NOTES ON FINANCIAL STATEMENT

Significant Accounting Policies

A Basis of Accounting

The financial statements are brpared on an accrual basis in accordance with generally accepted accounting principles under the historical cost convention.

B Fixed Assets, Debrciation

Fixed assets are stated at cost less accumulated debrciation and impairment losses, if any. Cost includes all expenditure necessary to bring the asset to its working condition for its intended use. Borrowing cost attributable to acquisition and installation of fixed assets are capitalised and included in cost of fixed assets.

From the current year debrciation is provided on a pro-rata basis on the straight method over the useful lives of the assets as brscribed by Schedule II of the Companies Act, 2013 as against the past practice of computing debrciation at rates with reference to the life of assets subject to the minimum of rates provided by Schedule XIV of the Companies Act, 1956

Intangible Fixed Assets and Amortization

Intangible assets, have finite useful life and are amortized over expected useful economic life.

C Investments(Non-current)

Investments are Long term & are carried at cost. There is no permanent diminution in value.

D Current Assets:

a. Inventories

Inventories are valued at Lower of Weighted Moving Average cost or estimated net realisable value & are net of CENVAT & VAT. Finished goods are valued at cost or market value, whichever is less & is inclusive of Central excise duty thereon. Cost includes cost of conversion and other costs incurred in bringing the inventories at their brsent location and condition. Cost of conversion for the purpose of valuation of WIP and finished goods includes fixed and variable production overheads incurred in converting the material into their brsent condition and location.

b. Sundry Debtors, Loans & Advances are stated after making adequate provisions for doubtful debts, if any.

E Revenue Recognition

Revenue comprises sale of Masterbatches ,Labour Charges, Traded items, interest and dividend. Revenue in respect of sale of goods is recognised at the time of despatch of goods from factory. Revenue is disclosed exclusive of sales tax, service tax, VAT or other taxes, as applicable. Sales of services (Labour charges) is recognised on completed contract basis.

Income from Investment

i) Dividend income is recognized when the Company's right to receive dividend is established.

ii) Interest is accrued over the period of investment.

F Government Grant

Grants received against specific Fixed Assets are adjusted to the cost of the assets & those in the nature of Promoters Contribution are credited to Capital Reserves.

G Foreign Currency Transactions

Transactions in foreign currencies are normally recorded at the exchange rate brvailing on the date on which transaction occurred. Outstanding balances of foreign currency monetary items are reported using the period end rates. Exchange differences arising as a result of the above are recognised as income or expense in the Statement of profit and loss except the following.

In pursuance to Notification No. G.S.R. 225 (E) 31.03.2009 issued by the Ministry of Corporate Affairs for amending Accountiong Standard 11 "The Effect of changes in Foreign Exchange Rates", the Company has opted the option of capitalising Foreign Exchange gain/ loss on long term foreign currency monetary assets.

H Payments & Benefits to Employees

(a) Short term employee benefits are recognized as an expense in statement of Profit and Loss of the year in which the employee has rendered services.

(b) Post employment and other long term benefits are recognised as an expense in statement of Profit and Loss of the year in which the employee has rendered services. The expense is recognised at the brsent value of the amounts payable determined using acturial valuation. Acturial gains and losses in respect of post employment and other long term benefits are charged to statement of Profit and Loss.

I Operating Lease

Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating lease. Lease rentals are charged off to the statement of Profit and Loss as incurred.

J Tax Expense

Current tax is measured after taking into consideration, the deductions and exemptions admissible under the provisions of the Income Tax Act, 1961.

Deferred tax is accounted for by computing the tax effect of timing differences which arise between book profits and tax profits and is accounted for at current rates of tax. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

K Provisions and Contingent Liabilities

The Company creates a provision when there is brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation that may, but probably will not, required an outflow of resources. When there is a possible obligation or a brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

NOTE 2 : Amount Due to Small, Medium and Micro enterprises:

Company is in process of inviting information from its vendors for their status under “The Small, Medium and Micro Enterprises Development Act 2006”, however in absence of any information, no disclosures have been made in this regards.

Note 3 : Information about Business Segments_

The company is operating in only one segment i.e. Manufacturing of Materbatches.

Note 4 : Previous year's figures have been regrouped/recast wherever necessary.

As per our report on even date

For A. G. OGALE & CO.,

Chartered Accountants

Firm Regn. No. : 114115W

PRAMOD K. GUGALE

(Partner)

M.No. 113775

For and on behalf of the Board

S. V. KABRA (Chairman & Mg. Director)

P. R. SINGHVI (Director)

B. H. BAGRA (Additional Director)

S. N. KABRA (Vice Chairman & Mg. Director)

Y. B. VASUDEO (Director)

V. S. KABRA (Additional Director)

A. S. KABRA (CEO & Executive Director)

S. K. PARAB (Director)

EKTA A. KABRA (Additional Director)

R. S. KHEDEKAR (G. M. Finance)

H. S. MHATRE (Company Secretary)

Place :- Mumbai

Date :- May 26, 2015