1. SIGNIFICANT ACCOUNTING POLICIES

1) Basis of Preparation of Financial Statements:

(i) The financial statements are brpared on the historical cost convention basis (except for certain fixed assets which have been revalued) in accordance with the generally accepted accounting principles.

(ii) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2) Use of Estimates:

The brparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes there to. Differences between actual and estimates are recognized in the period in which the results are known/materialized.

3) Valuation of Inventories:

- Inventories are valued at the lower of the cost and estimated net realisable value. The basis of determining of cost for various categories of in ventories are as follows:

- Raw Material, Chemicals, Fuels, Store & Spares and packing Material. On weighted Average/FIFO basis.

- Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their brsent location and conditions.

4) Sales:

Sales are inclusive of Excise Duty.

5) Excise Duty:

Excise Duty has been accounted for on the basis of payment made in respect of goods cleared Amount of Excise Duty deducted from sale in relatable to the sale made during the year. Amount of Cenvat Credits in respect of material consumed is deducted from cost of material.

6) Fixed Assets:

(i) Fixed Assets are stated at cost. Cost includes installation charges and expenditure during construction period wherever applicable.

(ii) All br-operative expenditure accumulated as capital work in progress and is allocated to the relevant fixed assets on a pro-rata basis.

7) Debrciation:

Debrciation on fixed assets has been provided on straight line method (SLM). Debrciation is provied based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013.

8) Foreign Currency Transactions: •

Foreign Currency transactions are accounted at the exchange rates brvailing on the date of transactions. Foreign Currency assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rate brvailing on that date and the resultant gain or loss is recognized in the Statement of Profit & Loss. In cases where they relate to the acquisition / construction of fixed assets, they are adjusted to the carrying cost of fixed assets.

9) Employee retirement benefit :

i) Retirement benefit in the form of provident fund and superannaution/pension schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the Statement of profit & loss of the year.

ii) The provision for gratuity has been made on the basis of formula brscribed for the payment of gratuity act, 1972.

10) Borrowing cost

Borrowing cost directs attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets, up to the date of assets is put to use. Other borrowing costs are charged to the statement of profit and loss in which they are incurred.

11) TAX ON INCOME:

(a) Current Tax

Provision for Income Tax is determined in, accordance with the provision of Income TaxAct, 1961

(b) Deferred Tax

Deferred Tax is recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period (s).

12) Provision. Contingent Liabilities and Contingent Assets:

Provision 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 not disclosed in the financial statement.

13) Printing & Stionery, Postage & Telephone are accounted on cash basis.

1.. Since the Company operates in a single segment i.e. "Paper & Paper Board". Accounting Standard (AS) 17-" Segment Reporting" issued by the institute of Chartered Accountants of India is not applicable.

2.. Balances of Trade receivable, Trade payables and Advances as at 31st March, 2014 are subject to confirmation.

3. In the opinion of Board of Directors, the Current Assets, Loans & Advances have the value at which they are stated in the Balance Sheet as at31.03.2014 if realised in ordinary course of business.

4. Trade receible includes Rs. 76.35 lacs for which suits are pending in the court. In the opinion of Board of Directors, they are good as fully recoverable.

5. The fixed Assets Register is under pereparation, hence the book Rocords and Physical verification of Fixed Assests could not be reconciled. The steps are Being taken to cmplete it at the earliest.

6. The bifurcation of the total outstanding dues of small scale industrial undertaking and other than small scale industrial undertaking as well as the name samall scale industrial, undertaking to whom the company owes a sum of exceeding rupees one lacs and which is outstanding for more than thirty days, are not disclosed in the Balance Sheet as suppliers have not indicated their status on their documents/papers whether they are small scale undertaking or not hence it is not possible for the company to disclose the said information in respect of trade creditors.

7. Previous year figures have been re-arranged and re-grouped wherever necessary.

The accompanying notes form an integral part of the Financial Statements.

Himanshu Sangal

Managing Director

DIN:00091324

Amit Sangal

Executive Director & Chief Financial Officer

DIN:00091486

Tanmay Sangal

Whole-Time Director

DIN:01297057

Rohit Kumar Tyagi

Company Secretary

PAN: AGYPT0209Q

Date: 25.05.2015

Place: MUZAFFARNAGAR