1. SIGNIFICANT ACCOUNTING POLICIES :

a) BASIS OF ACCOUNTING

The financial statements have been brpared under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are in accordance with the generally accepted accounting principles in India, with the accounting standards specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013.

The brparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known/materialized.

b) FIXED ASSETS AND DEbrCIATION/AMORTIZATION

i] Fixed Assets are stated at cost less net of recoverable taxes, and subsequent improvements thereto including non recoverable taxes, duties, freight and other incidental expenses related to acquisition and installation are added to the cost of fixed assets.

ii] Debrciation on Fixed Assets has been provided on straight line basis over their estimated useful life as specified in the Schedule II of the Companies Act, 2013. Leasehold Assets are amortized over the period of lease. Intangible Assets are amortized over a period of five years.

c) CAPITAL WORK-IN-PROGRESS

Cost of the Fixed Assets that are not yet ready for their intended use at the Balance Sheet date together with all related expenditures are shown under capital Work-in-Progress.

d) REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Sales are recognized on transfer of significant risk and rewards of ownership which generally coincide with the dispatch of the goods. Sales are stated at net of Sales Tax, VAT, Trade Discount, Rebates but include Excise Duty and Cess thereon.

e) INVENTORIES

Inventories are valued at the lower of cost and net realizable value. Cost is determined on the weighted average basis and where applicable, comprises purchase price, freight and handling, non-refundable taxes and duties and other directly attributable costs. Finished products also include Excise Duty on product manufactured.

f) FOREIGN CURRENCY TRANSACTION

i) Initial recognition - Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of transaction.

ii) Conversion - Foreign Currency monetary items are reported using the closing rate. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate on the date of transaction.

iii) Exchange difference - Exchange difference arising on the settlement or conversion of monetary Current Assets and liabilities are recognized as income or as expenses in the year in which they arise.

g) BORROWING COST

Borrowing Costs incurred in relation to the acquisition, construction of assets are capitalized as the part of the cost of such assets upto the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which these are incurred.

h) TAXATION

Provision for tax is made for both Current and Deferred Taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred Tax Assets and Liabilities arising on account of timing difference and which are capable of reversal in subsequent periods are recognized using the tax rates and tax laws that have been enacted or substantively enacted.

i) PRIOR PERIOD ADJUSTMENTS

Income and expenditure pertaining to prior period have been accounted under respective heads of Statement of Profit and Loss. However, net effect of such amount, where material is disclosed separately in Notes on Accounts.

j) IMPAIRMENT OF ASSETS

An asset is considered as impaired in accordance with Accounting Standard - 28 on Impairment of Assets, when at Balance Sheet date there are indications of impairment and the carrying amount exceeds its recoverable amount, the reduction is recognized as an impairment loss in the statement of Profit and Loss.

k) EMPLOYEE BENEFITS

i) Employee benefits of short term nature are recognized as expense as and when it accrues.

ii) Employee benefits of long term nature are recognized as expenses based on actuarial valuation.

iii) Post employment benefits in the nature of Defined Contribution Plans are recognized as expense as and when it accrues and that in the nature of Defined Benefit Plans are recognized as expenses based on actuarial valuation.

iv) Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss as income and/or expense.

l) EARNING PER SHARE

The Company reports Earning Per Share (EPS) in accordance with Accounting Standard - 20. Basic EPS is computed by dividing the Net Profit for the year by the weighted average number of Equity shares outstanding during the year. Diluted EPS is computed by dividing the Net Profit or Loss for the year by the weighted average number of Equity shares outstanding during the year as adjusted for the effects of all dilutive potential Equity shares, except where the results are anti dilutive.

m) CASH FLOW STATEMENT

The Cash Flow Statement is brpared by the indirect method set out in Accounting Standard - 3 on Cash Flow Statements and brsents the Cash Flows by operating, investing and financing activities of the Company. Cash and cash equivalents brsented in the Cash Flow Statement consist of cash on hand and demand deposits with banks.

n) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

2. Estimated amount of contracts remaining to be executed (Net of advances) on capital account and not provided for Rs. 22.06 Lakhs (brvious year Rs. 28.64 Lakhs).

3. Contingent Liabilities not provided for in respect of :

a) Excise Duty matters pending Rs. 127.08 Lakhs (brvious year Rs. 127.08 Lakhs) before CESTA Tribunal.

b) West Bengal Vat Appeal matters pending Rs. 12.68 Lakhs before WB Sales Tax Tribunal and Rs. 312.31 Lakhs before Senior Joint Commissioner, Commercial Taxes. (brvious year Rs. NIL).

c) Jharkhand Entry Tax matters pending Rs. 81.75 Lakhs (brvious year Rs. 81.75 Lakhs).

d) Electricity matters with The Durgapur Projects Limited pending Rs. 97.94 Lakhs (brvious year Rs. 97.94 Lakhs).

4. There are no micro, small and medium class enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2015. The above information regarding micro, small and medium class enterprises has been determined to the extent such parties have been identified on the basis of available information with the Company.

5. In pursuance of the provisions of the Companies Act, 2013, effective from 1st April, 2014, the Company has reassessed the remaining useful lives of Fixed Assets to comply with the useful life as mentioned in Schedule II of the said Act. As a consequence of such reassessment, the charge for debrciation for the year ended 31st March, 2015 is lower than the brviously applied rates by Rs. 155.53 Lakhs. The transitional impact of Rs. 81.55 Lakhs has been adjusted from the opening balance of retained earnings.

6. Excise Duty and Cess on Inventory of Finished Goods rebrsent differential Excise Duty and Cess on opening and closing stock of Finished Goods.

7. There is no expenditure in foreign currency on account of royalty, know how, professional and consultancy fees, interest, etc and there is no earnings in foreign currency during the year.

8. In the opinion of the Board and to the best of their knowledge and belief, the value of the realization of Current Assets, Loan and Advances, in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

9. Previous year figures have been re-grouped/re-arranged wherever necessary.

In terms of our report of even date attached

For AGARWAL MAHESWARI & CO.

Firm Reg. No. 314030E

Chartered Accountants

D. R. Agarwal

Partner

Membership No. 051484

For and on behalf of the Board of Directors

R. S. Jalan Chairman and Managing Director

M. Bengani Chief Financial Officer

S. K. Singhal Director

R. Fogla (Dhanuka) Company Secretary

Place : Kolkata

Dated : The 30th day of May, 2015