1. Telangana Foods is Registered under Section 12A(a) of Income Tax Act 1961 and exempted from Income Tax.

2. Telangana Foods is being followed accrual method of Accounting and being service oriented organization Telangana Foods is preparing Income & Expenditure account and Balance Sheet.

3. The Income Over Expenditure i.e., Surplus is being accumulated towards capital Expenditure i.e., for replacement of machinery expansion, modernization and diversification etc.,


The Capital Fund means the value of Assets donated by CARE, UNICEF, Capital grant received from Govt. of A.P. and the Value of Plant & Machinery, Buildings erected with accumulated surplus amount.
  • Erstwhile A.P. Industrial Infrastructure Corporation donated 15.46 acres of land at Nacharam IDA to Telangana Foods (formerly A.P. Foods) during the year 1973.
  • During the year 1985, A.P. Foods purchased 3.29 acres of land valuing Rs. 9.331 lakhs at Gazuwaka Industrial Estate, Vizag.
  • Subsequently, during the year 1987, land admeasuring 4.407 acres, which is adjacent to A.P. Foods was also purchased at cost a of Rs.5.977 lakhs.
  • During period 1974-1978 CARE an International Organization has donated Plant & Machinery, Buildings, Lab equipments and Vehicles valuing Rs. 74.948 lakhs.
  • During 1980-81 UNICEF an International Organization has donated Buildings, Plant & Machinery and Spares. Subsequently, some more spares are received from UNICEF during the period 1982-84. The total value of Assets donated by UNICEF works out to Rs. 135.900 lakhs.
  • Govt. of A.P. has provided a capital grant of Rs. 25.145 lakhs during the period 1977-1981. 
  • Subsequently, Telangana Foods has erected and commissioned Automatic Energy Food Plant, Soya Plant, Computerized Extrusion Plant, and Effluent Treatment Plant and Hot Food Plant with its own funds i.e. from the accumulated surplus.


6. Depreciation is provided on Fixed Assets on written down value method at the rates provided in the Income Tax Act 1961.

7. Inventories are valued at cost by following FIFO Method. 

8. Telangana Foods does not receive Budget from State/ Central Govt directly. Telangana Foods manufacture and supply Ready-To-Eat/ Ready to Cook Nutritious Food under Govt., feeding programmes to ICDS projects under the Director of Women & Child . The costs of supplies are reimbursed by those departments from their budgetary allocation. 

9. T.S. Foods prepares budget estimates every year for the activities to be under taken. Accordingly, Budgetary Control System is followed.

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