Back Ground
 
 Brahmanand Himghar Ltd was incorporated as a private limited company
 under the name and style as Brahmanand Development Pvt Ltd on 21st June
 1990 to engage in the business of investment related activities. The
 Company in the year 1998 diversified into cold storage business by
 setting up 14,000 M.T. Cold storage in Midnapore district for
 preservation of potatoes and changed its name to Brahmanand Himghar
 Limited with effect from 29th April 1998. The Company went for public
 issue in the year 2004. The Company has set up another 4,100 M.T. cold
 storage unit in Tamolia in the state of Jharkhand.
 
 1.  Basis of preparation of financial statements
 
 The financial statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting following
 generally accepted accounting principles in India (GAAP) and comply
 with the Accounting Standards issued by the Institute of Chartered
 Accountants of India and the relevant provisions of the Companies Act,
 1956, to the extent applicable.  The financial statements are presented
 in Indian rupees.
 
 2.  Use of estimates
 
 The prepration of the financial statements in the conformity with the
 GAAP requires management to make estimates and assumptions that affect
 the reported amounts of assets and liabilities and the disclosure of
 contigent liabilities on the date of the financial statements. Actual
 results could differ from those estimates. Any revision to accounting
 estimates is recognised prospectively in current and future periods.
 
 3.  Fixed assets
 
 Fixed assets are stated at historical cost of acquisition/construction
 inclusive of duties (net of cenvat), taxes, incidental expenses and
 erection/commissioning expenses up to the date the asset is ready for
 intended use.
 
 4.  Depreciation/Amortisation
 
 On fixed assets, depreciation is provided on written down value method.
 The rates of depreciation prescribed in Schedule XIV of the Companies
 Act, 1956, are considered as minimum rates.
 
 5.  Impairment of assets
 
 At each Balance Sheet date, management assesses, using external and
 internal sources, whether there is an indication that an asset may be
 impaired. An impairment occurs where the carrying value exceeds the
 present value of future cash flows expected to arise from the
 continuing use of the asset and its eventual disposal. The impairment
 loss to be expensed is determined as the excess of the carrying amount
 over the present value as determined above. Actual results could differ
 from those estimates.
 
 6.  Inventories
 
 Finished goods are valued at the lower of cost and net realisable
 value.
 
 7.  Revenue recognition
 
 a.  Sales
 
 Revenue is recognised on the sale of goods to customer which generally
 coincides at the time of delivery of the goods.
 
 b.  Income & Expenditure
 
 Income and expenditure are accounted for on accrual basis, wherever
 ascertainable.
 
 8.  Investments
 
 Investments are classified as long term investments
 
 Long term investments are carried at cost unless there is dimunition
 (other than temporary) in the
 
 value of investments.
 
 9.  Employee benefits
 
 Short-term employees benefits are recognised as an expenses in the
 Profit & Loss Account of the year in which the related service is
 rendered.
 
 Regarding post employment benefits the company maintains gratuity fund
 with Life Insurance Corporation of India
 
 Contributions payable to the recognised provident fund, which is a
 defined contribution scheme, are charged to the profit and loss account
 when incurred. Acturial valuation is made by the LIC on the basis of
 data given by the company.
 
 10.  Foreign exchange transactions
 
 The Company during the year did not have foreign exchange transaction.
 
 11.  Contingencies
 
 Contingent liability is a possible obligation that arises from past
 events and the existence of which will be confirmed only by the
 occurrence or non-occurrence of one or more uncertain future events not
 wholly within the control of the enterprise, or is a present obligation
 that arises from past events but is not recognised because either it is
 not probable that an outflow of resources embodying economic benefits
 will be required to settle the obligation, or a reliable estimate of
 the amount of the obligation cannot be made.
 
 12.  Taxation
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provision of the Income Tax Act, 1961.
 Deferred tax resulting from timing differences  between taxable and
 accounting income is accounted for using the tax rate and laws that are
 enacted or substantively enacted as on the balance sheet date. The
 deferred tax assets is recognised and carried forward only to the
 extent that there is a virtual certainty that the asset will be
 reliased in future.
 
 13.  Government Grants
 
 a) Government Grants related to fixed assets are adjusted with the
 value of fixed assets/credited to capital reserve.
 
 b) Government Grants related to revenue items are adjusted with the
 related expenditure/ taken on income.
 
 14.  Borrowing Cost
 
 Borrowing Cost that are directly attributable to the acquistion/
 construction of the qualifying asset are capitalised until the time all
 the substantial activities neceessary to prepare such assets for the
 intended use are complete. All other borrowing costs are recognised as
 expenditure during the period in which they are incurred.