Section 133 of the Companies Act, 2013, read with
Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 ("the Act"). The financial statements have been prepared on accrual
basis under the historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those followed in the previous
year.

(b) Use of estimates and critical accounting judgments

In preparation of the financial statements, the Company makes judgments, estimates and
assumptions about the carrying values of assets and liabilities that are not readily apparent
from other sources. The estimates and the associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may differ
from these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognized in the period in which the estimate is revised and
future periods affected. Significant judgments and estimates relating to the carrying values of
assets and liabilities include useful lives of property, plant and equipment and intangible
assets, impairment of property, plant and equipment, intangible assets and investments,
provision for employee benefits and other provisions, recoverability of deferred tax assets,
commitments and contingencies.

(c) Property, plant and equipment

As per IND AS-16 an item of property, plant and equipment is recognized as an asset if it is
probable that the future economic benefits associated with the item will flow to the
Company and its cost can be measured reliably. This recognition principle is applied to the
costs incurred initially to acquire an item of property, plant and equipment and also to costs
incurred subsequently to add to, replace part of, or service it. All other repair and
maintenance costs, including regular servicing, are recognized in the statement of profit and
loss as incurred.

Property, plant and equipment are stated at cost, less accumulated depreciation and
impairment. Cost includes all direct costs and expenditures incurred to bring the asset to its
working condition and location for its intended use. Trial run expenses (net of revenue) are
capitalized. Borrowing costs incurred during the period of construction is capitalized as part
of cost of the qualifying assets. The gain or loss arising on disposal of an asset is determined
as the difference between the sale proceeds and the carrying value of the asset, and is
recognized in the statement of profit and loss.

(d) Depreciation and amortization of property, plant and equipment

Depreciation or amortization is provided so as to write off, on a straight line basis, the cost of
property, plant and equipment to their residual value. These charges are commenced from
the dates the assets are available for their intended use and are spread over their estimated
useful economic lives. The estimated useful lives of assets and residual values are reviewed
regularly and, when necessary, revised. No further charge is provided in respect of assets
that are fully written down but are still in use. Depreciation on assets under construction
commences only when the assets are ready for their intended use.

The estimated useful lives for the main categories of property, plant and equipment are:

(e) Impairment

At each balance sheet date, the Company reviews the carrying values of its property, plant
and equipment to determine whether there is any indication that the carrying value of those
assets may not be recoverable through continuing use. If any such indication exists, the
recoverable amount of the asset is reviewed in order to determine the extent of impairment
loss (if any).

(f) Inventories

As per IND AS-2 Inventories are stated at the lower of cost and net realizable value. Costs
comprise direct materials and, where applicable, direct labor costs and those overheads that
have been incurred in bringing the inventories to their present location and condition. Net
realizable value is the price at which the inventories can be realized in the normal course of
business after allowing for the cost of conversion from their existing state to a finished
condition and for the cost of marketing, selling and distribution.

Stores and spare parts are carried at lower of cost and net realizable value. Provisions are
made to cover slow moving and obsolete items based on historical experience of utilization
on a product category basis, which involves individual businesses considering their product
lines and market conditions.

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Mar 31, 2024

1. COMPANY INFORMATION

Geekay Wires Limited is a Public limited Company incorporated in India with its registered office in Hyderabad, Telangana, India. The Company is listed on the National Stock Exchange (NSE).

The Company is engaged in manufacturing of niche quality Galvanized Steel Wires and Nails which find applications in Power Transmission, Cable & Conductor, General Engineering, Construction etc.

The financial statements as at March 31, 2024 present the financial position of the Company. The functional and presentation currency of the Company is Indian Rupee ("?") whic h is the currency of the primary economic environment in which the Company operates.

The financial statements for the year ended March 31, 2024 were approved by the Board of Directors and authorized for issue on 23^rd May 2024.

2. SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated

(a) Basis of preparation

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 Indian Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the Act"). Tire financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) Use of estimates and critical accounting judgments

In preparation of the financial statements, the Company makes judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. Tire estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected. Significant judgments and estimates relating to the carrying values of assets and liabilities include useful lives of property, plant and equipment and intangible assets, impairment of property, plant and equipment, intangible assets and investments, provision for employee benefits and other provisions, recoverability of deferred tax assets, commitments and contingencies.

