SIGNIFICANT ACCOUNTING POLICIES

1. Basis Of Preparation Of Financial Statements

The Accompanying financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention and on the accrual basis. GAAP comprises of applicable provisions of the Companies Act, 2013 and mandatory Accounting Standards specified under Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules, 2014. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2. Revenue Recognition:

Revenue from Sale of goods is recognised at the point of dispatch to customers inclusive of duties & taxes.

Revenue from Sale of Services is recognized at the point of completion of service and incomplete services at 31st March, if any, the same is recognized as accrued revenue.

3. Fixed assets, Debrciation and amortisation:

a. Tangible Assets

Tangible assets are stated at cost less accumulated debrciation and impairment loss, if any.

Expenditure which are of a Capital nature are Capitalised at cost, which comprises purchase price (net of rebates and discounts), duties, levies and any directly attributable cost of bringing the assets to its working condition for the intended use.

b. Intangible Assets

Intangible asset are stated at cost of acquisition less accumulated amortisation and impairment losses, if any.

An intangible asset is recognised only if it is probable that the future economic benefits attributable to the asset will flow to the enterprise and the cost of such assets can be reliably measured.

Debrciation and Amortisation

(i) Upto 31st March, 2014, Debrciation is provided from the date the assets have been installed and put to use, on Straight LineMethod at rates specified in Schedule XIV of the Companies Act, 1956.

(ii) With effect from April 1st

(iii) The carrying value of the assets as on April 1st, 2014 is debrciated over the remaining useful life of the asset determined based on useful life mentioned in clause (b) supra.

(iv) Where the useful life of the asset is NIL as on April 1st, 2014, the carrying value as on April 1st, 2014 has been added to the opening balance of deficit in the Statement of Profit and Loss in accordance with Schedule II of the Companies Act, 2013.

4. Foreign Currency Translation:

Transactions in Foreign currencies are generally recorded at the exchange rate brvailing at the time of receipt / payment of money by the Company. Current Assets and Liabilities in foreign currencies are translated at the exchange rate brvailing at the Balance Sheet date. Any resulting loss/gain is charged / taken to the Profit & Loss Account.

5. Inventories:

Raw materials and consumables are valued at landed cost which includes freight.

In case of valuation of work-in-process, cost of materials as well as conversion cost is taken into consideration. Cost is determined using FIFO (first-in-first out) method.

Finished goods are valued based on retail method as per the 'Accounting Standard - 2' where a percentage profit margin is reduced from the sale value to arrive at the cost.

6. Employee Benefits:

i. Benefits in the form of provident fund whether in pursuance of law or otherwise which are defined contributions is accounted on accrual basis and charged to Statement of profit and loss.

ii. The company has formed employee superannuation trust to provide the benefit of superannuation to its employees.

iii. Defined benefit plans

Payment of brsent liability of future payment of gratuity is being made to approved gratuity funds, which fully cover the same under cash accumulation policy of the Life Insurance Corporation of India. The employee's gratuity is a defined benefit funded plan. The brsent value of the obligation under such defined benefit plan is determined based on the actuarial valuation as at the date of Balance Sheet. The company has created a group gratuity trust for the same.

Provisions for the liability on account of leave encashment has been made based on the actuarial valuation as at the date of Balance Sheet. The company has availed a policy under LIC's employee's group leave encashment cum life assurance scheme.

7. Income Tax & Deferred Tax:

Income Tax: Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act, 1961, and based on the expected outcome of assessments / appeals.

Deferred tax: Deferred tax liability is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on brvailing enacted or substantially enacted regulations.

Deferred Tax assets are recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of the respective carrying values at each Balance Sheet date.

FOR THE YEAR ENDED 31st MARCH 2015

8. Borrowing costs:

Interest on borrowings is recognised in the Statement of profit and loss, except interest incurred on borrowings, specifically raised for projects that is capitalised to the cost of the assets until such time as the asset is ready to put to use for its intended purpose, except where installation is extended beyond reasonable/normal time lines.

9. Provisions, Contingent Liabilities, Contingent Assets and Capital Commitments:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the Company has a brsent obligation as a result of a past event,

b) a probable outflow of resources is expected to settle the obligation; and

c) the amount of the obligation can be reliably estimated.

Contingent liability is disclosed in case of

d) a brsent obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation,

e) a brsent obligation when no reliable estimate is possible; and

f) a possible obligation arising from past events where the probability of outflow of resources is not remote.

Contingent Assets are not recognized.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

Capital Commitments:

g) Capital Commitments: Estimated amount of contracts to be executed on capital account not provided for Rs. NIL (Previous year NIL)

10. Earnings Per Share

The earnings considered in ascertaining the Company's earnings per share comprise of the net profit after tax for the year. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of shares, which would have been issued on conversion of dilutive potential equity shares, if any.

1. The financial statements have been brpared in consonance with the Schedule III to the Companies Act, 2013, to the extent possible, for brsentation and brvious year's figures have been accordingly regrouped wherever necessary to conform to the current year's classification.

2. Figures have been rounded off to the nearest rupee.

For and on behalf of the Board of Directors

For B.N.Subramanya & Co.

Chartered Accountants

FRN : 004142S

Suresh Shastry Chairman & Managing Director DIN: 1099554

Supriya Shastry Whole Time Director DIN: 1327762

Naveen K Shenoy Company Secretary M.No: ACS10817

Devendra Nayak Partner Membership No. 27449

Place: Bangalore

Date : 30.05.2015