NOTE - 1 : SIGNIFICANT ACCOUNTING POLICIES

1 BASIS OF ACCOUNTING

a These financial statements have been brpared on accrual basis under the historical cost convention in accordance with the generally accepted accounting principles in India and comply with the Accounting Standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or any addendum thereto are brscribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 211(3C) of Companies Act, 1956 (Companies (Accounting standards) Rules 2006, as amended)and other relevant provisions of the Companies Act, 2013. b All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 2013. Based on the nature of operations, and time between the procurement of materials and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

2 USE OF ESTIMATES

The brparation of the financial statements in conformity with generally accepted accounting principles, Accounting Standards notified under Section 133 of the Companies Act, 2013 and the relevant provisions thereof, requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of liabilities as at the date of financial statements and reported amounts of income and expenditure during the period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

3 INCOME & EXPENDITURE

Accounting of Income & Expenditure is done on accrual basis

4 FIXED ASSETS & DEbrCIATION

Fixed assets are stated at cost of acquisition or construction less accumulated debrciation /

A) amortization.

Cost includes purchase price, (net of Cenvat and VAT credit, wherever eligible), labour cost and

B) directly attributable costs for self constructed assets and other direct costs incurred upto the date the asset is ready for its intended use.

Debrciation on fixed assets is provided on Written Down Value Method (W.D.V.) at the rates and in the manner brscribed in Schedule XIV to the Companies Act, 2013.

5 INVENTORIES

Inventories are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to its location and includes, where applicable, appropriate overheads based on normal level of activity. Interest costs are not included in value of inventories. Obsolete, slow moving and defective inventories are identified at the time of physical verification of inventories and where necessary, provision is made for such inventories. Net realisable value is estimated selling price in the ordinary course of business less estimated cost of completion and selling expenses.

6 SALES

Sales are exclusive of Sales Tax and after deducting discounts. Discounts are recognized when substantially all conditions appurtenant thereto have been fulfilled.

7 EMPLOYEE BENEFITS

A) Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

B) Gratuity liability has not been provided.

8 Company has taken VAT registration number.

9 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.