Significant Accounting Policies And Notes forming part of Financial Statements:

I. COMPANY'S OVERVIEW

Amrapali Industries Limited („The Company') was incorporated on 10-05-1988 vide Certificate of Incorporation No. L91110GJ1988PLC010674 under the Companies Act, 1956. The Company is engaged in the business of different types of activities like entertainment activities, bullion trading, share trading, etc.

II. SIGNIFICANT ACCOUNTING POLICIES

A. Basis of Preparation of Financial Statements

These financial statements have been brpared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been brpared to comply in all material aspects with the accounting standards notified under Section 133 and other relevant provisions of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014.

B. Revenue Recognition

a. Sales are accounted on basis of dispatches.

b. Interest income is recognised on time basis.

c. Dividend income and interest on Income Tax refund is accounted as and when received.

d. Other incomes are recognised on accrual basis.

C. Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated debrciation. All costs relating to the acquisition and installation of fixed assets are capitalized.

D. Debrciation

The company has changed the method of providing debrciation on fixed assets from Written Down Value method to Straight Line Method based on the years as brscribed under Schedule II to the Companies Act 2013. On additions/deletions, pro rata debrciation has been provided.

E. Change In Accounting Policy

The company is using the Written Down Value (WDV) method for calculation of debrciation on tangible fixed assets for earlier years. Now, as per Schedule II of Companies Act, 2013 useful lives have been specified for various types of assets. Due to this change over, the company has changed accounting policy from Written Down Value (WDV) method to Straight Line Method (SLM) for charging debrciation.

F. Exceptional Item

The company has revised its policy of providing debrciation on fixed assets effective April 1, 2014. Debrciation is now provided on a straight line basis for all assets as against the policy of providing on written down value basis for all assets and straight basis for others. The carrying amount as on April 1, 2014 is debrciated over the revised remaining useful life. As a result of these changes, the impact on financial statement has been shown as an exceptional item in the Profit and Loss Account.

G. Inventories :

Inventories are valued at cost or net realizable value whichever is lower.

H. Investments :

Investments in unquoted shares are valued and shown at cost.

I. Borrowing Costs :

Borrowing costs that are attributable to acquisition or construction of assets are included as part of the cost of such assets. All other borrowing costs are charged to the profit and loss statement in the period in which they are incurred.

J. Provisions:

The company recognizes provision when there is a brsent obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits which can be measured only by using a substantial degree of estimation.

Provision for contractual obligation has been provided for in accounts based on management's assessment of the probable outcome with reference to the available information supplemented by experience of similar transactions.

K. Contingent Liabilities:

The company recognizes contingent liability for disclosure in notes to accounts, if any of the following conditions are fulfilled:

i) a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of enterprise; or

ii) a brsent obligation that arises from past events but is not recognized because:

a. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

b. a reliable estimate of the amount of the obligation cannot be made.

L. Taxes on Income:

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.

The deferred tax liabilities recognized for the year ending as on 31st March, 2015 comprise of the following:

M. Impairment of assets

At every balance sheet date, the company determines whether the provisions should be made for the impairment loss on fixed assets by considering the indications that the carrying amount of fixed asset exceeds the recoverable amount as per AS-28 "Impairment of Assets". Considering this, the management is of opinion that there is no impairment of assets during the year under audit; hence no provision is required to be made.

2. Reporting under Micro, Small and Medium Enterprise Development Act, 2006

The Company has not received information from vendors regarding their status under the Micro, Small & Medium Enterprise Development Act, 2006 and hence disclosure relating to the amount unpaid at the year-end together with the interest paid / payable under this Act has not been given.

3. The search proceedings u/s.132 of the Income-tax Act, 1961 has been carried out by the Income-tax Authority at the business brmises of the company AmrapaliIndustries Ltd. on 26/10/2012. In pursuance of the search proceedings, the company has filed application before the Hon'ble Settlement Commission, Mumbai. Wherein the company has disclosed net additional income of Rs. 11,58,98,063/- for the F.Y.2006-07 to 2013-14 relevant to A.Y.2007-08 to 2014-15. During the year the Hon'ble Settlement Commission has passed an Order u/s.245D(1) of the Act dated 21/11/2014 admitting the application of the company and the Hon'ble Settlement Commission has also passed an Order u/s.245D(2C) of the Act dated 9/1/2015 considering the application of the company as valid. The company has paid Income-tax with interest on the net additional income offered before the Hon'ble Settlement Commission for an amount of Rs.6,81,25,000/-. The necessary accounting entries have been passed in the books of accounts. The net additional income offered before the Hon'ble Settlement Commission has been shown under the head "Reserves & Surplus" for an amount of Rs. 11,58,98,063/-. The taxes with interest paid Rs. 6,81,25,000/- on net additional income offered before the Hon'ble Settlement Commission, has been shown under the head "Long Term Loan & Advances". The final hearing and order of the company of Hon'ble Settlement Commission u/s.245D(4) of the Income-tax Act, 1961 is pending.

For, MehulThakker& Co.,

Chartered Accountants

Firm Reg. No. 118993W

(S. P. Thakker)

Partner

Memb. No. 032233

For Amrapali Industries Limited

Yashwant Thakkar Managing Director DIN:00071126

Rashmikant Thakkar Director DIN: 00071144

Date : 30-05-2015

Place : Ahmedabad