A. NOTES FORMING PART OF THE FINANCIAL STATEMENTS

a) Basis of Preparation of Financial Statements

These Financial statements have been brpared in accordance with the generally accepted accounting principles in India including the Accounting Standards notified under the relevant provisions of Companies act' 2013. The financial statements are brpared on accrual basis under historical cost convention, except for certain financial instruments which are measured at fair value.

b) Use of Estimates

The brparation of financial statements in conformity with GAAP requires the management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialized.

c) Own Fixed Assets

Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated debrciation and impairment loss, if any. All costs, including financing costs till commencement of commercial production, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

d) Intangible Assets

Company does not have any Intangible asset.

e) Debrciation and Amortization

Debrciation on fixed assets is provided to the extent of debrciable amount on Straight Line Method at the rates and in the manner brscribed in Schedule II of the Companies Act, 2013

f) Impairment of Assets

The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price and value in use, which means the brsent value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or debrciation) had no impairment loss been recognized for the asset in prior years.

g) Foreign Currency Transactions

There is no foreign currency transactions made during the year.

h) Investments

There is no investment made during the year.

i) Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective brsent location and condition. Cost of raw materials,process chemicals, stores and spares, packing materials, trading and other products are determined on weightedaverage basis. By-products are valued at net realisable value.

Items of inventories are valued lower of cost or estimated net realisable value.

Cost is determined as given below: 

Raw Materials and Packing Materials :

a) At Cost net of CENVAT/VAT computed on First-in-First-out method.

b) API produced for captive consumption are valued at cost. 

Work-in-process and Finished Goods :At cost including material cost net of CENVAT, labour cost and all overheads other than selling and distribution overheads. Excise duty is considered as cost for finished goods wherever applicable. 

 Stores and Spares :Stores and spare parts are valued at purchase cost computed on First-in-First-out method.  

J. Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods but excludes sales tax, service tax, excise duty and Value Added Tax (VAT). 

K. Employee Benefits

- No Provision has been made in respect of liabilities for future payment of gratuities as on 31st March 2015 as the company follows the system of accounting such expenses as and when it arises.

- No provision has been made for liabilities in respect of un-availed leave (if any) of the employee as on 31st March 2015, as the company follows system of accounting for such expenses as and when it paid.

- Provision has been made for liabilities in respect of Contribution to Provident Fund if any of the employees as on 31st March 2015.

l) Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to getready for its intended use. All other borrowing costs are charged to Profit and Loss account, if any.

m) Financial Derivatives and Commodity Hedging Transactions

There is no financial derivatives and commodity hedging transaction made during the year.

3. Notes of financial statements :

1 Contingent Liabilities : NIL

2 The confirmation of balance has not been received in respect of balance outstanding of Sundry Debtors, Sundry Creditors, Deposit, Loans and Advances

3 The company has huge unabsorbed losses and debrciation as at 31/03/2015 and they are eligible for set off against Income of future year under income tax act and uncertainty of having taxable income under normal provision of the income tax act, 1961. No deferred tax assets in recognized in the books. The position will be reviewed every financial year and deferred tax assets when considered realizable will be recognized in the books.

4 Provision for MAT Rs. 1401398/- Has been made in accordance with section 115 JB.

5 Previous year figures have been regrouped / rearranged wherever necessary to confirm to current year's brsentation.

6 Figures have been rounded off nearest to the Rupees.

7 A Writ petition filled in year 2012 before Hon'ble High Court M.P. Bench at Indore against Madhya Pradesh Adyogik Kendra Vikas Nigam (Indore) Limited, (MPAKVN Ltd) Indore and other parties with respect to vacant land admeasuring 94462 Sq Mts, situated at Kheda Industrial Area, Pithampur (M.P.)

8 There are no Micro, small and Medium enterprises , as defined in the Micro , small and Medium Enterprises Development Act, 2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made

9 The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.