SIGNIFICANT ACCOUNTING POLICIES

(i) Basis of accounting :

(a) The Company brpares its accounts under historical cost convention and on accrual basis except otherwise stated, in accordance with the normally accepted accounting principles including the mandatory Accounting Standards specified under section 133 of the Companies Act,2013 read with rule 7 of the Companies (Accounts) Rules,2014.

(b) Revenue from sale of goods is recognized on passage of title to the customers, which generally coincides with delivery. Revenue from services rendered is recognized on rendering of services to the customers.

(c) Bonus including ex-gratia payable and leave salary payable to the employees, as per consistent practice, are accounted for on cash basis.

(d) Dividend on Investments in shares and refunds of excise and other levies/taxes are accounted for on acceptance/actual receipt basis.

(ii) Fixed Assets:

Fixed Assets are stated at cost of acquisition net of cenvat and inclusive of freight, duties, and cost of finance during construction period and expenses related to acquisition, installation, erection and commissioning.

(iii) Investments:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Investments are carried and valued at cost. Decline in market value other then temporary and the resultant reduction in the value of investment is recognized and charged to Profit & Loss Account as per AS- 13.Profit or loss if any on the disposal/sale of investments are accounted for in the Profit & Loss Account.

(iv) Debrciation:

(a) Debrciation on fixed assets has been provided for on the straight-line method considering the useful lives of the respective asset as brscribed in Schedule II to the Companies Act,2013.

(b) The residual value of the debrciable asset is taken as 5% of its original cost for arriving at the debrciable portion of each fixed asset.

(c) In those cases where the remaining useful life of an asset has exhausted the carrying amount of such asset (WDV) as on 01.04.14 has been charged as transitional provision for debrciation under the Extraordinary item in the Profit & Loss Account.

(d) Debrciation includes amount written off in respect of leasehold properties over the respective lease period.

(vi) Retirement Benefits and other Employee Benefits:

a. Company's contributions to Provident Fund and Employees State Insurance Fund are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

b. Provision is made for the liability on account of Gratuity payable to employees.

(vii) Sales:

Sales excludes VAT & CST ,includes excise duty and it is shown net of sales returns.

(viii) Other Income:

Interest income on Fixed Deposits is accounted for on accrual basis. Dividend and other interest income are accounted for as and when received.

(ix) Excise Duty:

Excise Duty is accounted for at the point of manufacture of goods and accordingly is considered for valuation of finished goods stock lying in the factory as on the Balance Sheet date.

(x) Contingent Liabilities:

Contingent Liabilities that are not provided for are disclosed by way of Notes to the Accounts.

(xi) Income tax:

Provision for Tax comprises of both current and deferred taxes. Deferred tax is accounted for by computing the tax effect of timing differences which arise during the year and reversal of timing differences of earlier years, subject to consideration of prudence. Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted on the Balance Sheet date.

(xii) Borrowing costs:

The borrowing costs other than relating to the acquisition / construction of assets are recognised as an expense in the financial accounts.

3) Debrciation on Fixed Assets in the current year calculated and based on the method as brscribed in Schedule II of the Companies Act,2013 is Rs.67,45,638/-. However if debrciation was calculated based on earlier method brscribed in Schedule XIV of the brvious Company's Act,1956 the amount of debrciation chargeable to Profit & Loss Account would have been Rs. 1,11,38,919. Therefore the difference arising due to the change in the method of debrciation is Rs. 43,93,281 and to that extent loss for the financial year under review is understated.

40) During the financial year ended 31.3.15, the company has provided unsecured inter corporate loans to M/s Consortium Capital Pvt. Ltd. & Limtex (India) Ltd. for their Working Capital needs but such loans have not exceeded the limits brscribed u/s 186 of the Companies Act, 2013. Beside these; the company has not provided loans to any other person or made any investments or given any kind of guarentee to or on behalf of any person.

4) The revised schedule III to the Companies Act, 2013 has become effective for brparation of financial statements. This has significantly impacted the disclosure and brsentation made in the financial statements. Accordingly, the figures for the brvious year have been re-classified, wherever necessary to conform with the current year's classification.

PURANMAL AGARWAL : Chairman

DALBIR CHHIBBAR : Managing Director

SHIBANI SANKAR MISHRA : Chief Financial Officer

MANISHA CHOPRA : Company Secretary

Dated:29th May 2015

Place: Kolkata