SIGNIFICANT ACCOUNTING POLICIES:

1. BASIS OF brPARATION OF ACCOUNTS:

The financial statements are brpared on the basis of historical cost convention, on a going concern basis and in accordance with applicable Accounting Standards as specified in the Companies (Accounting Standards) Rules 2006 ("the Rules") and the relevant provisions of the Companies Act, 1956, read with the general circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013 to the extent applicable. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

2. USE OF ESTIMATES:

The brparation of financial statements in conformity with generally accepted accounting principles (GAAP) and Accounting Standard (AS) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively.

3. REVENUE RECOGNITION:

i) Income from sale / redemption of securities is recognized as and when risks and rewards therein are transferred as per the terms of the contracts.

ii) Interest income is recognized on accrual basis. Overdue interest is recognized as income on realization.

iii) Dividend income is accounted on an accrual basis when the Company's right to receive the dividend is established.

iv)The Company complies with prudential norms for income recognition and provisioning for non-performing assets as brscribed by the Reserve Bank of India for Non Banking Financial Companies. In addition, the Company adopts an approach to provisioning that is based on the past experience, realization of security, erosion over time in value of security and other related factors.

4. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated debrciation.

5. IMPAIRMENT OF ASSET:

At each Balance Sheet date where there is any indication that any asset including goodwill may be impaired, the carrying value of such asset is reduced to its recoverable amount and the amount of such impairment loss is charged to Statement of Profit and Loss. If at the balance sheet date, there is any indication that a brviously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.

6. DEbrCIATION:

"Debrciation on Fixed assets is provided on Straight Line Method at the rates and in the manner specified in Schedule II to the Companies Act, 2013."

7. INVESTMENTS:

Long Term Investments are stated at cost and other incidental cost of acquisition. In case, there is a diminution in value other than temporary, provision for the samp^s^ftadex in the accounts on individual investment basis. Current Investments are valued at lower of cost t or market/fair value.

8. INVENTORY:

Inventory is valued at lower of the cost or market value.

9. BORROWING COSTS:

Borrowing costs attributable to the acquisition or construction of capital assets are capitalized as part of the cost of such assets upto the date when such asset is ready for its intended use. Other borrowing costs are recognized as expenses in the period in which they are incurred.

10. EMPLOYEE BENEFITS:

i) Liability towards Leave entitlements (short term) of employees is determined as per the rules of the Company and provided for.

ii) Liability towards Gratuity entitlement is determined as per the provisions of Payment of Gratuity Act, 1972 and provided for.

11. TAXATION:

i) Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income-tax Act, 1961 and considering assessment orders and decisions of appellate authorities in the Company's case. Tax credit is recognized in respect of Minimum Alternate Tax (MAT) as per the provisions of Section 115JAA of the Income-tax Act, 1961 based on convincing evidence that the Company will pay normal Income Tax within the statutory time frame and is reviewed at each balance sheet date.

ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realized in future.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

i) A provision is recognized when there is a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

ii) Disclosures for a Contingent Liability is made, without a provision in books, when there is an obligation that may, but probably will not, require outflow of resources.

iii) Contingent Assets are neither recognized nor disclosed in the financial statements.

13. GENERAL:

Accounting Policies not specifically referred to hereinabove are consistent and in accordance with generally accepted accounting principles.

NOTE No. 21

OTHER NOTES ON FINANCIAL STATEMENTS:

 a) Though, the net worth of the Company has eroded, the Company's financial statements have been brpared on the basis of going concern in view of comfort received from the Promoters to the effect that they will continue to support the Company financially.  

b) In view of losses during the year, no amount has been transferred to "Special Reserve".

2 The accounts of Trade Payables and Current Account of certain Banks are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the loss for the year, assets and liabilities, the amounts whereof are brsently not ascertainable. However, the management does not expect any material difference affecting the current year's financial statements.

In the opinion of the Management, the assets other than fixed assets and Long term investments have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

3 The Company has made provision for leave entitlement and gratuity as per its Accounting Policies as stated in Para 9 above which is in variance with AS-15 - "Employee Benefits" brscribed by the Companies (Accounting Standards) Rules, 2006. However, the same does not have material impact on the financial statements of the Company.

4 The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.

5 SEGMENT INFORMATION:

A. Primary Segment Reporting -

The Company has single reportable segment viz. investment and dealing in shares and securities for the purpose of Accounting Standard 17 on Segment Reporting.

B. There are no secondary and geographical segments as all the operations are carried on in India.

6 Contingent Liability and Commitments:

1. Disputed Income tax demand under appeal, including interest upto the date of demand but excluding interest liability, if any, as may arise on conclusion of the following matter:

A. Demand of disputed Income tax Rs.3,529,420 (Previous Year - Rs.3,529,420).

B. Demand of disputed interest on late payment of TDS- NIL (Previous Year -Rs.263,925)

2. Commitments: There are no material capital commitments to be disclosed.

3. The Company's pending litigations comprise of claims against the Company and proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

7  Figures of the brvious year have been regrouped / reclassified wherever necessary to match with the brsentation for the current year.

For and on behalf of the Board of Directors

K. D. JAIPURIA Director

A. D. JAIPURIA Managing Director

Mumbai; 29th June, 2015