CASTEX TECHNOLOGIES Accounting Policy

A. BASIS OF ACCOUNTING

These accounts are prepared under historical cost convention ,on a
going concern basis and on accrual basis and are in compliance with the
accounting standards notified under section 133 of the Companies Act,
2013 and the relevant provisions thereof.

B. REVENUE RECOGNITION

Sales are recognized at the time of dispatch of goods and are exclusive
of excise duty and Central sales Tax/ VAT. All expenses and income are
accounted for on accrual basis.

C. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The
cost of fixed assets includes their original cost of acquisition net of
cenvat including taxes, freight and other incidental expenses related
to acquisition and installation of the concerned assets.

D. DEPRECIATION

Depreciation on fixed assets is provided on "Straight Line Method"
(SLM) as per useful life method prescribed under Part C of Schedule II
of the Companies Act, 2013. Depreciation on addi-tions / deductions to
Fixed Assets is provided on pro-rata basis from the date of actual
installation or up to the date of such sale / disposal, as the case may
be. The residual value of the asset has been taken to be 5 percent of
the original cost of the asset.

E. INVENTORIES

Raw Materials, Stores, Spares & dies, Goods under process and Finished
Goods are valued at cost or Net Realizable Value, whichever is lower.
Waste and Scrap is valued at Net Realizable Value.

Cost of inventories of Raw Materials and Stores and Spares is
ascertained on FIFO Basis.

Cost of goods under process and finished goods comprise of cost of
materials, production overhead and depreciation on plant and machinery.
Cost of material for this purpose is ascertained on First in First out
basis.

Provision for obsolescence in inventories is made, whenever required.

F. INVESTMENT

Current investments are valued at lower of cost or fair market value.

Noncurrent Investments are valued at cost. However, when there is a
decline other than temporary in the value of a long non-current
Investment, the carrying amount is reduced to recognize the decline.

G. FOREIGN CURRENCY TRANSACTIONS

a) The working capital loans are revalued at exchange rates prevailing
at the year end. Exchange differences arising on such revaluation are
duly recognized in the Profit & Loss Account.

b) In case of forward exchange contracts to repay working capital
loans, the difference between the forward rate and the exchange rate at
the date of transaction is recognized as income or expenses over the
life of the contract.

c) Debtors and working capital loans in foreign currency are revalued
at the year end exchange rates. Exchange differences arising on such
revaluation are recognized in Profit & Loss Account.

d) Exchange differences arising on revaluation of foreign currency
loans relating to acquisition of fixed assets from outside India are
adjusted against relevant fixed assets.

H. EXCISE DUTY

Excise duty is paid on clearance of goods, but is accounted for in the
books on accrual basis. Accordingly, provision for excise duty is made
for goods lying in the Bonded Warehouse.

I. EMPLOYEES'' RETIREMENT BENEFITS

a) The liability for superannuation/pension Gratuity & Leave Encashment
is accounted for on the basis of actuarial valuation in accordance with
Accounting Standards -15 (Revised) notified by the Institute of
Chartered Accountants of India.

b) Retirement benefits in the form of Provident Fund and Superannuation
/ Pension Schemes are charged to the Profit and Loss Account for the
year when the contribution to the respective funds is due.

J. RESEARCH AND DEVELOPMENT

Capital Expenditure is shown separately under respective heads of fixed
assets. Revenue expenses including depreciation are included under the
respective heads of expenses.

K. BORROWING COST

Interest on borrowings are recognized in the Profit and Loss account
except interest incurred on borrowings, specifically raised for
Projects which is capitalized with the cost of the asset until such
time the asset is ready to be put to use for intended purpose.

L. TAXATION

a) Provision for Taxation is made on the basis of the taxable profits
computed for the current accounting year (reporting year) in accordance
with Income Tax Act, 1961.

b) Deferred Tax is recognized, subject to consideration of prudence, on
timing difference, being difference between taxable income and
accounting income / expenditure that originate in one period and are
capable of reversal in one or subsequent year(s). Deferred taxes are
reviewed for their carrying value at each balance sheet date.

M. IMPAIRMENT OF ASSETS

The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at any subsequent balance
sheet date there is an indication that a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at recoverable amount subject to a maximum of
depreciated historical cost and is accordingly reversed in the profit
and loss account.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
“2019 © COPYRIGHT DYNAMIC EQUITIES PVT. LTD.”

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

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