01. SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of Preparation

The financial statements of the company have been brpared under the historical cost convention and in accordance with the provisions of the Companies Act, 2013 and Accounting Standards specified under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014. Accounting policies unless specifically stated to be otherwise, are consistant and in consonance with Generally Accepted Accounting Principles in India (Indian GAAP) on accrual basis.

1.2 Use of Estimates

The brparation of financial statements require management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities and assets as at the Balance Sheet date and the reported amounts of income and expenses during the year.

1.3 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured when all the significant risks and rewards of ownership of the goods have been passed to the buyer.

Revenues from services are recognized as per the terms of the contract as and when services are rendered.

The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis except in case of significant uncertainties.

Export sales include benefits extended by the Government and domestic sales are net of taxes.

1.4 Fixed Assets

Fixed Assets are stated at cost of acquisition / revaluation less accumulated debrciation and impairment losses. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing cost relating to construction of assets are also included to the extent they relate to the period till such assets are ready to be put to use. Financing cost not relating to construction of assets are charged to the income statements.

Intangible assets acquired separately are measured on initial recognition at cost. Costs incurred towards purchase of computer software are debrciated using the straight-line method over a period of two years based on management's estimate of useful lives of such software, or over the license period of the software, whichever is shorter.

1.5 Research & Development

Research costs are expensed as incurred.

1.6 Debrciation

Debrciation has been provided on straight line method based on useful life specified in Schedule II of the Companies Act, 2013 after retaining residual value of 5% of the original cost of the assets

1.7 Impairment of assets

The carrying amounts of assets are reviewed at each balance sheet date for any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying cost of an asset / cash generating unit exceeds its recoverable amount and is charged to Statement of Profit & Loss in the year in which the same is identified.

After impairment, debrciation is provided on the revised carrying amount of the asset over its remaining useful life. A brviously recognized impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have brvailed by charging usual debrciation if there was no impairment.

1.8 Borrowing Cost

Borrowing cost incurred on construction or acquiring a qualifying asset, which takes a substantial period of time for construction, is capitalised as cost of that asset. All other borrowing cost is recognised as an expense in the period in which they are incurred.

1.9 Inventories

(a) Raw Materials, components, stores and spares -

Lower of cost and net realisable value. However, materials and other items held for use in the production of inventories are not written below cost if the finished products in which they will be incorporates are expected to be sold at or above cost. Cost is determined on a weighted average basis and includes relevant cost of bringing those materials at their brsent location and condition.

(b) Work-in-Progress and Finished Goods -

Lower of cost and net realisable value. Cost includes direct materials, labour and a portion of manufacturing overheads based on normal operating capacity or actual production whichever is less.

1.10 Foreign Currency Transactions

(a) Initial recognition

Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency, at the date of transaction.

(b) Conversion

Foreign currency monetary items are reported using the closing rate

(c) Exchange Difference

Exchange difference arising on the settlement of monetary items of the company at rates different from those at which they initially recognized during the year or reported in brvious financial statements are recognized as income or expenses in the year in which they arise.

1.11 Provisions, Contingencies and Contingent Assets

Liabilities which can be measured only by using a substantial degree of estimation and in respect of which a reliable estimate can be made of the probable outflow of resources are recognized as provisions.

Contingent liabilities in the nature of possible obligations that arise from past events and the existence of which will be confirmed only by the occurrence or otherwise of future events not wholly within the control of the Company and in respect of brsent obligation arising from the past events for which a reliable estimate of the possible future outflow cannot be made are disclosed by way of Notes to Accounts.

Contingent Assets are neither recognized nor disclosed in the financial statement.

1.12 Investments:

Long-term investments are carried at cost less provision, if any for permanent diminution in value of such investments.

1.13 Employee Benefits:

(1) In the case of defined contribution plans such as Provident Fund etc., the Company's contribution to these plans are charged to statement of Profit and Loss.

(2) Liability for defined benefit plans is provided on the basis of valuations as at the Balance Sheet date, carried out by an actuary using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognised immediately in the Statement of Profit and Loss.

1.14 Taxes On Income:

Taxes On income for the current period are determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognized for all timing differences between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.15 Segment Reporting:

The Company is engaged in the nature of an integrated system of functioning and thus considered to Constitute one single primary segment. However, information about secondary segment that is geographical revenue by geographical markets is being recorded.

1.16 Provision:

A provision is recognized when an enterprise has a brsent obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet and adjusted to reflect the current best estimates.

1.17 Events Occurring after Balance Sheet Date:

Material events occurring after the date of balance sheet are recognized and are dealt with appropriately in accordance with generally accepted accounting principles and as provided in Accounting Standard -4 issued by the Institute of Chartered Accountants of India.

1.18 Earnings Per Share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares if any.

37 - brVIOUS YEAR FIGURES

Previous year figures have been regrouped and reclassified where necessary to confirm to current year's classification.

As per our Report of even date

For and on behalf of the Board

For Mitra Kundu & Basu

Chartered Accountants

(F.R.No.302061E)

S. Das

Partner

(Membership No.051391)

Vikramadithya Mohan Thapar

Chairman

Anil Kumar Bhandari

Director

Ramakanth V Akula

Chief Executive Officer

S.Giridhari

Chief Financial Officer

G. Venkatram

Company Secretary

Place : New Delhi,

date :  21st May, 2015