1. Significant Accounting Policies and Notes forming part of Financial Statements for the year ended 31st March, 2015

(i)Basis of Accounting

The financial statements have been brpared and brsented under the historical cost convention on accrual basis of accounting in accordance with the accounting principles generally accepted in India and in compliance with provisions of the Companies Act, 2013 and comply with the mandatory Accounting Standards (AS) specified in the Companies (Accounting Standard) Rules, 2006, brscribed by the Central Government. The accounting policies have been consistently applied by the company.

(ii)Revenue Recognition

a. Revenue from services is recognized as and when services are rendered as per terms of contract.

B .Income from investments/other income is recognized on accrual basis.

c. Revenue from sale of goods is recognized when significant risk and rewards in respect of ownership of product is transferred to the customers, which is generally on dispatch of goods.

(iii)Investment

Long Term investment are stated as cost, other than temporary investments, if any.

(iv)Fixed Assets

Fixed assets are stated at cost of acquisition or construction including installation cost, attributable interest and financial cost till such time assets are ready for its intended use, and foreign exchange fluctuation on long term borrowing related to fixed assets, less accumulated debrciation, impairment losses and specific grants received if any.

(v)Debrciation and amortization

a.Debrciation on fixed assets except free hold land is calculated on straight line basis at the rates specified in accordance with the Schedule II of the Companies Act, 2013.

b.Product Development expenditure and License/Technical know-how fees are amortized over a period of 10 years from the accounting year in which the commercial production of such improved product commences.

(vi)Foreign Currency Transactions

a.Foreign Currency transactions are recorded on the basis of exchange rates brvailing on the date of their occurrence.

b.Foreign currency monetary assets and liabilities as on the Balance Sheet date are revalued in the accounts on the basis exchange rates brvailing at the close of the year and exchange difference arising there-from is charges/credited to the Profit & Loss Account except for the exchange difference arising on long term borrowings related to fixed assets, which capitalized.

(vii)Borrowing Cost

As per Accounting Standard 16 on "Borrowing Costs" borrowing costs that are: (a) directly attributable to the acquisition, construction, production of a qualifying assets are capitalized as a part of cost of such asset till the time the assets is ready for its intended use and (b) not directly attributable to qualifying assets are determined by applying a weighted average rate and are capitalized as a part of the cost of such qualifying asset till the time the asset is ready for its intended use. Remaining borrowing costs are recognized as an expense in the period in which they are incurred.

(viii)Contingencies and Provisions

A provision is recognized when the Company has a brsent obligation as a result of past event. It is probable that an outflow of resources embodying economic benefit will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on the best estimate of the expenditure required to settle the obligation at the balance sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect current best estimate.

A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefit is remote.

(ix) Taxation

Tax expense comprises of current tax and deffered tax charge or credit. Current tax is measured at the amount to be paid to tax authorities in accordance with the Indian Income Tax Act. The deferred tax charge or credit is recognized using brvailing enacted or substantively enacted tax rate. Where there is unabsorbed debrciation or carry forward losses, deferred tax assets. Other deferred tax assets are recognized only to the extent there is reasonable certainly of realization in future.

1 Income Tax Provision

No Provision for Income Tax have been made as there is no profit during the year.

2 Segment Reporting

The Company operates in only one business segment hence segment wise reporting as required by AS 17 issued by Institute of Chartered Accountant of India, is not applicable

3In respect of loan granted by ICICI Bank Ltd. worth Rs. 3 crores which was assigned to Kotak Mahindra Bank has been settled in One Time Settlement by payment of a sum of Rs. 27.50 lacs. There is no amount due and payable in respect thereof and same has been considered as a prior period expenditure.

4Balance of Debtors and Creditors and advances/deposits revived from dealers/customers are as per book of accounts. Sundry creditors are subject to confirmation and reconciliation, if any.

5.In the opinion of the Board of Directors and to the best of their knowledge adequate provisions has been made in the accounts for all known liabilities and the current assets, loan and advances have a value on realization in the ordinary course of business.

In terms of our report attached of even date

For J D Jhaveri & Associates       

For and on behalf of the Board

Chartered Accountants

F R No. 111850W

Jatin D. Jhaveri Proprietor Membership No. 045072

Vijaysingh Padode Chairman & Managing Director

Sanjay Padode  Director

Place: Mumbai

Date: 29th May, 2015