1. Significant Accounting Policies

i. System of Accounting

The company follows accrual system of accounting for all items of costs and revenue.

ii. Inflation

Assets and Liabilities are shown at historical costs and no adjustments are made for changes in purchasing power of money.

iii. Fixed Assets

Fixed Assets are recorded at cost of acquisition or construction plus appropriate share of br-operative expenses. Capital Work in Progress

Fixed Assets not yet ready for their intended use are carried at cost, comprising direct cost and related incidental expenses.

iv. Debrciation

Debrciation on fixed assets has been charged on written down value method at the rates specified in Schedule II to the Companies Act, 2013.

v. Revenue Recognition

Revenue in respect of insurance/other claims, interest, commission etc. is recognised only when it is reasonably certain that the ultimate collection will be made.

vi. Gratuity

No provision has been made in accounts for gratuity, as the same will be accounted on cash basis.

vii. Taxes on Income

No provision for deferred tax asset is made on account of the business loss and unabsorbed debrciation carried forward under the Income Tax Act. The deferred tax assets has not been recognized as there is no reasonable certainty of sufficient taxable income being available against which such deferred tax assets can be realized.

2. The company has not made any provision for gratuity payable to the Managing Director. There are no other employees who are eligible for Gratuity payment during the year. The liability as per actuarial valuation has not been determined.

3. The balances in sundry debtors, loans and advances, and sundry creditors are as per the books of accounts for which the company has not obtained confirmations from certain parties. The said balances are therefore subject to the confirmations and consequent reconciliation if any.

4. In compliance with Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has during the current year followed Deferred Taxation in respect of taxes on income. As a consequence, the company has created Net Deferred Tax Liability of Rs. 4,62,271/- in respect of temporary differences mainly due to difference in book value and income tax value of the block of assets as existing on 31.03.2015 by debiting it to Profit & Loss Appropriation Account.

7. Previous year's figures have been regrouped and rearranged wherever necessary.

As per our Report of even date

For R. B. Pandya & Co.,

Chartered Accountants

RAJESH PANDYA

Proprietor

FOR AND ON BEHALF OF THE BOARD

VARSHA SETHI

(Director)

D.N.JHA

(Director)

PLACE: MUMBAI.

DATE : 0lSt0ulj*015