1. SIGNIFICANT ACCOUNTING POLICIES.

Notes to the Financial Statements for the year ended 31 st March 2015 w

1. Corporate Information

PEACOCK INDUSTRIES LIMITED (The Company) isa public limited company domiciled India and incorporated under the provisions of Companies Act, 1956. The Company is engaged In , the manufacturing of Plastic Molded furniture and other articles.

1.1 Basis of Preparation of Financial Statements

The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under section 133 of the Companies Act,2013 read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act,2013. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year.

2. Significant accounting policies

a) Use of Estimates

The Preparation of Financial Statements require estimates and assumption to be made that affect the reported amount of assets ' and liabilities on the date to the financial statements and the reported amount of revenues and expense during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialised.

b) Tangible fixed aseets

Tangible Fixed Assets are stated at cost of acquisition or construction less accumulated debrciation. All cost, including financing costs till commencement of production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations relating to specific borrowings attributable to the fixed assets are capitalised.

C) Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

d) Debrciation and amortization :

Debrciable amount for assets is the cost of an assets , or other amount substituted for cost, less its estimated residual value. Debrciation on tangible fixed assets has been provided on the straight line method as per useful life brscribed in schedule II to the Companies Act,2013.

Intangible assets are amortized over its expected useful life on straight line method.

e) Investment

Current investments are carried at lower of cost and quoted /fair value, computed category wise. Long Term Investments are stated at cost. Provision for diminution in the value of long-term is made only if such a decline is other than temporary.

f) Excise duty /Service Tax

a. The excise duty payable on stock of finished goods not cleared from the excise bonded warehouse is included in expenses and in the value of such stocks.

b. Credit of the 'CENVAT' availed is adjusted towards the cost of raw material and fixed assets.

c. The Central Excise Duty related to finished goods cleared during the year is deducted from sales value.

d. Credit of service Tax is adjusted towards the cost of service.

g) Provision for current and deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act. 1961. Deferred tax resulting from "timing difference: between taxable and accounting income is accounted for using the tax rates and laws that are enacted.

h) Inventories

a) The valuation is on the basis of F I F O method.

b) Raw Materials, Stores and Spare Parts, Colors and Pigments etc. and Stock in transit are valued at cost.

c) Finished Goods and Work-in-Process are valued at estimated cost or net realizable value whichever is lower.

d) Scrap is valued at net realizable value.

i) Employee Retirement Benefits

I. Gratuity is accounted for on actuarial valuation basis.

II. Company's contribution to Provident Fund etc. during the year are charged to the Profit and Loss Statement.

III. Benefits in terms of accumulated leaves and gratuity are accounted for on actuarial basis.

j) Foreign Exchange Transaction

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate brvailing at the time of the transaction.

b) (i) Foreign Currency transactions remaining unsettled at the end of the year are translated at the contracted rates, when covered by foreign exchange contracts and at year end rates in all other cases, (ii) Gains and losses on foreign exchange transaction/ translation other than those relating to fixed assets are recognized to the respective accounts in the Profit and Loss Statement Gain or loss on transaction of the long term liabilities incurred to acquire fixed assets is related as an adjustments to the carrying cost of such fixed assets.

k) Sales

Sales are accounted for taking into consideration the basic price as well as Central Excise Duty but excluding Sales Tax/VAT.

I) Expenses

Material known liabilities except interest on borrowings are provided for on the basis of available information's/estimates and liabilities not provided are given in the Balance Sheet by way of note.

Note No. 2

The Stressed Assets Stabilisation Fund assignee of Industrial Development Bank Of India under the negotiated settlement in respect of its dues agreed to accept the payment of Rs.640.00 lacs and Interest thereon over a period of 8 years. In case of any default in repayment, the original amount of dues i.e. Rs. 3770.53 lacs will restore. In view of this the difference between the original amount and settled amount i.e Rs 3130.53 lacs has been shown as contingent liability. Note No.33

The company was declared a Sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) vide its order dated 21.12.1998 under the provisions of the Sick Industrial companies (Special Provisions) Act, 1985. The BIFR has sanctioned revival scheme .brpared by the operating agency viz IDBI, vide its order dated 15.07.2013, brsently revival scheme is under implementation.

Note No. 3.

As per revival scheme sanctioned by Board for Industrial and financial Reconstruction a sum of Rs. 213.37 Lacs included under the head Exceptional Items in the Profit and Loss Account.

Note No.4-

The figures for the brvious year have been regrouped/re-arranged to the extent necessary.

For Sampati Lai Bohara & Co.

Chartered Accountants

FRN : 003324 C

sd/-(Sudhir Mehta)

Partner

M.No. 400920

For and on behalf, of board of directors

sd/-Daud Ali Managing Director (DIN -185336)

sd/- Narendra Bhanawat Whole Time Director and Chief Financial Officer (DIN -146824)

sd/-Aditi Parmar Company secretary

Place : Udaipur Date : 30.05.2015