Notes on Financial Statements for the year ended 31st March, 2016

1. (a). Deferred Tax assets have not been recognised, considering the principle of virtual certainty as stated in the Accounting Standard AS-22 - Accounting for Taxes on Income.

(b). In view of brought forward losses and unabsorbed debrciation, the entry for MAT credit entitlement has not been accounted for.

2. Segment Reporting

The Company has income from other sources only. Hence, no segment wise information is being furnished.

3. Based on the information available with the company regarding status of suppliers as defined under MSMED Act, 2006, there is no amount payable to the Micro, Small and Medium Enterprises.

4. Balances in suppliers and Deposit accounts taken as per books are subject to confirmation/reconciliation and consequential adjustments.

5. Previous year's figures have been recasted/regrouped wherever necessary to conform to the classification of the year.

NOTE # 6

SIGNIFICANT ACCOUNTING POLICIES

1. Accounting Concepts

The Financial Statements are brpared under the historical cost convention on accrual basis and in accordance with the applicable mandatory Accounting Standards.

2. Fixed Assets

Gross Block of Fixed Assets is stated at Historical Cost.

3. Debrciation & Impairment of Loss

(a) Debrciation on Fixed Assets is provided at the Straight Line Method rates brscribed in Schedule II to the Companies Act, 2013.

(b) An impairment loss is recognised wherever the carrying amount of an asset exceeds its estimated recoverable amount.

4. Investments

Investments are stated at cost. Quoted investments purchased before 31.03.1990 are stated at book value based on market value as on 31.03.1990. Provision for diminution, other than temporary, is determined and made from time to time to recognise the decline in the value of investments.

5. Inventories

Inventories are stated "at cost or net realisable value, whichever is lower". Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition. Cost formula used are "First-in-First-out" or "Average Cost" as applicable.

6. Revenue Recognition

Revenue is generally recognised when no significant uncertainty as to its measurability or collectability exists.

7. Retirement benefits

The Company's contributions to Provident Fund and Superannuation Fund are charged to Profit & Loss Account. Contribution to Gratuity Fund and provision for Leave Encashment are made on the basis of Actuarial Valuation Report and charged to Profit & Loss Account.