(c) Property, plant and equipment

As per IND AS-16 an item of property, plant and equipment is recognized as an asset if it is probable that the future economic benefits associated with the item will flow to the Company and its cost can be measured reliably. This recognition principle is applied to the costs incurred initially to acquire an item of property, plant and equipment and also to costs incurred subsequently to add to, replace part of, or service it. All other repair and maintenance costs, including regular servicing, are recognized in the statement of profit and loss as incurred.

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment. Cost includes all direct costs and expenditures incurred to bring the asset to its working condition and location for its intended use. Trial run expenses (net of revenue) are capitalized. Borrowing costs incurred during the period of construction is capitalized as part of cost of the qualifying assets. Hie gain or loss arising on disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognized in the statement of profit and loss.

Depreciation or amortization is provided so as to write off, on a straight line basis, the cost of property, plant and equipment to their residual value. These charges are commenced from the dates the assets are available for their intended use and are spread over their estimated useful economic lives. The estimated useful lives of assets and residual values are reviewed regularly and, when necessary, revised. No further charge is provided in respect of assets that are fully written down but are still in use. Depreciation on assets under construction commences only when the assets are ready for their intended use.

The estimated useful lives for the main categories of property, plant and equipment are:

ASSET	ESTIMATED USEFUL LIFE (UPTO YEARS)
Buildings	30
Plant and Machinery	15
Vehicles	8
Furniture	10
Office equipment	5
Electrical installation	10
Computer	3
Freehold Land	NON DEPRECIABLE

(e) Impairment

At each balance sheet date, the Company reviews the carrying values of its property, plant and equipment to determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss (if any).

(f) Inventories

As per IND AS-2 Inventories are stated at the lower of cost and net realizable value. Costs comprise direct materials and, where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Net realizable value is the price at which the inventories can be realized in the normal course of business after allowing for the cost of conversion from their existing state to a finished condition and for the cost of marketing, selling and distribution.

Stores and spare parts are carried at lower of cost and net realizable value. Provisions are made to cover slow moving and obsolete items based on historical experience of utilization on a product category basis, which involves individual businesses considering their product lines and market conditions.

(g) Provisions

As per IND AS-37 Provisions are recognized in the balance sheet when the Company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Where the time value of money is material, provisions are measured on a discounted basis. Constructive obligation is an obligation that derives from an entity''s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities and;

(b) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

(h) Government grants

In accordance with Ind AS 20 "Government Grants", duty drawback on sale of goods and Duty credit scrip under RO DTEP Scrip scheme has been treated as a Government grants. Such income is released to the statement of profit and loss based on fulfillment of related export obligations.

(i) Income taxes as per IND AS-12

a) Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

b) Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences. In contrast, deferred tax assets are only recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized.

(j) Revenue

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable net of discounts, taking into account contractually defined terms and excluding taxes or duties collected on behalf of the government.

(i) Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognized if there are significant uncertainties regarding recovery of the amount due, associated costs or the possible return of goods.

(ii) Interest income

Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective interest rate applicable.

(iii) Rental income

Rental income from investment properties is recognized on a straight line basis over the term of the relevant let out period.

(iv) Foreign currency transactions and translations

The financial statements of the Company are presented in Indian rupees (Rs), which is the functional currency of the Company and the presentation currency for the financial statements.

In preparing the financial statements, transactions in currencies other than the Company''s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period.

Exchange differences arising on the settlement of monetary items are included in the statement of profit and loss for the period.

(k) Borrowing costs

As per IND AS-23 Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for the intended use or sale.

(1) Employee Benefits:

The Company participates in a Provident Fund contribution plan on behalf of relevant personnel. Any expense recognized in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. Tire only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump- sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company do not have any funding arrangement. They settle the Gratuity on Pay-N-Go basis. The Company accounts for the liability for gratuity benefits payable in the future based on a year-end actuarial valuation report.

(m) Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets at stated at cost

(a) Financial assets

1. Cash and bank balances - Cash and cash equivalents include cash in hand, deposits held at call with banks & bank balances includes balances with banks.

2. Trade Receivables -Trade receivables are initially measured at transaction costs and subsequently measured to the extent realizable.

(a) Financial Liabilities

Trade and other payables are initially measured at transaction costs Interest bearing bank loans, overdrafts are initially measured at cost.

(b) De-recognition of financial liabilities

The Company de-recognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or they expire.

(c) Non-current assets held for sale and discontinued operations

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying value and fair value less costs to sell. However there are no such items identified during the year.

