SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS.

1.1 SIGNIFICANT ACCOUNTING POLICIES:

A.Basis of Preparation :

The financial statements have been brpared and brsented under the historical cost convention on accrual basis of accounting and in accordance with Generally Accepted Accounting Principles (GAAP) in India. GAAP comprises mandatory Accounting Standards as brscribed under section 133 of the Companies Act, 2013 ("Act"), read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by Securities and Exchange Board of India (SEBI).

B.Use of Estimates:

The brparation of financial statements requires the Management of the Company to make estimates and assumptions that affect the reported balance of assets and liabilities, revenue and expenses and disclosures relating to contingent liabilities. The Management believes that the estimates used in the brparation of financial statements are prudent and reasonable. Further results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods.

C.Operating Cycle:

All assets and liabilities have been classified as current or non-current as per Company's normal operating cycle and other criteria set out in Schedule III of the Act.

D.Fixed Assets:

Tangible assets are stated at the cost of acquisition and includes amount added on revaluation, less accumulated debrciation, Government grants, other subsidies and impairment losses, if any. Cost of tangible assets comprises purchase price, non-refundable taxes, levies and any directly attributable cost of bringing the assets to its working condition for the intended use. Where several fixed assets are acquired for a consolidated price, the consideration is apportioned to fixed assets on fair value basis.

Capital work-in-progress includes cost of fixed assets that are not ready for their intended use. Intangible assets are stated at the cost of acquisition, less accumulated amortization and impairment losses, if any. Cost of intangible assets comprises purchase price, non-refundable taxes, levies and any directly attributable cost of making the asset ready for its intended use.

E.Borrowing Costs:

Borrowing costs consists of interest, ancillary costs and other costs in connection with the borrowing of funds and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs.

Borrowing costs attributes to acquisition and / or construction of qualifying assets are capitalized as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other borrowing costs are charged to the Statement of Profit and Loss.

F.Debrciation and Amortization:

Debrciation on tangible fixed assets is provided on the Straight Line Method over the useful life of assets as brscribed under part C of Schedule II of the Act.

In the case of assets whose useful life is already exhausted as on 1st April 2014, the carrying value, net of residual value and deferred tax has been adjusted in retained earning in accordance with the requirements of Schedule II of the Act.

Debrciation is calculated on a pro-rata basis from the date of installation till the date the assets are sold or disposed.

Intangible assets are amortized on a systematic basis over the best estimate of their useful lives, commencing from the date the asset is available to the Company for its use.

G.Inventories:

Raw materials and packing materials and work in progress are valued at lower of cost and net realizable value after providing for obsolescence, if any. However, these items are considered to be realizable at cost if the finished products, in which they will be used, are expected to be sold at or above cost.

Work-in-process, stock-in-trade and finished goods are valued at lower of cost and net realizable value. Finished goods and work-in-process includes costs of raw material, labour, conversion costs and other costs incurred in bringing the inventories to their brsent location and condition.

H.Investments:

Long term investments are carried at cost, less provision for diminution (other than temporary) (if any) in value.

Current investments are carried at lower of cost and fair value.

1.2Foreign Exchange Transactions:

1.2.1Initial recognition

Transactions in foreign currencies entered into by the company are accounted at exchange rates brvailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss.

1.2.2Measurement of foreign currency items at the Balance Sheet date

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non-monetary items are recorded at the exchange rate brvailing on the date of the transaction. Exchange differences arising out of these transactions are recognized in the Statement of Profit and Loss.

1.2.3Forward exchange contracts

The brmium or discount arising at the inception of forward exchange contract is amortized and recognized as an expense/income over the life of the contract. Exchange differences on such contracts are recognized in the Statement of Profit and Loss in the period in which the exchange rates change. Any Profit or Loss arising on cancellation or renewal of such forward exchange contract is also recognized as income or expenses for the period.

1.3Provision, Contingent Liabilities and Contingent Assets:

Provisions are recognized when the company has a brsent obligation as a result of a 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.

