SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS:

Note No.l

I. SIGNIFICANT ACCOUNTING POLICIES:

A. ACCOUNTING CONVENTION:

The financial statements have been brpared on the basis of going concern, under the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) in India.

B. FIXED ASSETS:

Fixed Assets are accounted for on historical cost. Cost includes all costs incidental to acquisition, installation and commissioning of the assets until they are ready for intended use.

C. DEbrCIATION

Debrciation on Fixed Assets (including Leased Assets) is provided on straight line method in accordance with the provisions of Schedule XIV of the Companies Act 1956 as amended from time to time.

D. INVESTMENTS:

Long Term Investments are valued at cost after providing for any permanent diminution in value.

E. BORROWING COSTS:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

F. TAXES ON INCOME

a) The provision for current tax is made for the tax payable in accordance with provisions of Income Tax Act, 1961.

b) Deferred Tax is recognized in accordance with the Accounting Standard-22"Accounting for Taxes on Income". Deferred Tax Asset is recognized only if there is virtual certainty of its realization.

G. REVENUE RECOGNITION:

Interest and other income are recognized on accrual basis.

H. EMPLOYEE BENEFITS:

a) Provident Fund is administered through Regional Provident Fund Commissioner. The contributions to the above said funds are charged against revenue.

b) In respect of gratuity, the company has covered all eligible employees under group gratuity scheme of LIC. Accordingly the company pays annual brmium to LIC and difference between annual gratuity liability and annual brmium paid is provided in books.

c) Leave encashment to employees is provided on an estimated basis.

I. CONTINGENT LIABILITIES:

Contingent liabilities arising from claims, litigations, assessments, fines, penalties, etc., are provided when it is probable that a liability may be incurred and the amount can be reliably estimated.

J. IMPAIRMENT OF ASSETS:

All fixed assets are tested for any indications of impairment at the end of each financial year. On such indication, impairment loss, being the excess of carrying value over recoverable value of the assets, is charged to profit and loss account in the respective financial years. The impairment loss recognized in the prior years is reversed in cases where the recoverable value exceeds the carrying value upon reassessments in the subsequent years.

NOTES ON ACCOUNTS

1. Estimated amount of contracts, remaining to be executed on Capital account and not provided for (net of advances) Rs. Nil (Previous year Rs. Nil).

2. CONTINGENT LIABILITIES NOT PROVIDED FOR:

I. Disputed Income Tax demands year 1998-99 Rs. 6.80 lakhs towards in respect of which company has filed an appeal with Commissioner Income Tax (Appeals).

II. Disputed Income Tax Liability for A.Y.2004-05 Rs. 9.78 lakhs towards lease income from buildings in respect of which the company has filed an appeal with Commissioner Income Tax (Appeals).

3 There are no operations carried on by the company and the company is in the process of entering into producing bakery products, milk products etc to capture the growing demands of the industry and consequently the name of the Company name has been changed to "ANJANI FOODS LIMITED" with effect from 07.11.2014 on receipt of Central Government Approval. The accounts have been drawn up on Going Concern basis pending finalisation and crystallisation of business plans.

4. Balances with Scheduled Banks, Loans & Advances, and unsecured loans are subject to confirmation and reconciliation.

5. The Company has made relevant disclosures which are applicable as per revised schedule VI and the figures for the brvious years are reclassified/regrouped and rearranged wherever necessary.

As per our report of even date attached

for M.BHASKARA RAO & CO.,

CHARTERED ACCOUNTANTS

V.Raghunandan

Partner

Membership No. : 026255

for and on behalf of Board

K.V.Vishnu Raju Chairman

R.Ravichandran Wholetime Director

B.Rajasekhar

Chief Financial Officer

Place: Hyderabad

Date : 29.05.2015