(n) Leases

Tire company has not entered into any lease transactions during the year. Hence a provision of Ind AS 116-Leases is not applicable.

(o) Investments:

Investments in equity instruments issued by other than subsidiaries are classified as at FVTPL, unless the related instruments are not held for trading and the Company irrevocably elects on initial recognition to present subsequent changes in fair value in Other Comprehensive Income. The companies has made non-current investment in unquoted equity instruments of a Company and are not held for trading .The investment is measured at cost less impairment if any.

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Mar 31, 2023

1. COMPANY INFORMATION

Geekay Wires Limited is a Public limited Company incorporated in India with its registered office in Hyderabad, Telangana, India. The Company is listed on the National Stock Exchange (NSE).

The Company is engaged in manufacturing of niche quality Galvanized Steel Wires and Nails which find applications in Power Transmission, Cable & Conductor, General Engineering, Construction etc.

The financial statements as at March 31, 2023 present the financial position of the Company. The functional and presentation currency of the Company is Indian Rupee ("^") which is the currency of the primary economic environment in which the Company operates.

The financial statements for the year ended March 31, 2023 were approved by the Board of Directors and authorized for issue on 26^th June 2023.

2. SIGNIFICANT ACCOUNTING POLICIES

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated

(a) Basis of preparation

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 Indian Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the Act"). The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

(b) Use of estimates and critical accounting judgments

In preparation of the financial statements, the Company makes judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods affected. Significant judgments and estimates relating to the carrying values of assets and liabilities include useful lives of property, plant and equipment and intangible assets, impairment of property, plant and equipment, intangible assets and investments, provision for employee benefits and other provisions, recoverability of deferred tax assets, commitments and contingencies.

(c) Property, plant and equipment

As per IND AS-16 an item of property, plant and equipment is recognized as an asset if it is probable that the future economic benefits associated with the item will flow to the Company and its cost can be measured reliably. This recognition principle is applied to the costs incurred initially to acquire an item of property, plant and equipment and also to costs incurred subsequently to add to, replace part of, or service it. All other repair and maintenance costs, including regular servicing, are recognized in the statement of profit and loss as incurred.

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment. Cost includes all direct costs and expenditures incurred to bring the asset to its working condition and location for its intended use. Trial run expenses (net of revenue) are capitalized. Borrowing costs incurred during the period of construction is capitalized as part of cost of the qualifying assets. The gain or loss arising on disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognized in the statement of profit and loss.

(d) Depreciation and amortization of property, plant and equipment

Depreciation or amortization is provided so as to write off, on a straight line basis, the cost of property, plant and equipment to their residual value. These charges are commenced from the dates the assets are available for their intended use and are spread over their estimated useful economic lives. The estimated useful lives of assets and residual values are reviewed regularly and, when necessary, revised. No further charge is provided in respect of assets that are fully written down but are still in use. Depreciation on assets under construction commences only when the assets are ready for their intended use.

The estimated useful lives for the main categories of property, plant and equipment are:

ASSET	ESTIMATED USEFUL LIFE (UPTO YEARS)
Buildings	30
Plant and Machinery	15
Vehicles	8
Furniture	10
Office equipment	5
Electrical installation	10
Computer	3
Freehold Land	NON DEPRECIABLE

(e) Impairment

At each balance sheet date, the Company reviews the carrying values of its property, plant and equipment to determine whether there is any indication that the carrying value of those assets may not be recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in order to determine the extent of impairment loss (if any).

(f) Inventories

As per IND AS-2 Inventories are stated at the lower of cost and net realizable value. Costs comprise direct materials and, where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Net realizable value is the price at which the inventories can be realized in the normal course of business after allowing for the cost of conversion from their existing state to a finished condition and for the cost of marketing, selling and distribution.

Stores and spare parts are carried at lower of cost and net realizable value. Provisions are made to cover slow moving and obsolete items based on historical experience of utilization on a product category basis, which involves individual businesses considering their product lines and market conditions.

(g) Provisions

As per IND AS-37 Provisions are recognized in the balance sheet when the Company has a present obligation (legal or constructive) as a result of a past event, which is expected to result in an outflow of resources embodying economic benefits which can be reliably estimated. Each provision is based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Where the time value of money is material, provisions are measured on a discounted basis. Constructive obligation is an obligation that derives from an entity''s actions where:

(a) by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain responsibilities and;

(b) as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

(h) Government grants

In accordance with Ind AS 20 "Government Grants", duty drawback on sale of goods and Duty credit scrip under MEIS scheme has been treated as a Government grants. Such income is released to the statement of profit and loss based on fulfillment of related export obligations.

a) Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

b) Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognized for all taxable temporary differences. In contrast, deferred tax assets are only recognized to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilized.

