NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Note 1: Significant accounting policies

1.1 Basis of brparation of financial statements

These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2 Use of Estimates

The brparation of financial statements requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Differences between actual results and estimates are recognized in the period in which they materialize.

1.3 Change in Accounting Estimate

Pursuant to the requirements of Schedule II of the Companies Act, 2013, the management has revised the useful lives of fixed assets to bring it in line with the requirements of the said schedule. The debrciation charge for the year is lower by ? 8,42,281/- as a result of this change.

1.4 Sale/Revenue Recognition

Revenue (income) is recognized where no significant uncertainty as to determination or realization exists. Sales are recognized ex works and are including of excise duty but net of trade discounts and sales tax. Job work income is recognized on delivery of finished goods.

Other Income: Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable

1.5 Inventories

Raw Materials, Store & Spares, and Packing Materials are valued at cost*.

Finished Goods :- Lower of Cost* or Net realizable value.

* Cost is determined on the basis of first in first out (FIFO) method.

1.6 Fixed Assets

Fixed Assets are stated at cost less accumulated debrciation and impairment loss, if any. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition for its intended use including borrowing cost and incidental expenditure during construction incurred up to the date when the assets are ready to use and share issue expenses related to funds raised for financing the project.

1.7 Debrciation/ Amortisation

i) Debrciation on fixed assets is provided as per the Schedule-II of the Companies Act, 2013. As per this Schedule the carrying amount of the asset as on 1 April 2014—(a) shall be debrciated over the remaining useful life of the asset (as defined in the schedule-II) ;(b) after retaining the residual value, shall be recognised in the opening balance of retained earnings where the remaining useful life of an asset is nil.

ii) Debrciation is provided on pro-rata basis from the date on which assets are put to use in case of addition and provided upto the date of sale/disposal in case of sale/disposal.

iii) Debrciation on Plant & Machinery and Moulds is provided on written down value method.

iv) Debrciation on fixed assets, other than Plant & Machinery and Moulds is provided on straight line method.

1.8 Employee Benefits

a) Contribution to the Provident Fund and Employees State Insurance is deposited in accordance with the provisions of the relevant acts and is charged to profit and loss account.

b) Provision for gratuity and leave encashment is made on the basis of actuarial valuation at the end of the year. Actuarial gains or losses are recognized in the Statement of Profit and Loss.

1.9 Provisions

A provision is made based on a realizable estimate made. It is probable that an outflow of resources embodying economic benefits will be realized to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

1.10 Taxes on Income

Tax expense for the year comprising current tax and deferred tax is included in determining the net profit/(loss) for the year.

Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent there is reasonable certainty that sufficient future taxable profit will be available against which such deferred tax assets can be realised. Deferred tax assets to the extent they pertain to brought forward losses and unabsorbed debrciation, are recognised only if there is virtual certainty of realisation, based on expected profitability in the future as estimated by the Company.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date.

1.11 Earning per Share

In determining earning per share, the company considers net profit after tax. Basic earning per share is computed using the weighted average number of equity shares outstanding during the year.Diluted earning per share is computed using the weighted average number of equity shares outstanding including dilutive potential equity shares during the year.

1.12 Chit Fund Loss

Loss on chit is accounted in the year of closure of chit.

25 The Company has not received the required information from suppliers requiring their status under the Micro Small and Medium Enterprises Development Act 2006. Hence disclosures if any relating to amounts unpaid at the year-end together with interest paid/payable as required under the Act has not been made.

26 The operations of Company br-dominantly consist of one segment i.e. Job Work and sale of PET jars / bottles and caps. Therefore, segment wise reporting as per AS -17 "Segmental Reporting " is not required.

27 Based on an overall assessment of the fixed assets, in the opinion of the management there is no impairment of cash generating assets during the year in terms of AS-28 'Impairment of Assets'.

28 In the opinion of Board and to the best of their knowledge, value on realisation of assets, other than fixed assets in the ordinary course of business shall not be less than the amount at which they are stated in the balance sheet (except exbrssly disclosed elsewhere in the notes) and provision for all known liabilities has been made and contingent liabilities disclosed properly.

33 Balances standing to the account of some parties are subject to confirmation/ reconciliation and consequential adjustments if any, upon confirmation/ reconciliation. However , management have the view that same would not having any material impact ; if any.

35 Provision for Income-Tax has been made as per the normal provisions of Income-tax Act,1961.

38 The brvious year's figures are for nine months and the current period figures are for twelve months, and are therefore not comparable

39 Previous year figures have been reclassified/ regrouped to confirm to this years' classification. Previous year figures have been rounded off to the nearest rupee.

In terms of our report of even date attached.

As per our report of even date

For BGJC & ASSOCIATES

Chartered Accountants (FRN- 003304N)

Sd/- DARSHAN CHHAJER

(Partner)

Membership No. 088308

For and on behalf of the board of Directors

Jauss Polymers Limited

Sd/- Abha Garg (Company Secretary)

Sd/- U. D. TRIPATHI (Managing Director)

Sd/- Ashok Kumar Singh (CFO)

Sd/- KETINENI SAYAJI RAO (Director)

Place : New Delhi

Date : 30.05.2015