SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. General :

i) The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements have been brpared as a going concern on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year except for the change in the accounting policy for debrciation as more fully described in Note No. 25.10

ii) Interest receivable on customers' overdues is consistently accounted for on cash basis, as the quantum of income thereof cannot be determined with reasonable certainty.

iii) Sales are net of credit notes issued for claims and damages relating to earlier years but crystalised during the year and exclusive of sales tax (VAT).

B. Use of Estimates:

The brsentation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively.

C. Fixed Assets:

Fixed assets are valued at cost less debrciation. Cost comprises of purchase price and any attributable cost of bringing the assets to the working conditions for its intended use.

D. Debrciation:

As per Schedule II of the Companies Act 2013, effective 1st April 2014, the management has internally reassessed the useful lives to compute debrciation wherever necessary, to conform the requirements of the Companies Act, 2013.:

Debrciation on Fixed Assets is provided:

a) For Assets purchased on or before April 1, 2014

i. Whose remaining useful life is completed as at 1st April, 2014 the carrying value of fixed assets is reduced from the retained earnings as at said date.

ii. For remaining assets the carrying value of fixed assets is debrciated equally over the balance useful life of the assets.

b) For Assets other than covered under clause (a) above on Straight Line Method at the rates specified in Schedule II to the Companies Act, 2013.

E. Investments:

Long term investments are stated at cost. No adjustment is made to the carrying cost for the temporary decline in the market value of investments.

F. Inventories:

Inventories are valued at lower of cost and net realisable value. Cost is assigned on FIFO basis. Obsolete, defective and unserviceable items are provided for.

Inventory of traded goods includes costs incurred in bringing the inventories to their brsent location and condition.

G. Revenue Recognition:

Revenue from Sale of trading materials is recognized when significant risks and rewards in respect of ownership of materials are transferred to customers.

Revenue from interest income is recognised using the time proportion method based on the rate implicit in the transactions.

H. Foreign Currency Transactions:

Transactions in foreign currency are recorded at the rate of exchange in force at the date of the transaction. Assets and Liabilities in foreign currency outstanding at the year end, if any, are stated at the rate of exchange brvailing at the close of the year and the resultant gain / loss is recognised in the Statement of Profit and Loss, except in cases covered by forward exchange contracts in which case they are translated at the contracted rates and the resultant gains / losses are recognised over the life of the contracts.

I. Leases:

Assets acquired under leases where the Company has substantially all the rights and rewards of ownership are classified as finance leases. Such assets are capitalised at the inception of the lease at the lower of the fair value and the brsent value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.

Assets acquired as leases wherein significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals are charged to Statement of Profit and Loss on accrual basis.

J. Retirement benefits:

Liability in respect of retirement benefits as at the year end is provided for and / or funded and charged to Statement of Profit & Loss as follows:

a) Provident / Family Pension fund as a percentage of salary/wages to eligible employees.

b) Gratuity is provided in accordance with the provisions of Accounting Standard (AS) -15 "Employee Benefits" on the basis of actuarial valuation carried out as at the year end by an independent actuary.

c) Liability in respect of leave is provided for on the basis of accumulated leave as at the year end.

K. Borrowing Costs:

Borrowing costs attributable to the acquisition and construction of assets are capitalised as part of the cost of respective assets up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the revenue.

L. Taxation:

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

MAT credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is a virtual / reasonable certainty that these would be realised in future.

M. Impairment of Assets:

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and recognised in the profit and loss account. If at the balance sheet date, there is an indication that if 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.

N. Provisions, Contingent Liabilities and Contingent Assets:

Provision is made based on the reliable estimate, when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent Assets are not recognised or disclosed in the financial statements

1. Previous year's figures have been regrouped / rearranged so as to make them comparable with current year's figures.

SANJAY M. JATIA DIVYA MODI

Chairman and Managing Director Director

Din No: 00913405 Din No: 07158212

NAVALKISHOR GADIA RIYA SAWANT

Chief Financial Officer Company Secretary

Place : Mumbai

Dated : 30th May, 2015