NOTE 1 : NOTES FORMING PART OF THE ACCOUNTS.

A. Previous Year's figures have been regrouped wherever necessary to make them comparable with those of the Current Year.

B. ACCOUNTING POLICIES

1) SYSTEM OF ACCOUNTING :

The Company maintains its books of account on accrual basis.

2) METHOD OF ACCOUNTING :

a) For sales and services -

The sale of goods is recognised on despatch to customers, sales exclude amounts recovered towards excise duty and sales tax.

b) Export sales are accounted for in accordance with Accounting standard

11 . Exchange gain or loss on realisation of foreign exchange is included in exchange fluctuation account.

3) FOREIGN EXCHANGE TRANSACTIONS :

Transactions in foreign currencies during the year are converted at the rates brvailing on the transaction date. All current assets and current liabilities in foreign currency are revalued at the exchange rate brvailing as at the Balance Sheet date. All exchange differences arising from convesion are included in Profit & Loss Account.

4) FIXED ASSETS :

a. Tangible Assets :

Fixed Assets are capitalised at cost of acquisition or at manufacturing cost in case of company manufactured assets. Debrciation is charged on Straight Line Method on all assets in accordance with the useful life given in Schedule II of the Companies Act 2013.

b. Intangible Assets :

Intangible assets acquired in Financial year 2008-09 are amortised in 7 equal annual installments.

5) CURRENT ASSETS :

a. Balances of Sundry Debtors, Loans, Advances & Deposits given or taken &

& sundry creditors are subject to confirmations. Effect of any variation will be accounted in the year of such variation.

b. INVENTORY :

Inventories are valued at lower of the cost or estimated net realisable value after providing for cost of obsolescence. Cost of Raw Materials is arrived at on first in first out method to comply with the provisions of As2 Work in process and finished goods include cost of materials, direct labour and overheads.

6) INVESTMENTS :

Investments are stated at cost of acquisition or net realisable value whichever is lower.

7) RESEARCH AND DEVELOPMENT :

Revenue expenditure on Research and Development is charged as an expense against the profits for the year in which it is incurred and Capital Expenditure is grouped with Fixed Assets under appropriate heads and debrciation is provided as per rates applicable.

8) EMPLOYEE RETIREMENT BENEFITS :

Retirement benefits to employees comprise of payments of Gratuity, Provident funds under the approved schemes of the Company, and also provision for Leave encashment. The Company has not made any contribution to the Gratuity Fund during the year. Provision for gratuity & leave encashment had been made on accrual basis instead of actuary valuation.

9) IMPAIRMENT OF ASSET :

Asset forming part of any cash generating units are tested for impairment when an indication exists that such assets may be impaired and impairment loss is recognised in profit & loss when recoverable amount of such asset is less than its carrying value.

C) OTHER NOTES

1. Contingent Liabilities And Commitments ( to the extent not provided for )

a. Contingent Liabilities not provided for - -

The Sales Tax appeal of the Company for FY 2000-01, 2001-02, 2002-03 is pending with Sales Tax authorities. During the course of the appeal the Company had paid a deposit of Rs.11,50,000/- under protest. The management is confident that the appeal will be decided in company's favor and the entire amount so deposited will be refunded to company. As such the management does not expect any impact of this pending letigation on its financial position.

b. Claims against the Company not - -acknowledged as debts :

c. Estimated amount of contracts remaining to be - -executed on Capital Account, not provided for :

2. Amount repayable within one year included in : Unsecured Loans - -

3. Inspite of our direct enquiry, till the date we have not received any written rebrsentation from any SME regarding their eligibility under the SME Act.

4. Exchange fluctuation recognised in Profit & loss account is Rs.68,806/- Credit. ( Rs.1,00,658/- Credit ) 5.. The Company is operating in a single segment of " Industrial Machinery".

6. Deffered Tax liability ( On account of debrciation ) Rs. 9,43,092/- Rs. 20,42,618/-

Deffered Tax Assets ( On account of 43B of the Income Tax Act ) Rs. 9,43,092/- Rs. 11,10,418/-

In veiw of substantial losses incurred by the Company & the provision of clause 15 to 18 of Accounting standard 22 on Accounting For Taxes on Income. The Company has restricted the Deferred Tax Asset not more than Deferred Tax Liability as above.

7. Note on Leaserent :

The Company has taken brmises on lease during the year 2013-14. The leaserent for the year 2014-15 has been debited to P & L A/c amounting to Rs.2,25,000/- ( Rs.25,87,500/- ) The lease contract has ended w.e.f. 30/04/2014.

The Company had given deposit of Rs.48 Lacs which was due on completion of contract. The Lessor ( i.e. Elvin Furniture Pvt .Ltd.) has repaid the amount of Rs.48 Lacs.

For M/s. P. G. Bhagwat Shripad R Mirashi Meena S.Joglekar

Chartered Accountants Chairman & Managing Director Company Secretary

Sanjay S. Athavale

Partner M NO 83374

Deepanjali S. Mirashi Santosh S. Maral

Executive Director Dy. General Manager (Finance)

Place : Pune :

Date : 27th MAY, 2015