27.06 Segment Information: The Company is operating in single segment

27.08 Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act 2013 read with Schedule

VII thereof : Gross Amount to be spent by the company during the year Re 18.56 lacs

27.10 The outstanding balances of the debtors, creditors, advances and unsecured loans are as per books of accounts and subject

to confirmation from respective parties.

27.13 The Company has revised debrciation rates on Fixed Assets effective from 1st April 2014 in accordance with requirement of Schedule II of Companies Act 2013 (The Act). The remaining useful life has been revised by adopting standard useful life as per the New Companies Act 2013. The carrying amount as on 1st April 2014 is debrciated over the remaining useful life. As a result of these changes a ) the debrciation charged for the year ended 31st March 2015 is higher by Re 29.31 lacs.b) There is debit to retained earnings of Rs. 285.28 lacs (Net of deferred tax) for assets whose remaining life as on 1st April 2014 is expired in accordance with the revised life as per Companies Act 2013.

27.14 The Company does not have any pending litigation which would have material impact on its financial position.

27.15 The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.

27.16 There has been no delay in transferring amounts, required to be transferred, to the Investor Education & Protection Fund by the company.

27.17 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classific--ation/ disclosure.

27.18 Income Tax, Sales Tax and Purchase Tax Assessment are at various stages. According to company's management the provision for the same is sufficient.

27.19 Excise duty is net of Excise duty refund received against export under the Central Excise Rules amounting to Rs.7,49,54,715 (Previous Year Rs.5,72,53,255)

27.20 In the opinion of the Board, Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which these are stated in the Balane Sheet & that the provisions for known liabilities is adequate and not in excess of amount reasonably necessary.

27.21 Figures have been rounded off to the nearest rupee.

27.22 Significant Accounting Policies followed by the Company are as stated in the statement annexed as Annexure-I.

Statement referred to in Note No. 27.22 to the Financial Statements for the year ended 31st March, 2015.

SIGNIFICANT ACCOUNTING POLICIES :

A. SIGNIFICANT ACCOUNTING POLICIES :

I) Basis of Accounting : These financial statements have been brpared in accordance with the Generally Accepted Accounting Principles in India. To comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013,the financial statements have been brpared under the historical cost convention on accrual basis.

ii) Use of estimates :

The brsentation of financial statements is in conformity with generally accepted accounting principles requires estimates and assumptions to be made, that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the period.

Differences between the actual result and estimates are recognised in the period in which the results are known/materialised.

iii) Fixed Assets :

Fixed assets are stated at cost net of modvat/cenvat on construction and includes proportionate financial cost till commencement of production less accumulated debrciation.

iv) Debrciation :

Debrciation / Amortisation In respect of fixed assets acquired during the year, debrciation/ amortisation is charged on a straight line basis so as to write off the cost of the assets over the useful lives and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is debrciated over the remaining useful life, as per schedule II of the Companies Act, 2013.

v) Impairment of Assets:

An asset is treated as impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit & loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

vi) Inventory valuation :

a) Stock of raw materials/packing materials are valued at cost (net of modvat credit) on FIFO basis or net realisable value whichever is lower.

b) Stores & Spares and gift articles are valued at cost or net realisable value whichever is lower.

c) Semi finished goods are valued at approximate cost of input, depending on the stage of completion or net realisable value whichever is lower.

d) Finished goods are valued at cost or net realisable value which ever is lower. Cost for this purpose is determined by reducing the estimated gross margin from the billing price.

vii) Foreign Currency Transaction :

a) Transactions denominated in foreign currencies are normally recorded on exchange rate brvailing at the time of the transaction.Current liabilities related to foreign currency transaction are being converted at the year end at the closing rates for revenue transactions & exchanges gains/ losses in fluctuations of exchange rate are being dealt in the profit & loss account.

b) Monetary items denominated in foreign currencies and covered by forward exchange contracts are translated at the rate ruling on the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction,such difference is being recognised over the life of the contract.

viii) Investments :

The Investments are long term & stated at cost.Provision for diminution in the value of long term investment is made only if such a decline is other than temporary in the opinion of the management.

ix) Sales :

The company recognises sales at the point of dispatch of goods to the customer.

x) Modvat/cenvat :

Modvat/cenvat credit is accounted on accrual basis on purchase of materials and capital goods and appropriated against payment of excise duty on clearance of the finished goods.

xi) Excise Duty :

Excise duty has been accounted on the basis of both, payments made in respect of goods cleared as also provision made for goods lying in bonded warehouses.

xii) Treatment of retirement benefit :

Retirement benefit to employees viz, gratuity is being accounted for on actuarial basis.

xiii) Borrowing cost :

Borrowing cost 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 get ready for intended use. All other borrowing costs are charged to revenue.

xiv) Earning per share:

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity outstanding during the year except where the results would be anti-dilutive.

xv) Provision for Current and Deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing differences"between book and taxable profits is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

xvi) Contingent liabilities :

Contingent liabilities are not provided for.These are being disclosed by way of a note in Notes to Accounts.

xvii) Miscellaneous expenditure :

Miscellaneous expenditure is written off to the profit & loss account over a period of up to five years,depending upon the nature and expected future benefits of such expenditure. The management reviews the amortization period on a regular basis and if expected future benefits from such expenditure are significantly lower from brvious estimates, the amortization period is accordingly changed.

As per our report of even date annexed

For S.P. Moondra & Co.

Chartered Accountants

S.P.Moondra Proprietor

M. No. : 073747

F.R. No. : 004879C

For and on behalf of the Board of Directors

Kedarmal Bankda Chairman & Whole Time Director DIN : 00023050

Vijay Bankda Managing Director DIN : 00023027

Praniti Porwal Company Secretary ACS35282

Ankit Bankda Chief Financial Officer

Place:  Indore

Dated : 30th May, 2015