SIGNIFICANT ACCOUNTING POLICIES AND ADDITIONAL INFORMATION A. SIGNIFICANT ACCOUNTING POLICIES

1 BASIS OF brPARATION OF FINANCIAL STATEMENTS

The financial statements have been brpared and brsented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the accounting standards brscribed by the Companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act, 2013 to the extent applicable,

2 FIXED ASSETS AND DEbrCIATION

i) Debrciation on fixed assets have been calculated as per Part C of Schedule II of the Companies Act, 2013

ii) Debrciation on the amount of revaluation of fixed assets is adjusted against fixed assets revaluation reserve created at the time of revaluation.

3 INVENTORIES

Inventories are valued as under: Stores & Spares - At cost.

Finished Goods and Work in Progress - At cost or market value, whichever is less.

4 INVESTMENTS

Investments that are readily realisable and are intended to be held for not more than one year from the date, on which investments are made, are classified as current investments. All other investments are classified as long term investments. Long term investments and Current investments are stated at cost, unless there is a permanent decline in value thereof.

5 RECOGNITION OF INCOME AND EXPENDITURE

Sales are accounted inclusive of Excise Duty but excluding Sales Tax.

Items of income and expenditure are accounted for on accrual basis. Due to uncertainly as regards to ultimate collection on account of claims for escalation and minimum offtake guarantee, the revenue recognition is postponed as per AS-9 issued by the ICAI till bills are raised for such claims on settlement with the customers. Cenvat Credit on purchases is adjusted from the Excise Duty payable during the year. Preliminary Expenses are written off over a number of years as deferred revenue expenditure.

6 EMPLOYEE BENEFITS

Retirement benefits are provided in the accounts on accrual basis.

Annual contribution towards Gratuity liability is funded with Life Insurance Corporation of India in accordance with the Gratuity scheme of LIC.

Short term employee benefits are recognized as expense as per company's scheme.

7 TAXATION

Provision is made for Income Tax liability, which is likely to arise on the results of the year at the currentrate of tax in accordance with the provisions of the Income TaxAct. 1961.

The difference that result between the profit offered for income taxes and the profit as per the fianacial statements are identified and thereafter a deferred tax asset or a deferred tax liability is recorded for timing difference namely that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. The tax effect is calculated on the accumulated timing difference at the end of the accounting period based on the brvailing enacted or subsequently enacted regulations. Deferred tax assets are recognized only if there is reasonable certainity that they will be realised and are reviewed for the appropriateness of their respective carrying value at each balance sheet date.

8 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the company.

9 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities are not recognized but are disclosed in notes. Contingent assets are neither recognized nor disclosed in the financial statements.

NOTES TO THE FINANCIAL STATEMENTS

1 The Company has revalued its Buildings, Plant & Machinery and Gas Cylinders at Ballabgargh unit as on 31st August 1985 by Government approved valuer. The net increase of Rs. 78,15, 528/- was transferred to Revaluation of Fixed Assets Reserves.

2 Sundry Debtors and Creditors as appearing in the Balance Sheet are subject to confirmation.

3 Figures for the brvious year have been re-arranged and/ or re-grouped wherever considered necessary

As per our report of even date attached

For Chaturvedi and Company

Chartered Accountants

Firm Regn No. 302137E

S C Chaturvedi

Partner

(Membership No. - 12705)

For and on behalf of the Board of Directors

Suresh Kr Sharma Chairman (DIN :00041150)

Himanshu Sharma Managing Director (DIN : 00041181)

Sukanta Bhattacharjee Chief Finance Officer

Ritu Damani Company Secretary

Place : Kolkata

Date : 30th May 2015