(j) Revenue

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable net of discounts, taking into account contractually defined terms and excluding taxes or duties collected on behalf of the government.

(i) Sale of goods

Revenue from the sale of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer. No revenue is recognized if there are significant uncertainties regarding recovery of the amount due, associated costs or the possible return of goods.

(ii) Interest income

Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective interest rate applicable.

(iii) Rental income

Rental income from investment properties is recognized on a straight line basis over the term of the relevant let out period.

(iv) Foreign currency transactions and translations

The financial statements of the Company are presented in Indian rupees (Rs), which is the functional currency of the Company and the presentation currency for the financial statements.

In preparing the financial statements, transactions in currencies other than the Company''s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Exchange differences arising on the settlement of monetary items are included in the statement of profit and loss for the period.

(k) Borrowing costs

As per IND AS-23 Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of

time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for the intended use or sale.

(l) Employee Benefits:

The Company participates in a Provident Fund contribution plan on behalf of relevant personnel. Any expense recognized in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period.

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump- sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company do not have any funding arrangement. They settle the Gratuity on Pay-N-Go basis. The Company accounts for the liability for gratuity benefits payable in the future based on a year-end actuarial valuation

(m) Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets at stated at cost (a) Financial assets

1. Cash and bank balances - Cash and cash equivalents include cash in hand, deposits held at call with banks & bank balances includes balances with banks.

2. Trade Receivables -Trade receivables are initially measured at transaction costs and subsequently measured to the extent realizable.

(a) Financial Liabilities

Trade and other payables are initially measured at transaction costs Interest bearing bank loans, overdrafts are initially measured at cost.

(b) De-recognition of financial liabilities

The Company de-recognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or they expire.

(c) Non-current assets held for sale and discontinued operations

Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying value and fair value less costs to sell. However there are no such items identified during the year.

(n)Leases

The company has not entered into any lease transactions during the year. Hence a provision of Ind AS 116- Leases is not applicable.

3. NOTES TO ACCOUNTS

1) All Assets & liabilities are presented as current and noncurrent as per criteria set out in Schedule - III to the companies Act 2013 as notified by the Ministry Of Corporate Affairs. Based on the Nature of operation of the company and realization from the trade receivable, the company has ascertained its operating cycle of less than 12 months period has been considered for the purpose of current/Noncurrent classification of Assets and Liabilities.

2) Property Plant & equipment are realizable at least to the extent of the values stated against them. No impairment is recognized in the values as per IndAS-36 as management is of opinion that no impairment of assets is noticed.

During the year the Capital work in progress of Rs 61,05,139 is considered under Property Plant & equipment, the same is planned to complete as below.

Particulars	TO BE COMPLETED IN				Total
	Less than 1 yr.	1-2 yrs.	2-3 yrs.	More than 3 yrs.
(ii) PROJECT 1-NEW SHED	61,05,139	0	0	0	61,05,139

3) The value of Investment property Rs 13, 91,260/- is separately shown in the balance sheet as per Ind AS -40.

Rental Income from Investment property earned during the year 2022-23 is 3, 40,200/-. Carrying value of the investment property is separately disclosed in financial statements.

The values disclosed in balance sheet for the previous year''s areas follows

	As at 31.03.2023	As at 31.03.2022	As at 01.04.2021
Investment Property	13,91,260	15,03,355	16,15,450

The investment property is recognized and measured at cost. During the year the company has not carried out valuation from independent valuer. In absence of any such report the property is disclosed at cost.

4) Depreciation on Property plant & Equipment has been provided during the year to the tune of Rs.4.07 Crores as per the revised rates prescribed under Schedule II of the Companies Act, 2013.

