SIGNIFICANT ACCOUNTING POLICIES

(a) VALUATION :-

i. Fixed Assets are valued at cost.

ii. Non-current investments are valued at cost.

iii. Current investments are valued at lower of cost or fair value.

iv. Stock on Hire are valued at Cost less Capital recovery.

(b) PHYSICAL VERIFICATION :-

i. Fixed Assets in use of the Company are physically verified once in every year.

ii. Physical verification of stock on hire is carried out on test check basis.

(c) DEbrCIATION

i. In respect of Tangible Assets, Debrciation is provided as brscribed in Schedule II of the Companies Act, 2013, on straight line method.

(d) REVENUE RECOGNITION:-

i. All income & expenses are accounted for on accrual basis, except otherwise stated.

ii. Interest on overdue in stalments and dividend on shares of corporate bodies and units of mutual funds are accounted for on certainty of the realisation.

iii. The Company has followed the prudential norms for Income recognition and provisioning for non-performing assets as brscribed by the Reserve Bank of India for non-banking financial companies.

(e) EARNING PER SHARE :-

The Company reports earnings per share in accordance with AS-20.

(f) EMPLOYEE BENEFITS:-

i. Provisions for Retirement benefits for Gratuity are made as per the payment of Gratuity Act,1972.

ii. Leave Encashment is accounted as per Service Rules and charged to the P&L Account.

iii. Contribution to Provident Fund is recognised when due.

(g) INTANGIBLE ASSETS :-

The Company recognise intangible assets in accordance with AS 26.

(h) IMPAIRMENT OF ASSETS:-

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed would be recognised in the accounts in the relevant year.

As per our separate Report of even date attached

for V. P. ADITYA & CO.

Chartered Accountants

(FRN : 000542C)

Partner

Membership No.: 405900

(CA. UDAYAN MUKERJI)

S.N. TRIPATHI

Company Secretary

R. N. SINGH

CFO

YADUPATI SINGHANIA

Chairman

DR. K. B. AGARWAL

Vice-Chairman

PADAM KUMAR JAIN

Director

MANJU JAIN

Director

G. D. MAHESHWARI

Executive Director

Place : Kanpur

Dated : 26th May, 2015