SIGNIFICANT ACCOUNTING POLICIES

A.Basis of Preparation of Financial Statements:

The Accounts have been brpared as a going concern under historical cost convention in accordance with the Generally Accepted Accounting Principles in India and the provisions of the Companies Act, 2013.

B.Fixed Assets:

All Fixed Assets are valued at their original cost which includes expenditure incurred in acquisition and construction / installation and other related expenses including duties and other non-refundable taxes or levies, any directly attributable cost of bringing the asset to its working condition. Capital work in progress is carried at cost comprising of direct cost and related incidental expenses.

C.Intangible Assets:

Intangible Assets are stated at cost of acquisition less amortization.

D.lnvestments:

Investments are stated at cost as the same are Long Term Investments. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long Term Investments.

E.Inventories:

Inventories are valued on FIFO basis as under:

a)Raw material and components are valued at lower of Cost or Net Realizable Value.

b)Work in progress is valued at Cost.

c)Finished Goods are valued at lower of Cost or Net Realizable Value.

d)Stores, spares and consumables are valued at Cost.

e)Goods in transit are valued at Cost.

f)Cost of manufactured goods is ascertained at cost plus appropriate share of overheads.

The management has written off the cost of machines & spares given on rental basis on the basis of evaluation of its usage of the finished product to bring the same to its realizable market value.

F.Debrciation:

Debrciation on fixed assets has been provided on Straight Line basis at the rates brscribed in Schedule II of the Companies Act, 2013. Intangible Assets are amortized on straight line basis over the estimated economic useful life.

G.Impairment of Assets:

The Company on an annual basis makes an assessment of any indicator that may lead to "Impairment of Assets". If any such indications exist, the Company estimates the recoverable amount of the assets. If such recoverable amount is less than the carrying amount of the assets, than the carrying amount is reduced to its recoverable amount by treating the difference between them as impairment loss and the same is charged to Profit & Loss Account.

H.Revenue Recognition:

Sales are net of returns and claims. Income and expenditure are recognized on accrual basis. Revenue from contracts priced on a time and material basis are recognized when services are rendered and related costs are incurred. Revenue from maintenance contracts are recognized pro-rata over the period of the contract.

I.Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction or that approximates the actual rate at the date of the transaction. Monetary items denominated in foreign currencies at the year end are restated at year end rates. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

J. Employee Benefits:

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. Post employment and other long term employee benefits are recognized as an expense In the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the brsent value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss Account.

K. Borrowing Costs:

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to profit and loss account.

L. Provisions, 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 Notes to Accounts. Contingent Assets are neither recognized nor disclosed in financial statements.

M. Taxation:

The Current charge for income taxes is calculated in accordance with the relevant tax regulations, past assessments & legal opinion sought by the Company. Deferred-tax assets and liabilities are recognized for future tax consequences attributable to the timing differences that result between the profit offered for income tax and the profit as per the financial statements. Deferred tax assets and liabilities are measured as per the tax rates/laws that have been enacted or substantively enacted by the Balance Sheet date. Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent that there is convincing evidence that the Company will pay income tax under the normal provisions during the specified period, resulting in utilization of MAT credit. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of Profit & Loss and shown as MAT Credit Entitlement.

N. Use of Estimates:

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

O. Earnings Per Share:

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earning considered in ascertaining the Company's earnings per share is the net profit for the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1 MANUFACTURING & OPERATING COSTS

Power & Fuel Expenses Other Manufacturing Expenses Royalty/Technical Services Expenses

2CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE

Inventories at the end of the year: Work-in-Process

Stock-in-Trade Finished Goods

Inventories at the beginning of the year:

Work-in-Process Stock-in-Trade Finished Goods

Net Increase / (Decrease)

3Financials of the Sri Lanka Branch of the Company for the period July 2014 to March 2015 amounting to loss of k 0.19 Cr have been consolidated with the Standalone results under the Non - Intergral method of AS-11 on the effects of changes in the Foreign Exchange Rates

4.Pursuant to Enactment of the Companies Act 2013 ('the Act') the Company has, effective from the 1st April 2014 reviewed and revised the useful life of its fixed Assets generally in accordance with the provisions of the schedule II of the Act. The consequential impact (after considering the transition provision specified in Schedule II is additional debrciation charge of k 57.52 lacs for the year ended 31st March 2015 and adjustment of k 19.90 lacs (Net of deferred tax) against the retained earnings

5.The Company has issued Confirmation to its Debtors and Creditors which are in the process of being reverted by the parties thereof. The process of reconciliation of the balances is on progress.

6.The Company operates in a single Reportable segment, viz Coding & Marking Solutions and Consumables thereof.

7In the opinion of the Board, the Current Assets, Loans and Advances have a value on realisation not less than what have been stated in the Balance Sheet and Provision of all known Liabilities have been made.

8.During the year Company has incurred k 423,060 towards the Corporate Social Responsibility activities in accordance with the Section 135 of the Companies Act 2013. The Company could not spend entire 2% of its average profit of last three years as there was delay in the process of initiation of the school adoption program as approved by the Board.

9.Previous year figures have been regrouped whereever necessary.

The accompanying Notes are an Integral Part of these Financial Statements.

In terms of our report attached

For and on behalf of Board of Directors

For Dosi & Jain

Firm Registration No. 112435W 

Chartered Accountants

Basant Kabra     

Managing Director

Shiva Kabra

Whole-time Director

Chandresh Gandhi

Partner

Membership No. 43172

Place : Mumbai,

Date : 30th June, 2015