Note : 1 ADJUSTMENT RELATING TO FIXED ASSETS

Pursuant to the enachment of the Companies Act, 2013 the company has applied the estimated useful lives as specified in schedule II. Accordingly the unamortised carrying value is being debrciated/ amortised over the revised remaining useful lives. The written down value of fixed assets whose lives have expired as 1st April 2014 have been adjusted net of taxes in the profit and loss by 524.81 lacs.

Note : 2 brSENTATION OF FINANCIAL STATEMENTS

Financial Statements and other brsentational requirements are drawn in accordance with the Companies Act, 2013. Previous year's figures have been recasted/regroupted/ rearranged whereever considered necessary to make them comparable with current year s figures.

Note :3 SIGNIFICANT ACCOUNTING POLICIES

a) Accounting Convention

The financial statements, other than the Cash Flow Statement, are brpared on accrual basis under the historical cost convention, treating the entity as a going concern and in accordance with the applicable accounting standards and relevant provisions of the Companies Act, 2013.

b) Revenue Recognition

i) Revenue from domestic sale of goods is recognized at the point of passing of title of

f oods to the customer which generally coincides with delivery ale value is inclusive of excise duty paid at the time of clearance of goods but exclusive of sales tax

iii) Export sales are accounted for on the basis of the "Let Export" date.

iv) Revenue in respect of export incentives is recognized when such incentives accrue upon export of goods

c) Fixed Assets

Fixed Assets are stated at cost, net of taxes and duties subsequently recoverable from government authorities less accumulated debrciation and impairment loss, if any. Government grants relating to specific fixed assets are treated as deferred income, which is recognized in the Statement of Profit and Loss on a systematic basis over the useful life of the asset.

All costs attributable to bringing the asset to its working condition for its intended use, including financing costs till commencement of commercial production and charges on foreign exchange contracts and adjustments arising out of exchange rate variations attributable to the fixed assets are capitalized.

d) Debrciation

Pursuant to the enactment of the Companies Act 2013, the Company has applied the estimated useful lives as specified in schedule II. Accordingly the unamortized carrying value is being debrciated over the revised/remaining useful lives. The written down value of fixed assets whose lives have expired as at 1st April, 2014 have been adjusted net of taxes in the profit and loss by Rs 524.81 lacs.

e) Inventories

Inventories are valued at cost or net realizable value, whichever is lower.

Raw Material and stores are valued at cost determined on a weighted average basis.Work in process is valued at cost plus an appropriate share of overheads depending upon the stage of completion.

Finished Goods are valued taking into account the raw material cost, conversion cost and the overheads incurred to bring the goods to their brsent location and condition plus excise duty wherever applicable.

f) Foreign Exchange Transactions

Foreign Currency transactions are accounted for at exchange rate brvailing on the date of transaction. Premium on forward cover contracts in respect ofimport of raw materials is charged to the Statement of Profit and Loss over the period of contract. Amounts payable and receivable in foreign currency at the Balance Sheet date, not covered by forward contracts, are restated at the applicable exchange rate brvailing on the date of the Balance Sheet. All exchange differences, if any, arising on revenue transactions are charged/credited to the Statement of Profit and Loss.

g) Taxation

Provision for current tax is made in accordance with the provisions of the Income Tax law applicable for the relevant year. Deferred tax asset/liability is created in accordance with the requirements of Accounting Standard 22 "Accounting for taxes on Income" issued by the Institute of Chartered Accountants of India. Deferred Tax Asset is created only to the extent there is virtual certainty that future taxable income will be available against which such deferred tax asset can be realized.

In terms of the Guidance Note on "Accounting for Credit available in respect of Minimum Alternate Tax (MAT) under the Income Tax Act, 1961' issued by the Institute of Chartered Accountants of India, MAT credit is recognized as an asset only to the extent there is a convincing evidence that the company will be paying regular income tax during the specified period.

h) Employee Benefits

i) Short-term Employee Benefits

Employee benefits payable wholly within twelve months of rendering services are classified as short term employee benefits and are recognized in the period in which the employee renders the related services.

ii) Post-employment benefits Defined Benefit Plans

- Gratuity

The employee gratuity scheme is a defined benefit plan. Liability for the gratuity fund is accounted for on the "basis of an actuarial valuation .The brsent value of defined benefit obligation as at the end of the year is determined using the Projected Unit Credit method i.e. each period of service rendered by the employee is considered to give rise to an additional unit of benefit entitlement, gradually building up the final obligation.

- Leave with Wages

The liability on account of compensated absences i.e. leave with wages is accounted for on the basis of unutilized leave standing to the credit of the employee at the close of the year. Defined contribution Plans

Contributions to the employees' provident fund, which is a defined contribution plan, are made in accordance with the provisions of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. Such contributions are recognized as expense in the statement of Profit & Loss in the period in which the employee has rendered the services.

i) Provisions and Contingencies:

Provision is recognized in the balance sheet when, the company has a brsent obligation as a result of past events and it is probable that an outflow of economic resources will be required to settle the obligations, and a reliable estimate of the amount of the obligation can be made. A disclosure by way of contingent liability 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 a possible obligation or a brsent obligation that 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.

j. Investments

Long term investments are carried at cost less provisions, if any, for permanent diminution in value.

k. Cash Flow Statement

The company has brpared cash flow statement using the indirect method in compliance of accounting standard- 3, 'Cash Flow Statement' issued by the ICAI.

As per our separate report of even date

FOR RAJ GUPTA & CO.

Chartered Accountants FRN- 000203N

Sd/- Sd/- Sd/- Sd/-

(R. K. Gupta)

Partner

M. No. 017039

For and on behalf of the Board

(Kapil Kumar Jain) Chairman & Managing Director

(Rahul Jain) Director

(Suresh Gupta) Chief Financial Officer

Place : Ludhiana

Dated : 30.05.2015