5) Inventories

STATEMENT OF CHANGES IN INVENTORIES

(Amount in Rs.)
SNO	PARTICULARS	OPENING STOCK	CLOSING STOCK
1	Raw Materials	516074574	388099522
2	Work In Progress	17345829	21784247
3	Finished Goods	88832859	64349190
4	Stock In Trade	0	0
5	Scrap	3285660	11955380
6	Packing material	8179786	70959
7	Consumables	7167050	2238027
8	Stores & spares	60684	1889533
TOTAL		64,09,46,442	49,03,86,858

i. Inventories as on 31st March 2023 has been taken, valued as certified by the Management and the same was physically verified by Management on 31st March 2023.

ii. Cost of material consumed during the year is Rs. 314,94,22,835.00. These include purchase cost& import duties and all the direct expenses incurred during the year.

iii. Working capital loan from City Union Bank is hypothecated on the above Stock.

iv. It is to be noted that Fire broke out due to short circuit on 17/12/2022 at around 3.00 PM at factory premises situated at Sy No 288/A,1/2, 289/B, 290/A2,290/A % , 291/A1 and 300/C %, Shankarampet R village Shankarampet R Mandal - Medak -5002271.The fire was controlled without causing any damage to Plant & machinery and workers. However the finished goods were destroyed in the fire for which no coverage of insurance is available for the company. The stock worth 50,150,036.99 is destroyed in the fire for which estimated scrap value is Rs 20,341,755.00 and loss of Rs 2,98,08,282/- is reported as a separate line item under Exceptional item in profit and loss account statement.

6) Financial assets and liabilities

Trade Receivables, Trade payables, Loans & Advances, cash in hand has been taken at Book Value subject to confirmation and reconciliations. Till the date of signing the report Balance Confirmations have not been received.

Trade receivables are further classified into various groups, outstanding less than six months and more than six months, more than one year and more than two year and more than three years.

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Mar 31, 2018

Note No.23 A) SIGNIFICANT ACCOUNTING POLICIES: 1. Basis of Preparation of Financial Statements:

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 specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the Act"). The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Use of Estimates:

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

3. Inventories:

(i) Raw Materials have been valued at cost or market value whichever is less.

(ii) Work in progress has been valued at lower of cost or realizable value.

(iii) Finished goods have been valued at lower of cost or realizable value.

4. Cash flow statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

5. Current / Non-current classification:

The Schedule III to the Act requires assets and liabilities to be classified as either Current or Non-current.

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is expected to be realized within twelve months after the reporting date; or

(iv) It is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

(v) All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

(i) it is expected to be settled in, the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is due to be settled within twelve months after the reporting date; or

(iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the opinion of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

6. Revenue Recognition:

(i) Sale is inclusive of Excise, Sales Tax and other charges.

(ii) The company follows mercantile system of accounting and recognizes significant items of income and expenditure. Revenue is recognized only when it is reasonably certain that ultimate collection will be made.

(iii) Interest income is booked on time proportion basis.

7. Fixed assets and depreciation :

(i) Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. Capital work-in-progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date.

(ii) Depreciation:

Depreciation on Tangible Fixed Assets is provided on straight line method on useful lives of the assets as prescribed in Schedule II to the Companies Act, 2013.

8. Employee Benefits:

The management is of opinion that since number of employees of the company is less than as provided under the act and accordingly making provision of the gratuity does not arise.

However, if payment on account of gratuity arises due to happening of any incidents as provided under the applicable provisions of the law, the same will be accounted for on cash basis.

9. Borrowing Costs:

Borrowing costs are charged to revenue except where such cost are attributable to the acquisition or construction of qualifying assets in which case it is capitalized as a part of the cost. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended uses.

10. Segment Reporting:

Provisions of Accounting Standard (AS) - 17 issued by the ICAI on ''Segment Reporting'' are not been applicable to the Company.

11. Leases:

Lease Payments are recognized as an expense in the Statement of Profit and Loss of the year to which they relate.

12. Earnings per share (EPS):

The Basic EPS is computed by dividing the net / profit (loss) attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by dividing the net profit / (loss) as adjusted for dividend, interest and other charges to expense or income (net off any attributable taxes) relating to the dilutive potential equity shares by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

13. Taxes on income:

(i) Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

(ii) Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realized. However, if there are unabsorbed depreciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realize the assets.

14. Provisions and contingent liabilities:

(i) The Company creates a provision where there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

(ii) A disclosure for a contingent liability is made where there is a possible obligation that may, but probably will not require an outflow of resources.

(iii) When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

15. Impairment of Assets:

Fixed assets are realizable at least to the extent of the values stated against them. Consequently, no impairment of their values as per AS-28 in the opinion of management

16. Intangible Assets:

Intangible Assets are stated at their cost of acquisition, less accumulated amortization and impairment losses thereon. An Intangible Asset is recognized, where it is probable that the future economic benefits attributable to the Asset will flow to the enterprise and where its cost can be reliably measured.