Disclosure of contingent liabilities is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or at brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.4Revenue Recognition:

Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from sale of goods is recognized when significant risks and rewards of ownership of the goods have been passed to the buyer, which ordinarily coincides with despatch of goods to customers. Revenue are recorded at invoice value net of excise duty, sales tax, returns and trade discounts. Revenue from rendering of services are recognized on completion of services.

Benefits on account of entitlement of export incentives are recognized as and when the right to receive is established. Technical Know-how and Licensing Fees are recognized as and when the right to receive such income is established as per terms and conditions of relevant agreement.

Interest income is recognized using the time proportionate method, based on rates implicit in the transaction. Dividend income is recognized when the right to receive is established.

1.5Employee Benefits:

Liability on account of short term employee benefit is recognized on an undiscounted and accrual basis during the period when the employee renders service/vesting period of the benefit.

Postretirement benefit plans such as gratuity, leave encashment and provident fund are determined on the basis of actuarial valuation made by an independent actuary as at the Balance Sheet date. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.

Periodic contributions towards post retirement defined benefit plan such as provident fund administered through an Employee's Provident Fund Trust are charged to the Statement of Profit and Loss.

Gratuity:

Gratuity is calculated on the basis of 26 days basic pay as per the provision of the Income Tax Act 1961. However the company does not get the valuation from actuaries as of yet. The valuation is done by the management.

1.6Income Tax:

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the provisions of local Income Tax Laws as applicable to the financial year.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income of the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted as the Balance Sheet date.

1.7Impairment of Assets:

At each Balance Sheet date, the Company assesses whether there is any indication exists, the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairment loss is charged to the Statement of Profit and Loss. If, at the Balance Sheet date, there is an indication that a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciated historical cost.

1.8Expenditure on Regulatory Approvals:

Expenditure incurred for obtaining regulatory approvals and registration of products for overseas markets is charged to the Statement of Profit and Loss.

1.9Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effect of all dilutive potential equity shares form the exercise of options on unissued share capital. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares are to be issued on the conversion of all the dilutive potential equity shares into equity shares. B . NOTES TO ACCOUNTS :

1.Excise duty on closing Stock:

The Company follows the practice of not providing for excise duty on finished goods materials not cleared from the factory brmises. Consequently the said practice has no effect on the profit & Loss Account for the year.

2.Remuneration to directors:

Remuneration to Executive Director Rs.10,20,000/- & Rs.8,40,000/- who is in Whole time Employment of the Company.

3.Particular regarding capacity, Production & stocks & material consumed:

A]Capacity:

The Company does not need Industrial License for production. Hence figures relating to licensed and installed capacity is not required.

1.In the opinion of the management Fixed Assets, Current Assets, Loans & Advances are Current Liability and Provisions are net realizable value in the ordinary course of business.

2.Inventories are values and certified by the management in respect of quality & value.

3.The Company has not appointed full time Company Secretary as required under the Companies Act 2013, but efforts are being made to recruit someone, if available within the Company's norms.

4.As regards the Accounting Standard 17 "Segment Reporting" there is neither more than one business segment nor more than one geographical segment, segment information as per AS-17 is not required to be furnished.

5.The Company does not possess information as to which of its suppliers is small scale industrial undertakings holding permanent registration certificate issued by the relevant authorities. Consequently, the liability if any, of interest which would be payable on delayed payments under Small Scale and Ancillary Industrial Undertakings Act 1993, of India cannot be ascertained. However, the Company has not received any claim in respect of such interest. In view of the above, outstanding due to Small Scale industrial undertaking cannot be ascertained.

7.The balance of secured and unsecured loans, sundry debtors, sundry creditors, current liabilities, loans and advances are subject to confirmation and reconciliation. Adjustments, which may arise on receipts of confirmation and completion of reconciliation are not ascertainable at this stage.

8.Previous year figures are re grouped /re-arranged /re-classified wherever is necessary.