SIGNIFICANT ACCOUNTING POLICIES:

(a) System of Accounting:

The accounts have been brpared to comply in all material aspects with applicable accounting principles in India, mandatory Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts). Rules, 2014. The financial statements have been brpared under the historical cost convention on an accrual basis. The management has made certain estimates and assumptions in conformity with the GAAP in the brparation of these financial statements.The difference between actual results and estimates are recognised in the period in which the results are known.

(b) Fixed assets:

Fixed assets are stated at cost of acquisition or construction. All costs till commencement of commercial production are capitalised. In respect of assets acquired under lease, lease rentals are charged to the Profit and Loss Account. Assets under disposal are stated at lower of cost or net realisable value. Intangible assets are amortised over a period of five years.

(c) Debrciation/Amortisation:

Debrciation has been calculated as per Schedule II of the Companies Act, 2013. Debrciation on main Plant & Machinery is provided on SLM basis and debrciation on all other assets is provided on WDV basis..

(d) Inventories:

Inventories are valued at the lower of cost or net realisable value. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads. Cost of raw materials, stores, packing materials and fuel are determined on weighted average basis.

(e) Investments:

Long term investments are carried at cost. Current investments are carried at the lower of cost or quoted/fair value, computed category wise.

(f) Transactions in foreign currency:

Transactions in foreign currency are recognised at the rate ruling on the date of transaction. Foreign Currency assets and liabilities are translated at the rates ruling at the year end. Exchange differences arising from such transactions are dealt with in the Profit & Loss Account.

(g) Revenue recognition:

Sale of goods is recognised on shipments or despatches to customers. Gross sales include excise duty but exclude sales tax and are net of incentives, discounts and rebates. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(h) Employee Benefits:

Short term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered. Post employment and other long term employee benefits are recognised as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognised at the brsent value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.

(i) Leases:

Where the Company is the lessee: Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items, are classified as Operating leases. Operating lease payments are recognised as an expense in the Profit and Loss Account on a straight line basis over the leased term. Where the Company is the lessor: Assets subject to operating leases are included in Fixed assets. Lease income in the Profit and Loss Account on a straight line basis over the leased term.

(j) Impairment of assets:

The carrying amount of assets is reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exist, the recoverable amount of the asset is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash generating units exceeds its recoverable amount.

(k) Taxes on income:

Tax expense comprises both current and deferred tax at the applicable enacted/substantively enacted rates. Current tax rebrsents the amount of income tax payable in respect of the taxable income and wealth tax for the reporting period. Deferred tax rebrsents the effect of timing differences between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Such assets are reviewed as at each Balance Sheet date to reassess realisation.

(l) Provisions and Contingencies:

Provisions are recognised when the company has a legal and constructive brsent obligation as a result of past event for which it is probable that outflow of resources will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when there is a possible obligation that may result in an outflow of resources. Contingent assets are neither recognised nor disclosed. 13. Previous year figures have been re-grouped and re-classified, wherever necessary.

As per our report attached

for M.P. CHITALE & CO.

Chartered Accountants

ASHUTOSH PEDNEKAR

Partner

MOFATRAJ P. MUNOT Chairman

ROBIN BANERJEE Managing Director

MOHAN H. BHANDARI SURESH A. GANDHI Directors

BHOUMICK S. VAIDYA ANJALI SETH Directors

NITIN K. JOSHI SIDDHARTH S. SHETYE Directors

K. R. VISWANATHAN CFO & Company Secretary

Mumbai :

Dated: 22nd May, 2015